What to do with £10k in savings

[pdhmobile]

Hi everyone,

May or may not be a business question............I have £10k in savings and it's sat in a bog standard easy access savings account, getting something like 0.001% interest.

The question is what to do with it. At the moment, I see it as losing money with inflation rates higher than savings rate.

Thoughts??

 

[Mitch3473]

Premium bonds or failing that I have a close friend high up in Nigerian royality who may put you onto something.

 

[The Byre]

A well-diversified precious metals fund that contains silver as well as gold.

 

[Maxwell83]

Stocks & Shares ISA, stick it in a global index fund (and not individual companies) - relatively safe, nothing sexy but likely to beat inflation which the bank interest rate certainly isn't doing.

 

[The Byre]

Stocks & Shares ISA, stick it in a global index fund (and not individual companies) - relatively safe, nothing sexy but likely to beat inflation which the bank interest rate certainly isn't doing.

And if/when the predicted stock market crash happens?

 

[Maxwell83]

And if/when the predicted stock market crash happens?

Hey I said relatively safe, not risk free!

If you're parking money short term, don't put it in anything with a risk. But if you're just saving and leaving it for retirement, chances are it'll be worth more in 20+ years than it is today.

 

[Awinner2]

If you fancy a punt, 10K will buy you 7 shares in Alphabet (GOOGLE).

 

[The Byre]

But if you're just saving and leaving it for retirement, chances are it'll be worth more in 20+ years than it is today.

The last time the stock market crashed in 1930, it didn't come back in real terms (i.e. purchasing power) for at least 50 years!

Worse still - all those stocks that were wiped out vanished. Gone. Disparue. Verschwunden. The companies went bust. The mutual funds went bust.

The asset markets today are a huge bubble - and we know what happens to bubbles! Houses, stocks, bonds, even daft rubbish like Bitcoin - commodities are going to go sky-high in money terms. (But the governments everywhere tell us that there is almost no inflation - funny that!)

The world-price for timber is at yet another all-time high. Rubber has gone from $1.30 in June to $2.30 a kg today. Maize has gone from $150 a ton to $200. Oil more or less doubled to $50 a barrel and is expected to hit $100 this year. (But the governments everywhere tell us that there is almost no inflation - funny that!)

The Fed and other central banks are hoovering up debt bundles like there's no tomorrow. Bonds, mortgage-packages, municipal bonds - you name it and it's getting bought up by the central banks to just shore-up economies everywhere. One broker told me "They'll buy the gum off your shoe if you let them!"

US government debt is about to hit $30 trillion! 60% of US government spending is financed by QE - but the US government tells us that there is almost no inflation - yer, right! And the same applies here in Brexistan.

In about 2010, Ben Bernanke (Fed Chairman) was asked why he said that the CDO market was stable in 2007 - did he know that the CDO market was about to crash?

He said that the Fed did know but did not want to spook the market! Holy kneecaps Batman! Say what??? You DID know???

So which is it? Are you lying now and you didn't have a clue - or were you lying then? It can only be one or the other! Either way, you are by your own admission a clueless liar.

Back in 1955, a bungalow in Horsham, Sussex (Pondtail Road) cost £750 which was the median net annual income for a man at the time. The same damn building is for sale today for £750,000. (But the governments everywhere tell us that there is almost no inflation - funny that!)

The crash when it happens will be quite entertaining!

 

[Mark T Jones]

This thread is itself is a near perfect answer to the question.

What one person considers safe is another person's high risk

Your safe options are to leave the money in the bank (below the guarantee limit) or buy preium bonds.

I'd struggle to think of anything else that doesn't entail risk

Also remember; a stock market crash doesn't mean that all stocks will crash, it does mean that if you buy into a fund you will be very vulnerable

 

[revs]

My prediction, for what its worth. The US market will crash in the next 6 months and will lose 80% of its value over a three year period. The likes of Tesla, GameStop, Bitcoin will all lose 95% of their value. When your plumber and hairdresser tell you that they've been buying Bitcoin you know you're in a bubble! I now hold 25% equities (mostly UK and Emerging Markets), 25% Commodities (Gold, Silver, Agriculture), 50% Cash. If US stocks continue to get excessively overpriced I'll look to short the S&P 500. If I had £10k, I'd keep it in the bank, maybe buy some gold.....opportunity awaits!

 

[Mark T Jones]

My prediction, for what its worth. The US market will crash in the next 6 months and will lose 80% of its value over a three year period. The likes of Tesla, GameStop, Bitcoin will all lose 95% of their value. When your plumber and hairdresser tell you that they've been buying Bitcoin you know you're in a bubble! I now hold 25% equities (mostly UK and Emerging Markets), 25% Commodities (Gold, Silver, Agriculture), 50% Cash. If US stocks continue to get excessively overpriced I'll look to short the S&P 500. If I had £10k, I'd keep it in the bank, maybe buy some gold.....opportunity awaits!

Even the most positive pundits seem to take the view that US markets are artificially propped up by Central Bank.

IMO, Bitcoin and investment don't belong in the same sentence - its just a bit of fun that clever folk will manipulate & enjoy in the short term

 

[mattk]

Even the most positive pundits seem to take the view that US markets are artificially propped up by Central Bank.

Central banks have been printing money for the last decade. With Covid, there are no signs that will stop. We haven't had inflation, the usual enemy of QE, despite interest rates being at historic lows.

Therefore, are markets being "artificially propped up" or is this the new normal?

 

[Ian J]

Your safe options are to leave the money in the bank (below the guarantee limit) or buy premium bonds.

I'd struggle to think of anything else that doesn't entail risk

I once thought about buying a classic car which is a fairly safe option if you buy the right one and look after it

 

[Mark T Jones]

I once thought about buying a classic car which is a fairly safe option if you buy the right one and look after it

And you get to enjoy it - unless you're a weirdo who just locks it away

 

[UKSBD]

If you own a property, intend living in it a long time, I would spend the 10k on updating insulation, upgrading heating system (heat source pumps), etc.

 

[Red Wood]

@The Byre, you would like Peter Schiff. Youtube him if you are not familiar.

I agree with your sentiment regarding the markets. When the bubble pops, its gonna be a biggun!

 

[Alan]

Any business you buy for £10k is likely to be a scam or a hobby that will yield you negative amounts after you pay yourself minimum wage for your time, in my opinion.

 

[The Byre]

If you want to look at buying a business, then feel free to inbox me

I can't find a registered business of that name or even providing business services at the address you give. Funny, that!

£10,000 for a business??? You couldn't even buy a Honk Kong knocking shop back in the 60s for that money!

 

[DefinitelyMaybeUK]

I can't find a registered business of that name

The website works though, so must be genuine Not saying it's a good idea, but for 10K with change to spare you could have an Oven Cleaning franchise, a Dormant Tyre shop or an Excellent Barber shop, plus all manor of websites Alternatively, to paraphrase Victoria Coren-Mitchell, just spend it all on hookers and blow...

 

[Mark T Jones]

I can't find a registered business of that name or even providing business services at the address you give. Funny, that!

£10,000 for a business??? You couldn't even buy a Honk Kong knocking shop back in the 60s for that money!

And relevant details not shown on website - which is give a very warm feeling!

 

[biobob]

Chip is the only company offering 1.25% by invitation (I could give you a code) for just general saving.

 

[steve23]

May I suggest you look into Bitcoin - id at least put £1000 into it if you can. Should give you a better return than the bank.

 

[Red Wood]

YOLO #GME stock

 

[Mark T Jones]

I have some magic beans you can have for £8.5k

full price is £10k but I’ve used a couple.

 

[steve23]

And...........i seem to find people love to hold 'entire' coins, so if that appeals, great news is.....Ethereum. Currently sat around £1000 so you could get 10 - though id still only advise a more modest investment ! 2021 looks set to be a great year for it and it may very well out perform bitcoin in the coming months, so not a bad short term investment.

 

[paulears]

Buy some stock, slap it on ebay and 4 grand will make you more there than any current investments. It's too little to make interest rates worth having in my humble opinion. It's also too little to cause damage if you lose it? In April I was stuck for something to do - so bought ten grands worth of stock, and it's made me just over 14%.

 

[Red Wood]

Buy some stock, slap it on ebay and 4 grand will make you more there than any current investments. It's too little to make interest rates worth having in my humble opinion. It's also too little to cause damage if you lose it? In April I was stuck for something to do - so bought ten grands worth of stock, and it's made me just over 14%.

Wrong my friend....
****** blowing up.

 

[Sue Pinner]

If your buying bitcoin use something like trezor to secure your wallet, I lost 3 bitcoins a few years back to phishing scammers, it was only worth about £750 at the time but I wish I still had them now

 

[The New Guy]

I'm roughly in the same boat so I was interested to read this thread.

I'd echo what's already been said but I have dived (incredibly tentatively) into the world of Investments and ******. My experience of these has been positive so far (I first invested around 12 months ago) but there have definitely been ups and downs, especially with the ****** side of things, I think its an extremely volatile investment that can do well but equally very badly.

As things stand I have made around 75% on the ****** (since March 2020), and around 30% on the Stocks and Shares platform I use (since October 2020).

Sounds quite high but I've not put much money in and I have definitely seen massive fluctuations which make me fairly conscious that it could all come crashing down!

Also I haven't actually withdrawn any funds yet so I'm not totally sure what fees and charges I'd stand to incur when I do so but presumably this will be a factor.

Maybe that gives you a little insight?

 

[WaveJumper]

I'm roughly in the same boat so I was interested to read this thread.

I'd echo what's already been said but I have dived (incredibly tentatively) into the world of Investments and ******. My experience of these has been positive so far (I first invested around 12 months ago) but there have definitely been ups and downs, especially with the ****** side of things, I think its an extremely volatile investment that can do well but equally very badly.

As things stand I have made around 75% on the ****** (since March 2020), and around 30% on the Stocks and Shares platform I use (since October 2020).

Sounds quite high but I've not put much money in and I have definitely seen massive fluctuations which make me fairly conscious that it could all come crashing down!

Also I haven't actually withdrawn any funds yet so I'm not totally sure what fees and charges I'd stand to incur when I do so but presumably this will be a factor.

Maybe that gives you a little insight?

Well unless you been trading within an ISA wrapper you going to get taxed

 

[The Byre]

As things stand I have made around 75% on the ****** (since March 2020), and around 30% on the Stocks and Shares platform I use (since October 2020).

You have only made anything when you cash-out and not before. I'm expecting the downturn to begin in Spring sometime - maybe sooner - so don't wait for the last minute. The big boys are already eding towards the fire exit!

@The Byre, you would like Peter Schiff. Youtube him if you are not familiar.

Very familiar! He and others like Harry Dent seem to all be in Puerto Rico (tax refugees!) That 4% corporation tax looks mighty attractive!

 

[The New Guy]

You have only made anything when you cash-out and not before. I'm expecting the downturn to begin in Spring sometime - maybe sooner - so don't wait for the last minute. The big boys are already eding towards the fire exit!

All very true, It doesn't exist unless I withdraw it. Fully agree with that.

 

[John Fair&Simple]

Here's one.... right off the top, Buy a beach hut, or garage ( ? £10 k) rent it out starting at £30 per week, raise the rent by 2% per annum, cash out in 2030 or when the market value of the property has doubled. = Less maintenance ( lick o paint one sunny saturday per year, locks and hinges oiled ). In Bank £30,000

 

[John Fair&Simple]

£10,000 @ + 2% interest per annum Best rate or maybe premium bonds 9 years = £11,950

 

[505]

Invest in online business, or trades.

 

[Vin Gupta]

Here are some ideas

• Put it into a pension. You will get tax benefits from the government
• Put it into an ISA. Invest in global stocks. All profits tax free
• Buy a VCT. You get a 30% tax rebate from the UK Government
• Buy an SEIS investment. 50% tax rebate from uk Government
• Buy an investment property for 40k. Use 10k as a deposit. You would need to buy in the North East, where properties are cheaper

Not all of these ideas would be suitable for you. So you need to do your own due diligence

 

[Darren_Ssc]

I have some magic beans you can have for £8.5k

full price is £10k but I’ve used a couple.

What you should do is sell other members some of your beans then we can do trades between ourselves which will push the price up. New members who come along looking for ways to make some easy money will soon catch on to this new currency we're all taliking about and will want a piece of the action.

First we can suggest it can be like a new currency that will break free or tiresome problems such as transfer fees, inflation and Govt intervention. When the questions start to get awkward as to why our new wonder currency hasn't yet taken off we can say that doesn't matter any more because the price of Magic Bean is going through the roof and it is now considered a 'store of value' a bit like Gold but without the inconvenience.


Eventually the big boys will join in oferring 'Magic Bean' accounts where they can actually sell more Magic Bean then actually exists, many times over.

So long as we hold on to our original beans, keep talking the price up, make life difficult for anyone who wants to cash-in and keep the new members rolling in, I don't see how it can fail?

 

[505]

What you should do is sell other members some of your beans then we can do trades between ourselves which will push the price up. New members who come along looking for ways to make some easy money will soon catch on to this new currency we're all taliking about and will want a piece of the action.

First we can suggest it can be like a new currency that will break free or tiresome problems such as transfer fees, inflation and Govt intervention. When the questions start to get awkward as to why our new wonder currency hasn't yet taken off we can say that doesn't matter any more because the price of Magic Bean is going through the roof and it is now considered a 'store of value' a bit like Gold but without the inconvenience.


Eventually the big boys will join in oferring 'Magic Bean' accounts where they can actually sell more Magic Bean then actually exists, many times over.

So long as we hold on to our original beans, keep talking the price up, make life difficult for anyone who wants to cash-in and keep the new members rolling in, I don't see how it can fail?

Nailed it

 

[Mark T Jones]

What you should do is sell other members some of your beans then we can do trades between ourselves which will push the price up. New members who come along looking for ways to make some easy money will soon catch on to this new currency we're all taliking about and will want a piece of the action.

First we can suggest it can be like a new currency that will break free or tiresome problems such as transfer fees, inflation and Govt intervention. When the questions start to get awkward as to why our new wonder currency hasn't yet taken off we can say that doesn't matter any more because the price of Magic Bean is going through the roof and it is now considered a 'store of value' a bit like Gold but without the inconvenience.


Eventually the big boys will join in oferring 'Magic Bean' accounts where they can actually sell more Magic Bean then actually exists, many times over.

So long as we hold on to our original beans, keep talking the price up, make life difficult for anyone who wants to cash-in and keep the new members rolling in, I don't see how it can fail?

Being sure to mention Richard Branson in some tentative context

 

[dupy]

Invest 0.11% of your 10K on a book called "Smarter Investing: Simpler Decisions for Better" by Tim Hale.