bidingmytime Posted January 17, 2009 Share Posted January 17, 2009 Ive somewhere in the ballpark of 50,000 GBP cash in Coventry building society that is currently getting 3.5% interest tax free, im 33 about to start working offshore and avoided buying a place as i didnt want to work purely to live (i.e. pay a 150 k mortgage on a 1 bed shoebox) Eventually this money is going to be used to buy myself a few bricks and a roof to keep the rain from my head, but until that time i am looking to get the best possible returns with a minimal risk. Can anyone offer any tips. Though in 6-12 months I'm thinking of making offers of say 50-60% less then advertised prices developer are trying to sell for. Quote Link to comment Share on other sites More sharing options...
Number79 Posted January 18, 2009 Share Posted January 18, 2009 Ive somewhere in the ballpark of 50,000 GBP cash in Coventry building society that is currently getting 3.5% interest tax free, im 33 about to start working offshore and avoided buying a place as i didnt want to work purely to live (i.e. pay a 150 k mortgage on a 1 bed shoebox)Eventually this money is going to be used to buy myself a few bricks and a roof to keep the rain from my head, but until that time i am looking to get the best possible returns with a minimal risk. Can anyone offer any tips. Though in 6-12 months I'm thinking of making offers of say 50-60% less then advertised prices developer are trying to sell for. imo you need to think more about keeping it safe than getting returns. If you are not going to be home but have access to internet offshore then open several internet savings accounts so that you have a chance to move your money out of a bank if need be. Quote Link to comment Share on other sites More sharing options...
Mish Mash Posted January 18, 2009 Share Posted January 18, 2009 open several internet savings accounts so that you have a chance to move your money out of a bank if need be. Splitting it up is a good idea. If you do nothing else, I'd advise doing that. At least 3 different accounts, preferably with different groups, i.e. not in banks that are part of the same group. Quote Link to comment Share on other sites More sharing options...
no_more_bull Posted January 18, 2009 Share Posted January 18, 2009 Splitting it up is a good idea. If you do nothing else, I'd advise doing that. At least 3 different accounts, preferably with different groups, i.e. not in banks that are part of the same group. If you are serious about entering the property market in 6 to 12 months then you should aim for liquidity and safety. Different banks - make sure they are REALLY different in terms of ownership - in order to protect all £50k. Quote Link to comment Share on other sites More sharing options...
ChadzKhan Posted January 18, 2009 Share Posted January 18, 2009 Vagas Baby!!!!! Quote Link to comment Share on other sites More sharing options...
daedalus Posted January 18, 2009 Share Posted January 18, 2009 Here is what I would do with savings I wanted to keep safe: 1. Open an execution only brokerage account with a broker who has a good credit rating (you WILL be protected against his bankruptcy, but you want to avoid the hassle involved if possible) 2. Put your cash in the account 3. Use that cash to buy short-dated UK Gilts or UK Index-Linked Gilts (I think there are some which are only a year or less to maturity) - These may fluctate in value a little, but not by much, and unlike cash they are completely safe if the broker or bank fails, since they are SECURITIES and you OWN them; the broker is just the CUSTODIAN or TRUSTEE of them for you. 4. Open a spread betting account 5. Place a range of bets on future exchange rates (and gold prices) so that you make money if GBP weakens. This diversifies your risk exposure, so that if GBP weakens against other currencies, you gain on the FX rates (if GBP strengthens you will lose, but that is also OK since then you aren't 'losing wealth' as the GBP is worth more). Also place a bet that the future gold price will go up, so that even if ALL currencies weaken, you'll retain some value as your gold bet will make money. 6. The securities in your brokerage account can be used to demonstrate to the spread betting firm that you have enough liquid assets to cover the account 7. Spread betting does not incur any form of income tax or capital gains tax so your 'winnings' are tax free. This means that: 1. You have placed you money in a secured place with almost no risk of loss whoever blows up (apart from the UK state, which is rather unlikely, even in these days) 2. You have effectively (synthetically) transfered your wealth out of GBP into a basket of other currencies (and gold) 3. You do not have any material incremental tax liabilities. Quote Link to comment Share on other sites More sharing options...
200p Posted January 18, 2009 Share Posted January 18, 2009 Message from the finanicial risks police: Spreadbetting is very high risk as it is leveraged.... Market movements may move suddenly [mostly manipulated to flush out smaller weaker hands], and you'll get either stopped out or a margin call. If you don't know what I'm talking about do not do it unless you can afford to lose money in learning the ropes and researching this area more. Even the pros, i.e. hedgefunds have lost millions in surprise market moves. The market may stay irrational longer, than you can stay solvent. Quote Link to comment Share on other sites More sharing options...
Uriah Heap Posted January 18, 2009 Share Posted January 18, 2009 Spend it before someone else does. It has already lost 25% of its value outside the UK in the last couple of months. Quote Link to comment Share on other sites More sharing options...
200p Posted January 18, 2009 Share Posted January 18, 2009 Bidingmytime - sensible conservative approach so far. As long as houseprices are falling in double digits annually in nominal terms, theres not that much I would do different. Keep it up I'd say, Buy a few hard tangible assets, spread the money around observing the FSA limits. Quote Link to comment Share on other sites More sharing options...
Errol Posted January 18, 2009 Share Posted January 18, 2009 If you are conservative you could put about 5k of it into gold bullion. Quote Link to comment Share on other sites More sharing options...
daedalus Posted January 18, 2009 Share Posted January 18, 2009 Message from the finanicial risks police:Spreadbetting is very high risk as it is leveraged.... Market movements may move suddenly [mostly manipulated to flush out smaller weaker hands], and you'll get either stopped out or a margin call. If you don't know what I'm talking about do not do it unless you can afford to lose money in learning the ropes and researching this area more. Even the pros, i.e. hedgefunds have lost millions in surprise market moves. The market may stay irrational longer, than you can stay solvent. You didn't read or understand my post, you r3tard. What I suggested was no more or less risky than changing your GBP for EUR or USD etc. Quote Link to comment Share on other sites More sharing options...
Luke Skywalker Posted January 18, 2009 Share Posted January 18, 2009 Ive somewhere in the ballpark of 50,000 GBP cash in Coventry building society that is currently getting 3.5% interest tax free, im 33 about to start working offshore and avoided buying a place as i didnt want to work purely to live (i.e. pay a 150 k mortgage on a 1 bed shoebox)Eventually this money is going to be used to buy myself a few bricks and a roof to keep the rain from my head, but until that time i am looking to get the best possible returns with a minimal risk. Can anyone offer any tips. Though in 6-12 months I'm thinking of making offers of say 50-60% less then advertised prices developer are trying to sell for. I suggest you buy investment grade Bordeaux wine. Lafite, Latour, Margaux or Petrus. Suggested vintages: 2000 or 2005. Quote Link to comment Share on other sites More sharing options...
200p Posted January 18, 2009 Share Posted January 18, 2009 Why buy into EUR, YEN, USD when all currencies are devaluing in unison? Additionally GBP is now cheap in relation to other currencies, it will probably rebound. For the private individual with modest means, keep it simple, now is not the time to be clever and start a mini hedgefund. Quote Link to comment Share on other sites More sharing options...
pharm Posted January 18, 2009 Share Posted January 18, 2009 You didn't read or understand my post, you r3tard.What I suggested was no more or less risky than changing your GBP for EUR or USD etc. True, but you have to make sure you put up enough capital that market volatility doesn't result in your positions being closes against you when the market wobbles (like it probably did to all those who bet that the £ would fall below 1 € and it then went back up to 1.12: bet there were a lot of burnt fingers there.) If you put the cash up front, and accept interim losses then you won't get stopped out. Of course, your cash is then at risk if the spread betting firm goes under... Quote Link to comment Share on other sites More sharing options...
Harry Monk Posted January 18, 2009 Share Posted January 18, 2009 Give it to me and I'll help you to get $5,000,000,000 off some dead Nigerian bloke. Quote Link to comment Share on other sites More sharing options...
Fishman Posted January 18, 2009 Share Posted January 18, 2009 Ive somewhere in the ballpark of 50,000 GBP cash in Coventry building society that is currently getting 3.5% interest tax free, im 33 about to start working offshore and avoided buying a place as i didnt want to work purely to live (i.e. pay a 150 k mortgage on a 1 bed shoebox)Eventually this money is going to be used to buy myself a few bricks and a roof to keep the rain from my head, but until that time i am looking to get the best possible returns with a minimal risk. Can anyone offer any tips. Though in 6-12 months I'm thinking of making offers of say 50-60% less then advertised prices developer are trying to sell for. It's all about wealth protection , not creation, at the moment. Your £50k is covered by the FSCS, but your interest (what bit there is these days) may not be if it takes you over the limit. Perhaps moving some to another B/S might be wise. I suggest you do a bit of reserach into Coventry B/S and if they've had a conservative business model over the last 5 years or so, I'd keep it where it is - 3.5% isn't a bad return. Good luck. Quote Link to comment Share on other sites More sharing options...
chichi Posted January 18, 2009 Share Posted January 18, 2009 Different banks - make sure they are REALLY different in terms of ownership - So which banks would you suggest? Out of the UK ones which don't have a common ownership by taxpayers? Quote Link to comment Share on other sites More sharing options...
Legal_Landlord Posted January 18, 2009 Share Posted January 18, 2009 If you are conservative you could put about 5k of it into gold bullion. What if he is Labour or Lib Dem ? Quote Link to comment Share on other sites More sharing options...
the flying pig Posted January 18, 2009 Share Posted January 18, 2009 Why buy into EUR, YEN, USD when all currencies are devaluing in unison? ... is that possible? surely a currency can only lose its value vis-a-vis one or more other currencies, suggesting that at least some currencies somewhere are holding up nicely? Quote Link to comment Share on other sites More sharing options...
EssexFTB Posted January 18, 2009 Share Posted January 18, 2009 Ive somewhere in the ballpark of 50,000 GBP cash in Coventry building society that is currently getting 3.5% interest tax free, im 33 about to start working offshore and avoided buying a place as i didnt want to work purely to live (i.e. pay a 150 k mortgage on a 1 bed shoebox)Eventually this money is going to be used to buy myself a few bricks and a roof to keep the rain from my head, but until that time i am looking to get the best possible returns with a minimal risk. Can anyone offer any tips. Though in 6-12 months I'm thinking of making offers of say 50-60% less then advertised prices developer are trying to sell for. BUY RBS SHARES Quote Link to comment Share on other sites More sharing options...
Errol Posted January 18, 2009 Share Posted January 18, 2009 It's all about wealth protection , not creation, at the moment. In which case a proportion should certainly be converted into gold. Quote Link to comment Share on other sites More sharing options...
Selling up Posted January 18, 2009 Share Posted January 18, 2009 Most of mine's in NS&I. Seems as close to a safe haven as I can think of. (I have a little gold too.) If inflation starts to rise I'll reconsider but that doesn't seem to be imminent. Quote Link to comment Share on other sites More sharing options...
red Posted January 18, 2009 Share Posted January 18, 2009 If you are conservative you could put about 5k of it into gold bullion. And if you've got cohones put the rest into silver. Quote Link to comment Share on other sites More sharing options...
Compukit UK101 Posted January 18, 2009 Share Posted January 18, 2009 Buy tesco bonds @ 5%. I reckon they are pretty safe. Tesco are not going anywhere. Quote Link to comment Share on other sites More sharing options...
happy_renting Posted January 18, 2009 Share Posted January 18, 2009 Buy Iceland. Quote Link to comment Share on other sites More sharing options...
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