Advice Needed For Small Fish

shaz77_2

Hi All,

I cannot make overpayments on my mortgage and all outstanding debts are paid, however for the last number of months I have an excess of at least £3000 that I'd like to put to more use.

I have £200 in Premium Bonds and no ISA, what do people recommend? I don't mind taking a risk and I'm prepared to lock my money away.

I also have no knowledge/experience of stocks and shares.

Thanks in advance

atush

Do you pay tax? If yes, open an ISA- you should be able to find one in the 3% range.

Second, after paying off debt, and int he abscence ot mtg overpayments you need 6 months in spending saved as cash. Then save in S&S isas or a pension or better yet both.

shaz77_2

Thanks for that, yes I am a tax payer and my gross salary is in the region of £20k of which I contribute 3% into a pension scheme and my employer pays 5%

I have my mortgage repayments covered for the next 36 months and on top of this I have an extra £3000, I just don't think that I'm being sensible with my money.

Are ISA's still considered the best way forward?

atush

How is the 36 months mtg saved? If not into ISAs you are paying tax. So start filling up those Cash ISAs each year.

If it is all in cash isas, and this years is full, put the 3K into a S&S isa or lump sum into your pensiion.

shaz77_2

That sounds like good advice, how do the S&S ISA's work? Sorry this is all new to me.

atush

You open an isa and deposit a sum (or invest monthly by DD) and then you choose investments from the ones avaialbe in your ISA/Platform. From singel shares to funds such as OEICs and investment trusts to bonds to gilts (the last two are in effect loans to comoanies or govts).

You can open many online, or you can go to your bank (not rec'd bye me) or an IFA (not really sutiable due to charges unless you have built up a considerable sume) or youc an DIY online some place like iii, Cavendish online, Hargreeves lansdown.

But DIY does mean doing some learning and research into investments to help you decide what and where to invest. There are some 'passive' things to invest in to get your started like Tracker funds etc, but you need to decide where and what int he world you want to 'track' such as just UK shares (ie the FTSE 100 or all share), or US shares or global etc.