What can I do with �25,000

[izzymem]

I am 23 and working.

I have been working since I was 16 and have saved up about �25,000.

I am now getting to the age where I need to think about some benificial I can use my money for.

Like business, investment or whatever.

Any advice from the older people who would know what they would have done with that much at my age?

Thanks.

[PFA]

Hi There,

Depends on how much of a risk taker you are...

Risk Options:-

Stocks, Shares, Investment Bonds, Company Bonds, Capital Lending, Start-up Investments, Hedge Funds (For �25K I doubt it..but worth a shot), Property.

Non Risk Options:-

Fixed Rate Savings, Savings Bonds, ISA's, TESSA's, Trackers

As it goes without saying the higher the RISK the bigger the Return on Investment. If you are looking towards buying a property for yourself and the likes then I would say a savings bond that way you can get at it before the maturity and you may be need it for the down payment of a property.

[Oneeyedvic]

I'm afraid this is a real depends question, and the answer can so depend on your personal life - ie are you married/ living with partner / do you own your own home / are you planning on buying / what do you earn / what rate of tax do you pay etc etc etc

I would really look at going to an IFA (independent Financial Advisor). You really need personal recommendations if possible rather than Yellow Pages.

Please do not go to a bank though - they will generally not give you best advise - only their own products

[makemesmile]

You could always buy some Premium Bonds whilst you're considering your options. You wont earn interest (for all it's worth) but you're guaranteed to get every penny back and you might just win a prize.

[ewand]

Good advice here, especially from Oneeyedvic (as usual), and to supplement the answers most investors would attempt to build a diversified portfolio with which to hedge away some of the risks involved with investments (in laymans terms, a little bit on a risky investment, a load on a sound and steady investment etc.). Though if you are looking for a strong return, depending on the area you are in and potential willingness to make improvements, property could be a consideration. I would have a chat with some finance professionals but don't feel pressured into parting with your cash easily........in the meantime consider moving to a high interest savings account whilst you're thinking!

[izzymem]

Living with parents at the mo. Earnings are �25,000 after tax.

Monthly out goings are about �150

Does that help?

[dancecaller]

You might want to own your own house in the future. Propery tends to go up, )but because people think that and jump on the bandwaggon it sometimes goes up to much and then comes down). �25,000 is a good depsit, you can get a lower mortage rate if you put more in.

In that case shares might not be a good idea as it may not be a good time to sell them when you need your money (they go up and down like yoyos).
Put �3,000 into an isa, then �3,00 more in April. An internet account gives good interest on the rest of your savings.

I have a Halifax Current account and linked internet account, I can move money between them instantly (not even the 3 days when most most transfer get lost in space) both accounts get interest. I also have a regular saver with them at an even better rate.

[WendyS]

You are to be commended on your prudence, especially when so many younger people these days are in debt.
If you're living with your parents, do you want to buy your own property? If so, I think you will need all your savings as a deposit although if you're happy to continue living with them , you could always rent the property out until you wish to live in it.
It seems that right now, property values are rising higher than any other investment you could make. so even if there is a temporary blip in the market, long term you almost certainly won't lose out. If you're thinking of investing this sum in your own business, don't take any steps until you've done some very sound research and are confident you have the commercial skills to get you through the first precarious couple of years. If I were in your shoes now, I'd get on the property ladder as soon as possible, and let other investments happen later. But I hope you're contributing to a pension?