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I've Got Some Money Burning A Hole In My Pocket

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I have been saving for a deposit on a house for a few years now but still dont have enough for a small flea pit. Therefore I wish to invest some of it in something and make a better return than premium bonds (£50 in 2 years) or savings accounts.

What can I do with £5,000? Any ideas and experiences welcome.

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I have been saving for a deposit on a house for a few years now but still dont have enough for a small flea pit. Therefore I wish to invest some of it in something and make a better return than premium bonds (£50 in 2 years) or savings accounts.

What can I do with £5,000? Any ideas and experiences welcome.

When you say better than savings accounts, you mean you want a better interest rate than, say, 6%?

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A gold fund might makes sense- see ideas on GEI

:lol:

I really hate it when you say things like that. I do try to look at GEI, but after about five minutes, my nose start bleeding.

I need an investment forum for beginners (and I don't mean the 'Investor Education & Beginners Forum' on GEI -- although I do manage to last maybe six or seven minutes in there before my ears pop).

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a better return than premium bonds (£50 in 2 years) or savings accounts.

What can I do with £5,000? Any ideas and experiences welcome.

Unlucky! I've had about 10 times that return on the same sum over the same period, which I seem to recall is roughly "average" luck on the premium bonds.

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As you obviously know bugger all about money - like me..... keep it simple:

Bung £3k in a cash ISA and the other £2k in the highest paying savings account. Sainsburys are paying 6% for instant access at the moment. There are a couple better but I chose the first one from the top of the list I had easiest access to/had heard of.

Or, if you're single, male, tall, fit looking ..... you could take me on a splendid holiday :)

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Depends how much risk you're willing to take.

Why not put £3000 in a cash mini ISA? I'd suggest the Direct ISA from National Savings & Investments. You'll get 6.3% tax free and it's safe as houses safer than houses! ;)

You could put the rest (up to £4000 in the same tax year) in a self-select mini-ISA with e.g. Iweb Sharedealing (part of HBOS, so shouldn't go bust). This way you can have some fun dabbling in the stock market. Any profits you make will be tax-free. You could try buying some gold (e.g. GBS), take your chances with oil stocks (e.g. BP.) or go for an exchange traded fund dealing in food commodities (e.g. AIGA).

This is just one suggestion - I offer no guarantees that it will make you any money (and you might lose)! You'll find a huge range of opinions on here.

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If you are starting out (just a guess, no disrespect but 5K is not exactly a heist) then my slant is that the best investment you could make might be using the dosh to go after whatever sort of vocational knowledge, diploma or qualification gives you an edge in your career.

End of the day, whether you get 4% or 8% yield on 5K is splitting hairs, it only adds up to a cheap weekend in Brighton. Whereas 30 or more years of increased earning potential could buy you a lot more than that.

PS This is not advice from an old bloke in pipe and slippers, I'm 33.

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After deducting inflation from your 6% return, this gives you a real yield on your £5k of about 2% - hardly fantastic.

Why not use this as an opportunity to do some research and make a few investments if you can afford to risk some of the principal? Identify 4 funds or shares where you think there are opportunities and split the money between them and diversify into different sectors to help balance the risk. Money Week is a good publication for those who do not want to get too technical but which offers comment and advice on the markets.

That said not sure where to invest. Fixed income funds are losing money in current environment, dollar probably has more weakness (2.10 to the £ is a real possibility). China looks overbought, although it could keep going up for ages. A gold fund could certainly help. Japan funds could well benefit from an unwinding of the carry trade. I think the FTSE100 has the momentum to reach 7,000 by Christmas and does not appear over-valued.

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I think £5k is a bit steep for a look at your carpet - how about £250 and you make a cup of tea afterwards - thats my best and final offer and I am not sure if its the market rate - supply and demand - anyway if you get into a long term realtionship you'd have to do a lot less for it - as far as I can see women who dont work and get married are just whoring with a veneer of respectability.

And whats more those whingy bastards who expect me to subsidise their kids - yeah why not take six months off Ill pay - hang on wasnt that your choice anyway so why am I paying for it?

And relax - breath in and then out - thanks I enjoyed that.

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After deducting inflation from your 6% return, this gives you a real yield on your £5k of about 2% - hardly fantastic.

Why not use this as an opportunity to do some research and make a few investments if you can afford to risk some of the principal? Identify 4 funds or shares where you think there are opportunities and split the money between them and diversify into different sectors to help balance the risk. Money Week is a good publication for those who do not want to get too technical but which offers comment and advice on the markets.

That said not sure where to invest. Fixed income funds are losing money in current environment, dollar probably has more weakness (2.10 to the £ is a real possibility). China looks overbought, although it could keep going up for ages. A gold fund could certainly help. Japan funds could well benefit from an unwinding of the carry trade. I think the FTSE100 has the momentum to reach 7,000 by Christmas and does not appear over-valued.

Thanks all, some great suggestions there, particularly like the offer of a taking someone (presumably an young attractive lady?!) on holiday ;) (not sure what my wife would make of that though!!)

Anyway, the gold and ISA options are definetly something for me to think about.

Thanks again!

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pay regularly into an index tracking isa with low annual fees. pay monthly whatever you can afford (review every year). do this and forget about it. compounding will generate v. nice returns in 20+ years. I know that seems scary but the earlier you start the better!

The actual figures around compounding will surprise you - do some googling :-)

and think L O N G T E R M

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