How to invest £20-40k

Iain_For

onlyroz wrote: »

With an S&S ISA wouldn't I expect to earn 5-10% untaxed?

...or you could lose 50%!

Iain_For

Worth reading this post on risk over at Monevator:

http://monevator.com/taking-more-risk-does-not-guarantee-more-reward/

ColdIron

onlyroz wrote: »

With an S&S ISA wouldn't I expect to earn 5-10% untaxed?

Apols, thought you meant a cash ISA but as noted 5-10% is not assured

onlyroz

ColdIron wrote: »

Apols, thought you meant a cash ISA but as noted 5-10% is not assured

With a diverse portfolio I'd hope for at least some return.

ColdIron

What about the global financial crisis, the dot com crash? If you think that investments are a one way street I'd pause and read up on risk. You say that you'd like to 'think it through a bit more' this time. I'd make that your first priority

You can't fail to have noticed this warning

• Remember that investments can go up and down in value, so you could get back less than you put in.

onlyroz

Ok so everyone on the investments forum advises against investing in managed funds. Got it.

kidmugsy

onlyroz wrote: »

Doesn't the current account trick involve shifting money from account to account each month? .

It's so exhausting to set up two standing orders!

onlyroz wrote: »

Also I'd prefer to put as much as I can in an ISA, because I'm a higher rate tax payer and it wouldn't be too hard to go over the tax threshold.

£20k at 5% AER = £1k p.a. = 2 x £500 annual allowance.

bowlhead99

onlyroz wrote: »

Ok so everyone on the investments forum advises against investing in managed funds. Got it.

Yes, it's broadly true that everyone with significant experience who hangs out in the investments forum advises not to invest in investment funds when your timeframe is five years or less.

This is because in investment you get up years, down years, and nothing years, and you don't know what you'll get next. When you're only investing for half the length of an economic cycle, you might get the bad years and the nothing years, with no major up years, and be left with a lot less money than you started with. Whereas if you were investing for fifteen years you will see the fund values go up and down through a couple of boom and bust economic cycles and get closer to the "long run", over which, investment funds generally make money rather than lose money.

If your timeframe was a period of eight to ten years, you would find more people advocating investing in low to medium risk investment funds; and at ten to fifteen to twenty years plus, people would say you have more time to use higher risk funds, if you can handle the psychological effects of all the ups and downs along the way.

onlyroz

kidmugsy wrote: »

It's so exhausting to set up two standing orders!




£20k at 5% AER = £1k p.a. = 2 x £500 annual allowance.

Your post suggested setting up 8 or more accounts. Also some of them require direct debits to be set up (eg the Santander 123, which we already have, requires 3 direct debits).

onlyroz

Does anyone have any thoughts on peer-to-peer lending?