£100 per month in premium bonds ?

version2014

Hello,

I am saving £100 a month in premium bonds at present - but seem to win erm - NOTHING!

Knowing nothing about saving or investments...I need some advice, what is better out there to get a decent return ?

Any advice appreciated

ic

Have a play with the calculator. I play the lottery, but have yet to win the jackpot

http://www.moneysavingexpert.com/savings/premium-bonds-calculator

C_Mababejive

I am actually going the other way and liquidating some of my long held bonds.

CLAPTON

With premium bonds you are gambling with the interest you might otherwise have earned.

Some gamblers never win anything; that's why it's called gambling.

version2014

Hi all thanks for the replies...to be honest I know it's gambling and feeds into the dream of I could win a million...just guess now I am happy with my PB holding (happy to leave what I have in) but wondering if I could move forward using the £100 for shares or something like that.

However I know nothing of stock and shares isa's/managed funds etc..so wondered if anyone has any top tips.

Preferably low risk/medium risk.

Any ideas?

Alex92_2

version2014 wrote: »

Hi all thanks for the replies...to be honest I know it's gambling and feeds into the dream of I could win a million...just guess now I am happy with my PB holding (happy to leave what I have in) but wondering if I could move forward using the £100 for shares or something like that.

However I know nothing of stock and shares isa's/managed funds etc..so wondered if anyone has any top tips.

Preferably low risk/medium risk.

Any ideas?

£100 wont make anything worthwhile with S&S, even £5K wouldnt imo unless it was a very high risk strategy. I dont know much about it too, but I know that much.

Best chucking it into First Direct Monthly Saver 6% each month mate.

bigfreddiel

£100/month

okay this is what to do

1 stop buying pbs - hold onto what tou have - you ccould win £1m

2 have you got 6 month salary saved - if not do that

3 have you any debt (not mortgage) - pay it off

4 if you're on a fs pension pay it all into that

5 no pension - company one available - pay ino that

6 no company pension - open a sipp - lifestrategy 60% ACC fund

7 pensions okay, no debt, 6 month savings - ISA - lifestrategy 60% ACC

do this for the next 40 years and you'll be fine

see ya!

fj

jimjames

Alex92 wrote: »

£100 wont make anything worthwhile with S&S, even £5K wouldnt imo unless it was a very high risk strategy. I dont know much about it too, but I know that much.

Best chucking it into First Direct Monthly Saver 6% each month mate.

Not sure I agree with that, you need to start somewhere and even £100 per month will build up inside an ISA if regularly invested every month.

As per bigfrediel's suggestions you don't say how much you have in emergency funds but follow things in that order and remember that it might seem a small amount at first but taking the plunge and having the discipline to save every month is a very good start.

bigfreddiel

version2014 wrote: »

Hi,

Have 6 months saved....have a pension not Final Salary (guessing thats what FS means?)...have no debts minus mortgage...should i look into a lifestrategy account (think thats what your recommending?)

yes - the vanguard lifestrategy 60% accumulation fund is a good balanced portfolio for someone who doesn't know too much (no offense intended) it may grow at 10%/annum -do that for 30 years and its a nice sum.

in time you will learn more and may be create your own strategy

now, one other point - the vanguard lifestrategy funds aren't available on all platforms - you need to find out first - i use td directinvesting

take a look at the monevator web site - it has loads of info

cheers

fj

bigadaj

bigfreddiel wrote: »

yes - the vanguard lifestrategy 60% accumulation fund is a good balanced portfolio for someone who doesn't know too much (no offense intended) it may grow at 10%/annum -do that for 30 years and its a nice sum.

in time you will learn more and may be create your own strategy

now, one other point - the vanguard lifestrategy funds aren't available on all platforms - you need to find out first - i use td directinvesting

take a look at the monevator web site - it has loads of info

cheers

fj

Surely you've missed the most important element, avoid IFAs and as much of the financial industry as you can!

marathonic

Most of the advice here seems okay. Looking at that premium bonds calculator, only 3.76% of people with £30,000 invested will make £3,000 over 10 years. That's atrocious. Better to take it out and put it in an ISA.

I've recently bought a house and am working on replenishing the emergency fund given that all funds went to the deposit.

As a single person with no dependants, I'll be comfortable with 4-5 months worth of expenses (not salary) in this fund and it'll be kept in a Cash ISA - transferring to the best rates annually.

I'm also planning to open a S&S ISA this week, into which I'll be putting £50 monthly (just to keep it ticking over until I've completed building the emergency fund).

As should be the case, contributing at least enough to get my employers contributions to my pension has always been top priority for me - and contributing more where possible.

The S&S ISA will be via funds initially and, potentially, switching to individual shares as the fund size grows.

My mortgage is on a 2-year deal so, when it comes close to remortgaging, I'll judge my LTV and, if I'm close to one of the bands that would give me a better deal, may use some ISA funds to pay the mortgage down a little (freeing up more money on a monthly basis to replenish the ISA).

The above comments with regard to an IFA are only applicable if you have a small net-worth. Obviously, anyone with £50,000+ may be well advised to use the services of an IFA if they weren't up-to-speed with their investments themselves.