12K spare cash - best investment?
02 March 2006, 02:21 PM
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12K spare cash - best investment?
Hi there,
Will be returning home to the UK in April after a year working in Dubai. After getting a new kitchen and putting aside a budget of 5K for a new car I will have around 12K left.
Looking at various investment possibilities. It's not enough cash to be used to upgrade to a bigger property or to buy a second property so looking at other options.
Anyone got any ideas. Might have as much as 15K but around 12-13K more likely depending on my bonus.
I'm a real petrolhead and have had lots of nice cars over the years. My problem has alsways been that I get bored very quickly with cars and change cars every 18 months. Did have thoughts about buying a boxster or an M5 but the running costs put me off. the law of dimishing returns applies here. I will get a certain amount of satisfaction from a 5K car but I won't get three times the amount of satisfaction from a 15K car.
Any advice?
Martin.
Will be returning home to the UK in April after a year working in Dubai. After getting a new kitchen and putting aside a budget of 5K for a new car I will have around 12K left.
Looking at various investment possibilities. It's not enough cash to be used to upgrade to a bigger property or to buy a second property so looking at other options.
Anyone got any ideas. Might have as much as 15K but around 12-13K more likely depending on my bonus.
I'm a real petrolhead and have had lots of nice cars over the years. My problem has alsways been that I get bored very quickly with cars and change cars every 18 months. Did have thoughts about buying a boxster or an M5 but the running costs put me off. the law of dimishing returns applies here. I will get a certain amount of satisfaction from a 5K car but I won't get three times the amount of satisfaction from a 15K car.
Any advice?
Martin.
02 March 2006, 02:52 PM
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Well if it's to be used as an investment, do NOT use it to buy a car. they do the opposite.
Look into investments. Best thing to do is speak to an IFA. You're probably looking at using up your ISA allocation and the rest in some investment where you can decide how much risk you want to take, play it safe for similar returns to an ISA or go higher if you want. The IFA will tell you all. As for which IFA, word of mouth is good.
Look into investments. Best thing to do is speak to an IFA. You're probably looking at using up your ISA allocation and the rest in some investment where you can decide how much risk you want to take, play it safe for similar returns to an ISA or go higher if you want. The IFA will tell you all. As for which IFA, word of mouth is good.
02 March 2006, 02:59 PM
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Best thing to do, is write me a cheque for £12k and I'll invest it for you. I own my own investment company "D, Odgy investments PLC" and I'll happily invest your money for you. 
Seriously though. Property. Find a good property with good rental potential, use your £12k as a deposit, and start renting it out. Let some other mug pay the mortgage off for you. In 25 years time the mortgage will be payed off and you'll have made a huge profit. Minus your initial £12k investment of course.
Seriously though. Property. Find a good property with good rental potential, use your £12k as a deposit, and start renting it out. Let some other mug pay the mortgage off for you. In 25 years time the mortgage will be payed off and you'll have made a huge profit. Minus your initial £12k investment of course.
02 March 2006, 03:17 PM
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Depends how long you want to tie the money up for.
Obviously £3k into your cash ISA if you havent already used it (A&L 5.2%), then maybe the remaining £9k into a high interest savings account (B&B 4.85%)
If you can afford to tie up the money for 5years, then a tracker tracking funds in emerging markets might net some very nice returns - eg India, China. Couldve made 40% in one year if you had a Chinese tracker last year...
Obviously £3k into your cash ISA if you havent already used it (A&L 5.2%), then maybe the remaining £9k into a high interest savings account (B&B 4.85%)
If you can afford to tie up the money for 5years, then a tracker tracking funds in emerging markets might net some very nice returns - eg India, China. Couldve made 40% in one year if you had a Chinese tracker last year...
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02 March 2006, 03:29 PM
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Originally Posted by jasey
Alliance & Leicester are doing some sort of introductory regular saver account that pays 10% for the first year !
worth checking out !
worth checking out !
02 March 2006, 05:05 PM
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Thanks for the replies.
I had looked at buying a second property to be honest although by the time I pay lawyers fees and letting agents fees I wouldn't be left with much of a deposit on a second property.
Probably the best thing to do initially is gte the money into an account that pays decent levels of interest. It sitting in my current account at the moment whihc pays next to b*gger all interest.
Thanks again and all the best.
Martin.
I had looked at buying a second property to be honest although by the time I pay lawyers fees and letting agents fees I wouldn't be left with much of a deposit on a second property.
Probably the best thing to do initially is gte the money into an account that pays decent levels of interest. It sitting in my current account at the moment whihc pays next to b*gger all interest.
Thanks again and all the best.
Martin.
02 March 2006, 05:13 PM
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Despite the pisstake earlier, first direct are offering about as good as a deal you will see on the highstreet
5%...
http://www.firstdirect.com/saveinvest/?fd_msc=ew003
Andy
5%...
http://www.firstdirect.com/saveinvest/?fd_msc=ew003
Andy
02 March 2006, 05:21 PM
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It all depends on what your financial situation is now, mortgage, savings, pensions and other investments. Some options:-
If you haven't got an ISA this year then you can put 7k into a shares ISA. You can put another 5k into another Isa after April 6th, so that would take care of the 12k. As I'm sure you know, ISA's are protected from tax, so any gains are tax free. (After a few years of stagnation my ISA's went up by 30% last year).
You could contribute a lump sum to your pension, which may attract a tax benefit, depending on whether you are resident in the UK for tax purposes this tax year. You might also be allowed to use add to your pension for previous years. An accountant should be able to tell you.
And of course if you have a mortgage then it may make good sense to pay off some of the capital and reduce your repayments (either monthly or repayment date).
Make sure you use some of it to buy something you really want. You're a long time dead and you can't take any of it with you
If you haven't got an ISA this year then you can put 7k into a shares ISA. You can put another 5k into another Isa after April 6th, so that would take care of the 12k. As I'm sure you know, ISA's are protected from tax, so any gains are tax free. (After a few years of stagnation my ISA's went up by 30% last year).
You could contribute a lump sum to your pension, which may attract a tax benefit, depending on whether you are resident in the UK for tax purposes this tax year. You might also be allowed to use add to your pension for previous years. An accountant should be able to tell you.
And of course if you have a mortgage then it may make good sense to pay off some of the capital and reduce your repayments (either monthly or repayment date).
Make sure you use some of it to buy something you really want. You're a long time dead and you can't take any of it with you
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