£10000 to save invest

woodieswife

Thanks for replies think we will be taking rafters advice with the two isas and putting the rest in an instant access internet account as suggested by notis 7 thanks again.

Aegis

TRUSt_NO_1 wrote: »

Your advice is terrible. If you're really trying to give good advice, you would talk about diversification of asset classes and geographical sectors, but you make no mention of that.
======================================

Why diversify ?
I'm giving what I consider the best place to be.....NOW...THEY'VE ONLY GOT 1YR

Lovely. It's the best place YOU think. What about the thoughts of the investor? What about the fact that in one year anything with high volatility can drop with next to no warning simply because of price changes? Quite frankly, the advice is inappropriate with the level of knowledge you have about the OP.

Geographical sectors-
By the time they've researched it and become comfortable it will be 2020.

Rubbish. I started investing and covered the geographical sectors I wanted to in a matter of weeks. If you're serious about investing, it's necessary to learn about your options. Essentially your comment here indicates that you think ignorance of basic investing practice is a good thing somehow!

ASSET CLASSES-COMMODITIES FOOD OIL GOLD SILVER

All of your recommendations have been for commodity producing companies, and specifically precious metals. What I was talking about was diversification of assets, this is the very opposite of diversification and is therefore ultra-high risk and volatility, something you cannot know the OP's attitude to! It's utterly irresponsible to recommend such investments as short term speculation of capital when you have no idea if the investor would actually like to gamble their money like that!

PRECIOUS METALS IS WHAT I KNOW ABOUT

What's you're pick..banking and property ?

China's hot..red hot..but overbought ? could correct for next 12 months

I don't have a "pick". I am of the school of thought that chasing after the next big thing is a bad idea because all it takes is one major correction to wipe out the current value of your portfolio immediately. I have some holdings in natural resources, mining companies and direct commodity trackers, but they form part of a balanced portfolio that can take advantage of any "next big thing". My risk and volatility levels are consequently much lower than anyone who rushes headlong into things

UK-GOING DOWN!
US-GOING DOWN
CANADA TSX JUNIOR/MID TIER MINING STOCKS-OVERSOLD-BARGAINS-GOING UP

Oh please. There's a short term downwards trend in the UK, and I'm not exposed to the US at all because I feel that even when their economy was doing ok, it didn't offer me enough reward for the risk level. The UK will probably recover completely from any downwards FTSE action to come by this time next year if past recessions are anything to go by, and even then the dividends will be paid and you can be sure that currency fluctuations aren't going to be responsible for hurting your portfolio value. In the long term, the UK will be just fine.


The fact remains however that the strategy you're advocating simply will not work for the majority of investors. In order to succeed at short term investing/speculation, you need to really know your markets and have the discipline to make sure that you look at all available data on the conditions surrounding your particular bet, and you need to get out at the right time when things start to turn against you. Quite simply, most investors are unwilling to put in the long hours to do this, and would be much better suited by a less focused strategy.

In addition to that you have the risk level and the volatility of these sort of companies. Investors unused to sudden large swings in value of their money might quite easily bottle out immediately, losing a lot of money because they were investing far outside their risk profile.

There's a lot more to making recommendations than just picking YOUR funds and telling everyone else that they're a great idea. Giving any form of advice relies on knowing a lot about the person who wants to make an investment, which is something neither of your "buy these!!!" type posts have bothered to to. There's a reason the FSA governs advice strictly and requires a detailed factfind before financial advisers can offer suggestions as to what investment would be best for that individual.

Aegis

woodieswife wrote: »

Thanks for replies think we will be taking rafters advice with the two isas and putting the rest in an instant access internet account as suggested by notis 7 thanks again.

I think you're on to a winner there. If you open the first ISA and the instant access account now, and then the second ISA when you replenish your allowance on April 5th, you will definitely be in a good position from a cash perspective.

The other option to consider would be tying up some of the non-ISA cash in a fixed-term deposit account, which offers a fixed interest level for the period of the deposit. If you know that your money is ok to leave for a full year, it can be a very good way of hedging against further falls in interest rates. Steve suggested a good one in post 2, which has (I think you'll agree!) a very good interest rate. Remember, however, that this is a taxed account and will penalise you for removing that money before the first year ends.

notis7

moonrakerz wrote: »

If I remember correctly, their exposure was in the billions, the other UK banks were in the hundreds of millions - a difference of orders of magnitude !

you should have a look and see how much HSBC/First Direct has grown its savings deposits in the last 2 years.....in billions - we are talking about doubling its book almost!

One final point - did anyone see the nationalisation bill included any bank and not just northern rock.....rumours are flying about that London Scottish are next.....!

Steve_xx

Aegis wrote: »

I think you're on to a winner there. If you open the first ISA and the instant access account now, and then the second ISA when you replenish your allowance on April 5th, you will definitely be in a good position from a cash perspective.

The other option to consider would be tying up some of the non-ISA cash in a fixed-term deposit account, which offers a fixed interest level for the period of the deposit. If you know that your money is ok to leave for a full year, it can be a very good way of hedging against further falls in interest rates. Steve suggested a good one in post 2, which has (I think you'll agree!) a very good interest rate. Remember, however, that this is a taxed account and will penalise you for removing that money before the first year ends.

Yes I note that if you withdraw early from the ICICI Bank fixed rate account that the rate drops to 5.75%. I thought that not too bad considering rates are falling and I guess that the 5.75% early withraw rate would be fixed in accordance with the headline rate in force when you opened it.

Steve_xx

notis7 wrote: »

you should have a look and see how much HSBC/First Direct has grown its savings deposits in the last 2 years.....in billions - we are talking about doubling its book almost!

One final point - did anyone see the nationalisation bill included any bank and not just northern rock.....rumours are flying about that London Scottish are next.....!

The bill is set to last for only 12 months, therefore it could be viewed as emergency legislation. Presumably it's to allow the government to act sharper than they did/could with NR. During the interim period I think it likely that further permanent legislation might be introduced.

moonrakerz

notis7 wrote: »

you should have a look and see how much HSBC/First Direct has grown its savings deposits in the last 2 years.....in billions - we are talking about doubling its book almost!

My earlier post said the difference was an order of magnitude in difference, that is 10 times the amount, NOT double.

dunstonh

moonrakerz wrote: »

My earlier post said the difference was an order of magnitude in difference, that is 10 times the amount, NOT double.

Again, not in context. HSBC is a global player. Looking at UK deposits and comparing it against global exposure isnt like for like.

moonrakerz

dunstonh wrote: »

Again, not in context. HSBC is a global player. Looking at UK deposits and comparing it against global exposure isnt like for like.

We are getting our k******s in a bit of a twist here ...

I referred to exposure to the general sub prime fiasco (ie: world wide) - I made no reference to "UK deposits" - totally agree that isn't like for like !

The previous post inferred that a doubling of deposits (world wide ??) in FD/HSBC would be OK set against a ten fold liability compared to other UK banks . I merely pointed out that a doubling of "one" didn't necessarily equate to the "other".

TRUSt_NO_1_2

Aegis wrote: »

Lovely. It's the best place YOU think. What about the thoughts of the investor? What about the fact that in one year anything with high volatility can drop with next to no warning simply because of price changes? Quite frankly, the advice is inappropriate with the level of knowledge you have about the OP.



Rubbish. I started investing and covered the geographical sectors I wanted to in a matter of weeks. If you're serious about investing, it's necessary to learn about your options. Essentially your comment here indicates that you think ignorance of basic investing practice is a good thing somehow!



All of your recommendations have been for commodity producing companies, and specifically precious metals. What I was talking about was diversification of assets, this is the very opposite of diversification and is therefore ultra-high risk and volatility, something you cannot know the OP's attitude to! It's utterly irresponsible to recommend such investments as short term speculation of capital when you have no idea if the investor would actually like to gamble their money like that!




I don't have a "pick". I am of the school of thought that chasing after the next big thing is a bad idea because all it takes is one major correction to wipe out the current value of your portfolio immediately. I have some holdings in natural resources, mining companies and direct commodity trackers, but they form part of a balanced portfolio that can take advantage of any "next big thing". My risk and volatility levels are consequently much lower than anyone who rushes headlong into things



Oh please. There's a short term downwards trend in the UK, and I'm not exposed to the US at all because I feel that even when their economy was doing ok, it didn't offer me enough reward for the risk level. The UK will probably recover completely from any downwards FTSE action to come by this time next year if past recessions are anything to go by, and even then the dividends will be paid and you can be sure that currency fluctuations aren't going to be responsible for hurting your portfolio value. In the long term, the UK will be just fine.


The fact remains however that the strategy you're advocating simply will not work for the majority of investors. In order to succeed at short term investing/speculation, you need to really know your markets and have the discipline to make sure that you look at all available data on the conditions surrounding your particular bet, and you need to get out at the right time when things start to turn against you. Quite simply, most investors are unwilling to put in the long hours to do this, and would be much better suited by a less focused strategy.

In addition to that you have the risk level and the volatility of these sort of companies. Investors unused to sudden large swings in value of their money might quite easily bottle out immediately, losing a lot of money because they were investing far outside their risk profile.

There's a lot more to making recommendations than just picking YOUR funds and telling everyone else that they're a great idea. Giving any form of advice relies on knowing a lot about the person who wants to make an investment, which is something neither of your "buy these!!!" type posts have bothered to to. There's a reason the FSA governs advice strictly and requires a detailed factfind before financial advisers can offer suggestions as to what investment would be best for that individual.

==============================
some valid points...but I was giving my opinion on what I think will beat inflation (which is over 10%)...guaranteed ! .Sooner or later the masses will wake up.
I do not want to debate harvests versus global food shortages which will, in time, come to Europe, or the fact that commodities (oil) are the reason why we invaded Iraq and Afghanistan and that China,India are vacuuming ALL commodities up.
As for the UK economy..watch USA and delay it by a year or so.

Stop reading newspapers,go out of London,and observe.
Having said my piece...

It is now obvious that the original poster wants to be conservative in their investments, an example of which is below (and this is coming to the UK like it or not):

http://www.cnbc.com/id/15840232?video=657243884&play=1