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Spend, spend spend. If you die in debt you've made a profit in your life.
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............
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 child’s 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.
It’s a really tough one. How best to invest?
Firstly- it’s 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 lisa’s?? 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.
My Santander reg saver is showing 5% linked to 123 account
Has anybody ever won big on the premium bond? I know people who keep winning 25 quid
OK, 36, so you have another 30 years or so to pay into a pension scheme. I would definitely recommend an income drawdown scheme but also definitely find a truly independent financial adviser as there are plenty of companies out there ready to take your cash. I have one and he has been very good, tailoring my pension portfolio to my "cautious approach" needs. This is a long term process though as the stock markets can be very volatile, particularly at the moment. It only takes Trump or Carney to make some pessimistic forecast and my pension pot can suddenly dip in value by thousands over night! Conversely if they say something optimistic the reverse can happen. The whole stock market business runs on rumour and fear it seems to me! However long term it has proved to be the best bet, hence a lot (most?) pension schemes buy into it.
BTW I am not looking to make a profit out of my portfolio, just enough growth to balance what I take out every month.
Current mean average return on Premium Bonds is 1.25%. Investment wise it's a handy way to become poorer in real terms each year.
I've only ever had faith in hard assets by way of occasional property purchases and converting fiat to what's been money for thousands of years as an insurance policy to safeguard against hyperinflation in readiness for when the humongous global debt bubble implodes.
Mention of which, Deutsche Bank was pinpointed in 2016 by the International Monetary Fund as the world's most dangerous financial institution whose demise could trigger a crisis that would make Lehman's death in 2008 appear a minor hiccup in comparison. Deutsche Bank: World's most dangerous bank?: https://www.bbc.co.uk/news/business-36723034
Its end came several steps closer today. Deutsche Bank’s day of despair: as it happened: https://www.telegraph.co.uk/business...-faces-record/
We don’t get anywhere near the limits you mention. I’m not sure there are enough good regular savings accounts in the country to get someone up to the £500 cap. Even when you add them to the interest on accumulated deposits it takes a few years to get there. Which says more about LIBOR than it does about the way we tax savings income
Remember the old saying " DON'T PUT ALL YOUR EGGS IN ONE BASKET" 👌👌👌
William Hills. Ladbrokes. Betfred 🤣🤣
Isn’t interest on all those accounts only £60 a month or so at roughly 4% on £1500? £700 a year? The kids ones offer decent rates but most have a limit so hardly worth it is it? Hopefully, the stocks will plummet soon, I can’t work out why they haven’t already due to Brexit and general world shiiite, then invest in them....
It is money I used to put against the mortgage. As long as I'm getting at least my mortgage interest rate on my savings then it's a no-cost option. I am n o worse off for saving it and I can always lump it against the mortgage if rates drop further, but it's nice to have it in cash in the meantime. Agree as a pure rate arbitrage it's not worth it and it's administratively simple, just a bunch of standing orders from my main current account. I see it more as cost-free option for the cash rather than locking it up in mortgage repayments.
I'm getting 8% interest in P2P lending. Yes, it has risks, but to get high interest rates you have to take some risk.
ISAs are pointless, now that a big chunk of interest is tax free.
Property is probably your best option. Yes buy to let has effed everything up, but why should that stop you from investing.
A couple of Warren Buffett quotes
"Two super-contagious diseases, fear and greed, will forever occur in the investment community. The timing of these epidemics will be unpredictable. ... We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful." This is the simple recipe for being a contrarian investor.
"Most people get interested in stocks when everyone else is. The time to get interested is when no one else is. You can't buy what is popular and do well." Following the herd can be very dangerous. Just ask the many investors who staked their futures on technology stocks in 1999.
"Do not save what is left after spending, but spend what is left after saving." This is known as paying yourself first, and it works brilliantly for investors who develop this habit while they are young.
And another useful thought
Shoeshine boy, taxi driver, barber, beggar on the street, prostitute, cleaner, cook, house maid, car washer, newspaper boy, neighbourhood grocer are all very enterprising people looking out to make money in innovative ways. If you ever get stock market tips from them, beware. Beware of the stock market. (by the time everyday people are giving you tips like bitcoin, it's too late!)
Shoeshine boy, taxi driver, barber, a beggar on the street, prostitute, cleaner, cook, housemaid, car washer, newspaper boy, neighbourhood grocer are all very enterprising people looking out to make money in innovative ways. If you ever get stock market tips from them, beware. Beware of the stock market. (by the time everyday people are giving you tips like bitcoin, it's too late!)
That's kind of how I feel about buy to let, I did have four but sold three before the last property crash 2007/2008, there was a lot less competition then and house under the hammer had no kicked the market on, now everyone wants to do it and the Government are getting in on the act with extra forms of taxation, and rules and regulations, I feel the best days have gone, and it may be too late?
As someone said above that's just my opinion, do what you think is best for you
Same ad for me. Different location. Best guess from the ad companies on this occasion (profiling) rather than knowing what we are typing. Equity release is another that comes up...over 55 etc. But, as an experiment, I am thinking about going on an escorted rail and cruise holiday next year. Let's see if an ad for that pops up.
If no decent houses or flats become available soon I might have a look into Wealthify or st James place, both based in Cardiff too
Just based on on personal experience - avoid St James' Place. My old mam and my brother (and partner) use them. I don't.
I'm not sure where they are based as they rely on self employed IFAs from all over the country, but my understanding is that they are tied to a small number of 'super inverstors' (like Neil Woodford) and their returns are very poor compared to some of their competitors. I have certainly seen that over the past 5 years. I and my partner use Birchwood to invest our savings, and we have had a much better return than my mother and brother. I am very uncomfortable with most of this stuff - but given the alternatives of a sock under the bed, a 0% savings account, or a low risk investment portfolio (wrapper) we went for the last one.
In practice that meant the capital grew a small amount (in cash terms) and we had 5 years of a regular draw-down income on top to supplement the occupational pension.