investing for beginner

Agusya

Im looking to put some of my savings away . ISA % has been poor. Im thinking about 5 year bond 2%. do I have better options? Is there a point of going into shares and investing if I dont have 10000's ? I can put away about £8k for some amount of years ,at the moment. thanks

jimjames

There is no lower limit for investing but you need to have an emergency fund in cash to cover possible requirements. If £8k is the only money you have then you may need to keep that as cash but it wouldnt be sensible to lock it away for 5 years if that's the case. You can get around 1% on that sort of amount using bank accounts.

sevenhills

What are you saving for, how old are you, have you considered saving inside a pension to reclaim the 25% pension allowance?

Shares carry more risk, some people prefer low risk.

ColdIron

With rates rising I wouldn't lock for 5 years at 2%. It could look pretty sad this time next year. Investing might be an option for some of your cash as jimjames says but think 5 years and preferably longer. It does depend upon your plans for the money

Thrugelmir

What do you plan to do with the money in the future? 

Albermarle

How old are you and do you have a pension with work ?

maxsteam

There are low cost brokers around so it is possible to put a couple of hundred pounds into shares for a year before deciding whether shares are right for you.

My advice is don't go to forums for advice. If you do, eventually you will end up reading about some whacky scheme and/or easy money and/or the only sensible investment.

Your first choice for advice should be someone that you know and trust. I suggest that you start by reading the "investing for beginners" section of your bank's website and take anything you read on a forum with a pinch of salt.

Agusya

sevenhills said:

What are you saving for, how old are you, have you considered saving inside a pension to reclaim the 25% pension allowance?

Shares carry more risk, some people prefer low risk.

Im 40. Im saving up for early retirement. what 25% pension allowance?? Tell me more I do have nhs pension (but only been paying into it for 4 years or so)

Agusya

I do have 15k savings altogether. planing to put away half of it somewhere . I guess if rates are going up I wont be using 5 year bond at the moment. thanks for mentioning it Not sure what to do with it still tho Im 40. have mortgage .

Thrugelmir

Do you contribute to a work place pension scheme? 

sevenhills

Agusya said:

Im 40. Im saving up for early retirement. what 25% pension allowance?? Tell me more I do have nhs pension (but only been paying into it for 4 years or so)

Most UK taxpayers get tax relief on their pension contributions, which means that the government effectively adds money to your pension pot. Basic rate taxpayers get a 25% tax top up; HMRC adds £25 for every £100 you pay into your pension.