Investments and feathering the nest....

[Mr Mystery]

Evening all.

So it's come to that point in life where I'm looking to the future.

Got an excellent pension through work, and have suitable disposable income to start some kind of monthly investment.

Trouble is, I know very little about these things, and I'm hoping that some of you might be able to give me pointers.

Looking at a £150 a month investment amount.

I appreciate that should anyone be an IFA you'll likely be hesitant as it's your career, and nobody likes doing work for free!

So, my starter for 10....anyone?

[Lukas The Trickster]

Whilst you're considering options, in the meantime my advice would be to start putting the money into a Cash ISA.

[Mr Mystery]

Not quite ready to start at the moment.

April everything levels out pay and bill wise, and will be able to stick to my investment plan.

ISAs are an option, but ideally due to my general lack of financial competence I want something that's locked away, to stop me sticking my own sticky fingers in my honey

[Deadlift]

Save for a deposit and buy a house, seriously it's one of the best things you can do with your money. As a long term investment and securing a nice retirement it can't be beat. Having no mortgage around your neck but your own home has to be worth it when you hit your 60s. Better still buy 2 one to live in and a second to rent which is what we have done. The rented ones rent covers the mortgage and extra expenses and in 20 odd years time will contribute to our retirement fund.

[Lukas The Trickster]

Maybe another option then would be to save and then put the money into a bond, some offer quite good guaranteed returns on the condition that you tie your money up for a period of time, usually three to five years.

[Mr Mystery]

It's a possibility moving forward.

Retirement wise, things are looking kind of OK.

Sounding mercenary, I already know my Bro and I are the only beneficiaries in our parents will. They own two properties, one of which my brother lives in. Split there is he gets that flat, and I get 50% of the house, plus 50% of the value of his flat.

House is in the Scottish Borders, and is a good size. It's also about to benefit from a new rail link with Edinburgh, which ought to see it become something of a commuter town, increasing house prices in what is already a very popular retirement spot. That ought to cover a flat for myself come retirement.

Pension is the FSA Pension. I put in 3%, and company matches the 3%, as well as adding a free 10% every year, so that's looking fairly rosey.

Having said that, the investment portfolio could be used as a desposit on a house/flat in the next few years. £150 over 5 years would be £9000 without any interest, which is an attractive amount. From there, get mortgage and get paying mortgage (I'd be 39ish at the time) and have it paid off in time for retirement (annual bonus being used to reduce the outstanding capital every year, which is nice.)

As for overall growth and interest? That is where I don't have a clue at all. 5-10% per annum sounds nice, but I have absolutely sod all idea if this is at all realistic or not, which I guess is where IFAs and that come into it (I'm aware that ISAs won't kick out that sort of interest generally speaking!)

The two flat thing does sound attractive as well.... And should I have a place lock stock and barrel off my own back, then any inheritance could be used to increase that portfolio, providing an additional retirement income.

Hmmm. Much to consider, there is.

[Mr Mystery]

Sneaky peaky at bonds suggests I'd need a lump sum to bung into them to start with, so perhaps ISA then Bonds as suggested.

One I just saw had a 7% Gross interest, but requires £5,000 minimum investment. 7% every year, running up to 6 years. That's not a bad amount of free munneh!

[Wolfshade]

Invest in a house

Cash ISA is straight forward direction.

I hear GW stocks are quite cheap at the moment...

[Wildeybeast]

If your saving £150. A month, it's going to be quite some time until you have enough for a house deposit. At the moment, savings accounts really aren't worth it as they pay so little money. Most banks offer higher rate, year long saving accounts, based on a set contribution each month so look at those. Stocks and shares Isa's offer a better return than flat savings, though slightly more risk. If you have the time and inclination, investing in shares is a good way to go. My tip would be premium bonds. They don't always pay out, but it's great when they do and at the moment the return is about the same as a savings account. It's basically a case of keeping an eye on everything and moving your money around.

[Wolfshade]

You could always invest in a fund of mine, set up through Gilbralta..