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How much risk is ok?
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bullshit savings account
What does bullshit mean?
You can get 5% for 1yrs from a number of saving accounts. It won't make you rich, but it's safe and inflation beating (for now).
If it was me I'd do that for a year then put the £3k into something like a stocks and shares ISA - depending on what things are like next year.
But if they're risk adverse, then I'd probably look as something, based on what you can get in the market.
The problem I think a lot of people have is when you are talking about small sums is they forget that a reasonable % of a small number = a small number.
They then think it is pointless. But what they forget is that you're really trying to build your pot so that in the future you're earning a reasonable % on a reasonable number. And if you're building your pot somewhere safe, then it may as well not devalue against inflation.
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Stocks and shares market tracking ISA, assuming they'll invest for the medium-long term and buy in to it each month.
Nothing else worth doing really if they don't have any debts and can't make further contributions to their pension (or don't trust it)
They could invest it in themselves...training and whatnot.
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Stonehedge
hugo7
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@hippy
If you had a spare £250 a month that was previously going into a bullshit savings account, what would you invest it in? Now, obviously the correct answer is beer and bike parts but this question isn't for me.
Options: some other bullshit savings account earning nothing, company share scheme, other share scheme, already has a pension fund, um... I dunno that's where my investment knowledge about ends.