Young kid on the block..

PoorRichBoy

Hi,

I was seeking investment advice.

Basically I'm 20 and I am looking to have saved about £100k by 24. Currently I have £5640 in an ISA fixed for 3years, £1000 in Zopa, and should have about £3.5k by end of July. I further have £6.3K lent to a family member interest-free. So this roughly equates to £16K. I start a new job mid next moth and should have about £1775 after TAX & NI. I live at home so my costs are quite minimal.

I'm looking for advice on how to maximise returns based on the above. I am not interested in shares as I have lost about £7k on AIM shares in the past.

Much advice is appreciated.

Thanks

PRB.

aideng

I'd say thats pretty ambitious . Just to keep it simple and disregarding any interests, even if you save 1500 pounds per month, you still only save 18000 per year, thats 72k in 4 years...

PoorRichBoy

aideng wrote: »

I'd say thats pretty ambitious . Just to keep it simple and disregarding any interests, even if you save 1500 pounds per month, you still only save 18000 per year, thats 72k in 4 years...

Thanks, I'm hoping salary increases, interest from savings etc shall compensate.

JoeCrystal

Hmm... Considering that you got a saving goal of £100,000, I am not entirely sure you should be investing anyway. Investing are generally five to ten term or even longer. Let look at the figures shall we. So far, you got a total of £5,640 so far. I am not taking your loan to family member into account since it may be impossible to get it back and I have no idea about Zopa. So that leave £23,590 per year to save over 4 years. Bearing in mind that your income is £21,300 per year. If you save for five years, you will hit it anyway.

Of course, the question is that can you maintain such saving for five years, that would require one hell of discipline so I wish you good luck. To be honest, I would suggest that you look into pension scheme as well when you started working at your new job. If your employer pay into that, the it would be foolish to turn down free money.

I can really understand about your wariness about AIM shares. I got quite few fingers brunt on them. In spite of losses, I still enjoy investing, which will prove hazard to my well being I guess one day. But hey, it give me a thrill so...

Cheers

Joe

PoorRichBoy

JoeCrystal wrote: »

Hmm... Considering that you got a saving goal of £100,000, I am not entirely sure you should be investing anyway. Investing are generally five to ten term or even longer. Let look at the figures shall we. So far, you got a total of £5,640 so far. I am not taking your loan to family member into account since it may be impossible to get it back and I have no idea about Zopa. So that leave £23,590 per year to save over 4 years. Bearing in mind that your income is £21,300 per year. If you save for five years, you will hit it anyway.

Of course, the question is that can you maintain such saving for five years, that would require one hell of discipline so I wish you good luck. To be honest, I would suggest that you look into pension scheme as well when you started working at your new job. If your employer pay into that, the it would be foolish to turn down free money.

I can really understand about your wariness about AIM shares. I got quite few fingers brunt on them. In spite of losses, I still enjoy investing, which will prove hazard to my well being I guess one day. But hey, it give me a thrill so...

Cheers

Joe

Thanks a lot Joe! My aim is ideally by 4years (48mths). I was thinking to invest £5k in a low-medium risk investment fund as this spreads risk and see how things look 3-4years down the line..

I'm hoping to be on the property ladder by 26-27. My new role is a trainee role so I'm hoping the salary increases once qualified within a year, though shall see how things flow.

grey_gym_sock

some ppl are natural savers. if you are, this plan may be realistic. but if it turns out that it's making you miserable, then it's not worth sticking to it 100%.

if you are scared of AIM shares, i think you should be scared of lending on zopa, too.

if you want to put your money into a house deposit in 6 or 7 years, it's a bit too short a timescale for shares, anyway.

a pension is probably only a good idea at this stage if your employer will match your contributions. if they will, it's hard to beat. if they won't, you can think about pensions later, when you might be getting tax relief on your contributions at a higher rate of tax than now, and concentrate on saving a house deposit.

PoorRichBoy

grey_gym_sock wrote: »

some ppl are natural savers. if you are, this plan may be realistic. but if it turns out that it's making you miserable, then it's not worth sticking to it 100%.

if you are scared of AIM shares, i think you should be scared of lending on zopa, too.

if you want to put your money into a house deposit in 6 or 7 years, it's a bit too short a timescale for shares, anyway.

a pension is probably only a good idea at this stage if your employer will match your contributions. if they will, it's hard to beat. if they won't, you can think about pensions later, when you might be getting tax relief on your contributions at a higher rate of tax than now, and concentrate on saving a house deposit.

I was thinking about a buy-to-let property?