Can you guys who know about these things advise why the FTSE has zoomed off into orbit and do you suspect it to last?
It's been underperforming for years & it's really only making up for lost time. Some of this rise is down to interest rate expectations & better GDP growth. But nothing has fundamentally changed & it only needs one piece of bad news to see profit taking coming in & the FTSE falling below 8000.
Can you guys who know about these things advise why the FTSE has zoomed off into orbit and do you suspect it to last?
It's been underperforming for years & it's really only making up for lost time. Some of this rise is down to interest rate expectations & better GDP growth. But nothing has fundamentally changed & it only needs one piece of bad news to see profit taking coming in & the FTSE falling below 8000.
That’s the spirit 😉
i suppose on a serious note so much about the economy is about attitude / talking up the prospects it feels. If we have reached the bottom since COVID and BREXIT reactions and a new government incoming in due course perhaps the only way is up.
Can you guys who know about these things advise why the FTSE has zoomed off into orbit and do you suspect it to last?
It's been underperforming for years & it's really only making up for lost time. Some of this rise is down to interest rate expectations & better GDP growth. But nothing has fundamentally changed & it only needs one piece of bad news to see profit taking coming in & the FTSE falling below 8000.
That’s the spirit 😉
i suppose on a serious note so much about the economy is about attitude / talking up the prospects it feels. If we have reached the bottom since COVID and BREXIT reactions and a new government incoming in due course perhaps the only way is up.
I'd agree with Golfie that there's been some well overdue catch up and convergence with other indexes. One of the things that's held it back (apart from having virtually no tech) is that it has a heavy weighting to oil majors and miners. They've been going up with inflation, so you have a counter-balancing effect.
Where I disagree is that this looks like a genuine breakout. In other words, it has broken out above all time highs, closed above those for several days in a row and done all that on decent volume. So that previous high (8048?) should now act as support. If I'm right, there will be a pull back to about there some time in the future, but that will be a buying opportunity. Maybe a 'Sell in May' pull back?
Also, as Nick says, all the Covid and Brexit reactions are in the rear-view mirror. People in the City I've spoken to see the change of government as no real change wrt business. Not sure they're right but that's how they see it.
That assumes no outbreak of WW III, etc. It also assumes the famous soft landing! Interest rates going down are usually to ward off a recession, so I think the US markets are fully priced.
For domestic, I still prefer the FTSE 250, which holds up well historically against the better indexes for returns.
Did a bit of spring-cleaning of my savings & Investments last week. Calculated that my Premium bonds returns so far this year are an utterly miserable 1.97%, in a holding of just under 43k. Meanwhile I was grateful to be able to renew £50k with DF Capital for another 12 months when this one expires early June, at 5.2%. The conclusion regarding my PBs is staring me in the face, but what do I do? nothing, because there’s that voice in my head saying “the stats will even things out, next month I might get a (relatively) big win, blah, blah. Most of you hear that voice too, (except for @Rob7Lee but he’s a badass😉). I conclude that PB is an utterly genius financial invention, and the work of the Devil.
Did a bit of spring-cleaning of my savings & Investments last week. Calculated that my Premium bonds returns so far this year are an utterly miserable 1.97%, in a holding of just under 43k. Meanwhile I was grateful to be able to renew £50k with DF Capital for another 12 months when this one expires early June, at 5.2%. The conclusion regarding my PBs is staring me in the face, but what do I do? nothing, because there’s that voice in my head saying “the stats will even things out, next month I might get a (relatively) big win, blah, blah. Most of you hear that voice too, (except for @Rob7Lee but he’s a badass😉). I conclude that PB is an utterly genius financial invention, and the work of the Devil.
Did a bit of spring-cleaning of my savings & Investments last week. Calculated that my Premium bonds returns so far this year are an utterly miserable 1.97%, in a holding of just under 43k. Meanwhile I was grateful to be able to renew £50k with DF Capital for another 12 months when this one expires early June, at 5.2%. The conclusion regarding my PBs is staring me in the face, but what do I do? nothing, because there’s that voice in my head saying “the stats will even things out, next month I might get a (relatively) big win, blah, blah. Most of you hear that voice too, (except for @Rob7Lee but he’s a badass😉). I conclude that PB is an utterly genius financial invention, and the work of the Devil.
Mate can anyone jump on the DF capital.
Unfortunately the deal I got was for existing customers only and the website says that they are not offering fixed rate deals at the moment. But there may be others still offering 5%. Take a look at MoneySavingExpert forum- Savings and Investments - Best fixed rate deals. Sorry I can’t provide a link right now, but that is the plače to get the definitive answer.
Did a bit of spring-cleaning of my savings & Investments last week. Calculated that my Premium bonds returns so far this year are an utterly miserable 1.97%, in a holding of just under 43k. Meanwhile I was grateful to be able to renew £50k with DF Capital for another 12 months when this one expires early June, at 5.2%. The conclusion regarding my PBs is staring me in the face, but what do I do? nothing, because there’s that voice in my head saying “the stats will even things out, next month I might get a (relatively) big win, blah, blah. Most of you hear that voice too, (except for @Rob7Lee but he’s a badass😉). I conclude that PB is an utterly genius financial invention, and the work of the Devil.
Mate can anyone jump on the DF capital.
Unfortunately the deal I got was for existing customers only and the website says that they are not offering fixed rate deals at the moment. But there may be others still offering 5%. Take a look at MoneySavingExpert forum- Savings and Investments - Best fixed rate deals. Sorry I can’t provide a link right now, but that is the plače to get the definitive answer.
Haven't opened one myself, but Monument Bank offering 5.2%
Did a bit of spring-cleaning of my savings & Investments last week. Calculated that my Premium bonds returns so far this year are an utterly miserable 1.97%, in a holding of just under 43k. Meanwhile I was grateful to be able to renew £50k with DF Capital for another 12 months when this one expires early June, at 5.2%. The conclusion regarding my PBs is staring me in the face, but what do I do? nothing, because there’s that voice in my head saying “the stats will even things out, next month I might get a (relatively) big win, blah, blah. Most of you hear that voice too, (except for @Rob7Lee but he’s a badass😉). I conclude that PB is an utterly genius financial invention, and the work of the Devil.
My wife hears that voice, very loudly! ....... wrestling the premium bonds off her would absolutely end in divorce, or worse! I've tried numerous times, even showing one of her ISA's that 4 years ago was around the same value as her holding, now of course has out stripped premium bonds by a good £30k! But what do I know........ I'm just dreading the day she gets a big win and I'll never hear the end of 'I told you so'.
PB's are like gambling or the lottery with the promise of your stake back, it feels like it's a 'nothing to lose' game, but of course the potential is the erosion of the value of your stake, especially as if you have the maximum you can't even reinvest.
Like you say, it's a genius invention and the work of the devil!
Is Taylor saying it's a UK bull market or a world bull market? If you were investing say 5 or 6 lump sums, what would you choose?
I'm thinking FTSE 100, FTSE 250 or All Share, S&P 500, US Equity tracker, Emerging Markets tracker, Japanese Tracker.
I think he's saying it's - possibly - a UK bull market.
As for lump sums, there are far more sensible people on here that will give you better advice. What I would say, yes, use pooled finds, spread them out of geographies and sectors. Plus drip them in gradually, rather than bang them in at once. If I only followed my own advice :-)
I’d be interested in the view of the Finance savvy guys on here, on my current financial setup. I’m thinking, it could be time for a radical change.
I’m 67 this year, I get a £37,000 private pension, and £10,500 state pension. I have Cash investments of £110,000 of which £20,000 is in an ISA. The remainder is in 1 year bonds , or highest interest available Easy Access accounts. No mortgage or debts.
The recent Bull markets have sent my Investments to an all time high. I have £145,000 in a Stocks and Shares ISA, and £44,000 in a non ISA share account.
The cash and dividends currently give about £12,000 interest/dividend income.
I’m thinking that as I’m 67 and not getting a younger, should I de risk my finances, a cash in my investments. I’m thinking if I move my shares and funds into cash within the ISA, I can then transfer that out to a Cash ISA or ISA,s (easy access or term) and safeguard my future finances.
I’d be interested in the view of the Finance savvy guys on here, on my current financial setup. I’m thinking, it could be time for a radical change.
I’m 67 this year, I get a £37,000 private pension, and £10,500 state pension. I have Cash investments of £110,000 of which £20,000 is in an ISA. The remainder is in 1 year bonds , or highest interest available Easy Access accounts. No mortgage or debts.
The recent Bull markets have sent my Investments to an all time high. I have £145,000 in a Stocks and Shares ISA, and £44,000 in a non ISA share account.
The cash and dividends currently give about £12,000 interest/dividend income.
I’m thinking that as I’m 67 and not getting a younger, should I de risk my finances, a cash in my investments. I’m thinking if I move my shares and funds into cash within the ISA, I can then transfer that out to a Cash ISA or ISA,s (easy access or term) and safeguard my future finances.
I’d be interested in the view of the Finance savvy guys on here, on my current financial setup. I’m thinking, it could be time for a radical change.
I’m 67 this year, I get a £37,000 private pension, and £10,500 state pension. I have Cash investments of £110,000 of which £20,000 is in an ISA. The remainder is in 1 year bonds , or highest interest available Easy Access accounts. No mortgage or debts.
The recent Bull markets have sent my Investments to an all time high. I have £145,000 in a Stocks and Shares ISA, and £44,000 in a non ISA share account.
The cash and dividends currently give about £12,000 interest/dividend income.
I’m thinking that as I’m 67 and not getting a younger, should I de risk my finances, a cash in my investments. I’m thinking if I move my shares and funds into cash within the ISA, I can then transfer that out to a Cash ISA or ISA,s (easy access or term) and safeguard my future finances.
Thoughts…..?
I am not an IFA and many of my thoughts are different to what a lot of IFA's advise. A lot of the answer to this would lie in your lifestyle choices and how you think how, and indeed if you will spend your savings and investments. Do you intend having extravagent holidays, new cars in the next few years or is it mainly "rainy day money". have you wife, a house, children you may wish to either leave or gift some money to. I am also assuming your private pension is index or inflation linked. A lot of IFA's will tell you at 67 you should reduce your investments considerably. However, if you are in good health, your life expectancy is nearly 20 years. Certainly historically it is a fact that stocks and shares have considerably outperformed cash, so you would be losing a huge opportunity in liquidating your investments. Having said all that I do think you are overbalanced in shares and a gradual reduction may be appropriate. As I say I'm not an IFA and not advising!
I’d be interested in the view of the Finance savvy guys on here, on my current financial setup. I’m thinking, it could be time for a radical change.
I’m 67 this year, I get a £37,000 private pension, and £10,500 state pension. I have Cash investments of £110,000 of which £20,000 is in an ISA. The remainder is in 1 year bonds , or highest interest available Easy Access accounts. No mortgage or debts.
The recent Bull markets have sent my Investments to an all time high. I have £145,000 in a Stocks and Shares ISA, and £44,000 in a non ISA share account.
The cash and dividends currently give about £12,000 interest/dividend income.
I’m thinking that as I’m 67 and not getting a younger, should I de risk my finances, a cash in my investments. I’m thinking if I move my shares and funds into cash within the ISA, I can then transfer that out to a Cash ISA or ISA,s (easy access or term) and safeguard my future finances.
Thoughts…..?
I am an IFA but this does not constitute advice......
Moving some (not all) of your S&S ISA's into a Cash ISA FOR NOW is not a bad move, if you can get around 4% on it. As @redman says, you shouldn't be de-risking it all, but with interest rates as they are you might want to take advantage because in 2-3 years time Cash wont be returning the same as it is now.
However, I mainly came on here to ask what you meant by "I get £37,000 private pension". Is that a Final Salary scheme paying you a guaranteed, index linked pension or a Personal Pension that you are drawing down ?. I can only assume the former but words like "private pension" means different things to different people.
My main advice to anyone coming to me with these questions/issues is usually thus - What are you trying to achieve ? More income? Or capital growth ?
How long do you want this money to last? Just your lifetime or for others once you're gone ?
What level of tax do you pay? Looks like your savings interest & dividends are taking you into 40%. That being the case you need to re-structire your "savings" and make them much more tax efficient. Maximise your ISA allowance every year. Then move your savings into other areas that pay no immediate tax. Premium Bonds for starters. Then look at other investments. That's where my free advice stops. Everything from then on is regulated advice.
I’d be interested in the view of the Finance savvy guys on here, on my current financial setup. I’m thinking, it could be time for a radical change.
I’m 67 this year, I get a £37,000 private pension, and £10,500 state pension. I have Cash investments of £110,000 of which £20,000 is in an ISA. The remainder is in 1 year bonds , or highest interest available Easy Access accounts. No mortgage or debts.
The recent Bull markets have sent my Investments to an all time high. I have £145,000 in a Stocks and Shares ISA, and £44,000 in a non ISA share account.
The cash and dividends currently give about £12,000 interest/dividend income.
I’m thinking that as I’m 67 and not getting a younger, should I de risk my finances, a cash in my investments. I’m thinking if I move my shares and funds into cash within the ISA, I can then transfer that out to a Cash ISA or ISA,s (easy access or term) and safeguard my future finances.
Thoughts…..?
My first questions on this are always two fold:
1. What is it you are saving and investing for? 2. Are you actually spending any capital at the moment, or just the interest?
You are into the higher tax bracket so getting non ISA money into an ISA or dare I say premium bonds (to avoid any tax burden) is a must.
After that it comes back to the above, what is it you are investing/saving for? What is tyour lifestyle, do you envisage needing more in future years, do you want to spend more now?
Regardless of the above I would as a start move the £44k out of a taxable account and either put in a Cash ISA or Premium bonds. After that it needs a lot more info really.
Another story that appears to say something, but ultimately doesn't. It quotes just ONE fund that has performed very badly, and surprise surprise its Woodford's old Invesco High Income fund.
It's a bit like saying that 91 teams failed to beat Man City over the past 4 years and then quote Charlton's record this season to show how bad other teams are.
And for the record I'm seeing a client tomorrow who has a Royal London pension, invested in around 12 funds. Return over the period 20/05/23 to 20/05/24 was 14.4%. I think that comfortably beats the FTSE All Share Index over that time period !
Another story that appears to say something, but ultimately doesn't. It quotes just ONE fund that has performed very badly, and surprise surprise its Woodford's old Invesco High Income fund.
It's a bit like saying that 91 teams failed to beat Man City over the past 4 years and then quote Charlton's record this season to show how bad other teams are.
And for the record I'm seeing a client tomorrow who has a Royal London pension, invested in around 12 funds. Return over the period 20/05/23 to 20/05/24 was 14.4%. I think that comfortably beats the FTSE All Share Index over that time period !
Not quite how I read the article - yes it quotes the Invesco Perp fund as being the lowest over the last 10 years at 13% compared to the iShares UK Equity index at 73%, but don't think it's basing everything on that one fund, it states 91% of UK funds have done worse than the iShares one above i.e. investment funds, not peoples individual pensions.
But it is interesting that 91% of UK funds can't beat the simple iShares tracker. Mirrors some of my experience in general that a lot of the time the trackers out perform (especially once you take into account the fund fee's) the managed funds.
Another story that appears to say something, but ultimately doesn't. It quotes just ONE fund that has performed very badly, and surprise surprise its Woodford's old Invesco High Income fund.
It's a bit like saying that 91 teams failed to beat Man City over the past 4 years and then quote Charlton's record this season to show how bad other teams are.
And for the record I'm seeing a client tomorrow who has a Royal London pension, invested in around 12 funds. Return over the period 20/05/23 to 20/05/24 was 14.4%. I think that comfortably beats the FTSE All Share Index over that time period !
Not quite how I read the article - yes it quotes the Invesco Perp fund as being the lowest over the last 10 years at 13% compared to the iShares UK Equity index at 73%, but don't think it's basing everything on that one fund, it states 91% of UK funds have done worse than the iShares one above i.e. investment funds, not peoples individual pensions.
But it is interesting that 91% of UK funds can't beat the simple iShares tracker. Mirrors some of my experience in general that a lot of the time the trackers out perform (especially once you take into account the fund fee's) the managed funds.
But they are measuring apples against pears. And what is a "typical" pension fund anyway ? I know a lot of "uk pensions" are invested into default managed funds, which could have a lot of Bonds & Gilts in them. Over the past couple of years being invested into Fixed Interst funds would have really brought down any performance. They are not measuring the same thing if they are comparing a pension fund against the All Share Index.
Another story that appears to say something, but ultimately doesn't. It quotes just ONE fund that has performed very badly, and surprise surprise its Woodford's old Invesco High Income fund.
It's a bit like saying that 91 teams failed to beat Man City over the past 4 years and then quote Charlton's record this season to show how bad other teams are.
And for the record I'm seeing a client tomorrow who has a Royal London pension, invested in around 12 funds. Return over the period 20/05/23 to 20/05/24 was 14.4%. I think that comfortably beats the FTSE All Share Index over that time period !
Not quite how I read the article - yes it quotes the Invesco Perp fund as being the lowest over the last 10 years at 13% compared to the iShares UK Equity index at 73%, but don't think it's basing everything on that one fund, it states 91% of UK funds have done worse than the iShares one above i.e. investment funds, not peoples individual pensions.
But it is interesting that 91% of UK funds can't beat the simple iShares tracker. Mirrors some of my experience in general that a lot of the time the trackers out perform (especially once you take into account the fund fee's) the managed funds.
But they are measuring apples against pears. And what is a "typical" pension fund anyway ? I know a lot of "uk pensions" are invested into default managed funds, which could have a lot of Bonds & Gilts in them. Over the past couple of years being invested into Fixed Interst funds would have really brought down any performance. They are not measuring the same thing if they are comparing a pension fund against the All Share Index.
Of course they are not measuring the same thing - if they were then there would be no difference.
They are measuring 'different' investment strategies and their respective returns over time.
Another story that appears to say something, but ultimately doesn't. It quotes just ONE fund that has performed very badly, and surprise surprise its Woodford's old Invesco High Income fund.
It's a bit like saying that 91 teams failed to beat Man City over the past 4 years and then quote Charlton's record this season to show how bad other teams are.
And for the record I'm seeing a client tomorrow who has a Royal London pension, invested in around 12 funds. Return over the period 20/05/23 to 20/05/24 was 14.4%. I think that comfortably beats the FTSE All Share Index over that time period !
Not quite how I read the article - yes it quotes the Invesco Perp fund as being the lowest over the last 10 years at 13% compared to the iShares UK Equity index at 73%, but don't think it's basing everything on that one fund, it states 91% of UK funds have done worse than the iShares one above i.e. investment funds, not peoples individual pensions.
But it is interesting that 91% of UK funds can't beat the simple iShares tracker. Mirrors some of my experience in general that a lot of the time the trackers out perform (especially once you take into account the fund fee's) the managed funds.
Yeah, I read it the same. Using bad examples maybe but bottom line is 9/10 managed funds don't beat the tracker.
Didn't Buffet basically say once upon a time, pick a low fee tracker fund and just stick with it. The majority of the time it'll outperform managed funds over a meaningful period?
For the last year, my tracker has done 20.4% which ain't too shabby.
Another story that appears to say something, but ultimately doesn't. It quotes just ONE fund that has performed very badly, and surprise surprise its Woodford's old Invesco High Income fund.
It's a bit like saying that 91 teams failed to beat Man City over the past 4 years and then quote Charlton's record this season to show how bad other teams are.
And for the record I'm seeing a client tomorrow who has a Royal London pension, invested in around 12 funds. Return over the period 20/05/23 to 20/05/24 was 14.4%. I think that comfortably beats the FTSE All Share Index over that time period !
Not quite how I read the article - yes it quotes the Invesco Perp fund as being the lowest over the last 10 years at 13% compared to the iShares UK Equity index at 73%, but don't think it's basing everything on that one fund, it states 91% of UK funds have done worse than the iShares one above i.e. investment funds, not peoples individual pensions.
But it is interesting that 91% of UK funds can't beat the simple iShares tracker. Mirrors some of my experience in general that a lot of the time the trackers out perform (especially once you take into account the fund fee's) the managed funds.
But they are measuring apples against pears. And what is a "typical" pension fund anyway ? I know a lot of "uk pensions" are invested into default managed funds, which could have a lot of Bonds & Gilts in them. Over the past couple of years being invested into Fixed Interst funds would have really brought down any performance. They are not measuring the same thing if they are comparing a pension fund against the All Share Index.
I think you are coming from a different angle on 'pension fund' - you are coming at it from someone's overall pension fund, the report is comparing different funds, i.e. iShares UK equity v's other UK equity funds, not individuals pensions made up of numerous funds.
Another story that appears to say something, but ultimately doesn't. It quotes just ONE fund that has performed very badly, and surprise surprise its Woodford's old Invesco High Income fund.
It's a bit like saying that 91 teams failed to beat Man City over the past 4 years and then quote Charlton's record this season to show how bad other teams are.
And for the record I'm seeing a client tomorrow who has a Royal London pension, invested in around 12 funds. Return over the period 20/05/23 to 20/05/24 was 14.4%. I think that comfortably beats the FTSE All Share Index over that time period !
Not quite how I read the article - yes it quotes the Invesco Perp fund as being the lowest over the last 10 years at 13% compared to the iShares UK Equity index at 73%, but don't think it's basing everything on that one fund, it states 91% of UK funds have done worse than the iShares one above i.e. investment funds, not peoples individual pensions.
But it is interesting that 91% of UK funds can't beat the simple iShares tracker. Mirrors some of my experience in general that a lot of the time the trackers out perform (especially once you take into account the fund fee's) the managed funds.
Yeah, I read it the same. Using bad examples maybe but bottom line is 9/10 managed funds don't beat the tracker.
Didn't Buffet basically say once upon a time, pick a low fee tracker fund and just stick with it. The majority of the time it'll outperform managed funds over a meaningful period?
For the last year, my tracker has done 20.4% which ain't too shabby.
Buffets view is simple, invest in an S&P tracker. He's not wrong, of my numerous funds in my pension my S&P Tracker since June 2022 is up 40%, by far the best performing. My next best is Vanguards life strategy 100%, only up 28%! I've a few others in the mid 20's a Japan ETF, FTSE100 ETF and a FTSE Developed Europe ETF.
Just wish I'd gone full on Buffet and put it all in the S&P :-)
Little doubt US index trackers have been brilliant over almost any time scale. Looking at my ISA's the 2011/12 invested here (not sure offhand which index was up 426% at March 2024! Having said I'm not suggesting all in one basket, but wish I had more than 37% of my Share ISA's in US trackers (and less in UK!)
Another story that appears to say something, but ultimately doesn't. It quotes just ONE fund that has performed very badly, and surprise surprise its Woodford's old Invesco High Income fund.
It's a bit like saying that 91 teams failed to beat Man City over the past 4 years and then quote Charlton's record this season to show how bad other teams are.
And for the record I'm seeing a client tomorrow who has a Royal London pension, invested in around 12 funds. Return over the period 20/05/23 to 20/05/24 was 14.4%. I think that comfortably beats the FTSE All Share Index over that time period !
Not quite how I read the article - yes it quotes the Invesco Perp fund as being the lowest over the last 10 years at 13% compared to the iShares UK Equity index at 73%, but don't think it's basing everything on that one fund, it states 91% of UK funds have done worse than the iShares one above i.e. investment funds, not peoples individual pensions.
But it is interesting that 91% of UK funds can't beat the simple iShares tracker. Mirrors some of my experience in general that a lot of the time the trackers out perform (especially once you take into account the fund fee's) the managed funds.
Yeah, I read it the same. Using bad examples maybe but bottom line is 9/10 managed funds don't beat the tracker.
Didn't Buffet basically say once upon a time, pick a low fee tracker fund and just stick with it. The majority of the time it'll outperform managed funds over a meaningful period?
For the last year, my tracker has done 20.4% which ain't too shabby.
I'm sorry I disagree....and 33 years in the industry I think I know the difference between the funds they are trying to measure against.
They are using the FTSE All Share as a base, which is daft as that Index is made up of all the shares listed on the UK stock exchange. I doubt whether even 1% of "pension funds" invest wholly in this Index and so, of course, some funds will perform better or worse than it. The "best performer" they use as a benchmark is the iShares UK Equity Index which tracks the FTSE Allshare. As I said, how many of the funds they are putting up against this benchmark invest solely in the UK stockmarket ? Not many I expect. The IP High Income fund used to invest in big dividend paying companies (until Woodford went rogue) and so, as I said, not measuring apples against apples.
How robust are the banks nowadays as I noticed that my savings with Marcus have gone over the £85000.00 guarantee threshold is it worth moving some to get it below that amount
How robust are the banks nowadays as I noticed that my savings with Marcus have gone over the £85000.00 guarantee threshold is it worth moving some to get it below that amount
Much, much stronger than they were and they're forced to have plans on how they would wind down in an orderly fashion, including their operations. But I'd still spread my money around.
How robust are the banks nowadays as I noticed that my savings with Marcus have gone over the £85000.00 guarantee threshold is it worth moving some to get it below that amount
If Goldman Sachs go pop then we are all in trouble!
Sticking to larger financial organisations mitigates the risk (however small) rather than depositing with challenger banks. All deposits with NS&I are guaranteed but their rates are not the best (apart from the 6.2% that was available for a brief period last year).
Comments
Can you guys who know about these things advise why the FTSE has zoomed off into orbit and do you suspect it to last?
i suppose on a serious note so much about the economy is about attitude / talking up the prospects it feels. If we have reached the bottom since COVID and BREXIT reactions and a new government incoming in due course perhaps the only way is up.
Where I disagree is that this looks like a genuine breakout. In other words, it has broken out above all time highs, closed above those for several days in a row and done all that on decent volume. So that previous high (8048?) should now act as support. If I'm right, there will be a pull back to about there some time in the future, but that will be a buying opportunity. Maybe a 'Sell in May' pull back?
Also, as Nick says, all the Covid and Brexit reactions are in the rear-view mirror. People in the City I've spoken to see the change of government as no real change wrt business. Not sure they're right but that's how they see it.
That assumes no outbreak of WW III, etc. It also assumes the famous soft landing! Interest rates going down are usually to ward off a recession, so I think the US markets are fully priced.
For domestic, I still prefer the FTSE 250, which holds up well historically against the better indexes for returns.
https://knowledge.sharescope.co.uk/2024/05/10/the-trader-the-indices-revisited/?utm_source=ShareScope+%26+SharePad+09.05.18&utm_campaign=4aa9834f77-EMAIL_CAMPAIGN_2018_01_03_COPY_01&utm_medium=email&utm_term=0_2d8ede27b4-4aa9834f77-99253589
If you were investing say 5 or 6 lump sums, what would you choose?
I'm thinking FTSE 100, FTSE 250 or All Share, S&P 500, US Equity tracker, Emerging Markets tracker, Japanese Tracker.
PB's are like gambling or the lottery with the promise of your stake back, it feels like it's a 'nothing to lose' game, but of course the potential is the erosion of the value of your stake, especially as if you have the maximum you can't even reinvest.
Like you say, it's a genius invention and the work of the devil!
As for lump sums, there are far more sensible people on here that will give you better advice. What I would say, yes, use pooled finds, spread them out of geographies and sectors. Plus drip them in gradually, rather than bang them in at once. If I only followed my own advice :-)
The recent Bull markets have sent my Investments to an all time high. I have £145,000 in a Stocks and Shares ISA, and £44,000 in a non ISA share account.
The cash and dividends currently give about £12,000 interest/dividend income.
A lot of the answer to this would lie in your lifestyle choices and how you think how, and indeed if you will spend your savings and investments. Do you intend having extravagent holidays, new cars in the next few years or is it mainly "rainy day money". have you wife, a house, children you may wish to either leave or gift some money to.
I am also assuming your private pension is index or inflation linked.
A lot of IFA's will tell you at 67 you should reduce your investments considerably. However, if you are in good health, your life expectancy is nearly 20 years. Certainly historically it is a fact that stocks and shares have considerably outperformed cash, so you would be losing a huge opportunity in liquidating your investments. Having said all that I do think you are overbalanced in shares and a gradual reduction may be appropriate.
As I say I'm not an IFA and not advising!
Moving some (not all) of your S&S ISA's into a Cash ISA FOR NOW is not a bad move, if you can get around 4% on it. As @redman says, you shouldn't be de-risking it all, but with interest rates as they are you might want to take advantage because in 2-3 years time Cash wont be returning the same as it is now.
However, I mainly came on here to ask what you meant by "I get £37,000 private pension". Is that a Final Salary scheme paying you a guaranteed, index linked pension or a Personal Pension that you are drawing down ?. I can only assume the former but words like "private pension" means different things to different people.
My main advice to anyone coming to me with these questions/issues is usually thus -
What are you trying to achieve ? More income? Or capital growth ?
How long do you want this money to last? Just your lifetime or for others once you're gone ?
What level of tax do you pay? Looks like your savings interest & dividends are taking you into 40%. That being the case you need to re-structire your "savings" and make them much more tax efficient. Maximise your ISA allowance every year. Then move your savings into other areas that pay no immediate tax. Premium Bonds for starters. Then look at other investments. That's where my free advice stops. Everything from then on is regulated advice.
1. What is it you are saving and investing for?
2. Are you actually spending any capital at the moment, or just the interest?
You are into the higher tax bracket so getting non ISA money into an ISA or dare I say premium bonds (to avoid any tax burden) is a must.
After that it comes back to the above, what is it you are investing/saving for? What is tyour lifestyle, do you envisage needing more in future years, do you want to spend more now?
Regardless of the above I would as a start move the £44k out of a taxable account and either put in a Cash ISA or Premium bonds. After that it needs a lot more info really.
https://www.msn.com/en-gb/money/other/nine-in-ten-pensions-get-worse-returns-than-simple-all-share-tracker-fund/ar-BB1mJclU?ocid=hpmsn&cvid=035ff9baac6b4aaa8b9526b92b4cdf21&ei=26
It's a bit like saying that 91 teams failed to beat Man City over the past 4 years and then quote Charlton's record this season to show how bad other teams are.
And for the record I'm seeing a client tomorrow who has a Royal London pension, invested in around 12 funds. Return over the period 20/05/23 to 20/05/24 was 14.4%. I think that comfortably beats the FTSE All Share Index over that time period !
But it is interesting that 91% of UK funds can't beat the simple iShares tracker. Mirrors some of my experience in general that a lot of the time the trackers out perform (especially once you take into account the fund fee's) the managed funds.
Didn't Buffet basically say once upon a time, pick a low fee tracker fund and just stick with it. The majority of the time it'll outperform managed funds over a meaningful period?
For the last year, my tracker has done 20.4% which ain't too shabby.
Buffets view is simple, invest in an S&P tracker. He's not wrong, of my numerous funds in my pension my S&P Tracker since June 2022 is up 40%, by far the best performing. My next best is Vanguards life strategy 100%, only up 28%! I've a few others in the mid 20's a Japan ETF, FTSE100 ETF and a FTSE Developed Europe ETF.
Just wish I'd gone full on Buffet and put it all in the S&P :-)
They are using the FTSE All Share as a base, which is daft as that Index is made up of all the shares listed on the UK stock exchange. I doubt whether even 1% of "pension funds" invest wholly in this Index and so, of course, some funds will perform better or worse than it. The "best performer" they use as a benchmark is the iShares UK Equity Index which tracks the FTSE Allshare. As I said, how many of the funds they are putting up against this benchmark invest solely in the UK stockmarket ? Not many I expect. The IP High Income fund used to invest in big dividend paying companies (until Woodford went rogue) and so, as I said, not measuring apples against apples.