Investments and feathering the nest....

[Mr Mystery]

Evening all.

So it's come to that point in life where I'm looking to the future.

Got an excellent pension through work, and have suitable disposable income to start some kind of monthly investment.

Trouble is, I know very little about these things, and I'm hoping that some of you might be able to give me pointers.

Looking at a £150 a month investment amount.

I appreciate that should anyone be an IFA you'll likely be hesitant as it's your career, and nobody likes doing work for free!

So, my starter for 10....anyone?

[Lukas The Trickster]

Whilst you're considering options, in the meantime my advice would be to start putting the money into a Cash ISA.

[Mr Mystery]

Not quite ready to start at the moment.

April everything levels out pay and bill wise, and will be able to stick to my investment plan.

ISAs are an option, but ideally due to my general lack of financial competence I want something that's locked away, to stop me sticking my own sticky fingers in my honey :)

[Deadlift]

Save for a deposit and buy a house, seriously it's one of the best things you can do with your money. As a long term investment and securing a nice retirement it can't be beat. Having no mortgage around your neck but your own home has to be worth it when you hit your 60s. Better still buy 2 one to live in and a second to rent which is what we have done. The rented ones rent covers the mortgage and extra expenses and in 20 odd years time will contribute to our retirement fund.

[Lukas The Trickster]

Maybe another option then would be to save and then put the money into a bond, some offer quite good guaranteed returns on the condition that you tie your money up for a period of time, usually three to five years.

[Mr Mystery]

It's a possibility moving forward.

Retirement wise, things are looking kind of OK.

Sounding mercenary, I already know my Bro and I are the only beneficiaries in our parents will. They own two properties, one of which my brother lives in. Split there is he gets that flat, and I get 50% of the house, plus 50% of the value of his flat.

House is in the Scottish Borders, and is a good size. It's also about to benefit from a new rail link with Edinburgh, which ought to see it become something of a commuter town, increasing house prices in what is already a very popular retirement spot. That ought to cover a flat for myself come retirement.

Pension is the FSA Pension. I put in 3%, and company matches the 3%, as well as adding a free 10% every year, so that's looking fairly rosey.

Having said that, the investment portfolio could be used as a desposit on a house/flat in the next few years. £150 over 5 years would be £9000 without any interest, which is an attractive amount. From there, get mortgage and get paying mortgage (I'd be 39ish at the time) and have it paid off in time for retirement (annual bonus being used to reduce the outstanding capital every year, which is nice.)

As for overall growth and interest? That is where I don't have a clue at all. 5-10% per annum sounds nice, but I have absolutely sod all idea if this is at all realistic or not, which I guess is where IFAs and that come into it (I'm aware that ISAs won't kick out that sort of interest generally speaking!)

The two flat thing does sound attractive as well.... And should I have a place lock stock and barrel off my own back, then any inheritance could be used to increase that portfolio, providing an additional retirement income.

Hmmm. Much to consider, there is.

[Mr Mystery]

Sneaky peaky at bonds suggests I'd need a lump sum to bung into them to start with, so perhaps ISA then Bonds as suggested.

One I just saw had a 7% Gross interest, but requires £5,000 minimum investment. 7% every year, running up to 6 years. That's not a bad amount of free munneh!

[Wolfshade]

Invest in a house :)

Cash ISA is straight forward direction.

I hear GW stocks are quite cheap at the moment...

[Wildeybeast]

If your saving £150. A month, it's going to be quite some time until you have enough for a house deposit. At the moment, savings accounts really aren't worth it as they pay so little money. Most banks offer higher rate, year long saving accounts, based on a set contribution each month so look at those. Stocks and shares Isa's offer a better return than flat savings, though slightly more risk. If you have the time and inclination, investing in shares is a good way to go. My tip would be premium bonds. They don't always pay out, but it's great when they do and at the moment the return is about the same as a savings account. It's basically a case of keeping an eye on everything and moving your money around.

[Wolfshade]

You could always invest in a fund of mine, set up through Gilbralta..

[Denzark]

MM

I would echo the thoughts on property. The increased returns you get are beyond any savings/investment scheme I am aware of, without you having Bond-Villainesque amounts to put into short-term wheeler dealing.

If you are really hard over on investing in pukka stocks/shares, I would go for a look at some of the Falkland Islands oil/gas companies. I think Rockhopper Oil is one. Reason being they are on the verge of confirming viable fields - their stock has been on the up and will only do better.

Don't worry about the Argies coming east again they do not have sufficient cojones (and more realistically, sufficient working kit). In fact one of the reasons Kirchner/Buenes Aires is so tetchy about the Flaklands is the fact that we have a small fortune in hydrocarbons which could fix a hole lot of hurt in their second world economy.

[Wolfshade]

Don't worry about the Argies coming east again they do not have sufficient cojones (and more realistically, sufficient working kit). In fact one of the reasons Kirchner/Buenes Aires is so tetchy about the Flaklands is the fact that we have a small fortune in hydrocarbons which could fix a hole lot of hurt in their second world economy.

Indeed at the time of the 1980's conflict the military gap between them and us was a lot smaller than it is today, basically, they are using the same equipment as back then and we aren't.

Fun fact: HMS Conqueror is the only nuclear-powered submarine ever to have engaged an enemy ship with torpedoes, sinking the cruiser ARA General Belgrano, and the second sumbarine-ship kill since the end of WWII.

[Denzark]

Good old Conks...

[Wolfshade]

The first sub to surface torp kill was Pakistan vs. India with an old French sub a decade before, but we wont go there as it is a geopolicital mess.

[Denzark]

Clearly your wiki-fu is good...

[Wolfshade]

Damn right, it first came up when researching a better day for Margaret Thatcher Day (http://services.parliament.uk/bills/2013-14/margaretthatcherday.html)

[Denzark]

Just to derail to back OT, I was listening to R4 news this morning, and they said last year's best performing shares (presumably UK) were Ocado (sp?) the food delivery people, who saw a 500% increase in value. This while the company made a £12m loss if I understood correctly.

They had signed a deal with Morrisons to act as their delivery crew so hopefully would be on the up, might be worth a punt?

[Mr Mystery]

Well indeed!

[Wolfshade]

Of course you could always plan big and dump it all into your sharesave scheme, not forgetting your company will match (some at least) of that contribution too.

[Mr Mystery]

They're seriously planning a Thatcher Day?

What do the celebrations entail? Kicking the poor and the ancient practice of systematic destruction of a chosen industry?

[Wolfshade]

They're seriously planning a Thatcher Day?

What do the celebrations entail? Kicking the poor and the ancient practice of systematic destruction of a chosen industry?

They are, not sure it will pass into law though. It is worth noting it is a private member's bill and not a government bill.

I was thinking liberating Isla de los Estados from the oppressive Argentine government by 38 Commando with support elements from the fleet. Breaking unions that hold the country regularly to hostage, which only effects result in loss of wages and increases in inflation for all.

(Of course the mining industry has done so well under sucessive labour governments, nothing to do with it being priced out of the market owing to labour costs ;) )

[Wildeybeast]

Can we go round and give kids free milk and then take the free milk of them and laugh at them on thatcher day?

[Mr Mystery]

Not to mention ensuring the following generation will face ridiculous house prices!

[Wolfshade]

Buy my house, it is very competitively priced.