Hi guys

I went to see my financial adviser at Barclays bank. Basically I have £21000 in savings and it's losing it's value sitting in my savings acount with no interest and inflation is eating into it.

He suggested that he puts some of it into funds, stock market etc for the long term.

I'm a bit nervous as it took a long time to save this up. I don't need the money now as I live off my current account and have a full time job.

Is this the right decision?

Thanks

I'd be careful about investing in the stock market at present - while it's currently on the way up, the overall trend suggests going back down into the middle of the year.

Also, the financial advisor at Barclays is not giving independent advice, but is effectively a salesman for Barclays financial products - so I'd be a little more cynical about what he says.

While inflation can eat into savings, savings at least have the advantage of safety, and there are some fairly reasonable offshore banking rates available through subsidiaries of major UK banks and even building societies.

Certainly offering better and safer returns than the stock market at present!

As you say the markets will properly go down more this year and next but I was thinking more long term like 5 - 10 years. How would you invest £21000 if you had? I'm so unsure how to invest.

Make an appointment with an independent financial advisor. There are few options, but he will need to run a full fact find .

Hi,
I advice you to wait a year or more because we are now in the beginning of the economic crisis. Therefore, think of a way to increase your money that you are planning to invest.
Thank you and Good Luck

if you're so cautious about investing I suggest you stay away from the markets and instead find a high paying ISA and savings accounts (Lloyds are offering 5% now).

you would be crazy to accept especially if it is a so called morley fund i work in a complaint management firm and we are currently dealing with hundreds of complaints against these funds sold by barclays by people pretending to give independent financial advice they are given large bonuses to sell barclays products you would be much better going to a independant financial advisor. I remember one case of a barclays salesman advising a 80 year old woman to put her money into one of these funds that then went on to lose over 40% even though she wanted no risk

What about property? Surely it's still a relatively safe bet for a long term investment, and even though prices have risen recently the bubble has burst so isn't this a good time to buy and to sit on it for a good 10 years or so?

Also I see that the Institute of Directors is saying that the tax legislation should be relaxed for things like hedge funds if the government is serious in it's campaign against tax havens, because that's the only way to effectively oppose them, if you go into competition against them, which makes sense to me. But then I suppose the government can be seen to be turning the UK into a bit of a tax haven itself when they are taking such a strong stance against them!!

I would avoid the stock market but that is just a personal thing, the amount of people that I am friends with the have made huge losses this year from the stock market has put me off for life.

Like the person above I think property investment could be the way to go at the minute with property prices at a low and many people having to accept reduced offers this could be a great long term solution.

I recently went on a (free) property course to learn all about the the right ways to invest in property and it worked out for me. I recently bought my first property as an investment and am positive about it for the future.

Take all information about market from internet or some one who is investing in it.. remember always trade with stop loss, trade wisely.