£7.5-£8k, what can I invest it in?

Find some low-risk equities with strong dividend payments and reasonable growth expected.

Obviously a bit of everything is good. Put some in an ISA, some in equities, some in ETFs (might be better?).

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Reply 5

Gillybop

14

You need to be keeping 3x your monthly outgoings on instantly accessible funds before considering investments, as Sod's law says, you fire it all away in an investment, pay the set up fees, buying costs etc, then your washing machine explodes and your having to dip into it.

So work out what that is, then decide if it's still worthwhile investing, and if it us, wrap it in an ISA whatever you do with it.

Reply 6

gr8wizard10

For such a relatively small amount of money I would encourage you put your money in an ISA.

https://www.hl.co.uk/free-guides/isa?theSource=PCIGG&Override=1&ppc=y&gclid=CMLo8b6-uLsCFejpwgodjm0AgA

Reply 7

OP

Original post by Abdul-Karim

For such a relatively small amount of money I would encourage you put your money in an ISA.

https://www.hl.co.uk/free-guides/isa?theSource=PCIGG&Override=1&ppc=y&gclid=CMLo8b6-uLsCFejpwgodjm0AgA

Do you mean stock and share ISA or Cash/SS split?

For SS ISAs, what sort of return can I expect on a low risk investment?

Reply 8

gr8wizard10

Original post by wannabeaca

Do you mean stock and share ISA or Cash/SS split?

For SS ISAs, what sort of return can I expect on a low risk investment?

Totally dependent on your attitude to risk. I'd recommend going to seek some Financial advice. No-one can say for definite but it's the low-risk / low-reward game and in some cases loss. You would really have to put your faith in the markets.

Reply 9

OP

Original post by Abdul-Karim

Totally dependent on your attitude to risk. I'd recommend going to seek some Financial advice. No-one can say for definite but it's the low-risk / low-reward game and in some cases loss. You would really have to put your faith in the markets.

I'd probably rather flunk it all on something like National Grid/BP (awaiting the verdict on whether they have put aside enough $) than go for one of those funds tbh.

I'll probably stick most of it into a cash ISA and as for the rest, who knows - give it to my mum so we can pay off the mortgage? :biggrin:

Reply 10

Commercial Paper

Bear in mind, HSBC offer e-ISAs which are cash and instantly accessible. Return is okay, expect between 1.7% and 2.7%. It's good because your cash doesn't have to be locked away.

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Reply 11

scrotgrot

16

Original post by wannabeaca

I'd probably rather flunk it all on something like National Grid/BP (awaiting the verdict on whether they have put aside enough $) than go for one of those funds tbh.

I'll probably stick most of it into a cash ISA and as for the rest, who knows - give it to my mum so we can pay off the mortgage? :biggrin:

It may be boring but paying off the mortgage isn't a bad idea with the base rate predicted to rise in 2014 or 2015 and savings rates firmly below inflation. Your mum can pay you back over the next couple of years and you will have saved the mortgage interest.

However away from the world of the flat-earth accountant, due to your age you probably ought to spend it on investing in yourself, to support yourself through a masters course or an unpaid internship.

I think it's too low a sum to really invest in anything more complicated than savings, especially when you consider that you should keep a significant amount in reserve for general cost of living. Bear in mind that the ISAs are dire at the moment and the savings accounts not much better - keeping pace with inflation at best.

Reply 12

scrotgrot

16

Original post by will2348

Bear in mind, HSBC offer e-ISAs which are cash and instantly accessible. Return is okay, expect between 1.7% and 2.7%. It's good because your cash doesn't have to be locked away.

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It's a dire market, it says it all that those returns are "okay" these days. That's below even the official inflation figures, let alone the real on-the-ground ones. It's the perfect amount of money for many self-improvement type undertakings both soft and hard, such as a masters course, a jaunt round the world, funding himself during an unpaid internship... if the OP thinks his skills are lacking in some area, in my opinion he would do well to use the money for that.

Reply 13

OP

Original post by scrotgrot

It's a dire market, it says it all that those returns are "okay" these days. That's below even the official inflation figures, let alone the real on-the-ground ones. It's the perfect amount of money for many self-improvement type undertakings both soft and hard, such as a masters course, a jaunt round the world, funding himself during an unpaid internship... if the OP thinks his skills are lacking in some area, in my opinion he would do well to use the money for that.

Cheers, well I plan to do the ACA qualification after graduating so there isn't really any other experience that can aid me tbh. As for a masters, I feel that's a waste of money, particularly in the field of my undergraduate degree, hence I want to move onto accounting afterwards (which is certainly open to me).

If I keep my saving rate up in my final year I should edge the £13k mark but hey ho, I might just go wild haha

Reply 14

Extremotroph

Take £1000 to a casino and do the roulette trick.

Reply 15

isitinyet?

13

Save it for a deposit on a house, surely? Don't want to be renting till your parents die...

Reply 16

scrotgrot

16

Original post by isitinyet?

Save it for a deposit on a house, surely? Don't want to be renting till your parents die...

Christ no, don't buy a house, the bubble will pop by 2030. It just has to. Renting is slavery to the landlord, mortgage is slavery to the banks. You may get a house at the end but the bastards will do all they can to get it back off you, either when you are foreclosed due to pressure on the market, when you go into a care home or when you die. And between the landlord and the bank, I know which one I'd rather have on my back - the one which can't charge interest on arrears!!

Reply 17

Commercial Paper

Original post by scrotgrot

Christ no, don't buy a house, the bubble will pop by 2030. It just has to. Renting is slavery to the landlord, mortgage is slavery to the banks. You may get a house at the end but the bastards will do all they can to get it back off you, either when you are foreclosed due to pressure on the market, when you go into a care home or when you die. And between the landlord and the bank, I know which one I'd rather have on my back - the one which can't charge interest on arrears!!

Agree, the housing market is in a massive bubble; be careful if you decide to buy a house.

House prices use to be just 3x average wages, that was the traditional relationship. Now stands at 9x and over 12x in Greater London, increasing at a rate that can only be described as insanity.

Just wait till the cost of debt increases (interest rates rise/government forced to withdraw its scheme)

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(edited 10 years ago)

Reply 18

Viva Emptiness

20

How about 'investing' in a financial advisor, instead of appealing to know-it-all upstarts on the internet?

Reply 19

OP