Savings vs Investment

[Jason D]

Investments

Interesting that no one has mentioned investing it in business. Easy money to be had if you buy the right one.

I'm not saying work in a business rather than own one.

There are opportunities everywhere.

[Jog On]

I wouldn't mind a Mcdonalds or 2 - and I don't mean big macs either!

Then there are also things like art, wine, comics, Buzz Lightyears etc.

[kingshuk]

CDOs backed by US mortgages? They are going rather cheap now. Lot of folks will buy you good dinner to sell you some of those I guess.

[GreenerGrass]

Here's a good source for BTL info:

http://www.axispropertyinvestment.com/

Jog On, I thought you were joking when I read that, but the rest of your post seems reasonable enough.

3-4 years ago it would have made sense but I would have thought it's possibly the worst time to buy new build/off plan property for BTL at the moment, especially with the DFS-style pricing/discounts stated.
e.g. does anyone ever actually pay the "full market price" for these flats?
Also the rents stated can be as optimistic as the prices.

Even if the discounts are genuine they are in danger of being wiped out in the next two years.


I'd keep most in cash for now, stick some in share funds in a couple of months time once all the credit crunch/sub-prime drama dies down. That way you should catch what are usually the best gains in the market (November through to March).

Interactive Investor is a good site for buying funds with discounts on fees www.iii.co.uk
As Luke says, use up your ISA limits, maybe split between cash and shares ISAS.

www.nsandi.com good for safe tax-free savings and investments, you can stuff up to £15k per issue into inflation-linked certificates.

5 or 10 years down the line you might decide to quit IT and buy a business, half the people on this site daydream about their "plan Bs".

I'd revisit BTL in a couple of years time.

[King Cnvt]

Jog On, I thought you were joking when I read that, but the rest of your post seems reasonable enough.

3-4 years ago it would have made sense but I would have thought it's possibly the worst time to buy new build/off plan property for BTL at the moment, especially with the DFS-style pricing/discounts stated.
e.g. does anyone ever actually pay the "full market price" for these flats?
Also the rents stated can be as optimistic as the prices.

Even if the discounts are genuine they are in danger of being wiped out in the next two years.


I'd keep most in cash for now, stick some in share funds in a couple of months time once all the credit crunch/sub-prime drama dies down. That way you should catch what are usually the best gains in the market (November through to March).

Interactive Investor is a good site for buying funds with discounts on fees www.iii.co.uk
As Luke says, use up your ISA limits, maybe split between cash and shares ISAS.

www.nsandi.com good for safe tax-free savings and investments, you can stuff up to £15k per issue into inflation-linked certificates.

5 or 10 years down the line you might decide to quit IT and buy a business, half the people on this site daydream about their "plan Bs".

I'd revisit BTL in a couple of years time.

In the time it has taken you to write that post, a BTL would have made you £60 profit. Honest.

[ChimpMaster]

Stay in cash for now, or buy bonds.

When the credit "crisis" (ahem) has bottomed the market out, buy into Asian funds. For now I like the look of food funds (LSE:CORN for example) and silver (LSE:SLVR or PHAG).

If you can learn fast and can accept risk, then trade currencies - Yen/NZ Dollar, or Brazil Real/USD. So-called "unwinding of the carry trade" etc.

My current trade is a short on RIO. It's been open 30 minutes now and looks like it's time to close.

[Jog On]

Joking when I posted that link? As soon as I've got enough to go into BTL I'll go through that company regardless of what the market's doing at that moment in time.

Like I said the guy who runs the company (Rod Thomas) is very experienced and a full time multimillionaire property investor himself, having met him in person and hear him speak I know he's the real deal.

Another investing rule of thumb I have is to only take advice from people who are in a position I want to be in ie. full time investors who live of the income from their investments.

For instance if I ask for advice on investing in shares and someone says "oooh it's risky investing in shares because stock markets go up and down (no sh1t)- you'd be mad to invest in individual stocks - you don't stand a chance - you'll get murdered and lose everything - invest in mutual funds instead" I know that whoever said that is in no way qualified to give out stock market investing advice.

Had I asked what were some good funds to look into I'd expect fund advice but not if I were asking about individual share investing styles, I'd hope to be pointed in the direction of some fantasy trading websites and some good tutorials/books/courses on different styles (value/growth).

Same with property, people are making money from BTL right now, I'm sure people who know what they're doing are buying properties right now - today that will provide very good ROI.

You just have to know what you're doing and learn from people who are doing well at it.

My main investment at the moment is in business growth training and product development to get my Ltd producing large flows of passive income, for me IT contracting is plan b/"the day job".