What would you do with these sums of money

[Carlton Banks]

Hypothetically speaking, I am interested how people would look to invest the following sums of money.

What would give you a sensible return with limited risk.

1) £5000

2) £10,000

3) £50,000


be interested to see where people would stick their money.


CB

[jeff m2]

I'm just doing that at present, I have a car fund.

Half in a core fund, I use TRP Capital appreciation, ok it's never going to at the top, but will average out @ 8% /year, should do better this year.

25% in an emerging market bond.

25% in something flavour of the month, a few to choose from. Global Tech, Latin America, I chose a Commodities fund on the basis it will be flavour of the month soon China is improving so commodity use should pick up.

Chosen with two years in mind, all funds are load free, important because I wouldn't want to be in a commodity fund for two years, I need to sell once the growth tapers off. (assuming it starts)

I don't think choosing for smaller amounts of money is any different, just try not to hit a home run every time.

With saving or investment it helps to have a target. Know where you want to be, decide on the best way to get there. So if you a little behind schedule you may have to be more aggressive. If ahead of the game etc etc.

[sinizter]

First two, pay off some loans, etc

Third one - invest into my business. Or use as a house deposit to move to a bigger house.

[jeff m2]

sinizter said:

First two, pay off some loans, etc

Third one - invest into my business. Or use as a house deposit to move to a bigger house.

I doubt he will pay off your loans or invest in your business, but if he does gimme a shout.
I tap him for some reddies too

[sinizter]

jeff m2 said:

sinizter said:

First two, pay off some loans, etc

Third one - invest into my business. Or use as a house deposit to move to a bigger house.

I doubt he will pay off your loans or invest in your business, but if he does gimme a shout.
I tap him for some reddies too

Carlton Banks said:

be interested to see where people would stick their money.

I guess you didn't get to the end of the first post ?

[jeff m2]

sinizter said:

jeff m2 said:

sinizter said:

First two, pay off some loans, etc

Third one - invest into my business. Or use as a house deposit to move to a bigger house.

I doubt he will pay off your loans or invest in your business, but if he does gimme a shout.
I tap him for some reddies too

Carlton Banks said:

be interested to see where people would stick their money.

I guess you didn't get to the end of the first post ?

I read it very well...he was looking for a sensible return with limited risk.
And wondered what others did to attain it.
No big deal...my reply was meant in a light hearted manner and did include a smilie.

[sinizter]

jeff m2 said:

I read it very well...he was looking for a sensible return with limited risk.
And wondered what others did to attain it.
No big deal...my reply was meant in a light hearted manner and did include a smilie.

My reply listed what I would do to get a sensible return with limited risk. I though it answered the actual question, while it may not have been exactly what the OP was looking for.

I didn't take offence at your post, just forgot to pop a smilie on at the end of mine. Sorry.

[iphonedyou]

sinizter said:

My reply listed what I would do to get a sensible return with limited risk. I though it answered the actual question, while it may not have been exactly what the OP was looking for.

I didn't take offence at your post, just forgot to pop a smilie on at the end of mine. Sorry.

Smilie or no, your response was deserving of a woosh parrot!

[mickymellon1]

1 - put it into the pot for next house
2 - same as above and a watch for newborn son
3 - Porsche 911 (993) and mortgage pot / try not to buy a turbo or AMV8V

[RizzoTheRat]

Depends when/how you want it back. Assuming its not a case of saving it for a year or two to fund a particular purchase, say a new car, then:

1&2 in a pension plan, can't get at it again until you retire, but that 10k is actually £12.5k in the pot, plus a further rebate if you're a higher rate tax payer.

3 would be used in moving to a bigger house.

[Podie]

Carlton Banks said:

1) £5000

2) £10,000

3) £50,000


CB

1) ISA
2) ISA each for me and the missus
3) ISA each for me and the missus & mortgage

[hornet]

Carlton Banks said:

Hypothetically speaking, I am interested how people would look to invest the following sums of money.

What would give you a sensible return with limited risk.

1) £5000
2) £10,000
3) £50,000

be interested to see where people would stick their money.

CB

All rather back of a fag packet, but...

1) ISA
2) Offset / overpay mortgage
3) Probably 40% or so into 1) and 2), 30% split between long term "set and forget" investment and collectable gold/silver coins and the remaining 30% to play with. "Play" most likely to involve travel to interesting places worldwide.

[fido]

1. Cash ISA

2. Premium Bonds

3. House Move

[suddin7]

1. Silver Coins

2. Shares in large companies

3. Property

[DonkeyApple]

Fundamentally, the amounts are too small to prudently overcome the innitial cost of investment when looking at typical funds etc. besides which the capital sum is at risk.

Also, no time frame is given so it isn't actually possible to give any credible options beyond the basics.

In these instances very little can ever beat the risk/reward of setting up an offset mortgage and placing the funds on deposit within that wrapper. Dependent on fees etc.

It doesn't generate any comm or annual fee trail so most advisors and brokers won't push this route.

[don4l]

1 & 2, Shares ISA

3 Shares Isa plus Share Trading account.


I wouldn't bother with a cash ISA because the returns are abysmal, and unless you switch every couple of years, they will cut the interest rate until it is almost zero. If you invest in companies that pay a good dividend you should be able to manage 5-6%.

If you do a bit of trading as well, then it should be possible to make 10%.


Don
--

[Robsti]

don4l said:

1 & 2, Shares ISA

3 Shares Isa plus Share Trading account.


I wouldn't bother with a cash ISA because the returns are abysmal, and unless you switch every couple of years, they will cut the interest rate until it is almost zero. If you invest in companies that pay a good dividend you should be able to manage 5-6%.

If you do a bit of trading as well, then it should be possible to make 10%.


Don
--

Dividends at 5-6% minus 40% if higher rate tax payer and your capital is at risk ie RBS and BP !

Halifax 5year cash ISA 4.5% tax and risk free!

[Cogcog]

Ok, one from the outfield;

When does the cost of a stamp go up? I had a project in 2003/4 and bought 1200 of first class stamps at 28p. Never used them because we moved it all online. Now a first class stamp is 46p and my 1200 is worth 1971 with no risk. I am thinking I could sell via Ebay in batches of say 500 stamps?