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What to do with £5,000, Stick it all on red and spin?
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Takeem
Posts: 4 Newbie
Hi,
I have recently inherited £5,000 and am looking to invest/save with it and am not sure the best thing to do. I want as much return as possible in a year I can get. Should I go for an ISA (icesaves 6.1%, but from what I understand I can only put a max of £3,000 in it?) or should I invest or something. Im not very money/bank savy so please use laymans terms if possible. I basiacally want fast return
Many thanks in advance for your time :rotfl:
I have recently inherited £5,000 and am looking to invest/save with it and am not sure the best thing to do. I want as much return as possible in a year I can get. Should I go for an ISA (icesaves 6.1%, but from what I understand I can only put a max of £3,000 in it?) or should I invest or something. Im not very money/bank savy so please use laymans terms if possible. I basiacally want fast return
Many thanks in advance for your time :rotfl:
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Comments
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I basiacally want fast return
And do you accept fast losses to go with that?
How much of a loss would you accept before you got cold feet and pulled it out?I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
Have you got other savings?
If so, then you could take a more adventurous line.
If not, go for the Icesave ISA."Success is the ability to go from failure to failure without losing your enthusiasm" (Sir Winston Churchill)0 -
Hi,
I have recently inherited £5,000 and am looking to invest/save with it and am not sure the best thing to do. I want as much return as possible in a year I can get. Should I go for an ISA (icesaves 6.1%, but from what I understand I can only put a max of £3,000 in it?) or should I invest or something. Im not very money/bank savy so please use laymans terms if possible. I basiacally want fast return
Many thanks in advance for your time :rotfl:
Hi there
Assuming you're a tax payer, yes you should go for a Cash ISA for savings. This is because they are tax free. Icesave's is good and flexible with a rate guarantee (rate is currently 6.1%). You can put £3000 in the this tax year (before April) then you can put in £3600 next tax year.
Icesave also do a good "normal" savings account (currently 6.3%) so you could put the remaining £2000 in there until April 6th, then a simple online transfer will mean all of the money is in an ISA.
A Cash ISA is just a savings account that is tax free. So the 6.1% rate is a lot better than the 6.3% rate for the savings account (= 5.04% after basic rate tax, even worse if you're a higher rate taxpayer). So it's important to put as much into the ISA as soon as possible.
You should know about the ISA rules: If you take the money out of an ISA, it loses its tax-free status and you can't replenish an ISA once you've used up that tax year's allowance. See Martin's guides in the Banking/Saving part of this site, or the "sticky" posts in the ISA forum (a sub-board of this one) for further information.
You mentioned investing. If you were to invest, you should use your stocks and shares ISA allowance for the same reason (tax-free). A stocks and shares ISA can contain a wide range of investment products. However, as dunstonh pointed out investing is not compatible with short term gains, so I would suggest you avoid investment products at least until you've worked out what the risks are and if you want to take them.
Hope this helps
SirSaveALotSirSaveALot
I am not a financial advisor or other expert. All posts are purely my thoughts at the time for discussion, not advice. Please check out the facts first before doing anything.0 -
Should I go for an ISA (icesaves 6.1%, but from what I understand I can only put a max of £3,000 in it?)
You can put £3k in immediately ..... and up to a further £3.6k (that's a new limit) from when the new year starts 6th April 08.
Safer bet than either roulette or matched betting .. from your other posts! It's not fast - but it is more certain. Regret you're on the wrong site for the former;)If you want to test the depth of the water .........don't use both feet !0 -
Seeing as the title of your post indicates a gambling theme, why not buy £5k worth of EuroMillions tickets for tonight's draw (£60m jackpot).
Well, it's approx 3,300 chances at the top prize :beer:
(PS: if you take this advice and win, my fee is 10%)You'll always miss 100% of the shots you don't take - Wayne Gretzky
Any advice that you receive from me is worth exactly what you paid for it. Not a penny more or a penny less.0 -
oooo... to have the guts to stick it all on red or black. either feel like one of the best or worst days of your life when that ball drops. i should know, used to work as a croupier many years ago...seen it happen many a time!0
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chuckles1066 wrote: »(PS: if you take this advice and win, my fee is 10%)
ivanI don't care about your first world problems; I have enough of my own!0 -
I'm sure the person who bequeathed you the £5000 would not want you to gamble the money away as they probably worked hard to earn it in the first place. Somebody beat me to it in suggesting the Icesave Cash ISA for this tax year and the next one starting on April 5th. If you want a fast return I don't think the stock market is for you since it's normally recommended that you stay invested for at least five years. If you're a taxpayer, it certainly makes sense to have a cash ISA and avoid paying tax on the interest.0
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