What should I do with my money?

[FCSimmo]

Sensible answer.....

The economy is looking rocky for the next couple of years. I would suggest shares are not the best option. Locking it up in a pension isn't really flexible enough for a contractor.

Banks are looking for liquidity - savings rates are on the up. You'll get really good returns on a decent savings account or fixed term bond.

When the time comes for the house - put as much in as you can. The times of highly leveraged purchases are over - when you have money, pay off as much as you can off the mortgage.

When your house is yours, your disposable income will almost double - then it's time to have fun!!

non sensible answer.....

give it to me for my Aston Martin.

I saw a brand new Aston DB9 broken down on the A34 today... made me chuckle...

[maui50]

Moobs galore

To clarify: it aint' a gay relationship, but if it were, the moobs would be impressive. And the fiancé (I have learnt something!) already has his eyes on that broken down DB9.

Bear, thank you for being sensible o. So a good savings account or fixed term bond is the way to go?

Should I not divide up the funds in various things though e.g. a pension, as well as a savings account, as well as eventually a house, as well as eventually a more reliable car than the DB9?

[Bear]

Feck off! I got first dibs!

There might be enough to share

[DBA_bloke]

There might be enough to share

Share? SHARE?! That's just obscene!

[TheFaQQer]

Spend it, but show us your tits first! (it is traditional to ask all new girlies to fet em out).

Get rid of your fella and blow the lot on a world cruise.

norks

[TheFaQQer]

Hello all,

New to this forum and need some general advice from you all rich kids out there.

So, I'm an IT contractor. I've been doing it for nearly 2 years now, with no break in contracts, and I'm loaded! Plus, it looks like I'll have this contract for the next few years too so I will continue to build up my loadedness.

I intend to buy a house next year (buying with my lovely fiancee but waiting for him to get his finances ready first) so that's out for the moment. I don't want a car as where I live means I don't need one. And I'm too young for a midlife crisis so I won't be buying a motorcycle anytime soon either!

So what should I spend my money on? I've been a bit reckless already with the money, but I reckon now I should at least get a pension or something Maybe invest in stocks?

Sensible answers only please! (yes, really)

Put some in a high interest account, with reasonable access - just in case the contract dies and you need some for that rainy day.

Put some in a pension plan, since you can withdraw from it earlier these days and there is a high limit on what the company can pay in tax free (£200K+ a year).

Then have some fun - holidays, fine wines, high life etc. Make the most before you are married, mortgaged and have kids.

[alreadypacked]

To clarify: it aint' a gay relationship, but if it were, the moobs would be impressive. And the fiancé (I have learnt something!) already has his eyes on that broken down DB9.

Bear, thank you for being sensible o. So a good savings account or fixed term bond is the way to go?

Should I not divide up the funds in various things though e.g. a pension, as well as a savings account, as well as eventually a house, as well as eventually a more reliable car than the DB9?

One of the finance guys, Alvin Hall I think said "Take your age from 100, your age represents the % you should invest in secure investments, good savings account or fixed term bond etc. The remainder of the 100 is the % you should invest in more riskier investments." I have mine with Fidelity.

[lukemg]

Don't forget to use your ISA share allowance. Anyone with extra dosh who can afford to stash for a few years but still have it relatively available should defo consider bunging 7k into a tracker or general UK fund.
Use a discounter like hargreaveslansdowne to avoid up front charges. All gains are tax free (dont need to include on tax return) and not subject to capital gains tax.
I am averaging 10% return on a number of funds bought at various times in the last 10 years (through ups and downs). You can't guess the market, get in, hold your nerve through the dips and let it ride for a few years.

[ChimpMaster]

Don't forget to use your ISA share allowance. Anyone with extra dosh who can afford to stash for a few years but still have it relatively available should defo consider bunging 7k into a tracker or general UK fund.
Use a discounter like hargreaveslansdowne to avoid up front charges. All gains are tax free (dont need to include on tax return) and not subject to capital gains tax.
I am averaging 10% return on a number of funds bought at various times in the last 10 years (through ups and downs). You can't guess the market, get in, hold your nerve through the dips and let it ride for a few years.

Good advice as always Luke.

Only thing I can add in addition to that is to look at overseas funds such as BRIC, S.E. Asia and EMEA. These are riskier than some funds but have provided fantastic growth the past few years and are looking like great investments for the long term - ideal for a maxi-ISA. I use Fidelity online where the fees are much less than you might expect.

Always use your ISA allowance every year.

[chef]

1) buy a huge LCD TV (why not?)
2) invest in a fast sporty car (for the thrill of it)
3) take a few months off and go travelling (cause you can)
4) realise that although you've had fun the last few months your now in need of work and starting to get bored in doing nothing while all your friends (assumign you have some) are at work..

HTH