What to do with 25k? Is the wife right?

Strictly_Mad

Hi all,

My wife and I have 25k to invest. She wants to put 5k in bonds as we won £50 from £100 pounds worth and then save the rest in ISAs nad savings a/cs.

I would open an ISA each and then do the dripfeed process.

OR is there a better way?

Any suggestions would be greatly appreciated.

Cheers.
:beer: :beer: :beer: :beer:

sham63

Put the 5k in a Building Society and use the interest to buy lottery tickets. The odds are much better than PBs.

Jonbvn

Sorry, but PB's are not worth it according to this article from MSE Martin.

I would max out your cash mini ISA's. This year 3k each.

Assuming you need some rainy day savings, put some into an instant access savings accounts. 3 months outgoings seems to be favoured.

The rest I would put into NS&I Index Linked savings certificates.

Bokkens

Yeah, definately ISA's after April you will be able to invest £3600 each.
There is always ISA bonds( I think thats the correct name) as well if you want to max out your tax free annual allowance at £7000 each that would include the £3000 each in normal ISA's.A total of £14000 each.
There is always property investment but you will need more funds and the risks are greater as you know the market can go up and down.So CASH is probably the best at the moment until the market improves.

Aegis

Strictly_Mad wrote: »

Hi all,

My wife and I have 25k to invest. She wants to put 5k in bonds as we won £50 from £100 pounds worth and then save the rest in ISAs nad savings a/cs.

I would open an ISA each and then do the dripfeed process.

OR is there a better way?

Any suggestions would be greatly appreciated.

Cheers.
:beer: :beer: :beer: :beer:

With £25k, my own personal portfolio (assuming I had a wife!) would be something like:

£6k in mini cash ISAs (one for me, one for her)

£8k in mini stocks and shares ISAs (likewise, though this one could be dripo feeding in from non-ISA savings to allow for pound-cost averaging)

£11k in a high interest savings account waiting for the next tax year to roll around so I could repeat the process. Alternatively some of it could be going into regular savers, or tied up in a year long certificate or bond, depending on the available rates and how desperate I was to get as much into the S&S ISA early next year (though I understand the system is changing a little as of April 2008)

I wouldn't touch the premium bonds personally unless I was a higher-rate tax payer, and even then I would prefer some of the other tax-efficient savings to those. When I gamble, I prefer some skill to be involved and for the rewards to generally make it worth playing!

Strictly_Mad

I like Sham63's idea, but I think the wife would have me committed....that would be after I'm picking up my love spuds from the kitchen floor! :rotfl:

Thanks for the advice thus far.

dunstonh

I like Sham63's idea, but I think the wife would have me committed....that would be after I'm picking up my love spuds from the kitchen floor! :rotfl:

That is what you are doing with premium bonds. You are giving the Govt your money to enter raffle.

So, buying scratch cards with the interest on a savings account is not dissimilar to buying premium bonds.

Aegis

Strictly_Mad wrote: »

I like Sham63's idea, but I think the wife would have me committed....that would be after I'm picking up my love spuds from the kitchen floor! :rotfl:

Thanks for the advice thus far.

You should point out to your wife that investing £5k in the Premium Bond system would be effectively gambling with £250 or so per year. You could play the lottery once a week with only £52 of that and spend the rest on something fun

Or save it... Since this is a savings forum after all!

ray123

£10000 buy in EACH for World Series of Poker and £5000 spending money, with a chance of winning £5 million

Ian_W

....that would be after I'm picking up my love spuds from the kitchen floor! :rotfl:

OOOOOOOOchhhhhhhh!! :eek: :eek: :eek: :eek: :eek:

PBs don't make any sense to me - but if that's the alternative I'd be down the post office with me dosh quick sticks!!

Steve_xx

Put 3k in a cash ISA with National Savings, (Direct ISA). Put the remainder into a Sainsbury's Bank Account (Internet Saver), an ICICI Bank account, or an Icesave Bank account. All are instant access, without penalty.

Here's the appropriate links:

http://www.nsandi.com/products/disa/rates.jsp

http://www.sainsburysbank.co.uk/savings/sav_internetsaver_is_skip.shtml

http://www.icicibankukhisavepromotions.com/lms_ct/UK_LP/index.asp?PAGEID=1&USERTYPE=G_ICO&gclid=CJeT6d_Xho4CFQm_EAodXRwHOg

http://www.icesave.co.uk/