Short term - high returns
Discussion
Afternoon.
I want to invest my money. I’m 19. I don’t have a savings goal, but I want to be able to see returns quickly. I also want to be able to access this money as I am treating it as a short term thing because I already have other long term savings goals.
I’m a student so the amount I can invest every month fluctuates. I have a part time job as a home delivery driver. I don’t have any outgoings apart from a few bills; I have finished for the academic year. I aim to transfer universities and live at home next year, but this can’t be guaranteed. If I do, it will save me thousands in rent.
I already have savers accounts:
One account contains an inheritance and is stored with Chase after I moved it from Nationwide
The other contains my own savings cash fund (I stored it with Starling at a low interest, for the purpose of an emergency rather than for any particular reason)
I also round my daily expenditure to the nearest pound with Chase and deposit the difference into a 5.4% AER “rainy day fund” that is paid yearly (interest paid monthly)
I have NS&I Premium bonds although I don’t know how much is stored,
and a Lifetime ISA with Nutmeg that I pay the £4,000 limit into every tax year from my inheritance.
I plan to open a Stocks and Shares ISA, but am unsure whether that is what I need. I want to make money in the short term to supplement my income as a home delivery driver. Since I have pretty much no outgoings now I have moved back home, I want to:
- supplement my salary, giving me more financial freedom, as I am putting most of what I earn straight into savings, instead of into bills allowing me to benefit in the future. Having a bit more spare cash rather than having to save less would be best. But I am not desperate
- allow me to spread some of the profits across all my savings accounts.
OR
- help me save quicker for a new car. I would like to be driving a much faster car this year (this is PH, so hopefully a GTI/Cupra/S3/R) . However I am willing to accept that this may not be possible with my salary if I also want to save, and that I will see better gains in the long term if I saved that cash instead.
My circumstances :
- I am willing to invest anything between £1-£1,500 now. Ideally around £500. Monthly, between £250-500 for at least the next 6 months, possibly much less in the future if I resign from my job to concentrate on uni.
- I need 24/7 access to my fund and the ability to withdraw it without a penalty.
- I am willing to diversify my investments further
- I would prefer a prepackaged investment plan, I have never traded before and do not have a financial background.
- I currently bank with HSBC, Chase, Starling, Nationwide and Santander and have a Lifetime ISA with Nutmeg, so can take into account any deals on current accounts/savings accounts with these banks if an ISA is not for me.
I don’t plan on saving more in to the Chase account with the inheritance, and only very low amounts into the Starling account. Most of my savings will be going in to this new account.
Please advise and I am willing to take flaming if my aspirations are completely unrealistic! I am young and naive and don’t know what I am doing so teach me!
I want to invest my money. I’m 19. I don’t have a savings goal, but I want to be able to see returns quickly. I also want to be able to access this money as I am treating it as a short term thing because I already have other long term savings goals.
I’m a student so the amount I can invest every month fluctuates. I have a part time job as a home delivery driver. I don’t have any outgoings apart from a few bills; I have finished for the academic year. I aim to transfer universities and live at home next year, but this can’t be guaranteed. If I do, it will save me thousands in rent.
I already have savers accounts:
One account contains an inheritance and is stored with Chase after I moved it from Nationwide
The other contains my own savings cash fund (I stored it with Starling at a low interest, for the purpose of an emergency rather than for any particular reason)
I also round my daily expenditure to the nearest pound with Chase and deposit the difference into a 5.4% AER “rainy day fund” that is paid yearly (interest paid monthly)
I have NS&I Premium bonds although I don’t know how much is stored,
and a Lifetime ISA with Nutmeg that I pay the £4,000 limit into every tax year from my inheritance.
I plan to open a Stocks and Shares ISA, but am unsure whether that is what I need. I want to make money in the short term to supplement my income as a home delivery driver. Since I have pretty much no outgoings now I have moved back home, I want to:
- supplement my salary, giving me more financial freedom, as I am putting most of what I earn straight into savings, instead of into bills allowing me to benefit in the future. Having a bit more spare cash rather than having to save less would be best. But I am not desperate
- allow me to spread some of the profits across all my savings accounts.
OR
- help me save quicker for a new car. I would like to be driving a much faster car this year (this is PH, so hopefully a GTI/Cupra/S3/R) . However I am willing to accept that this may not be possible with my salary if I also want to save, and that I will see better gains in the long term if I saved that cash instead.
My circumstances :
- I am willing to invest anything between £1-£1,500 now. Ideally around £500. Monthly, between £250-500 for at least the next 6 months, possibly much less in the future if I resign from my job to concentrate on uni.
- I need 24/7 access to my fund and the ability to withdraw it without a penalty.
- I am willing to diversify my investments further
- I would prefer a prepackaged investment plan, I have never traded before and do not have a financial background.
- I currently bank with HSBC, Chase, Starling, Nationwide and Santander and have a Lifetime ISA with Nutmeg, so can take into account any deals on current accounts/savings accounts with these banks if an ISA is not for me.
I don’t plan on saving more in to the Chase account with the inheritance, and only very low amounts into the Starling account. Most of my savings will be going in to this new account.
Please advise and I am willing to take flaming if my aspirations are completely unrealistic! I am young and naive and don’t know what I am doing so teach me!
Edited by VS02 on Friday 1st April 16:56
Edited by VS02 on Friday 1st April 17:07
VS02 said:
No, I don’t if I am honest. I am just following what the HSBC online investment manager thing said.
Maybe I need to do some reading.
Think risk reward.Maybe I need to do some reading.
So you put £1000 in in the hopes that when you look what it's worth in the future it's worth more.
If it is great you won the risky investment paid off.
But if it's worth less how much less would you need it to be before you s
t bricks and panic and sell it?Everybody likes making money and nobody likes losing money it's human nature but investments WILL go down as well as up and making money generally takes time if you don't want to take large amounts of risk (which comes back to how much are you "happy" to lose).
Carbon Sasquatch said:
VS02 said:
- I am willing to establish a very high level of risk in return for higher short term gains.
Do you understand what this really means ?If so, sounds like roulette is the answer
You cannot do high risk and high return without the potential to lose money......especially over the time frame you suggest.
High risk means that there is a high chance of the investment going down (even to zero).
Investments are typically somewhat symmetric - the more you stand to make, the more you stand to lose. Not perfectly symmetric though, often with enough time, the wins can outweigh the losses.
Short term guaranteed winners - well, if there were such a thing, then everyone would be doing it.....
Investments are typically somewhat symmetric - the more you stand to make, the more you stand to lose. Not perfectly symmetric though, often with enough time, the wins can outweigh the losses.
Short term guaranteed winners - well, if there were such a thing, then everyone would be doing it.....
Carbon Sasquatch said:
High risk means that there is a high chance of the investment going down (even to zero).
Investments are typically somewhat symmetric - the more you stand to make, the more you stand to lose. Not perfectly symmetric though, often with enough time, the wins can outweigh the losses.
Short term guaranteed winners - well, if there were such a thing, then everyone would be doing it.....
There’s a horse running in the 1:50 tomorrow nudge nudge… Investments are typically somewhat symmetric - the more you stand to make, the more you stand to lose. Not perfectly symmetric though, often with enough time, the wins can outweigh the losses.
Short term guaranteed winners - well, if there were such a thing, then everyone would be doing it.....
The simple sensible answer is probably shovel the lot into a low cost global tracker and sit back and let time and compounding do its thing.
Anything short term is arguably gambling or trading which have their place if you know that's what you're doing but it's a very different concept to investing.
Look at Vanguard and Monevator and read lots as you're young enough to have time on your side and I wish I'd spent a weekend reading up on this stuff when I was your age as if I had I wouldn't be working now
Anything short term is arguably gambling or trading which have their place if you know that's what you're doing but it's a very different concept to investing.
Look at Vanguard and Monevator and read lots as you're young enough to have time on your side and I wish I'd spent a weekend reading up on this stuff when I was your age as if I had I wouldn't be working now
I'd be quite tempted by something like this https://private-client.intelligentmoney.com/?wpdmd...
Intelligent Money are at the top of the investing forum. This is a new fund - Tech, so might interest you more than a normal global tracker. Obviously no one knows if it'll outperform a world fund but it's an interesting sector which has seen recent big growth. Only mentioning as you said "high returns", so this to me looks a decent gamble
Intelligent Money are at the top of the investing forum. This is a new fund - Tech, so might interest you more than a normal global tracker. Obviously no one knows if it'll outperform a world fund but it's an interesting sector which has seen recent big growth. Only mentioning as you said "high returns", so this to me looks a decent gamble
Head well screwed on for a 19 year old by the sound of it. You have any decades of trading off immediate luxury and enjoyment against sensible investments, and by the sound of it have already made a start on that so why not have a st or bust fund?
Pick a sector you're interested in then trawl through the AIM/small cap stocks and pick one (or several) you like the look of?
I found doing this with real money sustained my interest and gave me all kinds of bits of knowledge on various sectors and companies. I didn't make my fortune but had some wins (and some losses) and plenty of things to read and research, which have given me a bit of an eye for mining and oil stocks.
With a low cost broker even investing £200 can be enough to keep it interesting and if it goes up by 50% can give you a profit you can enjoy.
t or bust fund?Pick a sector you're interested in then trawl through the AIM/small cap stocks and pick one (or several) you like the look of?
I found doing this with real money sustained my interest and gave me all kinds of bits of knowledge on various sectors and companies. I didn't make my fortune but had some wins (and some losses) and plenty of things to read and research, which have given me a bit of an eye for mining and oil stocks.
With a low cost broker even investing £200 can be enough to keep it interesting and if it goes up by 50% can give you a profit you can enjoy.
VS02 said:
2 sMoKiN bArReLs said:
When I was a student my biggest dilemma was to drink bitter or mild.
Well done on the investing thing!
Haha don’t worry, I still spend loads at Spoons getting absolutely sWell done on the investing thing!
tfaced every now and then 
The question is risk v reward. High risk can mean short term gain but it can equally well mean short term loss. That said, you're young and presumably earning so you can replace losses and advance older and wiser.
I think a spread of investments is wise. Some 'steady', some 'spicy'. If you invest in sensible steady things now, you should cash in handsomely at 50. But you probably also want some excitement too, so this is the time to try. Only invest what you can afford to lose. 'Market volatility may last longer than your solvency' etc!
Phooey said:
anonymous said:
[redacted]
GTFO lol. Anyway apologies Chicken Dinner, didn’t know that constitutes as advice. Maybe time for Pistonheads to close the Finance forum altogether then if we can’t offer help - because that makes us all guilty of advise VS02 said:
2 sMoKiN bArReLs said:
When I was a student my biggest dilemma was to drink bitter or mild.
Well done on the investing thing!
Haha don’t worry, I still spend loads at Spoons getting absolutely sWell done on the investing thing!
tfaced every now and then At least when you are getting drunk, you will be adding to the profit and potential dividend.
What about finding local start ups and offering them seed capital. Or how about crowd funding websites ?
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