Finance Wizzards - Advice needed thankyouplease

N

nish

Active Member
Mate has just got over 3grand given to him!!

He was asking everyone before on the best way to invest it..

All I could think of was ISA's or Mini ISA's? Not entirely sure what they are but heard that they are supposed to be good for tax free savings, or better than a high interest account anyway?

Anyway I suggested that to him.. But remembered there was a few people on here that know their shiznit on all things financial so though I would run it by you lot?

Anyone any ideas?

I was right to mention ISA's wasnt I? 8O

Cheers me dears x
 
Ps - Any spelling wizards (and smartarses), I am aware that I have spelt Wizards wrong like.

Ta x
 
Hello Nishy :D ;)

Errr I can't really help you just thought I would say hello and Happy New Year :lol:

I've got a couple of those ISA thingys but I don't understand them :? I think they're meant to be good, you have to keep you money in for a fixed period (maybe minimum 3 years :? ), I think you can take the money out before then but you lose the interest.

Mine are M&S ones, only cos my dad said they were best at the time but this is a going back a couple of years.

I'm no help at all really am I :? :lol: but they're def better than the best high interest accounts.
 
ISAs allow you to save upto 3k a year tax free. you will get an interest rate of around 4.5 - 4.9% and unlike normal accouts that advertise similar rates, normal accounts advertise the gross rate, the actual net rate will be more like 3%. so on £3k will accrue about £150 in interest a year.
 
Well....... time is money.......... and some of the best times can be had on the White Isle

Hand him a brochure for 2006 and offer your services as his personal holiday guide for a small fee..... ;) :D
 
spend 2 grand on buying a house in Romania, spend a grand doing it up, sell for 10 grand

ding!
 
im just lovin the irony of chewie replying to a thread entitled "financial wizards" :lol:

"fire up the band" 2.30 at Lingfield...........put the lot "on the nose" eh chow??
 
jjinit said:
im just lovin the irony of chewie replying to a thread entitled "financial wizards" :lol:

"fire up the band" 2.30 at Lingfield...........put the lot "on the nose" eh chow??
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well if u had the 3 grand, you'd be sticking it "up" yr nose! :lol:

im a financial numbnut, but reality has smacked me right in face this week! - sensible times ahead!
 
alex311279 said:
ISAs allow you to save upto 3k a year tax free. you will get an interest rate of around 4.5 - 4.9% and unlike normal accouts that advertise similar rates, normal accounts advertise the gross rate, the actual net rate will be more like 3%. so on £3k will accrue about £150 in interest a year.
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That rate sounds very low 8O

I bought one 2 years ago for £5k and it's now worth £6.5k

That's like 15% pa.

I think it may be one of those that's linked to different funds, which have obviously done quite well.

My FA said to expect £8k back in another 3 years.
 
It depends on his attitude to risk in regard to this £3,000. If he just wants to safe guard it and watch it grow over time then he is best off putting it in a cash ISA. He should do this before April 5th so as to avail of this year's individual allowance. I would suggest he has a look on www.fool.co.uk (Motley Fool). They usually give a run down of the best rates on ISA's around at the moment. But make sure to check all the tie in's and what rate it will revert to after the first year promotion rate. Motley Fool usually give really good sound advice.

If he is a little more risk loving, he can look at putting his money into some sort of equity ISA - a tracker which tracks a certain index or other asset class (these involve costs though) or a self investing one (this involves analysing and choosing his own shares). I think these may be a little too involved for your mate and as they are more risky, the potential rewards are higher but so are the chances of losing.

One of the more risky options available to him would be to open a Contract for Differences (CFD) account. Very cheap to open and quite easy to run but you have to know what you are doing. You can leverage up when you invest like this (i.e. if you are investing £10,000, you only have to put down a percentage of this, say £1,000 at the beginning) so the potential for much bigger gains is huge but the potential for huge losses is also huge. Also, you can lose a lot more than you actually have and will owe this to the broker. This type of investing is also tax free. But I really wouldnt suggest this unless you know what you are doing.

Hope this helps!!! (Id say go for the Cash ISA)
 
do some research on the net and invest it in stock market.........

in 2005 they outperformed the housing sector for the first time since since god knows when and its set to be the same in 06.

obviously the markets you want to get invloved in are related to energy, (sound if you can buy some BP shares) more realistically invest in 1st/2nd tier suppliers to the energy industry.

for a safe bet, invest in barclays or the 21st century's greatest PLC - tesco
 
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