How much money would i need to invest to make a very good return?

Linton

BarleyGB wrote: »

Why? That sounds like an awful lot unless you are retired, are investing in illiquid assets and/or have no credit cards.

Some good reasons for keeping a sizable amount in cash:

1) Selling funds can take a week for you to actually get the cash.
2) Although most shares and funds are very liquid you dont want to have to sell when prices are down if you lose your job or have to replace your boiler.
3) You can safely structure your investments for the long term confidant in the knowledge that a major downturn in share prices wont cause short term problems.
4) You can make a major expenditure without going into debt.
5) Reduces worries if you want to change jobs

12 months expenses could well be OTT, but if you have a family with a stay at home spouse I guess it may be prudent.

Flobberchops

"How much money would i need to invest to make a very good return?"

A very large sum, is the answer.

jimjames

Flobberchops wrote: »

"How much money would i need to invest to make a very good return?"

A very large sum, is the answer.

But it's not really true is it. The example I showed above gave a return of 20% on £500. I don't think many would consider that a very large sum but 20% is a very good return.

Got2Save

Eco_Miser wrote: »

Are you in Geordieland?
I ask because a Transfare is an inter-modal ticket available for a single journey within Tyne and Wear, according to Wikipedia, and I was wondering if this is why you consistently mis-spell transfer.

We're not allowed to give investment advice. We can, however, comment and make suggestions.

Investing in diversified funds within a Stocks & Shares ISA, can be expected to give an average return of 3-4% above inflation. However within that average will be falls of 20% and even 50% of the value of your investment, and rises of similar size.

Until you have cash to cover all your expected outgoings (like holidays, home improvements, better car) and at least six months spending money (to tide you over if you're out of work, etc.) you are definitely better looking at bank accounts paying from 3% to 6% - similar returns with no risk to your capital.

Meanwhile read up on investing, Tim Hale's book Smarter Investing and a load of other resources, so when the time is right, you will have some idea of what to do, or at least know the right questions to ask.

Great! Thanks a lot for that information. Which bank accounts would you suggest i put money into at the moment? Do you think i should wait a little longer until say, i have around 5k to invest or just put the money i have into an account now and then add to it as i continue to save?

Thanks for the link. I definitely can use something like that as i am a bit clueless about how and when to invest, so i am sure it will be a great help to me. I had to delete that link you suggested to me as the site wouldn't allow me to post a reply, but i have noted it down and will have a browse.

Malthusian

HappyMJ wrote:

My pension is performing less than I expected and have not much more in the account than I have put in taking inflation into account. I no longer contribute to my pension account as I don't see the point of it any more.

If you stop contributing to your pension at the very point it is most worthwhile to make contributions then naturally it isn't going to do very well.

*edit* The "point" of a pension is to generate capital growth over the long term. In the short term there will always be periods where markets are falling and the pension is worth the same as or less than you put in. But this should be irrelevant if the pension is not going to be drawn for a great many years. Why do you think the pension is not going to serve its purpose in the long term?

Eco_Miser

Got2Save wrote: »

Great! Thanks a lot for that information. Which bank accounts would you suggest i put money into at the moment?

Pick from this list.
Perhaps £2500 into Nationwide FlexDirect and £500 into Nationwide Flexclusive Regular Saver, with further contributions coming from your further savings, the interest on the FlexDirect, and possibly some of the FlexDirect capital.
There are options with higher return for more complicated transactions. Depends on your personal circumstances which is 'better'.

Got2Save wrote: »

Do you think i should wait a little longer until say, i have around 5k to invest or just put the money i have into an account now and then add to it as i continue to save?

If you really mean save in a bank account do it now.
If you mean invest in funds

• have you got a cash emergency fund?
• do you know what you want to invest in

£3k is sufficient for an investment on the right platform (platform comparison on Monevator).
If you mean invest in shares: Don't.

Got2Save wrote: »

Thanks for the link. I definitely can use something like that as i am a bit clueless about how and when to invest, so i am sure it will be a great help to me. I had to delete that link you suggested to me as the site wouldn't allow me to post a reply, but i have noted it down and will have a browse.

The link will be in my original post until that post is purged - probably when the board is finally shut down.