Jump to content
House Price Crash Forum
halebop

What To Do With 10k

Recommended Posts

ok here goes

this might be a bit late for gold/gold shares?

but im thinking of investing in the above

or does anyone have any better ideas

ive watched gold closely the last couple of months and watched it rise steadily

didnt have the bottle at the time

but now im thinking phucket and just go for it

doesnt look like im buying for a while yet {house that is}

just wanting a better return on my money than banks will give

i know similar questions have been posted before

but please run it by me again!

;)

Share this post


Link to post
Share on other sites

Spend it on beer, coke and prostitutes, then declare yourself bankrupt.. lol

At least you'll have a good time :)

soyou mean spend it wisely then!

only problem is i have another 10k shall i blow it on shares and gold? :rolleyes:

thanks for the reply but it wasnt really the answer i was looking for

Share this post


Link to post
Share on other sites

Fill your cash ISA then put the rest into ING!

Its a boring option, but a safe one - giving you instant access to the money should you need it, and solid returns.

There are obviously other ways you could invest it and see potentially higher returns - but on a fairly small amount like 10k its probably not worth the risk as the returns would need to be significantly higher in terms of percentage to see your real return be much more than simply doing the above.

Share this post


Link to post
Share on other sites

thanks pete

im already maxed out on my isa to date

also have a good sum in the ing

but i was wanting something possibly riskyer

with the potential for better gains

Share this post


Link to post
Share on other sites

thanks pete

im already maxed out on my isa to date

also have a good sum in the ing

but i was wanting something possibly riskyer

with the potential for better gains

You seem to be in a similar position to myself.

I have a reasonable amount in savings and Cash ISA accounts ready to go as a deposit. However, I'm not going to chase house prices, so am only going to max my cash ISA allowance each tax year by switching cash from savings.

Instead of chasing house prices through saving up an ever increasing deposit, I'm already working on paying off a future mortgage. How am I doing this? Well, by maximising my Venture Capital Trust (VCT) Investments, last year, and this tax year. You receive 40% income tax relief on these type of investments, even if you're only a 10% or 22% tax payer, we should find out tomorrow if this generous tax break will continue into next year and beyond. It's a nice feeling not paying any income tax to "No Growth Gordon!". VCT investments are very much for the long term, which suits me fine, as I won't be paying off a mortgage in full for at least another 25 years. My personal viewpoint is that the return on my VCT investments should be greater than any future mortgage interest rate I will be signed up to. If you plan to go down the VCT investment route then I recommend you seek the advice of an IFA, plus they can normally give you a discount off the up-front charges.

I'm also maxing my pension contribution, my work matches my contributions up to 10% of salary. At 55 I'll have the option of taking 25% as a tax-free lump sum, which I could use to pay off any outstanding mortgage. Under the new rules from April 2006, you don't have to use the rest of the fund to buy an annuity. Hopefully, this remaining fund will be large enough to provide a decent pension for when I do decide to retire.

I'm guess in a way I'm imposing some financial discipline on myself. I'm locking away money for the long-term so that in moments of weakness when I see what appears to be a nice flat or terraced house for sale, I'm not going to be able to quite afford it, so won't be over paying for what are just bricks and mortar and more importantly a massive mortgage for the next 25 years in what is likely to be a time of continued disinflation and quite possibly some years of deflation. I can't see the economic climate of the 80s and early 90s when inflation was high, coming back for a very long time, hence a massive mortgage is likely to stay massive, as we're not going to get the same wage inflation again.

I suppose I'm behaving like a contrarian, as I see my peers in their mid-to-late twenties spending all their savings and stretching themselves to the limit just to get on the housing ladder. I'm not sure how they'll cope if we have a serious economic downturn in the future and lose their jobs. It does happen, although I think that many people just don't think it will happen again after so many years of benign conditions. I suppose each generation must learn from its own mistakes.

Anyhow, I plan to keep just investing and saving in the same way. I'll only buy property when I consider it to be good value, this will be when I get people ringing, begging me to take their house off their hands. I'll also have the bonus of a reasonable investment portfolio, pension fund for retirement and affordable mortgage, none of which my short sighted peers will.

Share this post


Link to post
Share on other sites

Isn't Cahoot doing a better rate for sabings than ING at the moment?

Yep, 4.94 AER for first 6 months... then shift your dough into FirstDirect at 4.89 AER (althou I think nationwide/halifax have a good 5.1 gross esaver)

ING is a good (not great) rate, but it has the advantage of being an all-round better experience on a day to day/support basis IMO - if you just want to shelve funds somewhere, then you can in theory ignore the good support viewpoint.

Share this post


Link to post
Share on other sites

Instead of chasing house prices through saving up an ever increasing deposit, I'm already working on paying off a future mortgage. How am I doing this? Well, by maximising my Venture Capital Trust (VCT) Investments, last year, and this tax year. You receive 40% income tax relief on these type of investments...

I like the idea of these, but I don't have a handle on the risk they represent. I was under the impression they are at the riskier end of the spectrum and therefore should constitute a small fraction of the total portfolio. Thus it's not possible to significantly dent your income tax unless the total amount you have to invest is large compared to your salary.

Care to offer any thoughts on the risk level of VCTs?

Edited by Nijo

Share this post


Link to post
Share on other sites

I like the idea of these, but I don't have a handle on the risk they represent. I was under the impression they are at the riskier end of the spectrum and therefore should constitute a small fraction of the total portfolio. Thus it's not possible to significantly dent your income tax unless the total amount you have to invest is large compared to your salary.

Care to offer any thoughts on the risk level of VCTs?

In isolation very high risk. But as with all investments they can reduce the risk of the overall portfolio. Some say the risk is reduced given the circa 58% uplift from day one as a result of the the tax relief.

If you're interested I suggest you read up on:

taxshelterreport.co.uk or

bestinvest.co.uk

The FSA website may have some information in the consumer section.

Of course you've always got the option of talking to an IFA.

It seems like the 40% tax relief is going to continue for a few more tax years given some of the comments in today's PBR. So no panic.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 338 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

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.