Help me invest
"Dear Busy Girls Guide. I'm about to sell my old flat and will hopefully make around £45k profit from the sale. I don't want to buy another house as I live with my partner, so would like to invest the profits securely until I decide what to do with the money.
Can you advise on what I should be doing as I'm too scared to buy stocks and shares myself and don't know which ISA or savings account to choose. Thanks for your help" Marina, Cheshire
Hi Marina,
Thanks for your message. Investment certainly is a minefield, that's why we've passed your query onto our friends at Brooks Macdonald Manchester, experts in Asset Management...
Marina, I would advise that you seek security for your money for the time being so you know it's in safe hands - the most sensible solution is to invest it in a good deposit account.
ISA
You can invest up to £4000 in a Cash ISA before 6 April 2008. Cash ISAs enjoy tax free interest. From April 2008 the annual allowance reduces to only £3600. Cash ISAs are also attractive as the market is competitive & savings institutions will often advertise an impressive interest rate.
Savings Account
Beyond this, you can invest in a conventional savings account where your interest will be taxed. There are many options in terms of the types of account and features available - fixed rates, variable rates, instant access, notice accounts, postal & online accounts to name just a few.
In the long term you may want higher potential returns than a deposit account and to give your money scope to outpace inflation. It is important to consider how long you can invest for and what level of volatility you are comfortable with. This will help define your investment risk profile and determine long term strategy.
Asset Management
Asset managers offer a variety of managed portfolio services for a range of client risk profiles. This approach seeks to reduce risk by investing in a wide range of assets and provides access to investments that would typically be unavailable to a retail investor.
To help decide on which investments are right for you, you should seek advice from an independent financial adviser (IFA). A good website to search for IFAs in your area is www.unbiased.co.uk.
Thanks again Marina and good luck, if you'd like some Asset Management Advice, simply contact us and we'll help where we can.
Claire Bennison, Brooks Macdonald, Manchester
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