30k...

yummymoney

OK I've got 30k to invest, it's my life savings. I'm wondering what's the best thing to do with it regarding investing in any way. If anyone could help I'd be grateful.
Thanks.

johng_uk

How long are you looking at tieing it up for yummy and how much access do you require to it?

Blowsy

if you're completely new to investing I'd suggest you seek professional financial advice - I'd be happy to recommend someone but there's certainly more information that would need to be identified about you and your circumstances before anyone could make a sensible recommendation.

johng_uk

I just enquired around my area for financial advice and was given some for free by an IFA. I was calling 4 or 5 IFA's to get a 'feel' for which one to use. I also want to make a lump sum investment. I will need access to my cash in around 4 years to use as a house deposit. He told me to fill up my cash ISA allowance firstly and then put the rest in high interest bonds or bank accounts.

Unless your timescale for requiring the money will be 7-8 years+ this may be the way to go (I certainly am as exposure to the stockmarket in my case/timescale woulsdn't be the best option). If, however you won't need access to the cash anytime soon, then an IFA may be the way to go.

I would fill up my cash ISA first in either case. It's tax free with a fixed rate for a year and, depending on which ISA you choose, you could have access to the cash - Just in case!

Drop a post in letting us know more about your personal circumstances.

yummymoney

OK, thanks for the help so far folks. TBH I'm looking to invest fairly short term, maybe a year or two (maybe longer depending on rewards though) really and I've tied up my ISA's already (they're included in this sum) but I was wondering if I could do something useful with the rest, in reality it's about 26k.
I'm a complete finance novice and don't really know where to start. Thanks for your help. :beer:

johng_uk

Hey it's nps - I'm not a fincncial wizard myself (hence I ask more questions on here thn solve problems) but I like to help whn I can!!

You question is similar to a thread I posted earlier:

http://forums.moneysavingexpert.com/showthread.html?t=810731

As I said, whilst I was calling arounnd various IFA's, one told me he wouldn't take £150 (hourly fee) off me in my situation as all he would do would be to check the money comparison sites. From there he would recommend a cash ISA and either high interest bank account or fixed rate bond etc.

I will be doing the following:

1) Filling up cash ISA as you've already done.
2) Staggering my money in 3 - 4 guaranteed savings accounts of different terms (i.e. 6 mnths, 1 year, 2 year, 3 year). I may not utilise the 6 month option.

The AER rates I have discovered so far on the different timescales range from 6.5% - 6.86%.

If your interested in which companies I'm looking at drop a post on here!

yummymoney

John, thanks for your help. If possible I'd like to know where the best place to invest in bonds would be. I know nothing about investing so any advice is very gratefully received.

dunstonh

yummymoney wrote: »

John, thanks for your help. If possible I'd like to know where the best place to invest in bonds would be. I know nothing about investing so any advice is very gratefully received.

Bonds are probably best bought from a fund supermarket utilising bond funds such as corporate bonds, UK other bonds and maybe some gilt funds as well. A spread allows you to control your risk and give you a variety of bonds within a single investment. However, investing this way means you should be looking at a term in excess of 5 years. Anything less and you should stick to savings accounts. Even though bonds are low risk, there is still a risk and they will have periods of poor returns in the short term.

yummymoney

OK cheers, but what's a fund supermarket?, do you mean a bank or building society? Many thanks. If so are there any differences between one and another bank/building society? If so which are the best?

dunstonh

yummymoney wrote: »

OK cheers, but what's a fund supermarket?, do you mean a bank or building society? Many thanks. If so are there any differences between one and another bank/building society? If so which are the best?

Reading further up the thread it appears you dont mean bonds but mean fixed term deposits.

Bonds are something different but it isnt helped by a handful of banks using incorrect terms in their marketing by calling their fixed term deposits "bonds" because bonds sound better. I'm sure the banks would call them chocolate if they thought they would sell more.

johng_uk

Yummy here are the accounts I've found. I've read a few scarey posts about the Icelandic banks (Kaupthingedge and Icesave), but am planning on using them in the short term. I think the stories possibly amount to scaremongering but dunstonh is more knowledgeable about such matter - Perhaps you could enlighten us mate?

Anyway thje links I've found are:

http://www.halifax.co.uk/savings/fixedwebsaver.asp - 6.5% over 6 month term.

http://www.co-operativebank.co.uk/servlet/Satellite?c=Page&cid=1170748476616&pagename=CB%2FPage%2FtplStandard&loc=l - 6.62% over 1 year term.

http://www.icesave.co.uk/fixed-rate-savings.html - 6.7% over 1 year, 6.6% over 2 year, 6.5% over 3 year.

http://www.kaupthingedge.co.uk/ - 6.86% over 1 year.

All percentage figures quoted are AER.

Hope this helps!