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Help! What do I do?

Mon, 18/08/2008 - 09:15

I have just managed to use my cash ISA allowance of £3,600 this tax year and am starting to build up a healthy savings balance of around £2,000. However, as it is currently languishing in a paltry savings account paying around 3% after tax, I want to make sure the taxman doesn’t get his hands on my interest. As I am a novice when it comes to stockmarket investments, what fund should I be looking at to put my money in at the lowest possible cost to achieve a good return?

Mon, 18/08/2008 - 09:29

You can take advantage of up to £3,600 per tax year by investing in a stocks and shares ISA, but be aware that if you go down this route you need to be prepared to lock your money away for five to ten years, so as to ride out current volatility in the stockmarket. You may see your investment fall in value too, so think about whether or not you want to invest your £2,000 lump sum outright or make smaller regular monthly investments. However I would recommend you speak to an independent financial adviser first.

Fri, 12/09/2008 - 17:11

You could take advantage of a stocks and shares ISA - however, it may make sense to save a bit more first? If you are new to stock market investment, you need to be comfortable with the risks - and also be clear about what you mean by lowest possible cost for a good return. This is a bit like saying I want the fastest possible car at the lowest price - you may need to compromise somewhere - so I agree - use an independent financial adviser who will take some time to explain things to you.

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