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Financial expertise needed - ISAs where do I start ?

13 replies

Pupuce · 21/03/2002 15:00

DH just told me : you have 3000 GBP that needs to be invested, get yourself an ISA....
All right any advice out there ????

OP posts:
Lill · 21/03/2002 16:19

Pupuce, no help from me Im afraid but I will watch this thread with intrest as I have no idea whats what in the financial world.
I dont want to hijack your thread but does anyone have any tips for investing money on behalf of children, what can they have in their own name?

Rozzy · 21/03/2002 17:39

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Pupuce · 21/03/2002 18:45

Thanks Rozzy - do you have to pay them though ??? I don't want to spend 10% of my investment money on advise if you know what I mean

OP posts:
SueDonim · 21/03/2002 19:18

We've been re-jigging our finances before we go abroad and I've just taken out an ISA (not for 3K though!). The main benefit is that it is tax free. There are other, riskier, ISA's which are dependent on the stock market. There are restrictions such as only taking out one a year and on the amount you invest and so on.

Rozzy · 21/03/2002 19:36

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bossykate · 21/03/2002 19:55

hi pupuce

i have a couple - will put below what i can remember to the best of my ability.

an isa (individual savings account) allows you to invest a certain amount of money per year tax free. you can have either a mini or a maxi isa - different investment limits - the former £3000 and the latter £7000. the type of investment you can have in an isa is restricted to cash, equities (stocks and shares) and a third type (insurance?) which i can't remember off hand. you can have a number of mini isas (i think three) or one maxi isa an any tax year. you can check the info above (and i would given the addled state of my brain) with any isa provider (banks, building societies, investment houses, insurance cos etc). or you could try www.inlandrevenue.org.uk.

at the moment i've got a cash mini and an equities mini.

the cash one i just found from the best buys table in the cash section of the observer. they get their league tables from www.moneyfacts.co.uk. i don't remember paying any fee for this - it's effectively just a bank account. considerations in choosing one relate to (obviously) the interest rate on offer, whether you want instant access etc.

the equities one was a bit trickier. this is an investment on behalf of ds. i found a voucher for a free session with an independant financial adviser (again in the observer) and he basically said that before one considered any investment on behalf of children in their own name, it was sensible to use up one's own isa allowance. you also retain control of the money this way.

if you plan to invest in equities, i really would make sure you understand the risks first. they are really only an investment for the long term. i will not attempt to go into the risks here as i am not a financial adviser and wouldn't want to mislead anyone inadvertently.

please note the above comments offered in the spirit of shared knowledge/experience and NOT in the nature of financial advice!!!

hope that's a bit of help anyway.

emsiewill · 21/03/2002 20:32

bossykate, love the disclaimer at the end of your message. I work for an actuarial firm, who are carrying out the SIB pensions review (mis-selling of pensions in the late 80's/early 90's) for most of the major life companies. - and I have seen only too clearly why you feel it necessary to give that disclaimer. You don't want Pupuce after your blood/money claiming compensation for "bad advice"!

bossykate · 22/03/2002 08:18

emsiewill

more importantly, i wouldn't want anyone to end up worse off because of following my message without checking for themselves! especially on the equities side - you really need to know what you're getting into.

actually, i found it quite difficult to know what to do on the kids investment side. it was lucky for me i saw that offer for free advice! not that we are that wealthy - i just put ds's children's allowance plus a small top up into it each month. now if i could invest the money it costs me to have him at nursery, he would be a millionaire by the time he is 18!!

bossykate · 22/03/2002 08:32

had a hunt round and found this article on ISAs - might be useful to anyone interested. sorry, can't do those links.

www.thisismoney.com/undated/si2283.html

Pupuce · 02/04/2002 17:29

Thanks for all your help Bossykate - I think I have made up my mind...

OP posts:
Madie · 22/04/2002 14:21

Hi

I can recommend a very good book called "Make your Child a Millionaire" by Alan Oscroft.

Its very easy to read and will help to explain all the finiancial investment options from plain savings accounts to the more complex Trust funds etc, that are around and explains all the benefits and pitfalls to look out for.

You can get the book from Amazon

Hope this helps in your decisions

M

Rhiannon · 22/04/2002 17:05

I've lost over £2000 on my ISA over the last 18 months! Wish I'd just put it in the building society. R

SueDonim · 22/04/2002 17:29

Snap, Rhiannon. I'm thinking of keeping my money under the mattress, in future.

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