Which savings, investments and risks?

Semi_Quaver

Hi all,

I'm aware some people use ISAs, some have regular savings accounts, some have pension funds, some buy things like property or gold.

I'm completely ignorant of the different options available for saving money, investing money, preparing for the future (retirement etc) and what all of the pros and cons are.

My case:
- I'm 25 and I have zero savings and zero assets.
- As of January 2012, I will live in the USA (and am likely to alternate between a few years there and a few years here until I settle).
- As of January 2012, I will earn about £37k and if I stay in this industry, my salary will rise nicely each year.

I would like to know what I should start doing with my excess money both in terms of saving money or making worthwhile investments that might make me a little extra and - the important one - ensuring I'm not screwed when I retire.

Any and all advice would be most appreciated!

Thank you,
SQ

calypso_rhapsody

I won't try to answer this because my knowledge of the impact of you're being overseas for many years is very limited.

But i would encourage you to search for threads about books for financial novices - there was one recently that i recall had 'dummies' in the title ... someone strongly recommended FT publications. You should at least start to learn the pros and cons of the various asset classes.

And well done to be thinking about the future and retirement at the age of 25!

dunstonh

- As of January 2012, I will live in the USA (and am likely to alternate between a few years there and a few years here until I settle).

What will your resident status be? Do you plan on becoming a US citizen?

Given the taxation issues that the US has, you need to be very careful what you do and where you do it otherwise you run the risk of being hit with double taxation. The US does not recognise most other tax wrappers from other countries.

Semi_Quaver

Hey folks, thanks for the replies.

Initially, I'm going to the US as a nonimigrant worker but my beloved (USC) lives there and we may marry in a couple of years and I may apply for citizenship after that. I'm aware of the law that US Citizens are liable to continue paying US taxes even when living and working in other countries although I don't know enough to know the full extent or impact (if any) that would have on me switching between the US and the UK.