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Savings and Investments thread
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3x£25 for me. That's only one month in the past year that I didn't win anything.
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My wife and I pay £1500/month into AVCs at the moment. Very general question, but given the economic mayhem on the horizon, would it be wise to switch out of higher risk funds or is it the view that fund managers generally find a way to make money regardless of the circumstances?
I am a financial simpleton, so please keep answers straightforward.0 -
But where’s the fun in that!!golfaddick said:Do you know that you can get a no-risk, capital protected plan paying 5% pa. Admittedly it's for 6 years (although you can cash it in during that time if you need to) & you may come out of it after 6 years with just your initial investment (chance of that is less than 10% though)......
that said where here is this 5% 6 year bond/investment, although more it might make nothing.
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Ages?Uboat said:My wife and I pay £1500/month into AVCs at the moment. Very general question, but given the economic mayhem on the horizon, would it be wise to switch out of higher risk funds or is it the view that fund managers generally find a way to make money regardless of the circumstances?
I am a financial simpleton, so please keep answers straightforward.0 -
Late 40sRob7Lee said:
Ages?Uboat said:My wife and I pay £1500/month into AVCs at the moment. Very general question, but given the economic mayhem on the horizon, would it be wise to switch out of higher risk funds or is it the view that fund managers generally find a way to make money regardless of the circumstances?
I am a financial simpleton, so please keep answers straightforward.0 -
Assuming you aren’t looking to draw it in the next 5 years or so then personally I’d carry on as you are paying in monthly. If investments go down the next month you’ll get more for your money.Uboat said:
Late 40sRob7Lee said:
Ages?Uboat said:My wife and I pay £1500/month into AVCs at the moment. Very general question, but given the economic mayhem on the horizon, would it be wise to switch out of higher risk funds or is it the view that fund managers generally find a way to make money regardless of the circumstances?
I am a financial simpleton, so please keep answers straightforward.
Better to say invested, or alternatively speak to an IFA and review the overall portfolio.0 -
I'd put it more cynically. There is an awful lot of money in the world looking for a return. It's gotta go somewhere and 2% doesn't cut it for the big money. That, rather than the brilliance of fund managers, is what helps us great unwashed make gains from being in markets. Personally, also I believe that a regular monthly amount is a good way to invest in times of uncertainty. So from my POV I would keep feeding money in as you are doing, but maybe increase the relative amount you put into more cautious funds. Another variant on that is to make sure most of the funds are low cost trackers rather than active managed funds, regardless of focus. Vanguard are a good example of such funds.Uboat said:My wife and I pay £1500/month into AVCs at the moment. Very general question, but given the economic mayhem on the horizon, would it be wise to switch out of higher risk funds or is it the view that fund managers generally find a way to make money regardless of the circumstances?
I am a financial simpleton, so please keep answers straightforward.
But I will be interested to see how @Rob7Lee answers you, and I always pay close attention to his viewpoint on such matters. (Or to put it more bluntly, his opinion is better informed than mine!)
Edit, see he has already answered you. Maybe he will comment on my comments...0 -
Premium bonds..£75. Better than a poke in the eye, I suppose.0
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Thanks for the answers. I'll leave things be then. I'm so financially thick that it hadn't even occurred to me that each new month's money was buying units at a different price. It's no wonder I can't keep track of how well my money is doing. I think I'll forget about it then check back in ten years.0
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That is a very good plan. I learnt this when (as i wrote here a while back) I tracked down some shares in Unilever that my wife thought she no longer had (as they were part of her employment package and she had left in 2007, and anyway thought they didn't amount to much) I will never forget her face as she watched me on the phone to the Dutch bank which had quietly been sitting on her account all that time.." 8500 euros, you say...and another account..1,500 euros in that one...and thats a normal current account, you say...so she can have a debit card for it..." and then I graphed up the performance of Unilever versus global stock markets over that period, and Unilever had absolutely crushed every index you could think of. My point though is, that if we had known about it all that time, I would have probably constantly been saying to myself, OK, its done well, maybe time to take profits, etc, etc. and would never have got to the point where she is sitting on profits of over 240% over the period and a nice little euro denominated current account where the dividends go, from which she occasionally even buys me a drink while on holiday :-).Uboat said:Thanks for the answers. I'll leave things be then. I'm so financially thick that it hadn't even occurred to me that each new month's money was buying units at a different price. It's no wonder I can't keep track of how well my money is doing. I think I'll forget about it then check back in ten years.
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3 x £25 for me. Have money in equities, ISAs, funds and a SIPP - but the premium bonds are more fun!
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nothing for me, £25 for the missus. Have invested another hefty chunk in September so hoping for some good news in their first draw next month.
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PragueAddick said:
I'd put it more cynically. There is an awful lot of money in the world looking for a return. It's gotta go somewhere and 2% doesn't cut it for the big money. That, rather than the brilliance of fund managers, is what helps us great unwashed make gains from being in markets. Personally, also I believe that a regular monthly amount is a good way to invest in times of uncertainty. So from my POV I would keep feeding money in as you are doing, but maybe increase the relative amount you put into more cautious funds. Another variant on that is to make sure most of the funds are low cost trackers rather than active managed funds, regardless of focus. Vanguard are a good example of such funds.Uboat said:My wife and I pay £1500/month into AVCs at the moment. Very general question, but given the economic mayhem on the horizon, would it be wise to switch out of higher risk funds or is it the view that fund managers generally find a way to make money regardless of the circumstances?
I am a financial simpleton, so please keep answers straightforward.
But I will be interested to see how @Rob7Lee answers you, and I always pay close attention to his viewpoint on such matters. (Or to put it more bluntly, his opinion is better informed than mine!)
Edit, see he has already answered you. Maybe he will comment on my comments...
A regular monthly amount over a sustained period is always the best investment way in my view, if anyone can double guess the market and when to buy then they would be very rich. if you are ten years plus away I'd personally still maintain a more risky element and maybe start to stagger it 5-7 years out.That said I do buy and sell in my SIPP and also add to my ISA both monthly and lump sums from time to time.
I have a mixture of low cost trackers and managed, although the managed costs are higher they have for me tended to perform much better (so far) even after all costs.
Something I did with my father in law, in the 3 years prior to his retirement we maxed out his pension contributions (100% of salary) all into a cash fund so although it only grew a few % a year with the tax reclaim he was making 20% immediately.
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You really need to speak to a financial adviser. The VERY worse thing you can do is to just carry on for the next 10 years without reviewing it.Uboat said:Thanks for the answers. I'll leave things be then. I'm so financially thick that it hadn't even occurred to me that each new month's money was buying units at a different price. It's no wonder I can't keep track of how well my money is doing. I think I'll forget about it then check back in ten years.
I have a client who did this (before he became my client). High earner paying into a GPP who just left it there when he left & joined a another company. I found that 75% of his fund was invested in CASH. He's only 40.0 -
Rob7Lee said:
But where’s the fun in that!!golfaddick said:Do you know that you can get a no-risk, capital protected plan paying 5% pa. Admittedly it's for 6 years (although you can cash it in during that time if you need to) & you may come out of it after 6 years with just your initial investment (chance of that is less than 10% though)......
that said where here is this 5% 6 year bond/investment, although more it might make nothing.
Structured Product. Based on the FTSE100. No risk, capital protected. It is taxable but it can be invested via an ISA.....or put in a non-tapayers name.
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Scottish Widows Capital Protected Guaranteed Investment Bond ?0
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golfaddick said:Rob7Lee said:
But where’s the fun in that!!golfaddick said:Do you know that you can get a no-risk, capital protected plan paying 5% pa. Admittedly it's for 6 years (although you can cash it in during that time if you need to) & you may come out of it after 6 years with just your initial investment (chance of that is less than 10% though)......
that said where here is this 5% 6 year bond/investment, although more it might make nothing.
Structured Product. Based on the FTSE100. No risk, capital protected. It is taxable but it can be invested via an ISA.....or put in a non-tapayers name.
Problem with those is, yes capital protected but if the FTSE performs you only get an amount of the growth (in my experience). I'm very stock heavy anyway.0 -
It's invested with Prudential in three pots. 25% in one that is described as high risk, 50% in medium risk and 25% in a so called 'safe' fund, that has actually lost money in the last 18 months. My instinct is to put everything in high risk, so I have already been restrained by a financial advisor.golfaddick said:
You really need to speak to a financial adviser. The VERY worse thing you can do is to just carry on for the next 10 years without reviewing it.Uboat said:Thanks for the answers. I'll leave things be then. I'm so financially thick that it hadn't even occurred to me that each new month's money was buying units at a different price. It's no wonder I can't keep track of how well my money is doing. I think I'll forget about it then check back in ten years.
I have a client who did this (before he became my client). High earner paying into a GPP who just left it there when he left & joined a another company. I found that 75% of his fund was invested in CASH. He's only 40.0 -
No. Its a Structured product & generally only sold via the intermediary market. I don't usually get involved in the deposit based ones as they are subject to income tax, whereas the investment ones are subject to CGT and depending on the amount invested & the returns made you can usually use your annual exemption to mitigate any tax payable.Covered End said:Scottish Widows Capital Protected Guaranteed Investment Bond ?
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Rob7Lee said:golfaddick said:Rob7Lee said:
But where’s the fun in that!!golfaddick said:Do you know that you can get a no-risk, capital protected plan paying 5% pa. Admittedly it's for 6 years (although you can cash it in during that time if you need to) & you may come out of it after 6 years with just your initial investment (chance of that is less than 10% though)......
that said where here is this 5% 6 year bond/investment, although more it might make nothing.
Structured Product. Based on the FTSE100. No risk, capital protected. It is taxable but it can be invested via an ISA.....or put in a non-tapayers name.
Problem with those is, yes capital protected but if the FTSE performs you only get an amount of the growth (in my experience). I'm very stock heavy anyway.I use them in a number of ways. There are defensive ones that pay out a % of the value of the FTSE100, so you can make a gain even if the FTSE has fallen. Seeing a client next month who has made 17% over the last 2 years, based on an initial FTSE value of 7010 points. As long as the FTSE100 is above 6650 it will pay out. If not it continues onto next year, with the payout then being 25.5% based on the FTSE100 being above 6300.
The deposit based one I mentioned is based on the FTSE100 rising just 1 point over the 6 years - to get back 30%.
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Just rememberd why I came on here................Bad day for investors.
Stock markets falling. FTSE100 down almost 2.5%, mid 250 by 1.3%. France down by 2.1%, Germany by 1.7%, Spain by 1.6%.
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Anyone any experience or knowledge of this lot: Property Bond UK? Seem to be saying you can get up to 11.52% return! Seems a bit too good...
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cafc-west said:Anyone any experience or knowledge of this lot: Property Bond UK? Seem to be saying you can get up to 11.52% return! Seems a bit too good...
No idea...........and I'm an IFA !!
Tried google but that isn't given me much info. What I will say is that it isn't "government backed". Ie, the UK Government isn't going to step in & return all your money if it collapses. An the FCA bit.............basically says that "someone with FCA accreditation sits on the board". Not that its FCA approved. I'm FCA accredited if that makes any difference, so if I sat on the CAFC board does that mean CAFC are full FCA protected. doubt it.
So as you say..........if it looks too good to be true - then beware. Nothing 100% guaranteed pays anything like 11%.
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Sounds like London Capital Finance MK2......... avoid avoid avoid!
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@golfaddick. They are very tricky with how they word things. Checked the FCA register (I worked for the FCA for a bit) and nothing. In this case I think the old saying "If it looks too good, then it probably is" means steer clear. Thanks for the feedback.golfaddick said:cafc-west said:Anyone any experience or knowledge of this lot: Property Bond UK? Seem to be saying you can get up to 11.52% return! Seems a bit too good...No idea...........and I'm an IFA !!
Tried google but that isn't given me much info. What I will say is that it isn't "government backed". Ie, the UK Government isn't going to step in & return all your money if it collapses. An the FCA bit.............basically says that "someone with FCA accreditation sits on the board". Not that its FCA approved. I'm FCA accredited if that makes any difference, so if I sat on the CAFC board does that mean CAFC are full FCA protected. doubt it.
So as you say..........if it looks too good to be true - then beware. Nothing 100% guaranteed pays anything like 11%.
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Pension statement enquiry.
I received a statement from an old dormant pension today which gives a transfer value of £240000.
Does this mean I can take 25% of this as my tax free lump sum? i.e. £60000.
If not how is the lump sum calculated?0 -
Very most likely. However, it may depend on exactly what type of scheme it is.....if very old you might be able to take more ! However it also all depends on the total amount that you have in pensions when measured against The Lifetime Allowance.iainment said:Pension statement enquiry.
I received a statement from an old dormant pension today which gives a transfer value of £240000.
Does this mean I can take 25% of this as my tax free lump sum? i.e. £60000.
If not how is the lump sum calculated?
Seeing as you mentioned it being "old" & "dormant" can I ask if its an old employers final salary scheme as that again could be different too.0 -
Many thanks.golfaddick said:
Very most likely. However, it may depend on exactly what type of scheme it is.....if very old you might be able to take more ! However it also all depends on the total amount that you have in pensions when measured against The Lifetime Allowance.iainment said:Pension statement enquiry.
I received a statement from an old dormant pension today which gives a transfer value of £240000.
Does this mean I can take 25% of this as my tax free lump sum? i.e. £60000.
If not how is the lump sum calculated?
Seeing as you mentioned it being "old" & "dormant" can I ask if its an old employers final salary scheme as that again could be different too.
In 1982 I transferred my council pension into a private pension. Since then it's dormant inasmuch as I haven't put anything else in.0 -
On the face of it, yes you can.iainment said:Pension statement enquiry.
I received a statement from an old dormant pension today which gives a transfer value of £240000.
Does this mean I can take 25% of this as my tax free lump sum? i.e. £60000.
If not how is the lump sum calculated?0 -
If its an old retirement annuity plan then the tax free cash could be 30%......but you'd have to check with the pension co.iainment said:
Many thanks.golfaddick said:
Very most likely. However, it may depend on exactly what type of scheme it is.....if very old you might be able to take more ! However it also all depends on the total amount that you have in pensions when measured against The Lifetime Allowance.iainment said:Pension statement enquiry.
I received a statement from an old dormant pension today which gives a transfer value of £240000.
Does this mean I can take 25% of this as my tax free lump sum? i.e. £60000.
If not how is the lump sum calculated?
Seeing as you mentioned it being "old" & "dormant" can I ask if its an old employers final salary scheme as that again could be different too.
In 1982 I transferred my council pension into a private pension. Since then it's dormant inasmuch as I haven't put anything else in.0
