70K to invest - want to put 50k either in PB or stocks help!
Discussion
Hi guys I am currently unemployed after being made redundant and I currently have £70,000 to invest in. I was thinking of putting the max into premium bonds £50k and the rest into stocks on trading 212 or other way around.
I'm completely new to stocks and shares I've had a quick look at trading 212 and it seems like it's the easiest way for me to get started and to buy/cashout etc?
If you was in my position what would you do? I'd love to double that 70k into 140 by the end of the year. The end goal is to cashout by the end of the year and hopefully buy a property cash outright..
Now we are going into a further lockdown for 2 months perhaps more, I was thinking of putting 30/40k on Amazon and 20k on Ocado.
Then I've noticed some other companies people have talked about that seems to be worth investing in, Nio, Ceres Power Holdings, Powerhouse holdings, Greatland Gold, EQTEC, John Menzies, Supply @me capital.
No I'm definitely not a troll I am deadly new to this and I really want to double my money or make at least make 30/40k in a year from the 70k...The goal is to cashout, I read something about capital gains tax also, my money is all in the bank not in an ISA... So if Invested the 70k at once and my holdings is worth 140k in a year I'd get a large tax bill when I want to cashout?
I'm just tempted to stick 50k on Amazon, 20k on Alphabet (Google) for the short term at least
2-3 months with the lockdown, more people at home shopping, browsing, etc.
Thoughts? Many thanks
I'm completely new to stocks and shares I've had a quick look at trading 212 and it seems like it's the easiest way for me to get started and to buy/cashout etc?
If you was in my position what would you do? I'd love to double that 70k into 140 by the end of the year. The end goal is to cashout by the end of the year and hopefully buy a property cash outright..
Now we are going into a further lockdown for 2 months perhaps more, I was thinking of putting 30/40k on Amazon and 20k on Ocado.
Then I've noticed some other companies people have talked about that seems to be worth investing in, Nio, Ceres Power Holdings, Powerhouse holdings, Greatland Gold, EQTEC, John Menzies, Supply @me capital.
No I'm definitely not a troll I am deadly new to this and I really want to double my money or make at least make 30/40k in a year from the 70k...The goal is to cashout, I read something about capital gains tax also, my money is all in the bank not in an ISA... So if Invested the 70k at once and my holdings is worth 140k in a year I'd get a large tax bill when I want to cashout?
I'm just tempted to stick 50k on Amazon, 20k on Alphabet (Google) for the short term at least
2-3 months with the lockdown, more people at home shopping, browsing, etc.
Thoughts? Many thanks
One of the best posts I read on PH Finance was along the lines of: "Investing in AIM companies is like going into a casino. Investing in AIM mining and oil & gas companies is like going into the casino and putting it all on zero".
I do invest in the AIM market, and I do have mining and oil & gas shares. I have also been burned several times.
If you need your money in a year or so, you need to accept you may not get it all back (Just look at what would have happened if you had needed all your money out in late March last year...). Spread the risk across different companies in the same field (e.g. CWR, PHE,FCEL, AFC, ITM) and spread it across different sectors (e.g. green energy & pharmaceuticals). If something looks like its keeps climbing but may be overpriced, e.g. Tesla, you may be better going into a fund with a significant holding in it (e.g. Scottish Mortgage Investment Trust) rather than going in directly. They will have better info than you and can probably react faster.
Three or four investment trusts with at the very least 50% of your pot and the balance spread across, say five different shares, would limit the risk to some extent. Trading charges can be high on some platforms when the individual amounts are smaller, although Trading212 may help avoid these. I've not used them myself.
If you are interested in the FAANG companies, of which Amazon and Google are a part, have a look at the Legal & General Global Technology Index Accumulation Fund.
Finally if you haven't done so already, set up virtual portfolios so you can compare some of the shares & funds which you consider promising.
Good luck!
I do invest in the AIM market, and I do have mining and oil & gas shares. I have also been burned several times.
If you need your money in a year or so, you need to accept you may not get it all back (Just look at what would have happened if you had needed all your money out in late March last year...). Spread the risk across different companies in the same field (e.g. CWR, PHE,FCEL, AFC, ITM) and spread it across different sectors (e.g. green energy & pharmaceuticals). If something looks like its keeps climbing but may be overpriced, e.g. Tesla, you may be better going into a fund with a significant holding in it (e.g. Scottish Mortgage Investment Trust) rather than going in directly. They will have better info than you and can probably react faster.
Three or four investment trusts with at the very least 50% of your pot and the balance spread across, say five different shares, would limit the risk to some extent. Trading charges can be high on some platforms when the individual amounts are smaller, although Trading212 may help avoid these. I've not used them myself.
If you are interested in the FAANG companies, of which Amazon and Google are a part, have a look at the Legal & General Global Technology Index Accumulation Fund.
Finally if you haven't done so already, set up virtual portfolios so you can compare some of the shares & funds which you consider promising.
Good luck!
Edited by GliderRider on Tuesday 5th January 02:01
Edited by GliderRider on Tuesday 5th January 02:02
Sorry to be blunt, but you don't have a clue what you're doing and you will very likely end up losing money.
There are professionals who are much cleverer than you and I, and have dedicated 20+ years of their lives to picking stocks, and don't make anywhere close to 100% in a year.
If you can afford to lose the money, then give it a go - but I'm guessing if you want to use it to buy a house, it's quite important to you.
Personally my advice would be to put 60k into a tracker fund, and take the 10k as your "gamble" money so you can play around.
There are professionals who are much cleverer than you and I, and have dedicated 20+ years of their lives to picking stocks, and don't make anywhere close to 100% in a year.
If you can afford to lose the money, then give it a go - but I'm guessing if you want to use it to buy a house, it's quite important to you.
Personally my advice would be to put 60k into a tracker fund, and take the 10k as your "gamble" money so you can play around.
ChopChops said:
Hi guys I am currently unemployed after being made redundant and I currently have £70,000 to invest in. I was thinking of putting the max into premium bonds £50k and the rest into stocks on trading 212 or other way around.
I'm completely new to stocks and shares I've had a quick look at trading 212 and it seems like it's the easiest way for me to get started and to buy/cashout etc?
If you was in my position what would you do? I'd love to double that 70k into 140 by the end of the year. The end goal is to cashout by the end of the year and hopefully buy a property cash outright..
Now we are going into a further lockdown for 2 months perhaps more, I was thinking of putting 30/40k on Amazon and 20k on Ocado.
Then I've noticed some other companies people have talked about that seems to be worth investing in, Nio, Ceres Power Holdings, Powerhouse holdings, Greatland Gold, EQTEC, John Menzies, Supply @me capital.
No I'm definitely not a troll I am deadly new to this and I really want to double my money or make at least make 30/40k in a year from the 70k...The goal is to cashout, I read something about capital gains tax also, my money is all in the bank not in an ISA... So if Invested the 70k at once and my holdings is worth 140k in a year I'd get a large tax bill when I want to cashout?
I'm just tempted to stick 50k on Amazon, 20k on Alphabet (Google) for the short term at least
2-3 months with the lockdown, more people at home shopping, browsing, etc.
Thoughts? Many thanks
Google and Amazon haven’t doubled the share price in the last 12 months so you’re unlikely to double up in the next 12. You need to speak to Julian at IM at the top of this sub-forum, IMHO. I'm completely new to stocks and shares I've had a quick look at trading 212 and it seems like it's the easiest way for me to get started and to buy/cashout etc?
If you was in my position what would you do? I'd love to double that 70k into 140 by the end of the year. The end goal is to cashout by the end of the year and hopefully buy a property cash outright..
Now we are going into a further lockdown for 2 months perhaps more, I was thinking of putting 30/40k on Amazon and 20k on Ocado.
Then I've noticed some other companies people have talked about that seems to be worth investing in, Nio, Ceres Power Holdings, Powerhouse holdings, Greatland Gold, EQTEC, John Menzies, Supply @me capital.
No I'm definitely not a troll I am deadly new to this and I really want to double my money or make at least make 30/40k in a year from the 70k...The goal is to cashout, I read something about capital gains tax also, my money is all in the bank not in an ISA... So if Invested the 70k at once and my holdings is worth 140k in a year I'd get a large tax bill when I want to cashout?
I'm just tempted to stick 50k on Amazon, 20k on Alphabet (Google) for the short term at least
2-3 months with the lockdown, more people at home shopping, browsing, etc.
Thoughts? Many thanks
What would I do?
Buy a property and take on a mortgage
or
Rent and invest that sum in a global equity index tracker fund for 5+ years
Whilst you could make a large sum of money in individual shares during the next 12 months, you could also lose a large sum as well.
You've earned that money so don't gamble it away on short term speculation on something that, frankly, you seem to have little knowledge of.
Buy a property and take on a mortgage
or
Rent and invest that sum in a global equity index tracker fund for 5+ years
Whilst you could make a large sum of money in individual shares during the next 12 months, you could also lose a large sum as well.
You've earned that money so don't gamble it away on short term speculation on something that, frankly, you seem to have little knowledge of.
Op - you haven't mentioned if you have an additional 'emergency fund' / cash buffer in addition to the £70k?
Oil and Mining stocks on AIM - I wouldn't touch them with a bargepole after my experiences many years back, it's the wild west out there and I eventually lost a fair whack of money. In fact I don't touch AIM at all now, Ive dabbled in individual stocks but currently just use a single equities global tracker.
You might double your money if you are lucky but let's say for example, you lose 30% due to the market falling are you comfortable sitting on such a loss? I've used a conservative figure there, AIM can be subject to much bigger movements when the pump and dumps are in full flow. The worse that could happen is you lose 40% in a market drop if there is an issue with the firm e.g: dodgy accounting practices (I lost money on two AIM firms due to this and it wasn't a 30 or % loss it was the full amount as the firm's went bust..supposedly) and then you sell in a panic...locking in your losses..a vicious circle
Amazon might be ok but again it the market dips due to a wider market drop e.g: like we had with Covid in March/April last year then that's the risk you need to be willing to accept.
As others have mentioned, I would avoid gambling money and likely fritting it away especially if you will be going through a period of unemployment..for me cash is then king.You really want to avoid that world of pain with just throwing money at random companies and hoping it 'goes up' or multiplies.trust me been there done that and got the T shirt.
Oil and Mining stocks on AIM - I wouldn't touch them with a bargepole after my experiences many years back, it's the wild west out there and I eventually lost a fair whack of money. In fact I don't touch AIM at all now, Ive dabbled in individual stocks but currently just use a single equities global tracker.
You might double your money if you are lucky but let's say for example, you lose 30% due to the market falling are you comfortable sitting on such a loss? I've used a conservative figure there, AIM can be subject to much bigger movements when the pump and dumps are in full flow. The worse that could happen is you lose 40% in a market drop if there is an issue with the firm e.g: dodgy accounting practices (I lost money on two AIM firms due to this and it wasn't a 30 or % loss it was the full amount as the firm's went bust..supposedly) and then you sell in a panic...locking in your losses..a vicious circle
Amazon might be ok but again it the market dips due to a wider market drop e.g: like we had with Covid in March/April last year then that's the risk you need to be willing to accept.
As others have mentioned, I would avoid gambling money and likely fritting it away especially if you will be going through a period of unemployment..for me cash is then king.You really want to avoid that world of pain with just throwing money at random companies and hoping it 'goes up' or multiplies.trust me been there done that and got the T shirt.
Edited by VR99 on Tuesday 5th January 10:44
I think it is extremely hard to make a quick buck on the markets, you have to be either extremely knowledgable, lucky or a combination of the two. If you invested well last march, you may have made a good amount. I would not be punting 50k against two stocks!! But maybe a global equity tracker. Look at the IM sticky. You could use your 20k isa allowance before april and again after to be more tax efficient.
As said, AIM can be wild - Ive got a £5k fund to dabble with and started beginning of November looking at SYME, PHE, GGP etc - By end of Nov i was 20% down.... £1100! Today im 30% or £1500 up! Thats a 60% swing in 5 weeks, it could easily be the other way.
Im going to sit on a couple as think ive got some goodies, could be a year, could be never, but if i lost say 40% (my biggest single holding in SNG) i would be able to sleep (after ten missus stamped on my head!). I wouldnt feel so easy with £50K on what are effectively gambles
Im going to sit on a couple as think ive got some goodies, could be a year, could be never, but if i lost say 40% (my biggest single holding in SNG) i would be able to sleep (after ten missus stamped on my head!). I wouldnt feel so easy with £50K on what are effectively gambles
Sounds like a hugely brave/ reckless/ stupid way of investing unless you know what you're doing... I only invest what I can afford to lose, only invest in funds (to hedge my bets over multiple companies) as opposed to single stocks, I spread my funds over different sectors, industries and continents (again to hedge against one doing badly), I drip feed monthly to average out the highs and the lows and I treat my investments as a way of avoiding erosion to inflation (anything above is a bonus). I'm up almost 30% in my portfolio overall, and I think this is a much less risky way of investing for a pretty decent return.
ChopChops said:
Hi guys I am currently unemployed
ChopChops said:
I'd love to double that 70k into 140 by the end of the year.
If you stand even a moderate chance of doing that you will no longer be unemployed and instead will probably become one of the most successful hedgefund / fund managers on the globe.If you chucked your cash into one of the ARK funds, you would have made your target and more (sadly, only for US investors). Literally multi billions piling into ARK at the later half of 2020 chasing the tech gravy train with a huge concentration risk on Tesla
Worth a listen on this decent summary from PensionCraft:
https://m.youtube.com/watch?v=gLG1yDgnM7g
Worth a listen on this decent summary from PensionCraft:
https://m.youtube.com/watch?v=gLG1yDgnM7g
Is £70k all you have? Do you have any other investments? Pension? ISAs? How old are you? Do you own property (sounds like no).
Going to need more information.
If you are 65 years old and have good pension, own a house and plenty of spare cash then I would say chuck the whole lot into what ever stock you feel like. Thats because at 65 and financially secure who cares and you might only have 20 years to live and if you lose it all you still wont be in any different financial situation.
If you are 21, have no pension, dont have any property and this 70k is your TNW then for me the answer would be to invest it long term into a tax wrapper like an ISA at the very minimum (20k limit for each FY so would take 3 years to inject). Thats because at 21 you have a considerable time for a return on that investment and you are going to kick yourself if you ever look at the returns you could have got from investing that 70k over say 30 years... (even with modest returns (4%) it could worth 250k+ and if you had good returns (7%) it could be worth closer to 500k..) And, if you are 21 trust me you will blink and be 40...
I am going to take a guess though and say you are 27.... so blink and you will be nearly 50. Good luck.
Going to need more information.
If you are 65 years old and have good pension, own a house and plenty of spare cash then I would say chuck the whole lot into what ever stock you feel like. Thats because at 65 and financially secure who cares and you might only have 20 years to live and if you lose it all you still wont be in any different financial situation.
If you are 21, have no pension, dont have any property and this 70k is your TNW then for me the answer would be to invest it long term into a tax wrapper like an ISA at the very minimum (20k limit for each FY so would take 3 years to inject). Thats because at 21 you have a considerable time for a return on that investment and you are going to kick yourself if you ever look at the returns you could have got from investing that 70k over say 30 years... (even with modest returns (4%) it could worth 250k+ and if you had good returns (7%) it could be worth closer to 500k..) And, if you are 21 trust me you will blink and be 40...
I am going to take a guess though and say you are 27.... so blink and you will be nearly 50. Good luck.
Guarantee me a 30% return in a year and I will give you my £100k to play with, you can keep the £70k you made as a commission.
Seriously though, I have just looked into this myself and if the money is to buy a house and therefore needed in the future play safe with it. Max out your premium bonds allocation and then the rest in whatever best but rubbish interest rate you can find.
Seriously though, I have just looked into this myself and if the money is to buy a house and therefore needed in the future play safe with it. Max out your premium bonds allocation and then the rest in whatever best but rubbish interest rate you can find.
ChopChops said:
I'm completely new to stocks and shares I've had a quick look at trading 212 and it seems like it's the easiest way for me to get started and to buy/cashout etc?
If you was in my position what would you do? I'd love to double that 70k into 140 by the end of the year. The end goal is to cashout by the end of the year and hopefully buy a property cash outright..
Following your plan, you're likely to lose. Can you afford to lose?If you was in my position what would you do? I'd love to double that 70k into 140 by the end of the year. The end goal is to cashout by the end of the year and hopefully buy a property cash outright..
Think about it - Ocado is doing well, and trading at a good price ALREADY, thanks to the current lockdown, so you're buying-in at a peak. Will they still be as valuable in a year, when shops reopen and people are desperate to get outdoors again?
Short answer - we don't know. I certainly don't, and I guarantee you don't either, but what I can tell you is that there's no way you're going to double your money.
As a noob, I'd suggest giving the money to a low-cost outfit that will do a lot of the thinking for a percentage (see the sticky at the top, popular in these parts), or put the money into something as diversified as possible, like a cheap-to-run ISA with a Vanguard fund inside it, various risk levels available.
There's a plenty other good - but boring-sounding - bits of advice in here, about things like trackers. These are the bits you should be reading.
Trading212, plus 2-3 possibly-already-high stocks is about as risky as the current trend to encourage people to "ave a cheeky acca on da footie" (damn you Ray Winstone).
tbh, that's their marketing schtick - trade from the comfort of the pub on your phone, and become a millionaire. Doubling your money in a year? As above, plenty people around here with decades of expertise will never promise you that. If you do, it's pure luck.
Great iea - put a wedge of cash into the market, see it double and buy a house mortgage free.
Great if you can manage it, but the odds are stacked against you.
Heh, you'll have the commission using T212 - and I can give you a referral to get a free share - that will help....
On a more serious note, some of the shares that you have mentioned are highly speculative.
I have some in Alphabet and Amazon, but they are a single digit percentage of the portfolio that is is spread out over numerous shares and funds.
SYME - I'm approx 50% up on that, but I put in nowhere near £50k ... I wish I had.
But that is a stand out SPECULATIVE share. If I lost the original stake, I'd be annoyed but not broke.
If you are going to double your money, open an ISA - that's 20k protected from the tax man.
The other 50k, if you are adamant that you are going to put it in the market, then a spread bet account will protect you on gains, (as long as you have other earnings and it is not your main source of income). But you could lose a lot as well.....
As others have said, you gotto be foolhardly, fe kin lucky or just outright ballsy to put that sort of money in unless it is only a small part of your total wealth. I wish you the best and hope you do make a good return on it, but aim at a more reasonable level and you won't be so dissapointed.
ready to fly
- AZ the CEO of SYME in an interview with Proactive Investors yesterday.....
Great if you can manage it, but the odds are stacked against you.
Heh, you'll have the commission using T212 - and I can give you a referral to get a free share - that will help....
On a more serious note, some of the shares that you have mentioned are highly speculative.
I have some in Alphabet and Amazon, but they are a single digit percentage of the portfolio that is is spread out over numerous shares and funds.
SYME - I'm approx 50% up on that, but I put in nowhere near £50k ... I wish I had.
But that is a stand out SPECULATIVE share. If I lost the original stake, I'd be annoyed but not broke.
If you are going to double your money, open an ISA - that's 20k protected from the tax man.
The other 50k, if you are adamant that you are going to put it in the market, then a spread bet account will protect you on gains, (as long as you have other earnings and it is not your main source of income). But you could lose a lot as well.....
As others have said, you gotto be foolhardly, fe kin lucky or just outright ballsy to put that sort of money in unless it is only a small part of your total wealth. I wish you the best and hope you do make a good return on it, but aim at a more reasonable level and you won't be so dissapointed.
ready to fly
- AZ the CEO of SYME in an interview with Proactive Investors yesterday.....
Meeten-5dulx said:
On a more serious note, some of the shares that you have mentioned are highly speculative.
I have some in Alphabet and Amazon, but they are a single digit percentage of the portfolio that is is spread out over numerous shares and funds.
Same, my single stock picks make up <2% of my portfolio.I have some in Alphabet and Amazon, but they are a single digit percentage of the portfolio that is is spread out over numerous shares and funds.
ChopChops said:
Hi guys I am currently unemployed after being made redundant and I currently have £70,000 to invest in. I was thinking of putting the max into premium bonds £50k and the rest into stocks on trading 212 or other way around.
I'm completely new to stocks and shares ..<<SNIP!>>
If you was in my position what would you do? I'd love to double that 70k into 140 by the end of the year. The end goal is to cashout by the end of the year and hopefully buy a property cash outright..
No I'm definitely not a troll I am deadly new to this and I really want to double my money or make at least make 30/40k in a year from the 70k
I'm completely new to stocks and shares ..<<SNIP!>>
If you was in my position what would you do? I'd love to double that 70k into 140 by the end of the year. The end goal is to cashout by the end of the year and hopefully buy a property cash outright..
No I'm definitely not a troll I am deadly new to this and I really want to double my money or make at least make 30/40k in a year from the 70k
22s said:
Sorry to be blunt, but you don't have a clue what you're doing and you will very likely end up losing money.
I'm now calling tops!On a more serious note - although posts like these, as per a year ago when equities where approaching ATHs, provide ammunition that we are approaching a top - 22s is 100% correct. Bluntness will avoid you potentially making a life-changing decision that may adversely affect the rest of your life.
By your own admission, you have zero experience, and expect to make an annual return that dwarfs professionals such as Paul Tudor Jones or Stan Druckenmiller would make. Is it possible? Look at the crypto returns, Tesla, or the hoodie gambles that paid out big on bankrupt companies such as Hertz. The other side of the coin is the likelihood that you would achieve your return without blowing out your account.
You would have better odds heading to a casino, putting your wad down on the table, and deciding on 'red' or 'black'.
If I were you, my main focus would be the following: finding a new job, working out how much you could cut from your living expenses, and putting the money into an account (premium bonds may satisfy the gambling urge without potentially wrecking your future), and if you are serious about investing, start with some of the resources that people have posted in various threads to understand investment basics (as opposed to r/wallstreetbets).
I have a semi-eidetic memory, and can remember posts made on the now defunct Motley Fool forums during the Dot Com boom. 2 in particular, have always stuck with me: both extremely similar re: using leverage to invest in Tech companies. Bubble burst and both individuals' portfolios swinging from positive £50k to -£50k in debt. One guy had just lost his job, his wife was expecting, and he had used credit cards to fund his investments, and was starring down at owing -£45k, with the very real prospect of his family losing his home.
The first chap still persisted in the belief that he made the original amount, and would do so again; the other chap (lost job, wife expecting) admitted that he was silly using leverage, but was still blaming Mr Market (very much in the anger / bargaining stage of the 5 stages of grief) for his misfortune.
Some of the risk taking that I am anecdotally witnessing is very reminiscent of the Dot Com Boom, as are valuations (although not as high) of those days.
Edited by putonghua73 on Wednesday 6th January 12:24
Gassing Station | Finance | Top of Page | What's New | My Stuff