i have £25 000. Where can i place it so i can have as much interest as possible. This will be my retirement money;
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804MikeGG1 postedHave you retired or is this your future retirement fund? If that is the case then how soon will you retire?
What is your top rate of tax now and what is it likely to be when you have retired?
Do you have any pensions other than the basic state pension?
There isn't just one answer to your question. It vey much depends on your individual circumstances.
Mike
Posted on 25 July 2010 |
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1gaiamaterre posted
thank you Mike for your help.
I will retire in between 9 to 14 years . I should have a 10 years teacher's pension. I dont pay tax in England as i have had to go back to France to help look after my parents. I work in this country and get minimum wages here .
It is after the sale of my house in England that i need to find some safe placements in both countries.
I dont want anything complicated.
Gaia
Posted on 26 July 2010 | Love 1 love
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804MikeGG1 posted
There is a problem if you don't live in the UK. You are likely to fail the identity checks that have to be done these days. If you have only recently returned to France, it may be possible to open accounts using your old English address. Once they are open, you can keep them open even with a French address.
Cash investments with good rates last for a while and then you have to reinvest to get a good rate. By then you would fail the identity checks.
With a 9-14 year investment period, I would suggest you should be in equities (company shares) because they normally do better overall than cash investments. Interest rates are looking as though they will stay low for some while yet.
Howevr, in your case, I would split the money. To keep it simple and keep the expenses down, go for a low cost trading account with someone like Hargreaves Lansdown. Put half in an All Share or Global Tracker or Exchange Traded Fund. It will be managed for you.
The other half, which can also be held through the same trading account, I would go for a Corporate Bond Fund rated at least AA. There is a slightly increased risk as they are invested in company bonds but the interest rates are higher and the fund would spread it around so as to minimise any risk.
No single investment suggestion but food for thought to help you on your way.
Mike
Posted on 26 July 2010 | Love 0 loves
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1gaiamaterre posted
Thank you Mike,
I never thought about the identity checks but i had to have some done to sell the house and it seemed okay. I did live and worked in GB for 30 years and still have a current account with alliance and leicester so i might be okay with opening something in GB.
Claudine
Posted on 26 July 2010 | Love 0 loves
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410manzanilla posted
You haven't said where you intend to live when you retire. If it is in France (or elsewhere in euro-land) then you should consider investing the money in euro-denominated shares.
If you leave it in pounds and the euro gains in strengty against the pound, your next egg will lose its euro value. And if you intend to live in France, then its the euro value, not the sterling value, which matters.
Posted on 26 July 2010 | Love 0 loves
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