Investment Advice

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ColchesterFC

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A question for those in the know with regards to financial investment. We're saving for a deposit to buy a house next year and currently have 20k to put into savings. We can lock the money away for a year as we will be looking to buy at this time next year. Mrs Colch is a first time buyer under 40 so I'll give her 4k to put into a LISA to get the government 25% bonus on that, but what should I be looking to do with the rest of the money to get the best return. Unfortunately I'm a smidge over 40 so can't have a LISA myself. Looking at the rates it seems that 1% is the max I could get on an ISA and less than 0.5% on a regular savings account. Is there anything else I should be looking at?
 

Ethan

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A question for those in the know with regards to financial investment. We're saving for a deposit to buy a house next year and currently have 20k to put into savings. We can lock the money away for a year as we will be looking to buy at this time next year. Mrs Colch is a first time buyer under 40 so I'll give her 4k to put into a LISA to get the government 25% bonus on that, but what should I be looking to do with the rest of the money to get the best return. Unfortunately I'm a smidge over 40 so can't have a LISA myself. Looking at the rates it seems that 1% is the max I could get on an ISA and less than 0.5% on a regular savings account. Is there anything else I should be looking at?
1% on a Cash ISA, but could make (or lose) more on a Stocks and Shares ISA.
 

Crazyface

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Premium Bonds? You won't lose any money and might win a fortune.
If you've got 30K plus to invest you might win a lot. I'f you check the big winners against how much they've invested, you'll see that you need 30K+, best to put in 50K actually (the max) to have a chance.

I've got quite a bit in and get the odd £25. Rubbish really, but better than the banks are currently paying out.
 

spongebob59

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Just had a meeting with my IFA, he says.stock market is well on the way back up.
With Biden looking to spend spend spend, he reckons it's a good time to invest.
 

fundy

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If youre are talking about investing your house deposit for a shortish time period youre going to get almost no return in the current climate. On that basis if security of the money is important which it should be then premium bonds is probably as good an option as any other.

IF you want a higher risk profile there are other options with stocks, commodities, currencies, crypto etc, BUT on the timescale you are talking about they come with a highish risk profile that probably doesnt fit what youre looking for, you could easily lose 20-50% of your funds in the time period you are talking about

If you are going to take a riskier option (stocks, shares, currencies, cryptos) please dont do so based on a baseless tip on an internet forum. do your own research and/or find someone you trust to impart their knowledge that enables you to be better informed to make a decision
 
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ColchesterFC

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If youre are talking about investing your house deposit for a shortish time period youre going to get almost no return in the current climate. On that basis if security of the money is important which it should be then premium bonds is probably as good an option as any other.

IF you want a higher risk profile there are other options with stocks, commodities, currencies, crypto etc, BUT on the timescale you are talking about they come with a highish risk profile that probably doesnt fit what youre looking for, you could easily lose 20-50% of your funds in the time period you are talking about

If you are going to take a riskier option (stocks, shares, currencies, cryptos) please dont do so based on a baseless tip on an internet forum. do your own research and/or find someone you trust to impart their knowledge that enables you to be better informed to make a decision
Cheers. I don't mind a small degree of risk but as it's for the house deposit I'm not looking at anything too risky. Certainly not looking at going down the crypto currency route. Premium bonds seems to be a pretty good shout and not one that I'd even considered/remembered. Getting £160 interest at the end of the year on a 16k investment at 1% in an ISA isn't going to make any difference in terms of the deposit so might as well go for the premium bonds and keep my fingers crossed.
 

PhilTheFragger

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If there was a magic wand to turn £20K into £30k over 12 months we would all be doing it....and most of us arent

Its your house deposit, so you dont want to risk it, but you want it to beat inflation, otherwise its worth less in real terms

Interest bearing accounts and Cash ISA's are rubbish, rates are so low, its not worth the agro

If it was me id lump it into premium bonds, the average return is less than the stock market, but better than inflation and its safe

Having said that my Stocks & Shares isas and General investment accounts have gained 15% over the last year :cool:
 

Neilds

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I invested £14500 in a stocks and shares ISA in Jan this year and already made £1000 after fees. As previously mentioned, the markets are bouncing back so is a good time to invest. My portfolio is spread across the world markets and is medium risk.
Make sure you get proper advice and not just from us lot on here 😎
 
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We have similar amount sitting in bank account - to be used next year on an extension.

Our FA has suggested to us that as the amount we have is the amount we need - we don’t need more for what we want to do - and we are going to use it in the short term (as far as investing goes) - just leave it there. If we look for a return on it then no matter what we do with it we risk losing some, with at best only a relatively small return on our investment likely. Will ask about PBs as he hasn’t talked of them as an option.
 

Ethan

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I invested £14500 in a stocks and shares ISA in Jan this year and already made £1000 after fees. As previously mentioned, the markets are bouncing back so is a good time to invest. My portfolio is spread across the world markets and is medium risk.
Make sure you get proper advice and not just from us lot on here 😎
I have a S&S ISA also and mostly invest in tracker funds, some US, some UK, some other places. The US funds have done well for me. A very small amount on some specific stocks in the area that I know, pharma and biotech, and I have some Apple shares (up almost 200% over a few years). I mostly leave it, but every now and then take a look and make some changes.
 
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Crypto for me at the moment. Very volatile, you have to keep an eye on it and be prepared to buy/sell quickly as required. Bought some dogecoin on Tuesday and its currently up 45% in 3 days.
 

Voyager EMH

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Little or no risk investment for one year with £16,000. One-year returns are very low. The Premium Bond suggestion is not a frivolous one. You would be unlucky not to get £100 or more return over 12 months and the sky is not the limit, but close enough. Very secure investment - bound to get all your money back exactly when you want it. It's not risky. No need to be scared of this option. In one year's time, I doubt you will have this opportunity again until you retire maybe.

I am not a regulated financial adviser and I take no responsibility for what is or will be your decision.
I am very happy to wish you good luck!
 
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