How to invest £25K?

Question

I'm a retired widow looking for a little extra retirement income.

I'm a retired widow looking for a little extra retirement income.
No mortgage, all other loans paid off.

Answer 1

try this website for the latest best deals for savings, etc...
http://www.moneyfacts.co.uk/

Also, some more obvious general rules;
- Make sure that you pay off any loans first, as they will have a higher rate of interest than you will get
- Make sure that for any savings accounts you ask for the Inland Revenue form so that you can get interest paid gross of tax.

Answer 2

What's your investment horizon? 1, 3, 5, 10 years?

Below are just my suggestions but talk to an IFA first!

If you need income from this immediately or soon, you CANNOT afford to invest in shares/currencies/bonds and potentially lose the £25k capital -- the investments will have to be capital protected and low risk -- normal bank desposit accounts at 5% (post-tax 4%) will give you about £1k in interest a year.

- if you are drawing income from this (with no end date in sight), annuity is poor value but it will continue to provide you with a fixed income (optional to link to inflation) and offer better rates than deposit account. Currently around £6-7k for every £100k you buy, you will get about £1.5-1.7k (before tax).

Talk to a IFA, he/she might be able to sort out a suitable investment vehicle to provide you with an income. I would advise not to dabble in shares/funds unless you have a longer investment horizon and get sound investment advice from your IFA.

Answer 3

My advice would be to go and see your local stockbroker, they will be able to give you some good suggestions on low risk investments that will provide you with a good source of income with the potential for some capital growth if required.

99.9% of IFA's (Financial Advisers) are just out for the most commission they can get and will put you where is best for them, not you

But most private client stockbrokers these days dont work on commission so will look out for what is best for you.

It is reasonable to expect income of 4%+ with some capital growth too, or if you just want income then closer to 6% would be easily achievable

Hope you follow my advice, just look up stockbroker in your yellow pages.

:-)

Answer 4

I trade Forex. 90% of the people that trade Forex lose all their money. Anyone suggesting Forex as an easy way to save money is only looking to get your money.

Be very careful with the answers you get in this forum. Many people don't know what they're talking about and others just want to rip you off.

Answer 5

Take a gamble in shares?!

Use it as a deposit for a property, either in the UK or abroad?

Speak to someone at your local Citizens Advice Bureau?

Or invest it into a poor uni student, i promise you will i get a good career after I graduate! x

Answer 6

Hi, i suggest a great site with plenty of Issues related to your Investing and everything around it. it also provide clear and accurate answer to many common questions.

http://investing.sitesled.com/

I am sure that you can get your answers in this website.

Good Luck and Best Wishes!

Answer 7

I'd suggest seeing a Financial Advisor as they will do a full financial review with you and find ways to get the best return for your money.

Also, if you're looking for extra money, you can make up to £4000 tax free a year renting out a room in your house to a lodger.

Answer 8

Hi,

Why don’t you start your own forex or shares trading? I could introduce you to one brokerage company in Austria that allows to trade from same account currency (forex), commodities, metals and cfd on shares. Total 500 instruments available; spread from 1 pip. If you open trading account under my referral I provide you for free with trading techniques that I successfully use for several years.

Currency (forex) trading is attractive because it is very high income and you could trade from any place in the world and at any time from Sunday night to Friday night. Yes, it is risky business but reward worth it.

Another way you could find trader who accepts private investments and invest with him/her.

If you have any question please do not hesitate and pm or e-mail me (press on my name).

Good luck!

Answer 9

Buy premium bonds, the return will not be fantastic, 3%, but your money is safe with 10 days access and you neve know...

Answer 10

WOULD YOU LIKE TO INVEST IN MY CAFE BUSINESS. contact me at [e-mail] and we can talk. I can offer you great interest. let me know. Thanks