O/T Best place to put £500 per month

crofty · Post by **crofty** » Tue Feb 18, 2020 2:11 pm

Asking the wise financial heads on here for a relative who has £500 per month to invest. Happy to lock it away for 5 yrs but obv doesn't want to risk/lose it !!
Apart from the miserly interest rates from the banks and Premium Bonds, I'm at a loss to advise her.
Sensible suggestions welcome and thanks in advance.

Funkydrummer · Post by **Funkydrummer** » Tue Feb 18, 2020 2:15 pm

Shares in BFC.

How sensible is that ?

Lowbankclaret · Post by **Lowbankclaret** » Tue Feb 18, 2020 2:17 pm

Zero risk options are like you say are very few.

Don’t know of any options other than the ones you already stated.

CleggHall · Post by **CleggHall** » Tue Feb 18, 2020 2:18 pm

Stocks and shares ISA, possibly need a financial advisor as to which funds to select. I did this 10 years ago and investment has gone up by 60-70% since then.

taio · Post by **taio** » Tue Feb 18, 2020 2:19 pm

Risk free options are the things you suggest plus cash ISA, lifetime ISA (great product but only in certain circumstances because its aimed at first time home buyers or those saving for retirement) or overpaying a mortgage. To get better returns she'd be looking at a stocks and shares ISA but of course carries risk you dont want.

wilks_bfc · Post by **wilks_bfc** » Tue Feb 18, 2020 2:31 pm

250 £2 scratchcards?

LoveCurryPies · Post by **LoveCurryPies** » Tue Feb 18, 2020 2:33 pm

Do you want my bank account details?

Sausage · Post by **Sausage** » Tue Feb 18, 2020 2:52 pm

If I had £500 spare each month it'd be going into my pension.

Down_Rover · Post by **Down_Rover** » Tue Feb 18, 2020 3:00 pm

Sausage wrote: ↑
Tue Feb 18, 2020 2:52 pm
If I had £500 spare each month it'd be going into my pension.

Depends on your personal circumstances. Age, income and need to access funds. ISAs can prove to better than pensions in certain circumstances.

Certainly gives you more chance of spending it all before your time is up

TVC15 · Post by **TVC15** » Tue Feb 18, 2020 3:15 pm

I’d see a financial advisor and you’ve not really given enough to go at there and your risk appetite depends on a whole range of circumstances personal to you.

Anybody looking for a lump sum risk free investment check out our local credit union who are paying a market leading 2% on a one year fixed term deposit account. That’s better than any bank or building society I have been able to find. 2% might not sound great but in the low base rate climate it is and I have noticed recently that most of the major banks have been cutting their savings rates which is out of order / typical greed when base rate has not moved.
You get the same financial services scheme protection on your deposits at the credit union as you do at a bank or building society (ie up to £85k per person)

Sticking it with the credit union also means they can lend more money out to local people who are in need of it.

Hopey1786 · Post by **Hopey1786** » Tue Feb 18, 2020 3:18 pm

Put it on red every month. Bet youd be up more than down over a year

Bosscat · Post by **Bosscat** » Tue Feb 18, 2020 3:19 pm

A Stocks and Shares ISA would be my choice (as it is somewhere I have my savings etc invested in)...

But as has been said a good financial advisor is a must have

FactualFrank · Post by **FactualFrank** » Tue Feb 18, 2020 3:27 pm

Depends how old they are and what they are currently doing to earn. I reinvest a % into new online projects and use them as potential residual type pensions.

IanMcL · Post by **IanMcL** » Tue Feb 18, 2020 6:39 pm

Mattress

ayrshireclaret83 · Post by **ayrshireclaret83** » Tue Feb 18, 2020 6:41 pm

Premium bonds

Go win the jackpot

The Enclosure · Post by **The Enclosure** » Tue Feb 18, 2020 7:53 pm

Yes low risk stocks and share Isa...Hargreaves Lansdown are a good Company to invest with.
https://www.hl.co.uk/

AndrewJB · Post by **AndrewJB** » Tue Feb 18, 2020 8:16 pm

If it were someone younger, I'd say take it off the mortgage, or add it to a pension plan (or a bit of both). Interest rates are fairly miserly right now, so if it's someone older, and there's someone in the family who is younger, they could pay down the mortgage of the younger person, so that the younger person pays them interest on the money they've paid down, which would be lower than their own interest payments, and higher than interest payments paid on savings accounts - so that both parties win.

cricketfieldclarets · Post by **cricketfieldclarets** » Tue Feb 18, 2020 9:02 pm

Theirs no guarantees especially if you want a high return. In the grand scheme of things five hundred quid isn’t that much to invest but it’s a lot to lose.

I did a stocks and shares isa for the last twelve months and I’m down at present.

Only guaranteed return is putting in a ‘high interest’ account. And I use the term high interest very loosely. That said some banks offer higher interests as an incentive to move to them. But I think investments are limited to a very small amount.

If you can best bet in my experience is sharesave schemes if that’s an option.

tim_noone · Post by **tim_noone** » Tue Feb 18, 2020 9:30 pm

ayrshireclaret83 wrote: ↑
Tue Feb 18, 2020 6:41 pm
Premium bonds

Go win the jackpot

Premium Bonds

box_of_frogs · Post by **box_of_frogs** » Tue Feb 18, 2020 9:45 pm

Pay extra mortgage off?

tarkys_ears · Post by **tarkys_ears** » Tue Feb 18, 2020 9:50 pm

Duno, a car. Under the bed? Go out a few times. £6-7k buys a nice holiday.

tarkys_ears · Post by **tarkys_ears** » Tue Feb 18, 2020 9:52 pm

Funkydrummer wrote: ↑
Tue Feb 18, 2020 2:15 pm
Shares in BFC.

How sensible is that ?

Yes, in 30,000 months (or 2500 years) you could have paid off Gibson's fee

jdrobbo · Post by **jdrobbo** » Tue Feb 18, 2020 9:54 pm

Overpay your mortgage.

crofty · Post by **crofty** » Tue Feb 18, 2020 10:14 pm

Thank you for all the sensible replies.

Clarets4me · Post by **Clarets4me** » Tue Feb 18, 2020 10:31 pm

1) If they've no cash reserve, then build one up until it's the equivalent to 3 month's wages.

2) Pay off any Credit/Store card debt they may have.

3) Then, look at a " Stocks and Shares ISA ", using managed funds, rather then directly into any one Company. Spreading the risk makes sense.

Inchy · Post by **Inchy** » Tue Feb 18, 2020 10:33 pm

Out of interest what does a financial advisor charge for the advise?

mealdeal · Post by **mealdeal** » Tue Feb 18, 2020 10:36 pm

Financial advisors provide nothing you can’t do yourself.

cricketfieldclarets · Post by **cricketfieldclarets** » Tue Feb 18, 2020 10:40 pm

mealdeal wrote: ↑
Tue Feb 18, 2020 10:36 pm
Financial advisors provide nothing you can’t do yourself.

True story. As I have experienced first hand.

Claretpants · Post by **Claretpants** » Tue Feb 18, 2020 10:50 pm

cricketfieldclarets wrote: ↑
Tue Feb 18, 2020 10:40 pm
True story. As I have experienced first hand.

Obviously met the wrong one! A good knowledgeable one is a must and best found through a recommendation of someone who has used their services

crofty · Post by **crofty** » Tue Feb 18, 2020 10:51 pm

Just to add to the above -
In my experience, there's no such thing as "independent" financial advice.
If financial advisors were really all that, they'd be retired and/or millionaires.
I've known 3 financial advisors in my time and 2 of them went bankrupt.
Look at the "infallible" Neil Woodford.

* Just my experience

tim_noone · Post by **tim_noone** » Tue Feb 18, 2020 10:52 pm

TBH.....Forget Investments I'm Gonna Enjoy... Drinking Smoking ...Visiting The Local Brass and I'll probably waste the rest of it......sorry Kids!

cricketfieldclarets · Post by **cricketfieldclarets** » Tue Feb 18, 2020 11:02 pm

Claretpants wrote: ↑
Tue Feb 18, 2020 10:50 pm
Obviously met the wrong one! A good knowledgeable one is a must and best found through a recommendation of someone who has used their services

He was.

In fairness it was always explained as a long term game. That said after losing month on month I decided to cut said losses. Especially when I wasn’t getting any value from the advisor other than ‘knowledge’.

cricketfieldclarets · Post by **cricketfieldclarets** » Tue Feb 18, 2020 11:02 pm

tim_noone wrote: ↑
Tue Feb 18, 2020 10:52 pm
TBH.....Forget Investments I'm Gonna Enjoy... Drinking Smoking ...Visiting The Local Brass and I'll probably waste the rest of it......sorry Kids!

I’m sure it’s what they’d have wanted for you anyway.

Just try not to do all at the same time.

mealdeal · Post by **mealdeal** » Tue Feb 18, 2020 11:03 pm

Claretpants wrote: ↑
Tue Feb 18, 2020 10:50 pm
Obviously met the wrong one! A good knowledgeable one is a must and best found through a recommendation of someone who has used their services

Nonsense. They are sales people who know no more about how to make your money grow than you do if you put in some time and effort.

tim_noone · Post by **tim_noone** » Tue Feb 18, 2020 11:08 pm

cricketfieldclarets wrote: ↑
Tue Feb 18, 2020 11:02 pm
I’m sure it’s what they’d have wanted for you anyway.

Just try not to do all at the same time.

Why not? Currently sat in my Smoking jacket.... cigar in one hand...Double scotch in the Other and someones knocking at The Front Door!

Bfcboyo · Post by **Bfcboyo** » Tue Feb 18, 2020 11:53 pm

cricketfieldclarets wrote: ↑
Tue Feb 18, 2020 10:40 pm
True story. As I have experienced first hand.

Told you so.

cricketfieldclarets · Post by **cricketfieldclarets** » Tue Feb 18, 2020 11:55 pm

Bfcboyo wrote: ↑
Tue Feb 18, 2020 11:53 pm
Told you so.

You never told me why

Thankfully I only lost 3% on my investment.

My main concern is the pension that’s still tied up with same people. I can move it. For a fee.

Bfcboyo · Post by **Bfcboyo** » Tue Feb 18, 2020 11:58 pm

Nice brochures though. Your 3% has paid for the new brochures.

Bfcboyo · Post by **Bfcboyo** » Wed Feb 19, 2020 12:01 am

They are long term though and over 10 years they should yeild a profit but the world and economy is as unstable as ever . I am currently playing with an app doing it myself with practice money. It is fun and I may start putting a little into it. I'm up on my imaginary money I'm sure if it was real I'd be down.

I'd tell you but I'd get another ban and I'm sick of them.

cricketfieldclarets · Post by **cricketfieldclarets** » Wed Feb 19, 2020 12:10 am

Bfcboyo wrote: ↑
Tue Feb 18, 2020 11:58 pm
Nice brochures though. Your 3% has paid for the new brochures.

And Christmas cards

cricketfieldclarets · Post by **cricketfieldclarets** » Wed Feb 19, 2020 12:11 am

Bfcboyo wrote: ↑
Wed Feb 19, 2020 12:01 am
They are long term though and over 10 years they should yeild a profit but the world and economy is as unstable as ever . I am currently playing with an app doing it myself with practice money. It is fun and I may start putting a little into it. I'm up on my imaginary money I'm sure if it was real I'd be down.

I'd tell you but I'd get another ban and I'm sick of them.

As for who I used. Did you use them yourself. Reason I ask is because of said pension that isn’t insignificant and may be worth paying the penalty to move it away

dsr · Post by **dsr** » Wed Feb 19, 2020 12:48 am

I wouldn't put it in long term building society/bank accounts. One year, perhaps. But interest rates are so low that they can't go significantly lower, but they can go significantly higher; and if they do go higher, you don't want to be sitting on a 5-year fixed rate bond and missing out on the higher rates.

Remember even a 1% increase in rate is only worth £30 in the first year. Not worth going long term, at least not yet.

IanMcL · Post by **IanMcL** » Wed Feb 19, 2020 12:53 am

I am sure there will be a Bet500 or similar!
Mattress is best!

troubleatmexico · Post by **troubleatmexico** » Wed Feb 19, 2020 2:01 am

Overpay mortgage then invest in ETFs via an online brokerage. No need for a financial adviser.

DomBFC1882 · Post by **DomBFC1882** » Wed Feb 19, 2020 5:12 am

Hookers and co***ne

fatboy47 · Post by **fatboy47** » Wed Feb 19, 2020 8:11 am

I'd only reccomend a financial advisor for anyone too dim to figure a plan out for themselves.

All relevant info is out there and it's plentiful.

mealdeal · Post by **mealdeal** » Wed Feb 19, 2020 8:58 am

The thing about financial advisors is that all those regulations and letters after their name make people think they know where to invest your money for your good. They don't. All the regulations just ensure that should you lose money, you have no comeback to them because they've complied with the law and best pratice and ticked all the right boxes.

Not one of them knows where any market is going, they rely on long term historical performance being in an upwardly direction, as do any of us. They then attempt to spread your investments around to limit exposure to any series of events. Anyone can do that, literally anyone. Maybe not back in the 1980s, but in this day and age with online access to brokers, data and information there is nothing they can do that you can't from a standing start.

They don't pay for their BMWs and Mercs by canny investing, they pay for them using the fees ('transparent' fees obviously because the law says they must) that they charge you for you taking all the risk and them taking none.

ashtonlongsider · Post by **ashtonlongsider** » Wed Feb 19, 2020 9:02 am

If it's low risk your looking for I've found the best rates surprisingly lay in current accounts. I know Club Lloyds account pays 2% per month on balances between £4-5k but you have to have a minimum of £1,500 paid in each month and have 2 direct debits. The main benefit I feel is that you also have access to opening two Club Lloyd monthly saver based savings accounts for 12 months, one earning 2.5% and you can pay in a maximum of £400 per month, the other easy saver you can pay in up to £250 per month and it pays 2%. However be careful, after 12 month if you don't reinvest the interest rate currently falls to 0.10%.

Lowbankclaret · Post by **Lowbankclaret** » Wed Feb 19, 2020 9:03 am

cricketfieldclarets wrote: ↑
Tue Feb 18, 2020 9:02 pm
Theirs no guarantees especially if you want a high return. In the grand scheme of things five hundred quid isn’t that much to invest but it’s a lot to lose.

I did a stocks and shares isa for the last twelve months and I’m down at present.

Only guaranteed return is putting in a ‘high interest’ account. And I use the term high interest very loosely. That said some banks offer higher interests as an incentive to move to them. But I think investments are limited to a very small amount.

CFC, currently it appears the only place that’s getting constant growth is the American markets and I expect that to continue whilst Trump is President.
Watching Bloomberg America yesterday they all expect 2020 to be a growth year but are worried about 2021.
Anyway I opened my SIPP in preparation for some larger money transfers in and bought into two funds one in Oct, one in Dec.
First one an index, second one managed.

Worth casting your eye over.

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troubleatmexico · Post by **troubleatmexico** » Wed Feb 19, 2020 10:34 am

Use Vanguard and invest in an ETF via an online brokerage. Very low fees. Head for a "target date retirement fund" account. Pick your year for retirement and the fund wraps up a range of stocks. Can withdraw money whenever you like and does not have to sit there locked in although I recommend that it does.