New Year financial resolutions from John King, our Financial Adventurer
Do you have any financial new year’s resolutions for 2016?
I am very much biding my time at the moment to see what the economy does. I am hoping it will pick up once there is some more certainty over Brexit and I may make some changes with my finances at that point. For the moment I am just going through my investments, seeing what has picked up and what is not doing so well. I have a number of shares in supermarkets which are doing well at the moment as are my BT shares, which should bring me some good dividends next month.
I am also continuing to invest £200 a month into an HSBC savings account which is currently paying 5%.
Is there something you would like to try for the first time with your finances?
I am looking into investing in peer to peer lending through an IFISA, but it will just be small amounts at first to see how it goes.
Is there something you have learned from the last year that you would not repeat in 2017?
There is nothing really that I will change, I will just continue with my strategy to have a good balance between shares and cash and not to have too many shares invested in the same sector.
What is your strategy for this year’s ISA season?
I won’t be investing in any cash ISAs this year as they are just not paying enough to make it worthwhile although this might change if interest rates go up, I am hopeful of a rate rise this year. I might well invest in peer to peer through an IFISA for the first time, but I will probably just invest £5,000 at first just to see how it goes.
Will you be opening a new account and will these be cash or investment based?
I won’t be opening a new account this year. I currently have four investment ISAs which are doing quite well, I might move some of my money around within the ISAs, but just to make sure that they are making money, I won’t be topping them up.
What is your top tip for making the most out of ISAs?
At the moment it is impossible to find a cash ISA that makes you any money, I would encourage people to have a good read up on what’s available and start to think about using an investment ISA. But again you need to consider the areas you are going to invest in to make sure your money is going to grow. China is not good at the moment, but India is doing well as is the FTSE 100 so these may well be worth investing in. Don’t invest a lump sum straight away, invest an amount monthly to spread the risk and invest in a range of different areas for the same reason. Do lots of research before deciding what to invest in.