�8k to invest?

[v3rob11]

i have some money, about �8k after re mortgaging to invest and need it to get some decent interest.

i heard its a good time to invest in stocks and shares tho, is this right?

i thought about bonds?

would appreciate any serious answers on this......

[Loosehead]

"Remortgage to invest" are you mad, you will have to earn enough to beat what you are paying in interest by enough to acount for the tax you will pay on what you will earn.

For example if you are paying 6% you will have to earn about 9% to break even. The only way to do that is with riskier investments, ie stock market etc. You where already getting a pretty good deal by not borrowing an extra 8k.

[v3rob11]

loosehead, ok i worded that wrong.

i have just got bk on the property ladder after a lay off and have this cash "spare" so needed to be invested somewhere of good intereset for about two years?

[daz200]

If you want to invest for just 2 years I'd steer well clear of shares as they are long term investments i.e at least 5 years.

I'd put the money into a building society account with the highest interest rate you can find.

[Miss Zippy]

Stocks and shares are definitely not short term investments, so no good if you're looking for somewhere to keep your money for only two years. If you're a taxpayer, then splitting between a cash ISA and a National Savings Certificate is probably your best option, though as Loosehead said you will never get as good a return as if the money was put towards your mortgage. I'd make a mortgage overpayment if you're permitted to under the terms of your mortgage agreement.

[zerocool]

Currently it is a good time to invest, the market is on the up and confidence has once again been restored in the Market. Bonds would be a safer bet, yet the interest they would generate would not be as good as shares, on average the excess premium between shares and bonds is roughly around 6-7%.

Despite certain beliefs, shares are not long term investments, and are generally more liquid than bonds.
Should you wish to invest, I suggest mining shares, in particular Antofagasta PLC, I have held shares in this company for just over a year and have seen a return of nearly 80%. see for yourself http://uk.finance.yahoo.com/q/bc?s=ANTO.L

The prospects for this company looks very promising for the future.
Other shares which I currently hold and have seen great returns are Rolls Royce, Royal Sun Alliance and Amvescap.

What I would also advise is that you also speak to a broker about diversifying your portfolio should you opt for shares pending on how risk tolerant you are.

[v3rob11]

thank you all for your help

[dancecaller]

Work it out carefully before you go into shares. look at the difference between the buying price and the selling price, also the stamp duty and buying and selling fees. The prices have to go up that much before you even get your money back.

Dividends aren't usually as good as BS interest.

And if the market is rising doesn't that mean you've already missed the bargains?

But them I'm just a catious stick-in-the-mud.