Jump to content
House Price Crash Forum
Sign in to follow this  
trappedsharedowner

How To Invest A Small Amount Of Money

Recommended Posts

My son has saved about £7,000 he wants to 'invest' rather than it sitting in a useless bank account. He already has his quota of ISAs. Sensible suggestions wanted, please!!

That's presumably £7k on top of a cash cushion?

I'm investing spare money in VCTs. The beauty of that is, you invest £10k, then claim £3k back in a tax rebate. So in your son's case, that makes 43% extra for free on his £7k. Oh, and payouts from the VCT are tax-free too.

Share this post


Link to post
Share on other sites

Is he looking for a long term investment, with £7k he could do well with a property investment at a time when property prices are low. There is lots of potential for this kind of investment and with the right property and advice you could see good returns on the investment

Share this post


Link to post
Share on other sites
My son has saved about £7,000 he wants to 'invest' rather than it sitting in a useless bank account. He already has his quota of ISAs. Sensible suggestions wanted, please!!

Residential real estate is good source for small amount of money.

_______________

Detroit Homes for Sale

Share this post


Link to post
Share on other sites
My son has saved about £7,000 he wants to 'invest' rather than it sitting in a useless bank account. He already has his quota of ISAs. Sensible suggestions wanted, please!!

Why not invest the money in a couple of big shares, say Royal Dutch Shell (B Shares advised if your son is in the UK), and Unilever, or how about Tescos?

I am not saying that your son will make money on them, but he will learn about owning shares. Somehow you always learn more by doing something, rather than reading about it.

Note, these shares are in very large companies, and they are therefore viewed as a safer investment than many shares. But that doesnt mean he couldnt lose all his money! Invest in shares only if you are prepared to lose your capital, in exchange for a bigger gain on average.

And the dividends on these shares are probably higher than the interest he would get in a bank account right now.

Share this post


Link to post
Share on other sites
That's presumably £7k on top of a cash cushion?

I'm investing spare money in VCTs. The beauty of that is, you invest £10k, then claim £3k back in a tax rebate. So in your son's case, that makes 43% extra for free on his £7k. Oh, and payouts from the VCT are tax-free too.

I don't have a clue what VCT's are, so I looked it up, still don't know what the letters stand for or how they work, but here's some useful info on the investment implications:

http://boards.thisismoney.co.uk/tim/thread...mp;thread=61625

Share this post


Link to post
Share on other sites
My son has saved about £7,000 he wants to 'invest' rather than it sitting in a useless bank account. He already has his quota of ISAs. Sensible suggestions wanted, please!!

Assuming his ISAs are in bond and equity funds plus he's got a fair wad of cash saved, an ishares all commodities index tracker might give a degree of diverisification?

That said the diversification's been pretty piss poor recently :unsure:

Share this post


Link to post
Share on other sites
I don't have a clue what VCT's are, so I looked it up, still don't know what the letters stand for or how they work, but here's some useful info on the investment implications:

http://boards.thisismoney.co.uk/tim/thread...mp;thread=61625

Heh. That's totally out-of-date.

Yes, it's an illiquid and long-term investment. If you take the capital out before five years you'll almost certainly lose out (though income is tax-free and at a better rate than the banks offer). After that it depends on the type of VCT: they can choose any one of:

  1. pay permanent tax-free income

  2. wind up and return the capital to investors

  3. trade tax-free dividends for liquidity by converting to an investment trust

  4. ???

The prospectus will make (1) vs (2) clear up front. Any other option would be subject to a shareholder vote.

ObHPCTopic: I just found out yesterday that one of my VCTs has made a very small investment in Zoopla, one of the challengers to Rightmove's crown!

Share this post


Link to post
Share on other sites

I'd suggest precious metals.

The nice thing about them is that there are plenty of technical charts available, if you hold physical then you can't be wiped out. Its a good way to learn how to track a portfolio and interpret charts. You also get shiny stuff instead of paper. The only downside is that you have an emotional connection instead of purely pragmatic.

Gold: Financial hedge,

Silver: Financial hedge and industrial

Platinum: industrial

Palladium: Industrial.

Rhodium.... if your feeling lucky.

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • The Prime Minister stated that there were three Brexit options available to the UK:   326 members have voted

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal

    Please sign in or register to vote in this poll. View topic


×

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.