3k to do something with (sensible)
Discussion
I'd like to get a few grand together to cover me for any unexpected costs in the future and hopefully use it to make a little money for me.
I understand it is a small amount and interest rates are low, im looking for medium risk - return and easy access to the cash.
Im thinking maybe invest it in a portfolio of shares. Wouldnt mind trying a bit in a high risk fund but i think your money is locked in them until maturity.
just wondering if there are any novel out-of-box ideas of ways to invest it...its a bit dishartening putting it in a back and earning about £10 a year!
I understand it is a small amount and interest rates are low, im looking for medium risk - return and easy access to the cash.
Im thinking maybe invest it in a portfolio of shares. Wouldnt mind trying a bit in a high risk fund but i think your money is locked in them until maturity.
just wondering if there are any novel out-of-box ideas of ways to invest it...its a bit dishartening putting it in a back and earning about £10 a year!
You can buy some Irish covered bonds which were yielding 9% or so through to Nov 2012.
Not sure on current yield, but thats not bad and they are protected against loss by the underlying income stream from mortgages.
There was some discussion on the ft alphaville blog. I think SocGen wrote some guff on them.
Alternately the ISEQ20 is yielding around 7% plus potential capital gains over the long term.
Top option in theory is low risk, the second one not so much.
But as they say no risk no reward. I picked up some ISEQ20 ETF, probably get burnt but who cares, inflation will be 10% soon anyway.
Not sure on current yield, but thats not bad and they are protected against loss by the underlying income stream from mortgages.
There was some discussion on the ft alphaville blog. I think SocGen wrote some guff on them.
Alternately the ISEQ20 is yielding around 7% plus potential capital gains over the long term.
Top option in theory is low risk, the second one not so much.
But as they say no risk no reward. I picked up some ISEQ20 ETF, probably get burnt but who cares, inflation will be 10% soon anyway.
if its for unexpected costs and similar, conventional theory says it would be in instant access account
in your case that might be an ISA account so the interest is tax free
anything else usually involves a risk in terms of potentially having an investment worth less than the money you have put in at the exact moment you need to withdraw it, or it can take too long to get the money out to cover something unexpected.
in your case that might be an ISA account so the interest is tax free
anything else usually involves a risk in terms of potentially having an investment worth less than the money you have put in at the exact moment you need to withdraw it, or it can take too long to get the money out to cover something unexpected.
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