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Recommendations as how to invest £20,000 required
Nothing too high risk and I don't want to tie it up for more than a few years.
(A mate spreads some of his money across a number of peer to peers loans, the high returns on some more than cancel out the inevitable poor or non-returns on others. Riskier than some options I suppose).
It's not my total savings pot but the only part of it I can play with at present.
Your contribution are appreciated.
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Re: Recommendations as how to invest £20,000 required
I would look into buying shares in Xiaomi when they are released this summer. They are the fastest growing mobile phone manufacturer in Europe and already have a dominant share in India and China.
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Re: Recommendations as how to invest £20,000 required
You need to start off by being clear about the risks you are prepared to take and the time you can tie up any investment for.
For example less than 5 years realistically rules out any sort of balanced equity portfolio or fund and probably leaves you looking at bonds/bond funds or fixed term deposits.
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Re: Recommendations as how to invest £20,000 required
Quote:
Originally Posted by
Taunton Blue Genie
Nothing too high risk and I don't want to tie it up for more than a few years.
(A mate spreads some of his money across a number of peer to peers loans, the high returns on some more than cancel out the inevitable poor or non-returns on others. Riskier than some options I suppose).
It's not my total savings pot but the only part of it I can play with at present.
Your contribution are appreciated.
I ploughed a decent chunk into a stocks and shares ISA with Nutmeg that is currently earning about a 3% profit each month with a middle of the road risk factor. My plan is to leave it for a decade but you could make a tidy profit after just a couple of years.
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Re: Recommendations as how to invest £20,000 required
I have until recently had a similar sum invested. Split 8k p2p, 5k funds and 5k shares and 2k in interest account (only1.5%)
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Re: Recommendations as how to invest £20,000 required
Yes use up your ISA allowance , which coincidentally is £20,000.
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Re: Recommendations as how to invest £20,000 required
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Re: Recommendations as how to invest £20,000 required
Put it all on Sir lancelot next time he runs at Wolverhampton over a mile
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Re: Recommendations as how to invest £20,000 required
Quote:
Originally Posted by
Taunton Blue Genie
Nothing too high risk and I don't want to tie it up for more than a few years.
(A mate spreads some of his money across a number of peer to peers loans, the high returns on some more than cancel out the inevitable poor or non-returns on others. Riskier than some options I suppose).
It's not my total savings pot but the only part of it I can play with at present.
Your contribution are appreciated.
Mortgage/credit card/loans/debts all paid off? If so, i'd go for a 4 way split: ISA cash, ISA shares (look for companies that will benefit from Brexit...maybe FTSE 250 listed), Premium Bonds (safe and always interesting at the start of the month when prizes are announced) plus P2P to spread risk.
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Re: Recommendations as how to invest £20,000 required
Quote:
Originally Posted by
IanD
Mortgage/credit card/loans/debts all paid off? If so, i'd go for a 4 way split: ISA cash, ISA shares (look for companies that will benefit from Brexit...maybe FTSE 250 listed), Premium Bonds (safe and always interesting at the start of the month when prizes are announced) plus P2P to spread risk.
Yup. No debts. I'm no expert re: buying shares though.
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Re: Recommendations as how to invest £20,000 required
Invest in preserving wealth and a financial insurance policy in one blow by purchasing physical gold bullion. Britannia and sovereign coins are CGT free.
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Re: Recommendations as how to invest £20,000 required
Quote:
Originally Posted by
Organ Morgan.
Invest in preserving wealth and a financial insurance policy in one blow by purchasing physical gold bullion. Britannia and sovereign coins are CGT free.
That's a bit niche for me as I wouldn't know where to start - and isn't there a cost attached in storing it? Forgive my ignorance.
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Re: Recommendations as how to invest £20,000 required
All on Harry Kane as top scorer in the World Cup. What could go wrong!
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Re: Recommendations as how to invest £20,000 required
Why not buy some tools and make something instead of profiting off of others? It would be very rewarding if you could turn a hobby or interest into a small business venture.
Failing that, just stash it in a secret off-shore bank account or in some other illicit venture. If you can't beat 'em, join 'em :thumbup:
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Re: Recommendations as how to invest £20,000 required
Quote:
Originally Posted by
Wales-Bales
Why not buy some tools and make something instead of profiting off of others? It would be very rewarding if you could turn a hobby or interest into a small business venture.
Failing that, just stash it in a secret off-shore bank account or in some other illicit venture. If you can't beat 'em, join 'em :thumbup:
A small business is all about profiting off others, of course :-) And I am still gainfully employed, by the way.
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Re: Recommendations as how to invest £20,000 required
Quote:
Originally Posted by
Taunton Blue Genie
A small business is all about profiting off others, of course :-) And I am still gainfully employed, by the way.
Providing a product or service for profit is a moral activity, whereas lending money with interest is usury :biggrin:
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Re: Recommendations as how to invest £20,000 required
Quote:
Originally Posted by
Wales-Bales
Proving a product or service for profit is a moral activity, whereas lending money with interest is usury :biggrin:
Usury is a Japanese way of saying usually, isn't it?
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Re: Recommendations as how to invest £20,000 required
Quote:
Originally Posted by
Taunton Blue Genie
Yup. No debts. I'm no expert re: buying shares though.
Maybe best to go for a FTSE 250 tracker that spreads risk across companies and wrap it in an ISA to avoid tax.
A possible starting point:
http://www.hl.co.uk/shares
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Re: Recommendations as how to invest £20,000 required
Thanks for all your replies hitherto. I have made several poor investments in the past as a result of so-called 'professional advice' and am happy to take my chances from an alternative source :-)
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Re: Recommendations as how to invest £20,000 required
There are plenty of dodgy non regulated schemes out there, usually which lose you all or most of your money. So try and ensure invest in something which is protected.
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Re: Recommendations as how to invest £20,000 required
Quote:
Originally Posted by
Taunton Blue Genie
A small business is all about profiting off others, of course :-) And I am still gainfully employed, by the way.
If you are still working it might be better to find out if you can pay into a pension which is tax efficient with a view to building up a pot, not for an annuity but to aim for income drawdown and retire early. Needs planning to avoid paying tax on income drawdown. Too big a pot taken too quickly and you are liable for 20 or 40% tax.
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Re: Recommendations as how to invest £20,000 required
Quote:
Originally Posted by
IanD
If you are still working it might be better to find out if you can pay into a pension which is tax efficient with a view to building up a pot, not for an annuity but to aim for income drawdown and retire early. Needs planning to avoid paying tax on income drawdown. Too big a pot taken too quickly and you are liable for 20 or 40% tax.
I have that plan with another pot of money, sir :-) I went part-time a year ago without affecting my income and it's a great balance: I should be able to tolerate working for at least another year to 18 months (and possibly longer) whilst still increasing my savings. Trying to avoid taking OUT of that pot along the way - so annuity for future use may be preferable to drawdown but I am a complete amateur regarding such things.
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Re: Recommendations as how to invest £20,000 required
united bank UK for 5 years at 2.65% its not massive, but has fscs protection so its safe :thumbup:
I know its a little dull, but its safe
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Re: Recommendations as how to invest £20,000 required
Quote:
Originally Posted by
Taunton Blue Genie
I have that plan with another pot of money, sir :-) I went part-time a year ago without affecting my income and it's a great balance: I should be able to tolerate working for at least another year to 18 months (and possibly longer) whilst still increasing my savings. Trying to avoid taking OUT of that pot along the way - so annuity for future use may be preferable to drawdown but I am a complete amateur regarding such things.
Annuities are a minefield and worth reading up on. Typically you hand over £100k and you get an income of 3k ish. But, all sorts of factors come into play such as whether you smoke, whether you want a fixed income, income with an annual increase, joint income, fixed income period and so on. Plus you get taxed on that income so take off 20/40% as any pension/other income will be taken into account for tax purposes. If you can build up savings via ISAs etc then income drawdown might be a suitable option, taking out the sum equivalent to whatever the prevailing tax threshold is, not working and enjoying life until a company and/or state pension kick in (and downsize to avoid inheritance tax). A quick bit of Maths shows you have to live quite a while to benefit fully from an annuity, too.
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Re: Recommendations as how to invest £20,000 required
I’m looking at doing the same for a short term strategy
I was hoping to renovate houses but it seems that houses are startling to get peaky again
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Re: Recommendations as how to invest £20,000 required
Quote:
Originally Posted by
IanD
Maybe best to go for a FTSE 250 tracker that spreads risk across companies and wrap it in an ISA to avoid tax.
A possible starting point:
http://www.hl.co.uk/shares
Isn’t it risky to put cash in to stocks and shares at the moment? Only say this as the ft is higher than ever, and at some point it’s going to plummet back to 4500 thus half ing any invested amount. I also have cash to invest at the moment.
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Re: Recommendations as how to invest £20,000 required
Quote:
Originally Posted by
WJ99mobile
I’m looking at doing the same for a short term strategy
I was hoping to renovate houses but it seems that houses are startling to get peaky again
I’ve been doing this for 20 years, the stamp duty and general house prices in Cardiff are making it difficult. As us the fact not many people seem to be selling up currently, prob due the high cost of all the fees involved. In saying that a mate of mine is snapping up houses cheap in treforrest and renting to students. Less than 100 grand and £1500 a month coming in. Even these are now in short supply.
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Re: Recommendations as how to invest £20,000 required
Quote:
Originally Posted by
goats
I’ve been doing this for 20 years, the stamp duty and general house prices in Cardiff are making it difficult. As us the fact not many people seem to be selling up currently, prob due the high cost of all the fees involved. In saying that a mate of mine is snapping up houses cheap in treforrest and renting to students. Less than 100 grand and £1500 a month coming in. Even these are now in short supply.
always been a nice little earner, i am looking at a house in bristol on Saturday that we are thinking of student rental, needs a fair bit of work, and would be doable by Sept if i wasnt away for Aug, so i will miss the window for this year
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Re: Recommendations as how to invest £20,000 required
Quote:
Originally Posted by
blue matt
united bank UK for 5 years at 2.65% its not massive, but has fscs protection so its safe :thumbup:
I know its a little dull, but its safe
What’s the maximum allowed? Beats the 1% I have with nat West currently
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Re: Recommendations as how to invest £20,000 required
Quote:
Originally Posted by
goats
Isn’t it risky to put cash in to stocks and shares at the moment? Only say this as the ft is higher than ever, and at some point it’s going to plummet back to 4500 thus half ing any invested amount. I also have cash to invest at the moment.
It's a good time to cash in on FTSE 100 tracker. As for FTSE 250 there may be some more value in it yet. Trickling in (spare) cash over years within an ISA, plus investing in Premium Bonds/cash ISA/riskier P2P loans may help spread the financial risk. If I could read the future I would have put a lump on City getting promoted, 18 months ago!
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Re: Recommendations as how to invest £20,000 required
Quote:
Originally Posted by
IanD
Annuities are a minefield and worth reading up on. Typically you hand over £100k and you get an income of 3k ish. But, all sorts of factors come into play such as whether you smoke, whether you want a fixed income, income with an annual increase, joint income, fixed income period and so on. Plus you get taxed on that income so take off 20/40% as any pension/other income will be taken into account for tax purposes. If you can build up savings via ISAs etc then income drawdown might be a suitable option, taking out the sum equivalent to whatever the prevailing tax threshold is, not working and enjoying life until a company and/or state pension kick in (and downsize to avoid inheritance tax). A quick bit of Maths shows you have to live quite a while to benefit fully from an annuity, too.
I have looked into annuities and input the relevant factors in order to have some projections and your figures are consistent with the projected (unofficial) results. I will look into an ISA and would prefer working part-time and increasing my savings rather that denude them at this time (since this time last year my salary halved but my occ pen topped me back up to where I was income-wise). However, the amounts are relatively modest so I would prefer working part-time for another couple of years and add to my savings rather than denude them by drawing down.
I hope that the responses are helping other people as I don't usually air my laundry like this :-)
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Re: Recommendations as how to invest £20,000 required
Invest in CFDs, the easiest way to make money off the back of others, if you know what the markets looking for
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Re: Recommendations as how to invest £20,000 required
Quote:
Originally Posted by
goats
What’s the maximum allowed? Beats the 1% I have with nat West currently
think it was 1 mill :thumbup:
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Re: Recommendations as how to invest £20,000 required
Don't worry about the poor interest rates just keep it safe in simple ISA's, long term savings accounts with half decent rates , dont risk it ,property is probably a good bet and earn from the rent .
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Re: Recommendations as how to invest £20,000 required
Quote:
Originally Posted by
blue matt
united bank UK for 5 years at 2.65% its not massive, but has fscs protection so its safe :thumbup:
I know its a little dull, but its safe
Wouldn't recommend tying up cash that long. Interest rates are going to rise.
P2P lending is the way to go.
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Re: Recommendations as how to invest £20,000 required
Quote:
Originally Posted by
Taunton Blue Genie
I have looked into annuities and input the relevant factors in order to have some projections and your figures are consistent with the projected (unofficial) results. I will look into an ISA and would prefer working part-time and increasing my savings rather that denude them at this time (since this time last year my salary halved but my occ pen topped me back up to where I was income-wise). However, the amounts are relatively modest so I would prefer working part-time for another couple of years and add to my savings rather than denude them by drawing down.
I hope that the responses are helping other people as I don't usually air my laundry like this :-)
Right. That makes sense. I was wondering how you managed to go p/t and keep a full salary. I'm sure you will be able to map out your future.
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Re: Recommendations as how to invest £20,000 required
Quote:
Originally Posted by
Taunton Blue Genie
That's a bit niche for me as I wouldn't know where to start - and isn't there a cost attached in storing it? Forgive my ignorance.
Costs nothing to store gold yourself. Each 1oz gold coin'll set you back just above £1,000 today. Cheapest place to purchase them is from online dealers, Hatton Garden metals offer the best prices: http://www.hattongardenmetals.com/buy/ (user reviews here: https://uk.trustpilot.com/review/www...rdenmetals.com) Simple process to buy: create an account, pay in a variety of ways and have delivered to your door within two working days. Gold's been used as a store of wealth and an insurance policy against financial calamity for five millennia.
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Re: Recommendations as how to invest £20,000 required
Quote:
Originally Posted by
life on mars
Don't worry about the poor interest rates just keep it safe in simple ISA's, long term savings accounts with half decent rates , dont risk it ,property is probably a good bet and earn from the rent .
Wealth denominated in bits of inked paper (and their digital equivalent) isn't safe, the exact opposite is true.
Deutsche Bank was described by the International Monetary Fund (IMF) in 2016 as the world's most dangerous bank whose bankruptcy had the potential to bring down the world's financial system. Here's a BBC article from then: Deutsche Bank: World's most dangerous bank? http://www.bbc.co.uk/news/business-36723034
Today its share price lost almost 5% and is lower now than when the above article was published. Actually, its price is 40% lower this minute than what it fell to during the height of the global financial crisis in 2008-2009. You can check its performance here: https://uk.finance.yahoo.com/quote/DBK.DE/
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Re: Recommendations as how to invest £20,000 required
I always enjoy reading threads like this. People will have completely different views in terms of how best to invest.Your approach will largely be determined by your appetite to risk.
Taking a step back - if you are a basic rate tax payer - you can earn a 1k before hmrc want to take a slice. If your a higher rate tax payer - that threshold is £500 (this isnt inclusive of share dividends - there are different, much higher thresholds here).
For low risk investment - your looking at cash isa's or bank savings accounts.
With £20k to play with - I would be giving the cash isa's a wide birth. Rates are absolute dog sh!te at the moment.
There are quite a number of regular savings accounts that will pay 5%. Usually £250/£300 per month is the max contribution over the 12 months - then get interest credited. First Direct, HSBC & Nationwide will give you that rate (you will need a linked bank account - easy enough to set up). Thats £9k invested low risk. A set of accounts for the wife as well makes it £18k.
Medium risk - I would be looking at index trackers. Mix your exposure up a little bit (a few guys in this thread have referenced ftse 100/250 index trackers). Do a bit of research on Hargreaves Lansdown. You can buy a tracker that will
track pretty much any market - world wide. Plenty of material on MSE to help you here. You can wrap these in a stocks/shares isa as well. The ftse 100 has averaged a 7% return (long term investment), outperforming most fund managers.
Higher risk - P2P. Be very careful here. A lot of people have been stung investing in ultra high risk property projects. You really need to do your research before throwing any cash here. Personally - I avoid property investments like the plague. I tend to stick to bling loans - on line pawn brokers - gold watches - tangible items that can more easily be resold via auction. Unbolted is my platform of choice here. A lot of p2p sites will also enable you to wrap your investments up in an isa.
Ultra high risk - crypto currency. Again - completely depends on your attitude. A lot of people think this is complete guff, will go no where, & the fools that have invested will lose everything. What were the early perceptions of mobile phones & the internet in the early/mid 90's?! I strongly believe that this will blow up big style over the next few years, more and more of the youth will adopt. Focus here on projects addressing scailability issues. I have invested in a number of projects - i'm particularly excited by Zillica.
Each to their own of course.
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Re: Recommendations as how to invest £20,000 required
Quote:
Originally Posted by
Badly Ironed Shirt
Wouldn't recommend tying up cash that long. Interest rates are going to rise.
P2P lending is the way to go.
Havent they been saying that for the last 10 years ? ?