Where do you recommend putting some money now?

Angelspaniard

Hi There!

First of all many thanks for all the very useful information that can be found in the forum.

I am not very knowledgeable when it comes to investments, funds, ISAs, etc.. so I am looking for come guidance.

I have a little sum of +£5k which I would like to put somewhere I can get a nice return, rather than have it languishing in my bank account.

The idea is that i a year or two I can use this money.

Given the current unstable situation of the market, what would you money gurus advise?

Also, with regard to Pension plans, is it worth changing to the company's every time you move jobs so that you get their contribution? Does this mean you migth lose money on the previous plan (with the previous employer)? Some people have toldme about doing this solo and just investing the same money on some funds/shares on my own, but obviously I have no idea about where/how to do this.

Many thanks!

Footsie_2

Well firstly we need to know your risk profile, how much risk are you will to take? A cautious investor knows that the chance of much growth is limited but the core investment is most likely to remain safe. A medium risk investor is willing to take moderate risks in order to achieve potentially higher gains but is understanding that the core investment may suffer some loss. A high risk investor is willing to invest in high risk funds that may produce high returns but with substanial risk to the core investment. Where do you think you come on this?

As for the pension question, depends on the new scheme but if your employer is going to contribute then take it, it's like getting free money. You should be able to move your previous plans to your current plan to capitalise on g rowth but you will probably need to see an IFA on this as the pensions world is a minefield, trust me, I work in it!

isofa

2 years isn't long enough for a stocks/shares/funds investment, especially in this volatile climate so stick with cash in high interest savings, fixed rates bonds, etc.

First use up your ISA cash allowance, 3K away in a top rate cash ISA.

The rest in a high-rate savings account, such as IceSave.

If you are a high rate taxpayer, and want a risk free 3 or 5 year risk and tax free "investment" the NS&I Index Linked Savings Certificates are excellent, especially whilst inflation rises (up to a 15K investment in each issue).

Pensions aren't my area, I'm sure someone else will be able to advise...