Investing money question - your thoughts please
17 December 2006, 11:32 AM
#1
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Investing money question - your thoughts please
If you were given, say £3k, and HAD to invest it for 16 years then what would you put it in? And going on current rates of growth what would it be worth in your chosen type of investment at the end of the period?
There is no option for the usual 'blow it on hookers and some of Columbia's finest' as per the usual SN replies for this sort of question and it wouldn't buy much even if it were an option
P.S. I know this is just pocket money to a lot on here but I want to see what the maximum return is I can get on this in 16 years time.
There is no option for the usual 'blow it on hookers and some of Columbia's finest' as per the usual SN replies for this sort of question and it wouldn't buy much even if it were an option
P.S. I know this is just pocket money to a lot on here but I want to see what the maximum return is I can get on this in 16 years time.
17 December 2006, 12:21 PM
#3
I would put it in an ISA personally (stocks not a cash ISA). No tax to be paid. Take a look on money.msn.co.uk for the best long term performers in your chosen risk profile. Then go to a discount broker and open one up.
17 December 2006, 12:26 PM
#4
For example, I have a low risk ISA that has returned on average 7.1% per year since 1997 (tax free). There are probably better ones out there - but depends on what risk you want to take.
Last edited by James Neill; 17 December 2006 at 12:36 PM.
17 December 2006, 12:29 PM
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As James Neill says, depends on how much risk you want to take,and what other investments you have. Also, if you have any debts, and if so, what is the interest rate on those?
If you have got 3K on a credit/store card, on your mortgage, or even worse, some sort of DFS monkey brain deal, then you would be better to consider paying that off before investing your 3K for 16 years.
Go and see an ifa. Find one close to you on Find an independent financial adviser - IFA - www.unbiased.co.uk
If you have got 3K on a credit/store card, on your mortgage, or even worse, some sort of DFS monkey brain deal, then you would be better to consider paying that off before investing your 3K for 16 years.
Go and see an ifa. Find one close to you on Find an independent financial adviser - IFA - www.unbiased.co.uk
17 December 2006, 12:46 PM
#6
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give it me and in 16 years time il give ya 3500 back! if you can find me lol!
joking apart, trade the stock market my freind! spend two years studying and learning the ins and outs! get your self a pretend account on advfn and when your confident start trading! who know in 16 years time you could have 30000 pounds
get it wrong and your have 3 pound
joking apart, trade the stock market my freind! spend two years studying and learning the ins and outs! get your self a pretend account on advfn and when your confident start trading! who know in 16 years time you could have 30000 pounds
get it wrong and your have 3 pound
17 December 2006, 12:46 PM
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Cheers guys, I was thinking an ISA too but thought it might be too obvious and that I might be missing something better. I know nothing about ISA's as never looked into getting one before, just heard the name banded about a lot. No credit to pay off thankfully apart from my mortgage. The idea of the 3k invested is to try and close the gap on any endowment shortfall hence not sinking it into my endowment and having something separate. Low risk is always my favoured option as i'm not a gambler.
Thanks for the advice
Thanks for the advice
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17 December 2006, 12:48 PM
#8
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Originally Posted by RUDDY
give it me and in 16 years time il give ya 3500 back! if you can find me lol!
joking apart, trade the stock market my freind! spend two years studying and learning the ins and outs! get your self a pretend account on advfn and when your confident start trading! who know in 16 years time you could have 30000 pounds
get it wrong and your have 3 pound
joking apart, trade the stock market my freind! spend two years studying and learning the ins and outs! get your self a pretend account on advfn and when your confident start trading! who know in 16 years time you could have 30000 pounds
get it wrong and your have 3 pound
17 December 2006, 12:51 PM
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I would put it in investments that are presently unpopular because they're at the bottom of the cycle, rather than sectors that have had massive recent growth. 16 years is long enough to hopefully catch the next bull market having bought at a good price.
Your maximum possible return will come from risky investments that could lose more than even the original amount you put in. Maximum return is probably not really what you are looking for I suspect when the downside might be losing it all or worse.
The point about paying off debt is very important. In the past I've split about 75% of funds into clearing a mortgage and 25% into shares. I don't know how confident you can be that you'll get a higher rate of return than your present and future mortgage rate. The shares did badly for a while and have now recovered well. In hindsight I think this split was about right for us.
I would only use an IFA that returned commission and took a fee from me if I was using one at all, otherwise you may find that they aren't independent at all and are putting your money where it earns them the most commission. For £3k it isn't worth it though IMHO.
Your maximum possible return will come from risky investments that could lose more than even the original amount you put in. Maximum return is probably not really what you are looking for I suspect when the downside might be losing it all or worse.
The point about paying off debt is very important. In the past I've split about 75% of funds into clearing a mortgage and 25% into shares. I don't know how confident you can be that you'll get a higher rate of return than your present and future mortgage rate. The shares did badly for a while and have now recovered well. In hindsight I think this split was about right for us.
I would only use an IFA that returned commission and took a fee from me if I was using one at all, otherwise you may find that they aren't independent at all and are putting your money where it earns them the most commission. For £3k it isn't worth it though IMHO.
Last edited by john banks; 17 December 2006 at 12:54 PM.
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