Best way for a newbie to invest 50K?

SherJava

Hello ladies and gents,

I'm 23 years old and after doing some saving etc. I saved up 50k.

I want to invest this 50k and make some nice return or generate a nice monthly income from it. The timeframe I'm looking for is 8 years.

I have no expierence in the investment life. I only know a few basics about the stock, property market.

I have no debts, and I live with my parents so no mortages etc.

I'm just looking for some advice to head me towards the right direction.

innovate

You can/should do lots of reading to start with, e.g.

http://www.moneysavingexpert.com/savings/
http://www.moneysavingexpert.com/savings/discount-pensions
http://www.amazon.co.uk/Smarter-Investing-Simpler-Decisions-Results/dp/0273722077/ref=sr_1_1?ie=UTF8&qid=1361019861&sr=8-1
http://monkeywithapin.com/
http://monevator.com/category/investing/passive-investing-investing/

maryleerk06

Personally I would invest the money in the following:

Cash ISA - This site will tell you the best interest rates.
Stocks & Shares ISA - as innovate mentioned do some reading on this, plus there is an investment video course here that might help: http://www.rplan.co.uk/rplan-university
Pension or SIPP - This is more for long term goals but it is good to start planning for the future as early as possible.

Hope this helps.

Totton

Maximise your Cash ISA's first, set aside 3 months salary as instant access for rainy day money and then consider low cost tracker funds only if you can bear losing some or a lot of your investment.

bigfreddiel

Totton wrote: »

Maximise your Cash ISA's first, set aside 3 months salary as instant access for rainy day money and then consider low cost tracker funds only if you can bear losing some or a lot of your investment.

"I'm 23 years old and after doing some saving etc. I saved up 50k."
don't bother - at 23 and managed to save £50k you're doing alright -just keep doing it and wack your money into a handful of ftse 100 shares that yld about 4-5% - reinvest divis - simples

fj

jimjames

bigfreddiel wrote: »

"I'm 23 years old and after doing some saving etc. I saved up 50k."
don't bother - at 23 and managed to save £50k you're doing alright -just keep doing it and wack your money into a handful of ftse 100 shares that yld about 4-5% - reinvest divis - simples

fj

£10k a year saving since 18 or £25k a year since 21 is mighty impressive. Not many 23 yo earn that let alone can save it.

I just hope its real!

bowlhead99

jimjames wrote: »

I just hope its real!

Yeah I'm sure it is. We never get trolls on here wasting our time...

I wish I could do "some saving etc" and suddenly have 50k.

Fortunately as there is no 'one size fits all' solution for the definitive way to invest 50k (presuming the 50k has been 'saved' so far and doesn't produce adequate returns, hence 'investment' is being sought), the best thing to do is to simply advise that the OP searches and reads through all the thread responses in the last year or so - and follows all the links to books, research and financial blogs scattered around similar threads to this.

Once they've read most of the threads and links, they will find the new ideas start to dry up and most of the ideas appearing are just repeats of things that have been suggested before but phrased slightly differently or in relation to a slightly different amount of money or a slightly different age range or personal circumstance or attitude to risk. By that point, the search is complete and the OP is well armed with ideas.

Alternatively one of us could go through all the existing threads on behalf of the OP and pull all the concepts, themes and ideas out and heavily edit the content to tailor it for a guesstimation of his goals, attitude to risk, future financial circumstances and aspirations - but I suspect the reward for this spoonfeeding would not justify the effort, if a nice chunk of the 50k is not being offered by way of incentive.

waiax73

bigfreddiel wrote: »

"I'm 23 years old and after doing some saving etc. I saved up 50k."
don't bother - at 23 and managed to save £50k you're doing alright -just keep doing it and wack your money into a handful of ftse 100 shares that yld about 4-5% - reinvest divis - simples

fj

Agreed! Simples!