Tradescanthia Posted April 5, 2006 Share Posted April 5, 2006 What would be the best way to invest £20,000 ? , I dont need access to this money for the next few years but i dont fancy anything risky. Any suggestions [sensible ones only please]. Link to comment Share on other sites More sharing options...
crookesey Posted April 5, 2006 Share Posted April 5, 2006 What would be the best way to invest £20,000 ? , I dont need access to this money for the next few years but i dont fancy anything risky. Any suggestions [sensible ones only please]. You have until tonight to apply for a double cash ISA (two doubles if you are married or have a partner) this would sort out £12,000, you simply go for the best rate with no risk involved. The other £8,000 could go in a high interest bearing account and £6,000 could be ISA'd next April and the rest the next year. Link to comment Share on other sites More sharing options...
Tradescanthia Posted April 6, 2006 Author Share Posted April 6, 2006 Thanks crookesey, I missed the deadline due to work commitments but I think an ISA would be the way to go. Link to comment Share on other sites More sharing options...
Twiglet Posted April 6, 2006 Share Posted April 6, 2006 Thanks crookesey, I missed the deadline due to work commitments but I think an ISA would be the way to go. Don't go for an investment ISA. A friend was advised to do this and ended up losing a significant amount of money, far riskier than they appear! Link to comment Share on other sites More sharing options...
Tricky Posted April 6, 2006 Share Posted April 6, 2006 Don't go for an investment ISA. A friend was advised to do this and ended up losing a significant amount of money, far riskier than they appear! An ISA is simply a tax efficient wrapper for a variety of investment products. The ISA will only be as safe or risky as the underlying investment. Gordon Brown has sysematically reduced the benefits of holding an ISA, so it may be that it doesn't make any difference whether to buy a product with or without the ISA wrapper. Nimrod What do you mean by risky? How much are you prepared to lose? What sort of gains would you like to see? If you are thinking about investing in a fund, I would advise you to look at on-line IFAs such as Bestinvest (http://www.bestinvest.co.uk) and a fund supermarket in order to reduce the initial commission from about 5% down to 0.25% or zero. They don't charge any fees for 'Execution Only' transactions. (This sounds more complicated than it really is) Link to comment Share on other sites More sharing options...
AGB1 Posted April 6, 2006 Share Posted April 6, 2006 If you can invest it in property! I had 20,000 to invest when I became 18 and I went for an investment ISA. 7 years later (Post 9-11 etc obviously) It's only worth 19,800 although it has picked up a lot in the past few years Maybe I was unlucky but I certainly wont take the risk again. Alex Link to comment Share on other sites More sharing options...
Glennis Posted April 6, 2006 Share Posted April 6, 2006 A mini cash ISA is what I would go for, as these are not linked to the stock market. Could also try your luck with premium bonds. Link to comment Share on other sites More sharing options...
babychickens Posted April 6, 2006 Share Posted April 6, 2006 despite advice from other people, i'd recommend stocks/shares ISAs - ok, so they don't always work, some of mine took a real knock on 9/11 and several other occasions, but they've always more than recovered - one of mine (jupiter european fund, i think) grew by 16/17% in the last statement period. OK, they're higher risk than cash ISAs but can often mean much higher reward, if you've chosen wisely, and are prepared to wait a few years to see much return. you can choose investment isas with lower risk, or even ones that are ethical, or only use chinese companies to invest in etc etc. i'm happy enough with investment isas that i'll be opening one for my (currently unborn) daughter fairly soon - hopefully in 18 years it'll bring a smile to her face, although i realise you probably don't want to invest for that long, and can't invest the whole lot in investment isas anyway. my other top tip - people always need places to live, property makes sense (but not student rental properties, the market has dropped right away for that, i looked into buying a house to let last year, the sums don't make it work well anymore). Reckon you really need an independent financial advisor of the professional variety (my grandfather, fortunately for me, has filled this role most impressively!). Good luck. Link to comment Share on other sites More sharing options...
LordChaverly Posted April 6, 2006 Share Posted April 6, 2006 You have until tonight to apply for a double cash ISA (two doubles if you are married or have a partner) this would sort out £12,000, you simply go for the best rate with no risk involved. The other £8,000 could go in a high interest bearing account and £6,000 could be ISA'd next April and the rest the next year. This information is incorrect. You can only invest £3000 in a mini cash ISA in any tax year. I would be reluctant to advise investment in stock market ISAs at the moment, unless you are prepared to invest for a very long period. Markets at the moment are at high levels and there is bound to be a correction at some point. Link to comment Share on other sites More sharing options...
crookesey Posted April 7, 2006 Share Posted April 7, 2006 This information is incorrect. You can only invest £3000 in a mini cash ISA in any tax year. I would be reluctant to advise investment in stock market ISAs at the moment, unless you are prepared to invest for a very long period. Markets at the moment are at high levels and there is bound to be a correction at some point. No it is not incorrect, a double cash ISA means using your 2005/2006 and 2006/2007 allowances over a two day period. £3,000 x 2 = £6,000 x 2 people = £12,000. Link to comment Share on other sites More sharing options...
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