Investment ideas needed as money in the bank is pointless

fizio

What are peoples ideas on where to invest to get a decent return.
I'm thinking low-medium risk and 5-10% return.
I will consider lumpsum upto 50k or 2k per month and for 5-10 years

I am already heavily invested in uk/ww stockmarkets/bonds via my AVC pension contribution and also have stocks and shares ISA's so not really sure I should put even more cash into the stock market.
I don't have a mortgage but also have a second property rented out plus a riskier property abroad so not sure I want to put more money into property.

Other options are Gold etc but i suspect i have missed the boat already.

Any ideas welcome as having large sums in the bank at 1% is doing me no favours at all.

opinions4u

Any ideas welcome as having large sums in the bank at 1% is doing me no favours at all.

Moving money in to accounts paying 3%+ ?!!

fizio

opinions4u wrote: »

Moving money in to accounts paying 3%+ ?!!

Fair point and I am looking at switching accounts - though even 3% is pretty poor after paying 40% tax!!

atush

Well for a start, as a HRT payer haver you considered putting some into a pension? NSI ILSCs when they come back out?

there is nothing LOW risk that will give you 5-10%.

jimjames

As above the risks are totally different to money in the bank.

If you are looking for a better return and can handle more of a rollercoaster then things such as equity income funds or investment trust shares could give an income return of 4%+ per year plus the capital growth as well. Some investment trusts pay no income or roll it into capital so no income tax liability.

Assume you have maxed out ISAs etc and other options for saving.

fizio

I am willing to take some risk so thats not an issue.

In terms of pension/income/investment trusts then I am already paying something like 30% of my salary into pension/avc's and have a wide range of funds included and with the 40% tax break it seems the best way to invest in the worlds stock markets rather than using net salary.
I have used up ISA allowance as well.

Wobblydeb

A few thoughts spring to mind

- specialist investments such as antiques / wine / modern art? Have you got an interest you could expand into this type of area?

- Some form of trading e.g. currency / commodities - again only suitable if you've got the time to dedicate to understanding it properly.

- P2P lending like Zopa?

Linton

You could look at the Prudential with profits bond. Most with-profits bonds have been poor, but the Pru is an exception and had (possibly still has) a policy of exceeding building society interest rates. It is free of basic rate tax.

Perhaps you could discuss your predicament with an IFA.

calypso_rhapsody

what are you saving for? if for your retirement why not put more into your pension and get the tax relief benefit? presumably your AVC arrangement offers some lower risk investment choices? or you could think about a SIPP?

if they are still available, a CITRA (charity investment ... account) might be of interest - mine pays the equivalent of over 8% to a higher rate tax payer and is FSCS protected. But not sure if there are any still available - and you have to tie your money up for 5 years (with very limited early withdrawal options to qualify for the tax relief).

No one has mentioned EIS or VCT - personally i don't touch them but i believe there are some that are marketed as being low risk ... do your research though!

DiggerUK

haf63 wrote: »

........I will consider lumpsum, upto 50k or 2k per month, and for 5-10 years.....Other options are Gold etc but I suspect I have missed the boat already....

You could try explaining to yourself what you mean by "missed the boat"....with no other boat in the harbour worth catching, you need to ask why price of gold has risen.
Some will say, it's because there are a lot of people out there who are bonkers.
Me, I see absolutely no risk putting all your spare money in to gold.
But you may be happy to consider a conservative 10%, and watch it from here on in.
..._

Rollinghome

Linton wrote: »

You could look at the Prudential with profits bond. Most with-profits bonds have been poor, but the Pru is an exception and had (possibly still has) a policy of exceeding building society interest rates. It is free of basic rate tax.

Perhaps you could discuss your predicament with an IFA.

That's the claim that many advisers use to sell them but isn't actually true. Tax has already been deducted.

If you don't know how taxation on insurance bonds works you'll find this article useful: http://www.candidmoney.com/investment/lifeinvest.aspx