More recently, an entry on what to invest in the stock market was appeared on my blog. Many people do not take into consideration the investement in the stock market because for them it is too risky, so today I will focus on more traditional and safe methods of investing our money.
So how to invest?
Before we begin to deal with investment, you should make one move. If we have an account in Halifax and if we have children under the age of 16, a good solution is to use a savings account – Kids Regular Saver with an interest rate of 6%. This is a special account to regular savings, which gives the opportunity to save a certain amount of money every month. It is a great way to answer the question – how to invest the money? In this case, we can put aside up to £ 100 for each child, the money is taken automatically, after the year we will probably gather about £ 1,200 + £ 38.65 interest and the money will go to another account, Young Saver 3%. In the second year it is worth continuing, but you should see if in another place you can get interest rates above 3%. If so, we should transfer money there. What is important to know is the fact that to open an account you need to personally visit the facility and have a child documents – you cannot open an account online.
It is worth investing in a Zopa.com platform. I think that is a great solution. It is a company intermediate between people who have the cash, investors, and those who wish to borrow, i.e. borrowers. The latter must pay more than they borrowed, so investors derive their profits – it is profitable idea if you do not know what to invest, right? Here the interest is paid every month, by selecting 5-year investment we will get return in the amount of 5.1%. In this case, we must keep the money by 5 years and we can pick them up at any time. There is one problem, by doing this we may lose some interest. Of course, the investment risk in Zopa.com is greater than in the case of bank accounts, here we can lose your money, although the company has been in business for 10 years, everything looks fine though – without risk there is no win …
What else can you invest?
You should also open an account in the Telegraph Investor and buy two funds – the first of them will be Vanguard LifeStrategy 100% Equity Accumulation, this is a tracker fund, or a fund that follows the whole market. Fees here are not high, because there are approximately 0.24% of the funds collected annually and Vanguard, which achieved very good results in recent years – it is not a guarantee of future good results but it is worth trying. The Fund invests here as much as 25% of the money in the UK, 43% in the US and the remainder in other parts of the world, it can be a ready portfolio of shares that can be purchased once and leave for a few dozen years.
Investment in the stock market is another good way to invest your money. How to play the stock market and what can you invest? On these questions I will try to answer, and so first let’s find access to the local stock exchange, eg. in London we have access to many even foreign exchanges. Foreign Offer is simply better, because it is very broad and it is something we will get virtually in a standard by opening an account with a broker. A nice option is the TD American Trade – where we have easy access to the following stock markets such as the US, Canada, France, Belgium, Germany, Ireland, Italy, Netherlands, Spain, Australia, Hong Kong, Sweden. Brokerage accounts can be carried out in multiple currencies such as the yen, dollars, euros etc. Staying in the UK, we also have the ability to open accounts where you get direct access to the markets of futures contracts on any of the goods in the world, here, the real term contracts on physical oil supplies are also available for individual investors.
Scottish friendly czyli ISA – this account is exempted from tax, but it is not used to save for retirement. However, it replaces the usual deposit which is exempted from tax. So here, it is an advantage that gives you the opportunity to get the funds before you will reach the retirement age. Same returns on investment within this product are exempted from tax or capital gains, the only drawback may be that there is an annual limit on contributions to such an account – each year we can pay there only a certain amount of money and divert them and if you decide to pay, this money can be paid back only within the annual limit.
I have no money to save
A good advantage of Scottish friendly account is that you do not need a lot of money. Saving starts from £ 10 per month. If you are interested in a regular saving a very good idea will be My Select (ISA),where you can start saving from £ 10 per month or make a deposit of £ 100. This account is designed for long-distance runners, who want to save for 5 or 10 years. Also, you can start saving money for the children by opening the My Select (Junior ISA), account, which is very similar to the aforementioned account except that it is intended for children and maximum annual payment may not exceed £ 4080. If you already have some knowledge about investment, so you will be interested in two other accounts My Fund Options (ISA) or My UK Track Options (ISA), where the first is designed to invest in mutual funds and the other in shares.
SIPP is in turn a very interesting product, where we can independently invest on your retirement, within the framework of this once paid money cannot be paid until you reach retirement age (we decide how age it will be, but not earlier as 55 years old). We also have a limit on the amount of resources that we can collect within our life. So how to play the stock market? First of all wisely and carefully, you should always keep in mind about the different funds, programmes, etc., where we can locate our money…
Commissions in investment on the stock.
They are really different. You can buy shares from 5.95 pounds for the opening of a position on the stock market in England. However, in the case of products such as – regular investing, commissions are even cheaper and you can find purchase offers from 1.50 pound. Of course, the same access to international markets is expensive and the basic fee is 10 pounds. The costs of currency conversion is a capital loss of around 0.5% of size of position. However, with large accounts, you can count on the rate of interest on the brokerage account – 0.2% per year. Maybe it is not much, but ,,always something”. To choose the best account, please read the entry describing the best accounts to invest on the stock market.
Concluding the topic how to play the stock market in order to not to lose, it is worth noting that the settlement terms of the transaction is usually 3 working days when buying and a further 3 days with the sale. An interesting and distinct option is the automatic reinvestment of dividends. You can choose an option to receive the dividend in cash. Of course you can buy more shares of the same company for the received – the advantage is that the commission is then usually a minimum 1.50 pound.
What to do if you do not know how to play the stock market. The best is to look for information on the Internet, read some books and specialized blogs about investment. And the best start from Google by typing in the search phrases like, how to play the stock market.
At the end of my article, it is worth noting that investments are something, which means that we can buy luxury goods that are cost effective and that they are also long-lived, which means that they do not lose their value over long periods of time. For example, well-invested cash in a good Bordeaux wine, which is aging even decades, painting or any collector’s item, eg. a postage stamp that does not lose its “validity” can bring us benefits. Therefore, for these reasons, you should know in what to invest. And, specific objects protect our capital in times of crisis and allow us to multiply it. And, above all, they protect against inflation, which is a hidden tax created by central banks. But, you will not know about it on TV.