16vmarc

Ive decided i want to invest some of my money. Im thinking probably around £1500 at the moment maybe £2000. I definatley want to get 500-1000 of premium bonds as im told you dont actually lose money and that you only make money on it.

Im also interested however in some stocks and shares or other investment. Ive been to the bank and im not really interested/convinced with thier stocks and shares isas. My friend has suggested the Halifax as they invest your money in a number of business` and actually treat your money as a business in itself. He also suggested i should speak to a financial advisor.

But before i do this any ideas or experiences by people would be apprieciated.

TelBoy

Hmmm. Not if your prize money doesn't exceed the rate of inflation you don't.

16vmarc

Ah! Well i need to look into them both lol!!!

gsm1

My advice - stick your money in an ING direct savings account for now.

Premium Bonds are okay but no great shakes and having analysed my returns over the last 10 years I would have been better off sticking the money in a standard savings account.

If you want to play the stock market then first analyse it and play with toy money till you get a feel for it. There's a site that lets you do this but I forget which.

I don't trust financial advisors, period.

16vmarc

I must add i already have a Mini Cash ISA and a high interest savings account.

TelBoy

I'll be absolutely honest with you, please don't take offence, but £2,000 isn't going to make or lose you a fortune, if you play it relatively safe. So, is this a sum you can afford to lose? If it is, go to a fund manager like Fidelity and invest it in their riskiest portfolio - you might get lucky and buy into something that out-performs massively. If you can't afford to lose it, then premium bonds are a good bet - you do get your money back and there's always the chance of £1m. Horses for courses.

16vmarc

Im not sure really, im thinking starting small and see how i get on! £2000 is roughly half of whats in my current account.

Recaro

I had 20K in Premium bonds and I occasionally won £50 a month. Did ok for about 5 years. My sister also had 20K and she won nothing.

My mum on the other hand had 15K and won 5K one month. You may win, you may not. Its no sure thing.

Tentenths

No offence taken

Tiggs

he's got £2k......i dont think it matters if trusts them or not!

16vmarc

haha.

Tentenths

Your first priority should be to build up a rainy day/emergency fund equivalent to at least 6 to 9 month's income/expenditure in a decent bank/building society account e.g. ING Direct as mentioned by gsm1.

After that just a few of the other things you need to consider before making a decision are:-
Might you be better off using the money to repay debt?
How long are you prepared to tie your money up for?
Are you likely to need access to some/all at short notice?
Are you looking for absolute security or are you prepared to risk losing some/all of your money?
Do you really want to trade shares yourself?

16vmarc

No debts
Im in no hurry to get it out once ive invested
I shouldnt need access
I dont want to lose money but i know theres a risk!
Id rather it was already done.

gsm1

Sorry, typo. I meant to say I love financial advisors!

Philip Attaway

Pay a small lump off the mortgage

16vmarc

Live at home, cant afford a house lol

Philip Attaway

There you go then.

High interest account until you can afford one!

Tentenths

In that case I'd be inclined to keep your money "liquid" - as it will probably only be a matter of time before you do want to buy something.

Philip Attaway

Isn't £4000 a 50% deposit on a house up North?

paulr

40k more like.

16vmarc

lol @ PA

Philip Attaway

ChrisB

That's for a luxury pad in an exclusive area up here

Philip Attaway

Every lad at home NEEDS a plasma and HUGE surround sound set-up. SPEND IT

16vmarc

You obviously havnt seen the set up in the living room

gsm1

At the house auctions 2 years back you could pick up a property (in Greater Manchester I think) for between 9 to 15k. Just the grilles on the windows must have been worth a few bob.

16vmarc

Ive decided at last!

£1100 - which apparently my dad owes me! is going into premium bonds.

£1000 - is going into stocks and shares.

Dunk

iTrader: (1)

To cover the dealing costs, you'll need a 10% gain to break even.

D

Rumplestiltskin!

My daughter got bought 1 premium bond a few months back by an uncle, came up last month - £100...hows that for a return !

16vmarc

Im actually going to do the government one??? Forgot what its called, similar to a stakeholder pension plan i think??