Investing money

[TJC1]

My advice would be to spend your 20k wisely!

We now live in an era of zilch returns and you stand more chance of losing your money than gaining a return.Understand that the stock market is largely controlled by crooks and greedy clever people if you prefer!Investing in the form of Isa's and the many more financial "instruments" is a mugs game!.........the real money is creamed off in minuets by clever people /fees etc. This is all a game by governments to make you take risks with your money to boost the ecomomy.In days gone by, you could get a sensible return on savings,but because the world is run on credit,those days have gone and will never return.........Live for today and spend it on something unforgettable!

 

I'm inclined to partially agree...buy "experiences" such as travelling...family...

 

and save a bit / invest in property / yourself.

 

Don't touch shares if you really dont know what youre doing. Its a mugs game for the novice.

 

Pensions and ISA's - meh....fair enough, small return, but do you really trust governments?

 

My house / My businesses (and a small investment into medium term schemes) - that's my pension (pay a lot of tax, but still it's mine!)

 

---------- Post added 20-09-2015 at 18:44 ----------

 

and ignore any so called financial experts - they either profiteer from advice or really dont know what they are doing. Nobody does. Nobody can predict the future.

 

---------- Post added 20-09-2015 at 18:46 ----------

 

There's nothing to stop people on a forum discussing ways of investing money and the pro's and con's, so long as everyone understands that it isn't formal advice.

 

and its whatever you feel comfortable. differs from person to person. Hell, I could build up and lose everything....its just a judgement call.

 

---------- Post added 20-09-2015 at 18:47 ----------

 

but I know I can sleep well at night. Peace of mind. And if you aint got that, you aint got anything.

[Cyclone]

My advice would be to spend your 20k wisely!

We now live in an era of zilch returns and you stand more chance of losing your money than gaining a return.Understand that the stock market is largely controlled by crooks and greedy clever people if you prefer!Investing in the form of Isa's and the many more financial "instruments" is a mugs game!.........the real money is creamed off in minuets by clever people /fees etc. This is all a game by governments to make you take risks with your money to boost the ecomomy.In days gone by, you could get a sensible return on savings,but because the world is run on credit,those days have gone and will never return.........Live for today and spend it on something unforgettable!

 

That's not really very helpful advice is it.

 

ISA's can generate a 2 - 3% return (no tax to pay). Savings accounts at no risk can get you 2% before tax.

I have some money invested with zopa, it makes me nearly 5% and has done consistently for a while. It's not quick to get the money out though, so I haven't put a huge amount in.

 

---------- Post added 20-09-2015 at 19:37 ----------

 

Have you paid off your mortgage? If not, I would use most of the money towards that and save some for emergencies.

 

Good advice IMO. We had a financial advisor provided by my SOs work, she wanted us to leverage the house to the max and invest the money with her company.

We feel more comfortable doing the opposite, pay down the mortgage instead, it might look worse on paper, but the risk profile is reversed. Of course mortgages are VERY cheap at the moment, so that's a personal decision.

[mossdog]

That's not really very helpful advice is it.

 

ISA's can generate a 2 - 3% return (no tax to pay). Savings accounts at no risk can get you 2% before tax.

I have some money invested with zopa, it makes me nearly 5% and has done consistently for a while. It's not quick to get the money out though, so I haven't put a huge amount in.

 

---------- Post added 20-09-2015 at 19:37 ----------

 

 

Good advice IMO. We had a financial advisor provided by my SOs work, she wanted us to leverage the house to the max and invest the money with her company.

We feel more comfortable doing the opposite, pay down the mortgage instead, it might look worse on paper, but the risk profile is reversed. Of course mortgages are VERY cheap at the moment, so that's a personal decision.

........and Isa's can also lose 2 to 3%PA it's a stock market casino...........2% pa before tax on £20k..........nah! spend it wisely like I said!

[Cyclone]

What does wisely mean? How is spending what you want to provide an income ever going to be wise?

[mossdog]

What does wisely mean? How is spending what you want to provide an income ever going to be wise?

The OP has not stated providing for income!..........just investing which could mean a lot of things.

A friend of mine had a punt on Zopa a while back ,but lost money through borrowers defaults!....all investments are a gamble! If I had £20k sloshing around, I could think of a number of nice things that I would like to own that would not lose money if chosen wisely, and might even make some!

[Cyclone]

Zopa have changed their conditions, I think they now cover any defaults.

But even in a worst case you should have only lost £10 as that's the maximum they lend to each borrower from each lender.

I've made approx £700 since Sept 2012 with them. There is definitely a risk though, I wouldn't pretend otherwise. (That's an annual return of approx 5%)

[TJC1]

The OP has not stated providing for income!..........just investing which could mean a lot of things.

A friend of mine had a punt on Zopa a while back ,but lost money through borrowers defaults!....all investments are a gamble! If I had £20k sloshing around, I could think of a number of nice things that I would like to own that would not lose money if chosen wisely, and might even make some!

 

these p2p lenders have auto picker...its a pretty water tight 5-7%

Your friend must have picked his own portfolio

[mossdog]

Zopa have changed their conditions, I think they now cover any defaults.

But even in a worst case you should have only lost £10 as that's the maximum they lend to each borrower from each lender.

I've made approx £700 since Sept 2012 with them. There is definitely a risk though, I wouldn't pretend otherwise. (That's an annual return of approx 5%)

Roughly £4.50 per week profit less tax if applicable!............is it worth the risk and effort?

[Cyclone]

Well, yes. Because otherwise the money would be in the bank earning far less.

Given that the risk is incredibly low and the return is consistently about 5%, I don't really see any downside.

 

I'd rather have £4.50 a week on that investment than £0 a week. It'll pay for a pint of beer every week in the Sheffield Tap (if that's how I want to look at it).

[TJC1]

the auto picker picks 100 or so companies, so if one or two fail it averages out.

I think Martin Lewis said he gets a consistent 6.2% yield.

 

its defo something I'd like to get involved in. Helps Businessess too.