where do I get financial advice?

[willowstar]

Hello

this may seem a bit odd...but...I have never had any money, have only finished paying off my student debts this year at the age of 34, have no savings, rent a house and use up my whole paycheck every month. so...I was mighty surprised and pleased when I opened a letter today telling me I have unclaimed shares in Standard Life worth about £800. WOW.

only problem is I have no idea what to do. the options are for me to take the money and run or to keep them. as i have never had a savings account, largely because I have never had any way to put anything in it, if I took the money I would like to immediately put it into an account that i can't use. but I don't know if I should cash them in or leave them. the sad thing is that I don't know who to ask. none of my friends really have a clue about this sort of thing. where do you find out what to do???

[HeyWayne]

I'm lucky in that LadyWayne is a financial advisor - but I don't think there are any finite answers in this current climate, no safe bets.

Personally unless you need the money I'd leave them where they are - chances are selling them on now is probably a bad time. But then LW would tell me otherwise I'm sure.

Check them out to see how they've performed on the FTSE.

Historical Chart

[Nicos]

Premium Bonds!
...depends if you're happy to risk no winnings, but then again you may well win a lot.
At least they are secure and you can easily cash them in if you have a sudden urge to buy a washing machine or a new clutch ( takes about a week)

All Banks and Building Societies have Independent Financial Advisors though.
Alternatively I'll look after it for you

[tootles]

How exciting for you.
Now is really not a time to be venturing out into the world of stocks and shares!!!
If you are pleased with your windfall and do not wish to risk it I would sell and stick the dosh in a bank (highest interest you can find - UK based) If you are game you could leave it where it is and wait a few years and see. You could find that it picks up, goes bust or halves in value (there are no guarantees). You could perhaps just speak to your bank manager to see what s/he suggests, There may be tax free options available to you.

My only real advice is this,
If someone tells you, 'you can't lose' run screaming in the opposite direction!!!!

[lynda66]

at a guess, i would say unless standard life go bust, that it would be a good idea to leave them as shares, until this credit thing starts to look more stable, can't see you getting the best price for them right now.

[willowstar]

hmmm, thanks very much for your replies people. I am tempted to just leave them and hope for the best. I have had a scout around and even if I put the money in the best cash ISA out there it would only make a whopping £46 in a year...so really the only risk of leaving them where they are is if Standard life go down the swanny. hmmm, will ponder some more but have to decide in the next couple of weeks. I can't believe I have some money!!!

[smallblueplanet]

I second the 'vote' for Premium Bonds - your money is 'safe' and you get to have a bit of a gamble whilst you consider how to spend/save it!

[digthatchick]

For what its worth I would say cash ISA. Money is safe, tax free and if you need it you can withdraw it. Also you can add too it should you be fortunate enough to have another letter saying "we have found some more shares for you" 0

[Two_Sheds]

Not only is it a "bad" time to be selling shares, but your financial adviser will take a percentage or a fee for selling them on your behalf.

Premium Bonds earn you no interest whatsoever, and your money loses value every year of course. You may win a prize, but most people don't. An ISA is a better bet.

[nelliegemini]

I second the 'vote' for Premium Bonds - your money is 'safe' and you get to have a bit of a gamble whilst you consider how to spend/save it!

I third the vote - safe and steady, and a bit of excitement every month to see if you've beaten a normal interest rate, or can retire to the country and have the biggest lottie in the world.

[Capsid]

Since you didn't buy these shares I presume, then any money you make from them is clear profit. So selling them now or whenever is OK to do since you won't be out of pocket. Don't worry about what they could be worth or what they were worth yesterday, you only need be concerned with their current value.

What are your long term plans? Do you plan to buy a house, get married, have a family, buy a car? This may dictate what to do with the money.

[Marthaclematis]

I would not advise premium bonds. Your money would earn NO intrest whatsoever and would actually be losing its value each year. (I read recently that even if you owned the MAXIMUM amount of premium bonds - I think its £30,000 - you would only expect to 'win' on average 2% per year. Unless you get the jackpot but I don't know what the odds are on that). Only the very rich who have exhausted all other ways of investing their money and who have a gambling streak would invest in premium bonds to my mind) A cash ISA is not a bad idea, you would certainly get more than 2%. Or you could put the cash in fixed intrest bonds which pay a certain amount a year, despite intrest rates - which cash ISAs are influenced by. "moneysupermarket.com" might be a place to start.

Anyway, I am pleased for you! What good news!

[Rocketron]

Personally, i would advise against Premium Bonds as they dont increase in value along with inflation.Your £800 could be worth considerably less in a few years. A cash ISA, on the otherhand, will pay you a small amount of interest which is tax-free. You will definitely have more than £800.
I'm no expert, though. feel free to wait for someone with some experience.

It appears I should learn to type faster.

[Capsid]

This site suggests that Premium Bonds don't stack up as an investment.

Premium Bonds: Are they worth it?...

For £800, you have a 33% chance of winning a £50 prize in a year. That is a return of 6.25%, you can get better than that in a top savings account. The chance of winning the million quid is 18 billion to 1! The lottery is 14 million to 1.

I may have to advise my parents.

[Alice]

Your £800 shares in Standard Life could drop to Zero tomorrow Willowstar. They haven't been a good bet for me.
I take it you want to play it safe. I would take the money and put it in a depost account for a little cushion at your back.