Just investing some cash & need 2 decide soon---witch is best option ??

Question

i have got arround 35k to invest from a house sale, after meetings with banks just need to decide over 2 options...the 35k goin in2 a high intrest account of 6.8% (5.5 aft tax ) OR it gets devided up ( like a pension ) and invested in various ways by the banks, i dont realy want to risk loosing the money, anyone got any experience or tips to advise me.. thanks

Answer 1

Whatever you do,at least spread your assets. I find the suggestion of putting the whole £35k into one account absolutely foolish and naive. Divide your funds by 7 and put £5k into 7 different investments.

Answer 2

normally i would say property

or with smaller amount blue chip shares when low

preferably very low

eg currently hbos or brad and bing

try a couple of grand in each and monitor for say 12 months atleast you will learn about how the stock market works. never take anyones sure bet with stocks

i would beware of pensions

remember mexwell

look at recent history

or simply better to be safe than sorry

ie in the bank

its your dosh

and somebody will always want it

Answer 3

I'm not a financial expert but for the time being I would stay clear of any investment that depends on the stock exchange and put my money in the best guaranteed interest account I can find. Many accounts are introduced with a good rate of interest but it quietly goes down after a few months.

Have a good look around the comparison sites to find the best accounts, usually you will need to commit to a fixed term (such as bonds) and internet accounts usually have the best rates. If you use a variable rate account then keep an eye on the rate and be prepared to change to a new account when it goes down.

Don't forget that at present in the UK any savings up to 35K will be protected if the bank crashes, so you may consider splitting your investment in more than one account with different institutions.

Answer 4

For what it's worth - in my experience you should never 'put all your eggs in one basket' - and from an investment point of view - timing is of the essence.

Currently markets are in a state of disarray -so cash accounts are probably the best option - but I'd advise a 10, 10, 15 spread across 3 different banks.

Pension contracts can lock you into longer term deals that might not prove to be profitable -or easily accessible when you need urgent funds.

The essence of timing crystallizes on your current age - current market conditions - and when you are most likely to realise the investment.

If you were worth 1 million - you could of course risk 35k in oil, gas, gold or silver options - but if you can't afford the risk - it's obviously more sensible to proceed with caution.

In 5 or 10 years' time you might regret not making the return you might have gained in other fields - but that's the way it works.

If our foresight was as good as 20/20 hindsight we would all be worth 1 million - except for the fact there isn't enough money in the world for us all to be so.

Answer 5

It's always better to do it yourself...

Why would anybody else care about your wealth but you. Visit http://www.independentinvestor.co.uk ,

they compare spread betting vs CFDs vs Share Dealing and Savings. Maybe not enough but a good start. Decide what you want and invest yourself. If you're not willing to risk a lot then use 90% for savings and the rest for spread betting.

Have fun

Answer 6

For short-term investing, your first option is best.  For longer term, a more diverse strategy, (as appears to be in your second option) would be the one to go for. There is a degree of risk, depending on how it is invested, but over the long term, you could expect a much better return. Just now might be a little risky, given the current economic situation.

Answer 7

Depends how close you are to retirement, and your tolerance for risk (loss).  Either way you should diversify it.  If you have 20 years or more you may want to pick some blue chip stocks with consistent dividends.  There is risk but you will make more in the long term.  If this is the case, I would put $5-10k into a CD, then look at stocks like JNJ, GE or other Dow stocks.  Put 5K in a bond fund, 5k international fund, 5k in a Growth and Income fund., 5k in a balanced fund.  Keep 5 k in cash in money market.

Answer 8

Banks are the safe option,which means you get less interest !

HSBC have some options. Or you could try some short term deposits and funds,I use a company called Barrington-Smith that are excellent in offering secure deposits.Another option are one or two of the Spainish Banks such as bankinter are worth a try.