Money - advice!

[Pringle21]

Another useful tip for buying ISAs from fund supermarkets is to use a discount broker that charges a fixed anual fee and then refunds the commission back to you.

See this article for details.

[TheRightStuff]

Paying off mortgage is good compared to other savings that are not tax-sheltered. even Warren Buffett (world's most successful investor) said that for most people, paying off their house loan is one of the best investments they can make.

Remember though that using up your ISA allowance every year is free money from the Treasury, it doesn't get better than this.

If you invest in a Unit Trust, OEIC, or other managed fund, buy from a "fund supermarket". E.g. Hargreaves Lansdown (no particular recommendation there). The Fund Management Company will have built in an entry charge and an annual management fee: these are to pay the broker. A fund supermarket is a broker, but one that generously gives back most of these fees. Typical example: Fund charges 5% entry, and 1.5% per year. That's what it will cost you from an old-style broker, or from the Fund itself. From a fund supermarket, 0.5% entry (sometimes even 0%), 1.25% per year.

If you want to buy index trackers, Barclays iShares are registered in Ireland so don't attract Stamp Duty (0.5% on UK-registered stuff); and Selftrade.co.uk waive their 12.50 fee on iShares purchases. So this is a low-cost way of using up dribs and drabs of funds.

Man people recommend the High Yield Portfolio (HYP) as expoiunded on www.fool.co.uk. Well worth a read.

I'd note that you can find out more for free in readable form from the Motley Fool (fool.co.uk) than anywhere else. But at the end of the day, they are evangelists for buying your own shares, and (HYP excepted) for trying to make more by trading them more frequently. Personally I don't buy that.

I bought ishares last year using self trade. Made over 25% in just over 1yr. Sold them all a few weeks ago.

[Euro-commuter]

FOr 30k it's worth a punt, minimum return is greater than 3.5% of memory (which if you are sneaking into higher rate is Ok) plus realistically you will beat that, due to the many small denomination bonds in the system which are unlikely to win.

"realistically you will beat that, due to the many small denomination bonds in the system which are unlikely to win"? What does that mean?

Min return = 0.
Mean return = 3.5%
realistically you can expect the mean. Small denomination bonds are no more or less likely to win than any other.

[Gonzo]

We dont have masses of cash right now (else we'd probably invest in property)

Don't forget, you can also invest in property through a property fund, you can hold hold these through an ISA aswell.

Obviously you already have an investment in the property market through your house, but the way to get really rich is to put all your eggs in the one basket that is going to rocket in value

[sasguru]

Obviously you already have an investment in the property market through your house, but the way to get really rich is to put all your eggs in the one basket that is going to rocket in value

That's not the point. Having a paid-up property gives you all kinds of lifestyle options and even if the property falls drastically in value, in the long term this is going to be temporary.

[NoddY]

I agree with most on here with regards to the payment of mortgage debt first. More savings can be made with overpayments up to the limit permitted by the creditor without penalty.

However, most asset classes are 'overvalued' in the sense that the purchasing power of all major global currencies is depreciating. This is a major problem for people who work for money as their labour value is rapidly reducing. I think the days of such people making the transition into the capitalist class are nearly over. So whatever you do - make it quick.

An alternative strategy might be to position yourself so that the value of your labour holds steady while that of those around you does not. This is usually during a recession/depression when the value of money (and labour) increases - thus allowing you to transcend to the capitalist class with greater ease.

[sasguru]

An alternative strategy might be to position yourself so that the value of your labour holds steady while that of those around you does not. This is usually during a recession/depression when the value of money (and labour) increases - thus allowing you to transcend to the capitalist class with greater ease.

How do you do that?

[NoddY]

How do you do that?

Well if I told everyone I would be shooting myself in the foot wouldn't I?

[Gonzo]

That's not the point. Having a paid-up property gives you all kinds of lifestyle options and even if the property falls drastically in value, in the long term this is going to be temporary.

I do agree, I just couldn't resist the opportunity to be sarcastic

[TheFaQQer]

Latin American dot com startups.

That's the future - send me some cash and I'll invest it for you!