£60K to invest - I'm a beginner

Options
uniformgirl
uniformgirl Posts: 1 Newbie
in Savings & investments
Hey!
Right, I'm a total newcomer to investing - but have a lump sum of £60K in a high-interest savings account at the moment. Just wondered what you thought I should best do with this money as it can't just sit there doing nothing for ever!

I've just graduated, 25, and i'm due to start my first proper job later on in the yr. I don't have any debts. I don't have my own house at the moment, but when I start working I would be looking to buy. Is it a good move, considering the current levelling off of house prices? (figured if I have the deposit, I should definitely invest some of my money in property rather than renting...)

As i said, currently don't have a CLUE where to start investing for my future - my long term goals once earning are to have property (preferably soon -maybe one abroad too) and provide well for any wedding and future kids i may have. I don't have an ISA (maxi- or mini-) yet. But should I be investing in this? Or in index trackers and the stock market? Or spreading my risk over a variety of financial products (eg savings account, ISA, bonds, shares)? Or is it better off in one lump sum in a bank account?

What should I do to get good returns on my money for my future? How risky can i afford to be at my level of (in)experience (but with no current dependents)?

Any help or advice would be really useful!
Cheers.

Comments

  • lipidicman
    lipidicman Posts: 2,598 Forumite
    Options
    For savings advice have you read martin's savings fountain article. This will get you the best ISA, regular saver and online saver. Then think about spreading your investment risk - bonds and gilts (low risk) and maybe some shares/trackers (for higher risk). You will have to decide which investments are right for you
  • Munki_2
    Munki_2 Posts: 168 Forumite
    First Post First Anniversary Combo Breaker
    Options
    As I'm no financial adviser, I can't really give a sensible answer... except, perhaps... invest in MunkiBank PLC.... If you haven't heard of it before, it's very good... Investing a lump sum of £60k would mean a return of, ooh...peanuts. :-)

    Hope someone can genuinely help though... Wish I had 60k to invest. However, with a lot of people who have lots of money to invest, it usually comes via unfortunate curcumstances, so I won't push of the 'wishing' bit too much...

    Good luck,

    Munki.
    Nice to save.
  • EdInvestor
    EdInvestor Posts: 15,749 Forumite
    Options
    Hi uniform girl,

    Your plan to buy a property is sensible but I would wait for a while to see how the market is going: prices may fall, and you may be able to do a better deal.Perhaps get the job started first.:)

    Meanwhile I wouldn't take any risks wiith what is basically your deposit: rather, separate it into 2 or 3 chunks in different high interest accounts for the moment (so it's protected in the unlikely event of any problem at a bank) and start putting it into an ISA, so the interest is tax free.

    In the meantime you could also start reading up about personal finance so you're better informed. This site has loads of useful info for a start.
    Trying to keep it simple...;)
  • calleyw
    calleyw Posts: 9,831 Forumite
    Name Dropper First Anniversary First Post I've been Money Tipped!
    Options
    I am no financial adviser. But do know what we did with a large sum that we had.

    We filled up our cash ISA first. And then put in some to premium bonds.

    You might like to think about a stocks and shares ISA as well. But I would use my wage packet to invest monthly. Once you are working.

    Also one thing you need to think about is how quickly you want to get at your money. If you need instant access to some then keep it in the bank. But premium bonds are fairly instant as it takes a max of 8 days. We got our money back much quicker by putting the money straight in to the bank. Posted forms on a monday, money in the bank by friday.

    You might want to look at some bonds that are for a year or two. But don't tie up the money if you feel that you need instant access or access in a month or two.

    Yours

    Calley
    Hope for everything and expect nothing!!!

    Good enough is almost always good enough -Prof Barry Schwartz

    If it scares you, it might be a good thing to try -Seth Godin
  • Paul_Varjak
    Paul_Varjak Posts: 4,627 Forumite
    Photogenic First Post First Anniversary Combo Breaker
    Options
    Your post raises many questions. Firstly, when did you get £60,000 if you have only just graduated? If it is earnings prior to, or during university studies it's a shame that you did not make use of your ISA allowances. OK, maybe you were not a taxpayer then, or were you, considering what you managed to save? If you had ISAs now, they would have certainly benefited you once you started a job!

    Also, you have no job at the moment so you may have to eat into that £60,000 to live, or are you living with parents who support you? And you say you have just graduated, seems a strange time of year to have just graduated unless you have just got a doctorate I suppose. Is the job offer you have definite? If so, how much will you be earning? How much do properties cost where you wish to buy? Will your employer contribute to a pension?

    If you expect to buy a property pretty soon after starting earning it does not seem worthwhile investing on stock market (that is really for five years or more). But do make sure you are getting the best interest rate on your savings. What interest rate are you getting? You should aim for 5% or better, even in an instant access account. Alliance & Leicester pay 5.35% in the savings account (max £25,000).

    Also look at prospective mortgage providers to see what they can offer in the way of savings accounts for first-time house purchasers. I understand some have special deals but I am not in the house purchase market myself, so it is something I know little about.


    There is always speculation about how house prices may go but, in the end, no-one has the definitive answer or, if at least someone does, they haven’t offered their crystal ball at a reasonable price on MSE!
  • blinko
    blinko Posts: 2,507 Forumite
    Name Dropper First Anniversary Combo Breaker First Post
    Options
    it was probably a gift for graduation or something ?? !! but 60k is rather alot
  • davidcampbell
    davidcampbell Posts: 430 Forumite
    Options
    yeah, i got £50 and a teddy bear :rotfl: wanna swap??

    DC
  • lipidicman
    lipidicman Posts: 2,598 Forumite
    Options
    Paul_Varjak wrote:
    If it is earnings prior to, or during university studies it's a shame that you did not make use of your ISA allowances. OK, maybe you were not a taxpayer then...If you had ISAs now, they would have certainly benefited you once you started a job!

    Most people realise this far too late - students glibly say, but I dont pay tax, then I either give them some great advice (or if it is too late it certainly wipes the smile of their face). I am pleased that I worked this little scheme out early and started my ISA whilst I was a PG student and working part-time
This discussion has been closed.
★ ★ ★ Meet your Ambassadors

Categories

  • All Categories
  • 343.5K Banking & Borrowing
  • 250.2K Reduce Debt & Boost Income
  • 449.9K Spending & Discounts
  • 235.6K Work, Benefits & Business
  • 608.5K Mortgages, Homes & Bills
  • 173.2K Life & Family
  • 248.2K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards