investment

[djtaz11398]

i am taking voluntary redundency and stand to get about �20K, whats the best way to invest it?

[flipflop104]

Property abroad - Bansko in Bulgaria is HOT at the moment - I'm planning on investing there and hope to double my money within 4 or 5 years (you might have to put a bit towards the �20k though to get something)

[dancecaller]

I'd put it in a building soc. Look what's just happened to the stock market - all the gains for the past 5 year wiped out again. There are some internet accounts that give good rates. Feed �3,000 in to an isa each year (or �6,000 if there are 2 of you).

[BigMac]

Sorry, just written a (fairly) comprehensive response and been timed out.

If I get the chance, I'll write it again tonight.

[dancecaller]

Just been sent details of 1 year bond from BMid paying 5.21%.

Also think about pension (see thread above) for any money you are sure you can tie up (I'm not sure I trust them, or the annuities you have to buy - but you do get tax advantages I think?).

Or pay a bit off the mortgage and if you keep paying the same monthly you are free of it sooner, or you could reduce the repayments and save the difference. But look at your small print for the best time to do this and get reduced interest - they vary.

[BigMac]

Later than planned, but I have remembered.

1. Do you need the money now or to replace wages over the next 3-12 months?
   If yes, put �3k into a mini-cash ISA (and a partner could do so too). These accounts are usually instant access and pay reasonable levels of tax free interest.
   The remainder should go into high interest accounts, preferably with instant access � there are some good internet accounts.


2. CLEAR DEBTS. This is the most useful investment you can make: interest on debt is usually more than the interest you receive. Start with the most expensive � usually store cards, then credit cards.


3. If you don�t need it immediately and have no debts (congratulations!) consider paying off some/all of your outstanding mortgage. One option is to open an offset mortgage account so you still have access to the money but at the same time it will reduce the term of and/or interest you pay on the mortgage. You don�t get credit interest but the savings you make on the mortgage will be greater.


4. Longer term investments: for this you really need to get some advice from an Independent Financial Adviser, preferably one that is fee-based rather than paid by commission. When you pay for the advice, you know that it is not affected by the commission payable.
   The IFA should take into account a number of things including your age (how close to retirement), your dependents (children at school or college, anyone you care for/nurse) and finally your attitude to risk. This will affect your choice of investment � capital growth or income, high risk overseas investments or safer FTSE 100 funds, etc.


5. Remember Premium Bonds � money put into premium bonds can always be taken back if you need it and you have the chance of winning up to �1 million each month. A �20k investment might on average bring a prize every month and winnings are tax free.
   

[BIG DAD]

Thank you all, some good advice, i'll look into it but as least i now have a starting point.