Tradefair & Financials
There is currently 1 person viewing this thread.
Hi There,
I was just looking on here for some advice really. Apologies if the post rambles a bit.
I currently have just over 30k in a Cheshire building society ISA (paying 2.25% I think).
I've been saving over the past 5-6 years or so so I could buy my first flat. However last year events conspired against me and I was made redundant from a decent paying 40k pa job and so for the past year I have had no option but to temp off and on for £14-16 an hour in various finance roles. I have also had to move back in with my parents at age 32 as I don't want to lose everything I have worked for over the past few years on paying rent and expenses.
Obviously I am looking to find a perm role and have been for the past 18 months but when/if it happens I don't think I'll get near the 40k salary mark and so 25-30k is more realistic which of course will limit the amount I can borrow. I live in London and so the type of flat I can buy with this salary/deposit will be limited.
So basically I am unsure what to do with my ISA savings. I recently read 'Rich Dad Poor Dad' and am now wondering if buying a property is the way to go especially as I have no idea when I'm going to be able to get a job to make that happen. The £600 or so yearly returns from my ISA seem so small and I'm now thinking that perhaps the way to go would be to cash it in and put it in a variety of funds and stocks?
I guess what I'm asking is what would you do if you were in my shoes?
I was just looking on here for some advice really. Apologies if the post rambles a bit.
I currently have just over 30k in a Cheshire building society ISA (paying 2.25% I think).
I've been saving over the past 5-6 years or so so I could buy my first flat. However last year events conspired against me and I was made redundant from a decent paying 40k pa job and so for the past year I have had no option but to temp off and on for £14-16 an hour in various finance roles. I have also had to move back in with my parents at age 32 as I don't want to lose everything I have worked for over the past few years on paying rent and expenses.
Obviously I am looking to find a perm role and have been for the past 18 months but when/if it happens I don't think I'll get near the 40k salary mark and so 25-30k is more realistic which of course will limit the amount I can borrow. I live in London and so the type of flat I can buy with this salary/deposit will be limited.
So basically I am unsure what to do with my ISA savings. I recently read 'Rich Dad Poor Dad' and am now wondering if buying a property is the way to go especially as I have no idea when I'm going to be able to get a job to make that happen. The £600 or so yearly returns from my ISA seem so small and I'm now thinking that perhaps the way to go would be to cash it in and put it in a variety of funds and stocks?
I guess what I'm asking is what would you do if you were in my shoes?
sort by:
Show
per page
Replies: 15
|
By:
First, say thanks to those parents, they sound like good people - perhaps get a cook book and some ingredients and make them soup and dumplings one day, a crumble, or bake some bread. You might do this anyway.
Second, say well done to yourself - living cooperatively with relatives, prioritising your expenses, and actually having some savings rather than having wasted everything are virtues imv. Third, aaargh, don't know - I think property prices in Gtr London are at a peak. There are stocks that pay dividends around 4-5% ( twice what the ISA gives, although there'll be charges ) but would avoid anything more risky than that. |
|
By:
You'd read Rich Dad Poor Dad? Maybe you should read conspiracy of the rich as well where he predicts a massive stock market crash!
I'm not a massive fan of Kiyosaki. Comes across very arrogant but his reasoning for the stock market crash is spot on. |
|
By:
My apologies, it is 'Rich Dad's Prophecy' not Conspiracy of the Rich.
|
|
By:
If you look at a lot of shares you will see that they have doubled over the last year and it is so easy to think "Wow if only invested in them I'd have doubled my money" -maybe if I invest now, I'll double it. But life isn't like that and you could half it.
It's a real dilemma -sure invest in blue chips yielding 5% but if they do down? Buy gold? Could fall further? Buy a property to let out? Very illiquid and some poor persons get rent arrears and a trashed house to boot. Where it is at present seems a good option -maybe get a bit more yield by loaning a proportion on Wonga or similar? |
|
By:
Spread the money around a little. Keep some in your cash ISA and consider some dividend stocks and/or some tracker funds.
Buy some of the newly issued retail bonds. Spread your money across a number of them to spread the risk. The dividends of retail bonds are not taxed in an ISA (or pension) unlike those of shares. (Selftrade, SIPPDeal or Barclays stock brokers allow you to buy many of the retail bonds at issue with no costs & no bid/offer spread) Register for the e-mail alerts http://www.londonstockexchange.com/prices-and-markets/retail-bonds/newrecent/newrecent.htm Read the reviews about upcoming retail bonds before you buy. (and also the forum comments) http://www.fixedincomeinvestor.co.uk/x/analysis.html Tracker funds http://www.etf.db.com/ |
|
By:
Thanks for the replies guys.
|
|
By:
rich,dad poor dad
snake oil salesman or genius? |
|
By:
"I am not so much concerned with the return on capital as I am with the return of capital."
Saving interest rate offers are heading the other way https://www.savingschampion.co.uk |
|
By:
"I am not so much concerned with the return on capital as I am with the return of capital."
That's it in a nutshell. They say investing in the stock market is a young man's game because a young man can lose most of his money and still have time to build up his capital again through other means. While an older person can simply run out of time. If you must go into the market then bet with small amounts until you can see what's going on. Three questions you must be able to answer before you start: When to buy. What to buy. when to sell. The right plan will reduce the odds against you losing. |
|
By:
Buy a property in London. Tory Party thinking is basically keep property prices stoked until the next election or we're beaten and no animal will legislate against its own survival; and London is where prices will rise most. Also good for your self-esteem.
|
|
By:
Buy some LLOYDS shares they will be a £1 by xmas imo
|
|
By:
so we should get them for about 50p when the government sells our shares
|
|
By:
RLkingpunter,a £1 before Christmas?.Are you using a .382 calculation?.
|
|
By:
bung it in PREMIUM BONDS that's what i've done
|
|
By:
not quite a quid but 85 p not bad, id back em to be a £1 on feb 13th when results and divi announced.
|