Investment Advice

[ColchesterFC]

Cheers for all the replies and suggestions. We've gone for the risk averse options by putting £4k into a LISA for Mrs Colch and £15k into Premium Bonds. Decided to keep £1k back to inject into Mrs Colch's business for her to buy some stock. Once she's sold the stock we'll take the money back out of the business and put that into Premium Bonds as well.

 

[RichA]

Tip for holders of old premium bonds. Sell them and but new ones. New numbers always do better.

For your info, that's a myth.

 

[richart]

For your info, that's a myth.

Hence the unsure face.

 

[PNWokingham]

Cheers for all the replies and suggestions. We've gone for the risk averse options by putting £4k into a LISA for Mrs Colch and £15k into Premium Bonds. Decided to keep £1k back to inject into Mrs Colch's business for her to buy some stock. Once she's sold the stock we'll take the money back out of the business and put that into Premium Bonds as well.

for your one year horizon there really is no other master plan. Anything not in a bank or Gilts that mature within your time horizon has a degree of risk. Any bond or equity fund has risk. If you had a longer horizon, i would get involved in these but not for one year. I manage bond funds and a one month return from end Feb last year would have been -20%, whereas a one year would have been 5% up. And most equity funds were a magnitude more volatile. The return spectrum had you invested at the end of March last year would have been a very happy place to be in whatever you invested in! But you cannot rely on timing the market for a 0ne-year horizon - and given most markets are near all-time highs it would be foolish to go near them with your house deposit

 

[Voyager EMH]

Cheers for all the replies and suggestions. We've gone for the risk averse options by putting £4k into a LISA for Mrs Colch and £15k into Premium Bonds. Decided to keep £1k back to inject into Mrs Colch's business for her to buy some stock. Once she's sold the stock we'll take the money back out of the business and put that into Premium Bonds as well.

Got 'em yet? Are you in this month's prize draw?

 

[ColchesterFC]

Got 'em yet? Are you in this month's prize draw?

We bought in May so the July draw is our first one. Just waiting for the email confirmation that we won the million pound prize. ?

 

[Voyager EMH]

Prize Checker | Check if you have won | NS&I (nsandi.com)

Page says full results tomorrow, but sometimes it is ready later the same evening. Good luck. Have your holder's number ready.

I won £50 last month while Mrs V got her first zero. I've had 3 zeros in the last two years. Most we won jointly was £125 in one month. All £25 prizes.

 

[arnieboy]

Two consecutive £25 wins, only bought them in April so looking forward to the million tomorrow!

 

[need_my_wedge]

Two consecutive £25 wins, only bought them in April so looking forward to the million tomorrow!

Got few, when I bought them, had 4 or 5 monthly wins in the first 12 months. Dwindled to 2 over the next two years, none over the last.

I'm about to withdraw it all, put it in my pension, get the 40% tax back and then withdraw it again as am over 55.

 

[Midnight]

Somebody please explain premium bonds to me, have about 20k put aside for the kids when there older, is it worth banging into them or find a good financial advisor?

Dont want anything high risk?

 

[fundy]

Somebody please explain premium bonds to me, have about 20k put aside for the kids when there older, is it worth banging into them or find a good financial advisor?

Dont want anything high risk?

premium bonds are run by NS&I and government backed so your money is as safe as it can be

instead of interest they do monthly draws where you can win between £25 and £1m. In effect they pay out approx 1% interest a year through the prizes although you can obviously get more or less depending on how fortunate you are

they are set up for you to apply for bonds in your childrens name

in the current low interest environment they are a very low risk investment but with that comes a relatively low return

the alternative would be to get junior ISAs for them where currently you should be able to get cash savings account with 2%+ interest rate (check a comp website to see whats the best option when looking to open)

i think you can also get a juniour stocks and shares isa but would be best to get professional advice if going that route

how old are the kids and how long do you expect to have the money invested for them?

 

[Midnight]

premium bonds are run by NS&I and government backed so your money is as safe as it can be

instead of interest they do monthly draws where you can win between £25 and £1m. In effect they pay out approx 1% interest a year through the prizes although you can obviously get more or less depending on how fortunate you are

they are set up for you to apply for bonds in your childrens name

in the current low interest environment they are a very low risk investment but with that comes a relatively low return

the alternative would be to get junior ISAs for them where currently you should be able to get cash savings account with 2%+ interest rate (check a comp website to see whats the best option when looking to open)

i think you can also get a juniour stocks and shares isa but would be best to get professional advice if going that route

how old are the kids and how long do you expect to have the money invested for them?

Thank you for all the info mate, they are 13 and 15 so looking for 5 to 7 years really.

 

[fundy]

Thank you for all the info mate, they are 13 and 15 so looking for 5 to 7 years really.

On 20K:

5 years interest at 1% approx £500 total (thats what youd expect to win on premium bonds over 5 years, obviously could be lower or higher)
5 years interest at 2% approx £1000 total (thats the interest you could get in a junior ISA) (£1300 if you could get 2.5% which is available in 1 place currently)

IF you go the ISA route, you may have to move the accounts between banks to ensure you continue to get the best rate out there

I expect theres an argument to look into stocks and shares ISAs with that sort of timescale but not my place to offer that sort of investment advice

 

[Voyager EMH]

Maximum you can put in a junior ISA is £9,000 per year. Coventry Building Society offer 2.25% interest.
That's where I have been putting my niece's money left to her in my mum's will. She will be 18 in September when she gets control of it.
She has been getting over 3% as it was opened 3 years ago.

 

[Midnight]

On 20K:

5 years interest at 1% approx £500 total (thats what youd expect to win on premium bonds over 5 years, obviously could be lower or higher)
5 years interest at 2% approx £1000 total (thats the interest you could get in a junior ISA) (£1300 if you could get 2.5% which is available in 1 place currently)

IF you go the ISA route, you may have to move the accounts between banks to ensure you continue to get the best rate out there

I expect theres an argument to look into stocks and shares ISAs with that sort of timescale but not my place to offer that sort of investment advice

Thank you for the pointers mate.

 

[Backache]

Somebody please explain premium bonds to me, have about 20k put aside for the kids when there older, is it worth banging into them or find a good financial advisor?

Dont want anything high risk?

There are different forms of risk and you cannot avoid risk. Over 5- 10years so called low risk investments are at quite significant risk of losing value due to inflation. Personally over this kind of timescale for my children I would take equity risk every time and invest in a junior ISA.

 

[Voyager EMH]

July prize draw
Me £25
Mrs V £50

 

[harpo_72]

Premium bonds are fun, but realistically they have poor return. I found they initially were bringing in regular prizes but then that dried up… so I re-invested in my ISA when it was on a low. It went high following the stock exchange and then went low again because of the crash. I know the value I need to get to re-establish equilibrium.. but currently I have the freedom to wait.
I don’t ever believe the small man is entitled to maximise his gains in the current system.. it seems too much of a coincidence that when you look to take your investment out the rates drop or exchange rates on foreign currencies drop around the 24-29th day of the month instead of building on their growth … but that is my pessimistic opinion and general grumpiness about not being an over paid social influencer

 

[SwingsitlikeHogan]

A £5 premium bond bought by my parents for me in the early 1960s for my birthday when that was about a week’s wage for my dad has won nothing and in terms of cost it was a very significant outlay. My £15 in total premium bonds from that time were worth a lot back then, an investment that has won nothing and is worth £15 today ?

 

[PhilTheFragger]

A £5 premium bond bought by my parents for me in the early 1960s for my birthday when that was about a week’s wage for my dad has won nothing and in terms of cost it was a very significant outlay. My £15 in total premium bonds from that time were worth a lot back then, an investment that has won nothing and is worth £15 today ?

Actually it has lost loads of value in that time due to inflation

£5 now is nowhere near a weeks wages now ?