Savings/investments - what do you do with yours

[Optimistic Nick]

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.

[stevebrickman]

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.

[dandywarhol]

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

[goats]

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.

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....

[Optimistic Nick]

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.

[Bluebina]

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....

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!)

[Bluebina]

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

[Bluebina]

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

PS Google knows what we are typing about the advert at the top of the page now says, a 28 year old from Bargoed got rich watching this video