[Mr.D]

I've got 20k lying around ( maybe 30). Its really just sitting there.
Suggest something to do with it ...either investment or business opportunity (nothing illegal).

Not property ..property is boring. Something that could make vast sums of money in a few years but still leave a wry grin over the absurdity of it all.

[FruitBat]

Premium Bonds.

[GBDG1]

Originally Posted by FruitBat

Premium Bonds.

The maximum is about 2k isn't it?

Edit: I was wrong you are allowd 30k

[metropolis]

how about a racehorse

[Badlands]

Give it to me, yer tightarse.

[Badlands]

Put a Depoist down for a Bentley Convertible and you will make money on it.

I have just been to the launch of it tonight and its mint,

No kid, you will make money.

[Reign-Mack]

invest in arms or sponsor the local drug dealer

[dUnKle]

Originally Posted by Lawrenzini

The maximum is about 2k isn't it?

Edit: I was wrong you are allowd 30k

At risk of sounding a right numpty - what exactly are premimum bonds

other half and I are saving for our first house - currently have close to 30 grand saved and going to give it another 12 months hard save (hopefully another 10 grand)

Would premium bonds be ok for us ?

[Achy]

Premium Bonds are from National Savings (The old Post Office).

They are basically like a lottery.

You invest your money, anything from £100 - £30,000 and you are entered into a monthly draw....

You are allocated a number for every £1 you invest which are entered into a draw every month for as long as you have the money invested in them.

You can sell them at any time and take your original stake back.

Prizes range from £50 - £1,000,000.

Sounds good? Inflation can eat away at your money over time, especially if you dont win anything.

The odds for winning a prize, for every £1 you invest is 24,000 - 1

I suppose it's better than the lottery as you can take your money back at any time.

[FruitBat]

Originally Posted by DuncanWardle

At risk of sounding a right numpty - what exactly are premimum bonds

other half and I are saving for our first house - currently have close to 30 grand saved and going to give it another 12 months hard save (hopefully another 10 grand)

Would premium bonds be ok for us ?

Lawrenzini's link should give you the gist.
The official stuff is here.
The main points are:
They don't go into the draw until you've had them for a full calendar month.
You can cash them in at any time.
There are 2 top prizes of 1 million quid every month.

It is gambling . You are gambling with the interest that you might be earning. I think they got quite popular recently with interest rates being low.

I had nearly 20k worth about ten years ago. I never won more than 50 quid and I probably would have been better off sticking it in a deposit account. I had to cash most of them in when I was "between jobs".

[Steven]

Well I am going uni this year...

[MrBlofeldt]

I would highly recommend Premium bonds, I've had £500 for almost a year and have had two wins, both cheques for £50, now I don't know exactly how interest is calculated, but I'm pretty sure I wouldn't have earned that much if I'd stuck it in the bank !

buy some premium bonds, I know quite a few people who have several thousand pounds worth an they tend to win at least three or four times a year, usually £50, but some have won substantially more !

premium bonds...

[gpa]

I am sure I have read something that said that the average return is around 4% and ofcourse its tax free and you can get your money back when you wish.

[damage]

this suggests 2.9

http://www.nsandi.com/products/pb/rates.jsp

perhaps the tex free nature accounts for rest

[Tiesto]

I know you said property was a no no and boring b u t if you invested in buying a property outright in Romania (busec ) you would double your money within 2 years .

Romania will be in the EU by 2008, look at how the prices quadrupled in Prague , Croatia etc.

Sitting on my bum and doubling my money is'nt boring to me.

[Gee]

Mr D,

I invested a similar amount in Premium Bonds in March this year and I've won something every month so far, think I am up to £250 including June and there is always the possibility that you might win big.

Its more fun than a bank account and safer than shares and it gives me a bit of excitement when I check my numbers at the beginning of every month.

[booyaka]

how long you investing for?
What is the purpose of the investment?
How much risk do you want to take?
What is your tax situation?
Access/no access to the cash once invested?
Would you consider pensions for the money?

etc etc - these are all questions you should be asking yourself. I would suggest speaking to a local IFA for investment advice if you are considering investing £20k/£30k

[Mr.D]

Thanks for the suggestions , not sure about the premium bonds seems like it makes more money in the high interest account it currently resides in. Although obviously quite nice if you win the jackpot. I appreciate the fun aspect of it though.

I'm not interested in the property side of things as I'm already in discussion with a couple of friends about aquiring a property portfolio.

Someone suggested I blow the lot on PS3s and Wiis and double my money at xmas.

I did want to get the missus setup as an ebay entrepeneur but she is showing little interest in this ...lazy cow.

[JohnG]

Why not adopt me and pay my mortgage off for me ?

[Mr.D]

Originally Posted by booyaka

how long you investing for?
What is the purpose of the investment?
How much risk do you want to take?
What is your tax situation?
Access/no access to the cash once invested?
Would you consider pensions for the money?

etc etc - these are all questions you should be asking yourself. I would suggest speaking to a local IFA for investment advice if you are considering investing £20k/£30k

Length ... I guess as the moment the money isn't necessarily earmarked for anything.

Risk ...can afford to take a loss ...would prefer i didn't lose the lot though.

tax... I'm on the higher band..wife not working though wondered about putting it in her name. Also have two children.

No access to cash is okay of the gains are potentailly worthwhile.

Not keen on pensions ...have a works one pays in about 3000quid a year ...not really relying on it.

I know zip about stocks and shares.

Like the idea of having a business on the side that generates an alternative source of income.

I'm in permanent full time employment ( same company for 10 years ).

I'm from Troon originally.

[booyaka]

Originally Posted by Mr.D

Length ... I guess as the moment the money isn't necessarily earmarked for anything.

Risk ...can afford to take a loss ...would prefer i didn't lose the lot though.

tax... I'm on the higher band..wife not working though wondered about putting it in her name. Also have two children.

No access to cash is okay of the gains are potentailly worthwhile.

Not keen on pensions ...have a works one pays in about 3000quid a year ...not really relying on it.

I know zip about stocks and shares.

Like the idea of having a business on the side that generates an alternative source of income.

I'm in permanent full time employment ( same company for 10 years ).

I'm from Troon originally.

Fair enough - it depends on whether you wish to use the capital for "business idea" for income - or whether you look to get some advice on investing the money and doing diddle squat, and just letting the money grow in value.

Not from Troon now i guess then!!

[Mr.D]

Originally Posted by booyaka

Not from Troon now i guess then!!

Nope but it was a consideration for property investment, although Ayr is maybe a better bet ....Glasgow commuters and all that and the prices in Troon are a little over the odds compared with Ayr and others. Someone also suggested Kilmarnock because of the improved transport links to Glasgow ( new road I think).

Kilmarnock is dirt cheap ...but I hate Kilmarnock...wierdest people in the area, and that's saying something.

[booyaka]

Originally Posted by Mr.D

Nope but it was a consideration for property investment, although Ayr is maybe a better bet ....Glasgow commuters and all that and the prices in Troon are a little over the odds compared with Ayr and others. Someone also suggested Kilmarnock because of the improved transport links to Glasgow ( new road I think).

Kilmarnock is dirt cheap ...but I hate Kilmarnock...wierdest people in the area, and that's saying something.

lol - sounds about right!!!

What you say is true - the new A77/M77 road has improved things and house prices have risen again becuase you can now drive from ayr to glasgow in 35/40mins. good oppurtunity if you can find the right property at a good price!

Maybe you could spread your money out, so you have a range of risk and return. You don't wanna possibly lose it all, so maybe have a large chunk of the money in a low risk investment, like a high interest account, and then a smaller amount in a high risk, high return investment fund.
Or you could have a portfolio of shares, some in companies seen as very steady performers, with low return low risk, and then some of it in high risk, start-up biotech or something like that. Then there's still some excitment but little chance of losing it all!

[imightbewrong]

You don't mention whether you still have a mortgage? If you do and you can make overpayments you should pay off as much as you can. If your mortgage rate is say 5% then you are making a risk-free return of 5% tax-free on your investment without having to do anything. Not very exciting I know - but it would bring that all important 'mortgage free' day that bit closer.

Failing that you should definately pass it all to your wife if you keep it in savings and are in the high tax bracket. Or use your ISA limit (3K per person per year) to keep it safe from the tax man. Man I'm boring.

[Mr.D]

ISAs and mortgage I'm somewhat sorted on.

[booyaka]

Originally Posted by imightbewrong

You don't mention whether you still have a mortgage? If you do and you can make overpayments you should pay off as much as you can. If your mortgage rate is say 5% then you are making a risk-free return of 5% tax-free on your investment without having to do anything. Not very exciting I know - but it would bring that all important 'mortgage free' day that bit closer.

Failing that you should definately pass it all to your wife if you keep it in savings and are in the high tax bracket. Or use your ISA limit (3K per person per year) to keep it safe from the tax man. Man I'm boring.

Just changing my mortgage over to a "one account" thinggy.

Intend on overpaying £200 a month and i can clear my mortgage in just 7 yrs if that continues!

Also ISA allowance if £7k a year per person - £3k cash mini & £4k stocks and shares mini OR £7k maxi stocks and shares.

[tom_piano_man]

I would put your maximum 7k into an ISA cos it's tax free, and you can withdraw it at any point ( can't put it back though), and move it around to wherever is performing best.
If you want low risk, I would find the highest intrest savings account at a bank/building society and put the rest in there. You should be able to get close to 4% intrest gross if you look carefully.

Alternatively, put it against your mortgage in an offset account, becuase I bet you pay a higher rate of interest on your mortgage than any bank will give in interest on savings. You can clear your mortgage even faster. And you dont pay tax on that either.

My advice - put it 7k in an isa and the rest against your mortgage.

[la gran siete]

i f you choose Skandia ,or an oeic such as Fidelity,you can move your Isa invetsment around reletively easily

[Nick_UK]

Originally Posted by booyaka

Just changing my mortgage over to a "one account" thinggy.

Intend on overpaying £200 a month and i can clear my mortgage in just 7 yrs if that continues!

I'm not overpaying my mortgage, but my personal circumstances mean that I often have large amounts in my current account, and that offsets what I owe on my mortgage. Even paying the normal amount each month, my mortgage is set to pay off in less than 2 years (5 years early).