50th Birthday Fund

Fairy_Fuschia

Greetings everyone.

I have decided I am going to save to do something or buy something wonderful on my 50th Birthday in October 2012. So I have just under 5 years to save.

I can probably save for the moment about £50.00 per month.

Would anyone care to suggest where might a good place to save be for the best return..

Your ideas would be appreciated.

I thought I would go for an ISA to have tax free savings but open to suggestion.

Thanks for your help

clarew

i am doing something similar for my 40th fund, aug 2016, am am persuing this by means of seeing where i can invest my £15/month until then...will be interested in the replies ( i too was pondering an isa)

Aegis

For 5 years of regular savings an ISA is almost certainly going to be one of the best options you can use. For over 8 years worth, you could probably afford to drip feed a few stockmarket investments held in a stocks and shares ISA for a few years, then start using your cash ISA nearer the time when you want less volatility.

The reason for this is that for periods of 5 years or less, the short term volatility in investments has the chance to reduce your final amount to less than you'd have got for cash savings. In 8 years the chance of good investments underperforming cash is minimal.

Primrose

If I were in your shoes, I wouldn't opt for anything in the stock market as five years is about the minimum time one should be in and you'd be kicking yourself if there was a stock market dive just as you reached your milestone birthday. If you're a taxpayer a Cash ISA seems to be the best option. Don't automatically opt for the same provider every year. Each April check around for the best deal.