10K to invest

wstainsby

Hi,

i have just got 10k from a with profits bond and i need to re invest it. any ideas?
I'm 24 with no debts.

I was thinking about REITS?

anyone got any words of wisdom?

thanks in advance?

DontDoDebtKids

Personally, I'd put 6 months worth of living expenses in the highest interest instant access savings account I could find and then invest the rest.

The investments I'd go for would probably be shares - if you don't know all that much about investing then consider an index tracker (find the cheapest one you can - i.e. one with the lowest costs) as that will do the job nicely. If you want a more active role, be aware that it is very easy to lose money and quite hard to beat the performance of index trackers...

With any investment (rather than savings), it's vital to DYOR - Do Your Own Research.

Start reading (books, websites, etc.)....

I would recommend The Motley Fool for a place to start.

dunstonh

I was thinking about REITS?

That obviously involves a move up the risk scale from what you had before. What part of the world did you have in mind or global in general?

ad44downey

Don't re-invest it in a with-profits bond thats for sure. What a f...ing rip-off

dunstonh

ad44downey wrote: »

Don't re-invest it in a with-profits bond thats for sure. What a f...ing rip-off

Yep, all those Norwich Union or Pru with profits funds paying out in excess of 10% a year with a high proportion of capital security are a rip off.....
:rolleyes:
The problem with generalisations is that whilst you are right some of the time ,and in this case most of the time, there are exceptions to the rule.

wstainsby

So are there any with profits worth investing in? charges?

dunstonh

So are there any with profits worth investing in? charges?

There are only probably two you would consider nowadays and thats NU and Pru. Both offer low cost contracts on a unitised with profits basis and both have had good growth. That said, it is still something that I would be putting people off and only using if they absolutely fitted the Unitised With Profits style and were almost insistent on that. Some of the guarantees that are attached to with profits can be easily obtained on unit linked investments (i.e. capital guarantee on death).