I am looking for best corporate or fixed rate bonds,stocks & shares to invest £10,000 please,any suggestions
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804MikeGG1 postedIf you expect interest rates to rise next year, the price of Corporate or government bonds is likely to fall. Are you sure that you want to do that.
If you are really sure, spread the risk by buying a Corporate Bond fund that invests in AA+ rated stocks.
Mike
Posted on 22 November 2009 |
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2yashdra posted
Some specific Corporate Bond you could kindly think of please,Mike? Yes,they are risky. But so is the whole economic situation. I could look for growing Global companies that invest in UK with good dividends and yield. When the value starts falling,switch to normal deposit?
Posted on 22 November 2009 | Love 0 loves
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804MikeGG1 posted
Sorry, I don't recommend individual puchases. Just principles.
One class you didn't mention that should be included in your comparison would be PIBS (Permanent Income Bearing Shares). Generally they are loan stock issued by Building Societies without a redemption date. However, they are more affected by interest rate changes as a consequence.
Mike
Posted on 23 November 2009 | Love 0 loves
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804MikeGG1 posted
Keep 3 - 6 months net income as your emergency fund, but only 1 month needs to be instant access. Have a lookat the Chelsea BS Postal 30 ISA with rates up to 3.50% and access in 30 days without interest loss or immediately with loss of only 30 days.
I would put 60% into Equities, which should be considered as long term investments (over 5 years). Perhaps one third of that should be in Shares with a good track record for income, such as BP or Utility companies. The remainder I would suggest might be a low-cost All-Share Tracker or Exchange Traded Fund. If you had been younger I might have suggested a Global Tracker.
25% in Building Society/Bank fixed-rate term deposits at best rates and with varying maturity dates. and the remainder in a Corporate Bond fund.
Utilise your ISA limits to the full and remember that Corporate Bonds classify as Stocks & Shares for ISA purposes. ISAs shelter you from income tax on interest but not from share dividends, except for the higher rate element if applicable. They shelter you from Capital Gains Tax, but you have an Annual Allowance from that which protects many private individuals who can spread their disinvestment over more than one year if the allowance would otherwise be exceeded. CGT can be quite expensive if you need to disinvest in a hurry.
Mike
Posted on 23 November 2009 | Love 0 loves
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2yashdra posted
Thanks for helping organise my portfolio,Mike.
I thought so, ISA share & stock may not be as straight forward as Cash ISA. I will plan investment in Stocks & Shares carefully. tax efficiently. This advice is not available from the bank consultants when we go to see them at the branch.
I would not mind a Global Tracker,because soon I am thinking of setting up a trust to protect asset for the grown up children.These days once married spouse enters the family Tree the cart gets distorted.
Posted on 23 November 2009 | Love 0 loves
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804
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2yashdra posted
Thanks for the assurance.
I have found a source of information and excellent thoughts on financial planning and investments from this site.
I am,touch wood lucky to have a good accountant, and a solicitor who help me occassionally but I need to be brief with them because they are on the timer.
Posted on 24 November 2009 | Love 0 loves
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