Most of my savings are invested in a fixed-rate fixed-term account which is due to mature next year. The account pays interest of 2.5% pa which is an excellent return compared to what is on offer now. The same account with the same bank now pays 0.65% pa which is terrible and not worth tying up a sum of money especially when there are penalties for early account closure (meaning I could get back less than what went in).
I think now is the time to start looking for other low-risk investment. I’d be happy to risk losing up to 10% of my total investment for a return of around 3 or 4% pa?
Any ideas, suggestions because I’m clueless when it comes to financials. Ta.
Which looks like something I’d need to take financial advice on first. As I said, I’m not really up to speed on financials. With those returns I expect there’s a risk of losing everything where I’d rather limit my exposure.
Indeed, cash ISAs are execrable. A basket of funds with a medium risk profile in a stocks and shares ISA is working quite well for me, at the moment at least. Obviously it’s a gamble, and one could get quite badly burned.
Buy a top notch luthier/custom shop acoustic guitar.
Will appreciate considerably (rise in new prices and shortage of good tone wood), over 15-20 years of playing.
I’ve got plans that guarantee the stake money, and return 4-5% pa on average. On top of that the interest can be treated as capital gains, so the tax exposure is much less.
You need to find a good financial adviser who will plan out for you your future money and spending expectations in accordance with your wishes.
Mine costs me about 10% of the interest I earn… I consider that money well spent imo…
This has crossed my mind as you might expect and some portion may yet be ‘invested’ this way. It’s spending the money really because once you become attached to a good guitar, happily parting is another matter.