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Thread: Savings/investments - what do you do with yours

  1. #1

    Savings/investments - what do you do with yours

    If you're lucky enough to have any?

    I'm putting money away every week into a savings account, with the rough idea of buying another house which can serve as a pension being that neither I or my partner are likely to have one. But I'm not sure anymore whether I should be doing anything better with it. Going to see a financial advisor soon but there's usually good advice on here as well, and I'm curious what other people do with the future in mind

  2. #2

    Re: Savings/investments - what do you do with yours

    Quote Originally Posted by delmbox View Post
    If you're lucky enough to have any?

    I'm putting money away every week into a savings account, with the rough idea of buying another house which can serve as a pension being that neither I or my partner are likely to have one. But I'm not sure anymore whether I should be doing anything better with it. Going to see a financial advisor soon but there's usually good advice on here as well, and I'm curious what other people do with the future in mind
    With no interest rates itís hardly worth putting cash in a bank account at the moment. Anything with decent rate like a bond is risky. Maybe lump as much into an isa as possible, maybe in 10 years the rates will have gone back to 5% and you wonít pay much tax either. If you can save a lot quickly all good but if not houses could potentially go up 10 k a year so you might be treading water so to speak....

  3. #3

    Re: Savings/investments - what do you do with yours

    I have some shares in the Hong Kong stock exchange, and trying to save up enough to invest in some property here

  4. #4

    Re: Savings/investments - what do you do with yours

    Switching banks regularly brings in more money rewards than savings accounts
    Look at Martin Lewis website for tips.
    Last few years I've done this
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    First direct to nationwide £100
    Nationwide to Nat West £125
    Free money pays for season ticket
    Other than than this
    Santander 123 account let's you open
    a savings account 200 quid at month 5%
    interest


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  5. #5

    Re: Savings/investments - what do you do with yours

    I don't know how old you are (age would make a huge difference) but I would have thought paying into a private pension scheme would be the most cost-effective, considering the tax relief you would get on the payments (i.e. an instant 20% growth). I would opt for an income drawdown scheme rather than an annuity. What would you do with the second house - I presume rent it out rather than rely on its resale value?

  6. #6

    Re: Savings/investments - what do you do with yours

    Quote Originally Posted by Gofer Blue View Post
    I don't know how old you are (age would make a huge difference) but I would have thought paying into a private pension scheme would be the most cost-effective, considering the tax relief you would get on the payments (i.e. an instant 20% growth). I would opt for an income drawdown scheme rather than an annuity. What would you do with the second house - I presume rent it out rather than rely on its resale value?
    36 and probably rent this one out and move in to that one

  7. #7

    Re: Savings/investments - what do you do with yours

    Quote Originally Posted by Gofer Blue View Post
    I don't know how old you are (age would make a huge difference) but I would have thought paying into a private pension scheme would be the most cost-effective, considering the tax relief you would get on the payments (i.e. an instant 20% growth). I would opt for an income drawdown scheme rather than an annuity. What would you do with the second house - I presume rent it out rather than rely on its resale value?
    I have a couple of endowments that are beyond maturity date but I let them run as I didn't need them to pay off the balance of my mortgage, which was their original purpose. However, won't I have to pay tax if I simply transfer them to a drawdown scheme?

  8. #8

    Re: Savings/investments - what do you do with yours

    My advice is don't commit yourself to anything with a financial advisor. Many are tied to poor performing companies offering products that are either totally unsuitable for your needs or are not the best performers. If you are saving to buy another house that is probably the best investment you can make combined with safety. In other words your tenant pays the mortgage and you benefit from house inflation although if you sell at a huge profit you will pay capital gains tax (CGT) on the profit. Buying jointly will save tax as you will both get a CGT allowance before tax is due.

    Much depends, however, on what precisely are your plans; a pension is as good a savings scheme as you can get. Invest through an execution only broker and you will save yourself a fortune if you eventually decide a pension or other non cash savings happen to be your investment of choice.

    If you really want to buy a second property, and will require cash for a deposit within the next 5 years, sadly the best way forward is to save in bank/building society accounts which pay pitiful rates of interest.

    I have invested in the stock market and property for nearly 30 years but that was with a long time horizon. Never get into the stock market or stock market related investments if you need money in the short term especially at the current time when BREXIT could result in rapid fluctuations in value. Sods law will determine that when you need the money prices will fall and you could end up losing money especially when your financial advisors commission (if you use one) is taken into account.

  9. #9

    Re: Savings/investments - what do you do with yours

    Under the bed

  10. #10

    Re: Savings/investments - what do you do with yours

    Best pay off your mortgage if you have one? Interest rates on your mortgage almost certainly higher than you can get with savings scheme.
    Dont run away with the idea that property is guaranteed to increase in value.

  11. #11

    Re: Savings/investments - what do you do with yours

    Regular saver - renewed every year.
    Premium Savings Bonds - yet again we both had two numbers come up this month.

  12. #12

    Re: Savings/investments - what do you do with yours

    Invest it in malt whisky. Bound to make a decent profit in 25/30 yrs time.

  13. #13

    Re: Savings/investments - what do you do with yours

    Paid off my mortgage as soon as possible now bought four other properties that are rented as something we can pass onto the kids or let them live there when paid off.

  14. #14

    Re: Savings/investments - what do you do with yours

    TIL everybody on ccmb is either already a landlord or aspires to be one.

  15. #15

    Re: Savings/investments - what do you do with yours

    Quote Originally Posted by Taunton Blue Genie View Post
    I have a couple of endowments that are beyond maturity date but I let them run as I didn't need them to pay off the balance of my mortgage, which was their original purpose. However, won't I have to pay tax if I simply transfer them to a drawdown scheme?
    Drawdown is for pensions only. The endowments would mature and be totally free of tax in your hands.

  16. #16

    Re: Savings/investments - what do you do with yours

    Quote Originally Posted by Eric Cartman View Post
    TIL everybody on ccmb is either already a landlord or aspires to be one.
    https://www.bbc.co.uk/news/business-48637484

    Buy-to-let has ****ed up this country.

  17. #17

    Re: Savings/investments - what do you do with yours

    Invest in Neil and the boys to achieve a top 6 finish by lumping on at odds of 6-4 at Skybet for an easy 150% tax-free profit. https://m.skybet.com/football/sky-be...event/24174087

    According to oddschecker.com, the same wager placed anywhere else is even money at best, or 50% less. https://www.oddschecker.com/football...p/top-6-finish

  18. #18
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    Re: Savings/investments - what do you do with yours

    I spend it cos I don't know how long I am going to live. It's also a good idea to buy tools instead of consumer shite. Anything that can be used to produce value.

  19. #19

    Re: Savings/investments - what do you do with yours

    Offshore

  20. #20

    Re: Savings/investments - what do you do with yours

    If you can invest long term - 10 years or more - then shares or funds are your best bet. Shares may bring the highest return but are more risky. Over the long term they will outperform cash investments.
    If you're saving short term then Hargreaves Lansdown have launched Active Savings. You sign up once and can drag and drop your money between bank/ building society accounts without having to apply again, showing you the best interest rate you can get.

  21. #21

    Re: Savings/investments - what do you do with yours

    Quote Originally Posted by LeningradCowboy View Post
    https://www.bbc.co.uk/news/business-48637484

    Buy-to-let has ****ed up this country.

    The government are already finding ways to make buy to let less attractive, I think they will continue down that line.

    If you are insistent on this route, how much equity do you have on your current house?

    If it's a fair bit you could remortgage and take the deposit from your existing house, that will be much quicker, as people say house prices are rising quicker than people can build up the deposits, but could be risky in a downturn or recession.

    I think if either of you are working for an employer, they will have to provide a scheme, join that they will usually pay a contribution in for you (typically 4% to10%, and you will also get tax relief from the government at your highest tax rate, if you are self-employed the contribution would count as a business expense so save you paying tax and taking the money as pension.

    When you need to take it out 25% will be tax-free and the rest taxable depending on your income and tax allowance.

    Take your time, and make sure you've considered both, maybe do a pension now and buy an extra property in the future, so you end up with the best of both?

    With a pension you have a greater benefit the younger you take one out, they say for every five years you leave it you have to pay in double the amount to get the same benefit, I don't think thats exactly right, but the principle is.

  22. #22

    Re: Savings/investments - what do you do with yours

    Quote Originally Posted by Bluebina View Post
    The government are already finding ways to make buy to let less attractive, I think they will continue down that line.

    If you are insistent on this route, how much equity do you have on your current house?

    If it's a fair bit you could remortgage and take the deposit from your existing house, that will be much quicker, as people say house prices are rising quicker than people can build up the deposits, but could be risky in a downturn or recession.

    I think if either of you are working for an employer, they will have to provide a scheme, join that they will usually pay a contribution in for you (typically 4% to10%, and you will also get tax relief from the government at your highest tax rate, if you are self-employed the contribution would count as a business expense so save you paying tax and taking the money as pension.

    When you need to take it out 25% will be tax-free and the rest taxable depending on your income and tax allowance.

    Take your time, and make sure you've considered both, maybe do a pension now and buy an extra property in the future, so you end up with the best of both?

    With a pension you have a greater benefit the younger you take one out, they say for every five years you leave it you have to pay in double the amount to get the same benefit, I don't think thats exactly right, but the principle is.
    I'm not fixed on a second property at all, just wondering what other people do to make the most of their money. That was the most obvious one but I'm looking at an investment portfolio as well

  23. #23

    Re: Savings/investments - what do you do with yours

    Quote Originally Posted by delmbox View Post
    I'm not fixed on a second property at all, just wondering what other people do to make the most of their money. That was the most obvious one but I'm looking at an investment portfolio as well
    No worries, a Pension or ISA is just a wrapper to determine the tax status, inside the Stocks and Shares ISA or Pension, you could invest in individual shares or funds would be the best option to start, spread the risk over many different companies, asset types and regions around the World, Global and technology funds are doing well at the moment, but things change quickly, diversification is the key!

  24. #24

    Re: Savings/investments - what do you do with yours

    Quote Originally Posted by Bluebina View Post
    No worries, a Pension or ISA is just a wrapper to determine the tax status, inside the Stocks and Shares ISA or Pension, you could invest in individual shares or funds would be the best option to start, spread the risk over many different companies, asset types and regions around the World, Global and technology funds are doing well at the moment, but things change quickly, diversification is the key!
    Yeah I'm leaning towards that at the mo. Know nothing about it mind so these robo companies look interesting. I've been having a look at that Wealthify which I think is Cardiff based

  25. #25

    Re: Savings/investments - what do you do with yours

    Thanks for the input all by the way

  26. #26

    Re: Savings/investments - what do you do with yours

    Spend, spend spend. If you die in debt you've made a profit in your life.

  27. #27
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    Re: Savings/investments - what do you do with yours

    Quote Originally Posted by cardiff55 View Post
    Drawdown is for pensions only. The endowments would mature and be totally free of tax in your hands.
    I enquired about an endowment policy the other day and was told the parent a available any more. Are they?

  28. #28

    Re: Savings/investments - what do you do with yours

    Do you mean aren't available?

    Tax free savings plans are, they are almost the same, Friendly societies do them, but Stocks and shares ISA's are usually better anyway............

  29. #29

    Re: Savings/investments - what do you do with yours

    I really struggle to get much return on cash. If you have a kid it is a bit easier as there are some decent savings accounts out there paying 3%+. My basic rule is that I save whatever I can at rates that are higher than my mortgage interest rate; and use the surplus to overpay the mortgage.

    My current plan for monthly savings is as follows:

    My firstdirect reg saver (5%): £300
    Wife firstdirect reg saver (5%): £300
    My HSBC prem reg saver (5%): £250
    Wife HSBC reg saver (5%): £250
    Santander reg saver (3%, but now 2.5%): £200
    Halifax junior saver (4.5%): £100
    Barclays junior saver (3.5%): £100

    The harder part is working out what to do with the money when the 12 months is up. Currently we stick the cash into nationwide accounts paying 5%; or the nationwide junior savings account paying 3%; or use the money to do stuff on the house. All of the above returns more than my mortgage interest rate, and is effectively a DIY offset giving me flexibility.

  30. #30

    Re: Savings/investments - what do you do with yours

    Quote Originally Posted by Optimistic Nick View Post
    I really struggle to get much return on cash. If you have a kid it is a bit easier as there are some decent savings accounts out there paying 3%+. My basic rule is that I save whatever I can at rates that are higher than my mortgage interest rate; and use the surplus to overpay the mortgage.

    My current plan for monthly savings is as follows:

    My firstdirect reg saver (5%): £300
    Wife firstdirect reg saver (5%): £300
    My HSBC prem reg saver (5%): £250
    Wife HSBC reg saver (5%): £250
    Santander reg saver (3%, but now 2.5%): £200
    Halifax junior saver (4.5%): £100
    Barclays junior saver (3.5%): £100

    The harder part is working out what to do with the money when the 12 months is up. Currently we stick the cash into nationwide accounts paying 5%; or the nationwide junior savings account paying 3%; or use the money to do stuff on the house. All of the above returns more than my mortgage interest rate, and is effectively a DIY offset giving me flexibility.
    Higher rate tax payers get £500 savings allowance. Normal rate tax payers get £1k. Anything earned over and above needs to be declared via self assessment and taxed accordingly. Im fairly sure that the limit for earnings in a childís name is just £100 - everything over an above being considered (for tax purposes) at the parents rate of tax. You also have £2k of dividend allowance (the return from any shares you may have), and approx £11k capital gains allowance.

    Itís a really tough one. How best to invest?

    Firstly- itís never too late to start a pension (your only 36, so a good 24 years of working left). Most companies will offer an incentivised scheme... are you self employed? Have you looked at lisaís?? You can max one of those out each year until you are 40.

    If saving for the long term- a lot of savings/investment forums will suggest wrapping a tracker within a stocks and shares isa. You can get trackers which will follow every index, ftse100/250 domestically, as well as all of the exchanges globally. Vanguard do a highly recommended global tracking funds - plenty of threads recommending on the likes of mse.

    Remember- opinions are like arseholes- everyone has one. Read as much as you can and make your own decisions.

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