Within the next 2 -3 months, I will have reached the £3k limit on my cash ISA. This is the first time that I have really had such a level of savings (1700 was from a rubbish endownment policy with Hambro) and would like to invest this and not fritter it away on beer and curry!
Any suggestions?
Thanks.
How are you with stockmarket risk? Maybe have a stock and share mini-ISA? Mind you, there's not a hell of a lot of point in stock ISAs now unless they are in corporate bonds, as soon (next April) there will be no effective income tax relief at all. By having an ISA you can't set losses against capital gains elsewhere. So it depends a lot on your personal situation. Mind you, some S/S ISAs are cheaper to set up than the equivalent non-ISA version.
Rob Graham
Understandable. Good beer is so hard to find today. I would recommend an investment trust or two. It's less risky than investing 3k directly into 3 or 4 companies. I like the Perpetual Income and Growth Investment Trust, but there are plenty of others. Avoid one that does anything special/unusual unless you want the risk.
Consider a non-cash ISA. Consider Friendly Societies. There's a tax free investment limit of roughly half the cash ISA's.
Or, if you know what you're doing, you could invest in wine, but it's a high risk investment if you can't control your urges, because the assets tend to self-liquidate.
Given that 3 grand isn't a great deal of savings, I suggest you might look at safe investements, such as cash savings accounts. Consider how likely you are to become unemployed, what your costs would be if you were, and whether you might need a chunk of cash in the near future (e.g. mortgage deposit).
Remember that the stockmarket only gives good returns on average over long periods of time (e.g. 10-20 years), and over some 10-20 year periods returns have been rubbish or negative. Also ISAs aren't any use at all if they don't make money - all they buy you are the taxes you'd pay otherwise.
I'd make sure I had adequate cash reserves (e.g. a few months replacement salary if you are unemployed), and then look at more risky investments. It may be that the stockmarket is on the way up, but who can tell.
For a cash investment, consider the ING Direct account.
cd
As others have mentioned, you need to give some more info; the timescale and the amount you can afford to lose at the end of the give timescale.
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