Investing £10,000, advice appreciated?

Question

I'm almost 39, single mum, in part-time work+study but spend what I earn on the basics/normal living costs

son at secondary school (lives at home) daughter about to leave for uni

I have a much neglected ISA (with skipton building society)

rent my home

no savings

no assets

no rainy day fund

no debt

a relative wants to give me the money - but I have no idea what I should do with it for the best outcome

I'm certainly in no rush for it, want it to be 'safe' but really don't have a clue what would be best

I see it as a helping hand for my kids, something to leave them when I'm gone, or maybe a safety net for my old age - I've always dreamt I'd emigrate to warmer climates when I'm 45!

any advice would be seriously considered, and very much appreciated!

Answer 1

When you have any sum of money, you shouldn't be too quick to spend it on anything. Saving money in a bank is probably the safest route. Plus, it would gain interest and you could buy bonds to increase the value of your money. But this is just what I would do.  Ulitmately, it is your decision, so think about it and you will find something to do with it.

Answer 2

My suggestion is:

Invest your money in Eastern Europe with NO RISK at 10% a year:

£10,000 at10% APY becomes £16,105 after 5 years;

£25,937 after 10 years.

You could also make a low risk investment at 15% per year.

Good luck!

Answer 3

God bless single moms. It is a hard task to raise two kids alone. A lot of work and sacrifice that is often taken for granted. What a nice relative to offer you the money.

First priority is to establish a rainy day fund. Even a little bad luck and you are in trouble. You should try to have at least 3 months worth of expenses set aside for a rainy day. This money should be liquid, that is easy to get at. That probably means in a bank savings account.

If there is money left over you probably should invest it.

The problem with "safe" is that nothing is really safe but some things appear to be safe. You can probably put the money in the bank for a low interest. But taxes and inflation will probably make this "safe" investment lose purchasing power. So 10 years later you might have more pounds in the bank but they won't buy nearly as much. There is no one place to put your money and be safe. If you remembe the old adage don't put all your eggs in one basket. Now, the best advice is to put your eggs in a few different baskets

You probably need to build a nest egg for your old age. I suggest looking into mutual funds.  I'm not sure what fund choices you have but something like the Vanguard Star fund would be a reasonable choice. It is one fund that invests in large, small and international stocks and bonds. It is also low cost. Keep it simple, diverse and low cost -- and if possible, without paying anyone a commission.

good luck

Answer 4

invest inbalaced mutual funds

medium risk and good return

nothing to worry much

Answer 5

If I were in your shoes, this is how I'd invest my money:

- 50% in debt securities (treasury bills, bank CD's, corporate bonds)

- 40% in equity (stocks)

- 10% for speculation.

The investment in debt securities is to help preserve your capital, and earn a bit on the side. The equity investment, even if  placed in blue chip dividend stocks, plus the 10% for speculation is to help generate future cash flow. http://homeruntrades.blogspot.com

Answer 6

in case you are not that risk-avert and look for higher returns you might take a look at

http://www.bestforexinvestment.com