Looking To Invest Money – What Are The Best Opportunities

If you suddenly come into a large amount of money, you might be wondering what the best way to spend it is, or if you want to make more money from it. Below is some suggestions on how you can invest your money.

Repay More of Your mortgage

Clearing a substantial amount of your mortgage debt will save you a lot of money. Your amount you own in interest will drastically reduce saving you thousands of pounds. Contact your lender to see how much you could pay without being charged. Compare how much the interest will cost you vs. the amount you will be charged for making an over payment.

Clear any debts you may have

Being debt free is a great feeling. If you can clear your debts, you will save money as loans and credit cards will charge you more interest than you can obtain from investments or savings accounts. If you’re in debt any money you make from saving your money will be lost through interest.

Investments

If you don’t need access to your money for at least five years, then an investment could be an option. Remember that this comes with risk. If the investment doesn’t perform as well as you expect, you might loose money. It’s always best to seek professional advice is this is something you plan to do.

Retirement savings

Based on your circumstances and any provisions for your retirement fund you could invest into your pension. There are multiple benefits of doing this. You will be able to get tax benefits, and you total fund could go up by as much as 50%.

ISA

If you have not maxed out your ISA allowance or you don’t have an ISA, then you could save quite a bit of money by investing into one of these. Any money you earn from an ISA is tax-free, and with a capacity of £15,240, this could be a good place to put your money.

Savings Accounts

Check comparison sites for the high-interest savings account. Check you can access your money as and when you need. If you don’t need access to your money for a set period, then a notice savings account or possibly a fixed rate bond could yield much better returns.

Investment Trusts

Investment Trusts is an investment pool where you and other people put in money to buy shares from multiple companies. Your risk is then spread across 10’s or 100’s of companies in a way that is cost effective.

Forex trading

Now quite popular tho tough forex trading is trading on the currency exchange markets. You will need to predict how different currencies will fluctuate against each other successfully. To see significant returns, you will need to invest more in each trade. This comes at a price as you will also lose more if the trade doesn’t work out.

Property Investments

One of the most popular ways to invest money Property Investment has many advantages. For example renting out the property and receive a monthly income or buying a property at a lower price, renovating it and selling for a higher price.

You may need a mortgage if you cannot purchase the property outright. This will eat into your profits, but real money can still be made. If you rent out the property, then you will be responsible for its upkeep. Including any maintenance needed and tenancy issues which may arise.

OEICs

Similar to investment trusts but they OEICs differ in that there is no minimum about to the number of people who are able to invest. The OEICs is typically used to buy shares or stocks in businesses with the sole purpose of generating profit.

Share dealing

With share dealing, you can create your portfolio of shares directly with individual companies. This allows you greater control of how you invest your money, but it also has a much higher risk factor. Make sure you research and seek professional advice before attempting this.