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Savings and Investments thread
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Take a look at that Money Saving Expert link I posted above. He tackles exactly that question.SantaClaus said:My other half wants to put a chunk of her savings into premium bonds. What's the maximum that you put in (per year/overall)? Is there any other easy access savings product that offers better returns and protection?1 -
Thanks Prague.PragueAddick said:
Take a look at that Money Saving Expert link I posted above. He tackles exactly that question.SantaClaus said:My other half wants to put a chunk of her savings into premium bonds. What's the maximum that you put in (per year/overall)? Is there any other easy access savings product that offers better returns and protection?0 -
You really must get out more........lolLargeAddick said:On Premium Bonds, £75 this month and last month. I haven’t worked out the return I’m getting but that isn’t really the point. It’s that my money is safe, I have instant access to it and once a month there is the excitement of checking to see if you have won and the hope that one day you win a big prize, tax free.0 -
Just catching up on this thread & noticed this post. Not entirely true re carry forward anymore. Firstly you will need to have the sufficient earnings to support the carry forward & also to have maxed out this year's allowance. Therefore to carry forward just one year you will need to have earned £80k & also have put in £40k this year. Other rules also apply but those are the ones that generally catch people out.Rob7Lee said:
In that case load up a cash ISA before the new tax year. I wouldn't worry about rushing the pension this month. I don't know what you earn, cash in bank etc, but by the sounds of it you will have a large carry forward allowance from the three prior years if you and your employer have not been contributing to a pension and have been working/earning. It very much depends on your circumstances/employed/self employed/salary etc but potentially you could have over £100k of allowance to use.swords_alive said:Thanks both.
Pension and ISA yes, more so the former but wanted to get the lump invested asap in one or both. However Brexit is causing me extra hesitation, naturally. A shorter term fixed rate ISA would alleviate that and give me the time I need to shop around.
Thanks for the numbers @golfaddick and other points made. I'd definitely need the professional input but keen to learn for myself in parallel. Octopus investments has been recommended to me in the past and I'll probably have a poke around there in due course too.
I think it'd be worth you seeing an advisor in general, as an example you have turned 50, when/what are your retirement plans, you may be better off not having an ISA and loading up the pension, taking the tax relief as you would be able to access in 5 years and earn minimum of 25% from the governments contribution, maybe more if a higher rate tax payer.
These are all general points, and your own personal circumstances need taking into account.0 -
Are you saying you’d need to earn £80k this tax year?
say I earned £50k every year, couldn’t I pay in £40k this year and £40k for last year?0 -
Post Office easy access online account pays 1.38% was1.45% but was recently lowered. Good thing is just keep your eye on the account. If it rises simple online switch to the new offer.SantaClaus said:My other half wants to put a chunk of her savings into premium bonds. What's the maximum that you put in (per year/overall)? Is there any other easy access savings product that offers better returns and protection?
Or or if prepared to tie money up you can get up to 2% on a one year bond.0 -
No. You can only pay in as much as you earnt in that tax year. If you earn £50k this year then you can max your £40k allowance & then use up £10k of previous unused allowance.Rob7Lee said:Are you saying you’d need to earn £80k this tax year?
say I earned £50k every year, couldn’t I pay in £40k this year and £40k for last year?1 -
Marcus pays 1.5% - instant access. Investec pays 1.85% on 95 day notice account. Both about as good as they get.RaplhMilne said:
Post Office easy access online account pays 1.38% was1.45% but was recently lowered. Good thing is just keep your eye on the account. If it rises simple online switch to the new offer.SantaClaus said:My other half wants to put a chunk of her savings into premium bonds. What's the maximum that you put in (per year/overall)? Is there any other easy access savings product that offers better returns and protection?
Or or if prepared to tie money up you can get up to 2% on a one year bond.
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I believe part of that 1.5% with Marcus is a bonus so need to keep an eye that they are still paying that bonus.bobmunro said:
Marcus pays 1.5% - instant access. Investec pays 1.85% on 95 day notice account. Both about as good as they get.RaplhMilne said:
Post Office easy access online account pays 1.38% was1.45% but was recently lowered. Good thing is just keep your eye on the account. If it rises simple online switch to the new offer.SantaClaus said:My other half wants to put a chunk of her savings into premium bonds. What's the maximum that you put in (per year/overall)? Is there any other easy access savings product that offers better returns and protection?
Or or if prepared to tie money up you can get up to 2% on a one year bond.2 -
LenGlover said:
I believe part of that 1.5% with Marcus is a bonus so need to keep an eye that they are still paying that bonus.bobmunro said:
Marcus pays 1.5% - instant access. Investec pays 1.85% on 95 day notice account. Both about as good as they get.RaplhMilne said:
Post Office easy access online account pays 1.38% was1.45% but was recently lowered. Good thing is just keep your eye on the account. If it rises simple online switch to the new offer.SantaClaus said:My other half wants to put a chunk of her savings into premium bonds. What's the maximum that you put in (per year/overall)? Is there any other easy access savings product that offers better returns and protection?
Or or if prepared to tie money up you can get up to 2% on a one year bond.
Yes - 1.35% plus 0.15% Bonus. When everyone starts shifting funds out my bet is that the bonus will be renewed.2 - Sponsored links:
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One for the soon to be pensioners :-)
Deferring your State Pension.
I am surprised that I only came across this on the government website; if you defer taking your pension for a year the value of your pension will increase by 5.8%. So if you are fortunate enough to get to pension eligibility with some cash reserves which are only earning 1% or so, doesn't it make sense to live off those cash reserves for a year and get your pension upgraded by 5.8%? Looks good to me. Which probably means, I've missed something...0 -
PragueAddick said:One for the soon to be pensioners :-)
Deferring your State Pension.
I am surprised that I only came across this on the government website; if you defer taking your pension for a year the value of your pension will increase by 5.8%. So if you are fortunate enough to get to pension eligibility with some cash reserves which are only earning 1% or so, doesn't it make sense to live off those cash reserves for a year and get your pension upgraded by 5.8%? Looks good to me. Which probably means, I've missed something...If the pension is roughly 8.5k, deferring for a year means you need to recoup said 8.5k.
The extra 5.8% per annum equates to roughly £500, so after 17 years you will have got your £8.5k back (ignoring inflation, lost interest etc as to keep simple assumes flat).
So on todays retirement age, live to 82 and you'll be about even, above your winning, below your losing.
TBH, anything to do with the government I'd take what I could and never defer!
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It depends how long you think you've got to live I guess.PragueAddick said:One for the soon to be pensioners :-)
Deferring your State Pension.
I am surprised that I only came across this on the government website; if you defer taking your pension for a year the value of your pension will increase by 5.8%. So if you are fortunate enough to get to pension eligibility with some cash reserves which are only earning 1% or so, doesn't it make sense to live off those cash reserves for a year and get your pension upgraded by 5.8%? Looks good to me. Which probably means, I've missed something...
A bird in the hand and all that.
You used to be able to defer and the choice was there to take a lump sum or a higher weekly rate. The lump sum option has gone now I believe for those who reach or reached pension age after 5 April 2016.0 -
Rob7Lee said:PragueAddick said:One for the soon to be pensioners :-)
Deferring your State Pension.
I am surprised that I only came across this on the government website; if you defer taking your pension for a year the value of your pension will increase by 5.8%. So if you are fortunate enough to get to pension eligibility with some cash reserves which are only earning 1% or so, doesn't it make sense to live off those cash reserves for a year and get your pension upgraded by 5.8%? Looks good to me. Which probably means, I've missed something...If the pension is roughly 8.5k, deferring for a year means you need to recoup said 8.5k.
The extra 5.8% per annum equates to roughly £500, so after 17 years you will have got your £8.5k back (ignoring inflation, lost interest etc as to keep simple assumes flat).
So on todays retirement age, live to 82 and you'll be about even, above your winning, below your losing.
TBH, anything to do with the government I'd take what I could and never defer!
It's a slightly different calculation if you are still working for say another year. If I'm a 45% tax payer then deferring will actually cost me 55% of that £8.5k = £4.7k - so quids in after less than 10 years.But on balance I agree with you - take the money!
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On a slightly different tack but maybe even more relevant for some approaching state pension age. If you don't have enough years of contributions to get the full state pension you can "buy" the missing years. I can't remember the exact figures when I looked but it was relatively cheap and you only have to live for about 3 years after retirement to make it pay. Under current rules you can do anytime before state retirement age.PragueAddick said:One for the soon to be pensioners :-)
Deferring your State Pension.
I am surprised that I only came across this on the government website; if you defer taking your pension for a year the value of your pension will increase by 5.8%. So if you are fortunate enough to get to pension eligibility with some cash reserves which are only earning 1% or so, doesn't it make sense to live off those cash reserves for a year and get your pension upgraded by 5.8%? Looks good to me. Which probably means, I've missed something...0 -
ThisRob7Lee said:PragueAddick said:One for the soon to be pensioners :-)
Deferring your State Pension.
I am surprised that I only came across this on the government website; if you defer taking your pension for a year the value of your pension will increase by 5.8%. So if you are fortunate enough to get to pension eligibility with some cash reserves which are only earning 1% or so, doesn't it make sense to live off those cash reserves for a year and get your pension upgraded by 5.8%? Looks good to me. Which probably means, I've missed something...If the pension is roughly 8.5k, deferring for a year means you need to recoup said 8.5k.
The extra 5.8% per annum equates to roughly £500, so after 17 years you will have got your £8.5k back (ignoring inflation, lost interest etc as to keep simple assumes flat).
So on todays retirement age, live to 82 and you'll be about even, above your winning, below your losing.
TBH, anything to do with the government I'd take what I could and never defer!
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The fair rate would be 5% + compound interest being notionally earned on the pension not bring paid away by the State.blackpool72 said:
ThisRob7Lee said:PragueAddick said:One for the soon to be pensioners :-)
Deferring your State Pension.
I am surprised that I only came across this on the government website; if you defer taking your pension for a year the value of your pension will increase by 5.8%. So if you are fortunate enough to get to pension eligibility with some cash reserves which are only earning 1% or so, doesn't it make sense to live off those cash reserves for a year and get your pension upgraded by 5.8%? Looks good to me. Which probably means, I've missed something...If the pension is roughly 8.5k, deferring for a year means you need to recoup said 8.5k.
The extra 5.8% per annum equates to roughly £500, so after 17 years you will have got your £8.5k back (ignoring inflation, lost interest etc as to keep simple assumes flat).
So on todays retirement age, live to 82 and you'll be about even, above your winning, below your losing.
TBH, anything to do with the government I'd take what I could and never defer!
I would be looking for at least 9%, that’s the norm for a company pension paid late.1 -
I'm sitting here feeling a bit of a dick for even contemplating that 'offer from DWP now.:-)
I'd buy @Rob7Lee a few beers, but he's a teetotaller :-)
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Would anyone from or close to the banking sector be able to say whether there is any reason not to invest some money with KeyTrade Bank of Luxembourg? . They are not a retail bank but rather offer an investment platform, closer to Hargreaves Lansdowne et al. I want to create an account for my wife for her birthday, which I would have done with H-L or any of their competitors, but all the British platforms refuse to take people who are non -resident in the UK (unless of course their name is Abramovic, doubtless). KeyTrade are happy to accept "foreigners". As far as I can tell it has so far not been involved in any controversy and so I suppose the "risk" is no different to that when you entrust loads of money to H-L and Fidelity. But maybe someone has an informed comment?
The platform itself is a pale shadow of the UK ones in terms of the range of funds etc available, but the Uk ones want to confine themselves to the island, so this looks like the best I can get, and believe me I have been scouring Europe.0 -
Curious to know why they haven’t put any annual reports on the website since 2015.1
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Rob7Lee said:@bobmunro I sold out today so am no longer a BAT shareholder, £31.50, appreciate divi day is in a couple of days so effectively £31, today though, very tidy profit
I dipped out at £31.00 - so effectively just shy of 25% growth in a couple of months. Very happy with that.Now watch it go to £40!2 -
Don't know much about KeyTrade, but interesting to read they do not charge custody fees. I know that DeGiro, Internaxx (Luxembourg), Swissquote, SaxoBank are options for you in Europe, also Interactive Brokers in US as they all accept non-residents, but i guess you are already aware of these.PragueAddick said:Would anyone from or close to the banking sector be able to say whether there is any reason not to invest some money with KeyTrade Bank of Luxembourg? . They are not a retail bank but rather offer an investment platform, closer to Hargreaves Lansdowne et al. I want to create an account for my wife for her birthday, which I would have done with H-L or any of their competitors, but all the British platforms refuse to take people who are non -resident in the UK (unless of course their name is Abramovic, doubtless). KeyTrade are happy to accept "foreigners". As far as I can tell it has so far not been involved in any controversy and so I suppose the "risk" is no different to that when you entrust loads of money to H-L and Fidelity. But maybe someone has an informed comment?
The platform itself is a pale shadow of the UK ones in terms of the range of funds etc available, but the Uk ones want to confine themselves to the island, so this looks like the best I can get, and believe me I have been scouring Europe.0 -
I've got 30k coming from a relative that passed away and want to put it away for a couple years while we save for a house. What would people here do with it ?0
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Age?shine166 said:I've got 30k coming from a relative that passed away and want to put it away for a couple years while we save for a house. What would people here do with it ?
Will it be your first house? If so look at a LISA, £4k a year and the government gives you £1k, can only use for first house or pension though or you lose 25%.1 -
I use DeGiro. They are a very basic outfit but at 1.75 per trade they are very cheap and mean I can place small ‘bets’ on the AIM market casino for a little fun at a worthwhile cost.QatarNapsy said:
Don't know much about KeyTrade, but interesting to read they do not charge custody fees. I know that DeGiro, Internaxx (Luxembourg), Swissquote, SaxoBank are options for you in Europe, also Interactive Brokers in US as they all accept non-residents, but i guess you are already aware of these.PragueAddick said:Would anyone from or close to the banking sector be able to say whether there is any reason not to invest some money with KeyTrade Bank of Luxembourg? . They are not a retail bank but rather offer an investment platform, closer to Hargreaves Lansdowne et al. I want to create an account for my wife for her birthday, which I would have done with H-L or any of their competitors, but all the British platforms refuse to take people who are non -resident in the UK (unless of course their name is Abramovic, doubtless). KeyTrade are happy to accept "foreigners". As far as I can tell it has so far not been involved in any controversy and so I suppose the "risk" is no different to that when you entrust loads of money to H-L and Fidelity. But maybe someone has an informed comment?
The platform itself is a pale shadow of the UK ones in terms of the range of funds etc available, but the Uk ones want to confine themselves to the island, so this looks like the best I can get, and believe me I have been scouring Europe.1 -
@newyorkaddick Good question. I will ask them:-) When dealing with them, I can't help thinking it's all a bit Jean-Claude Juncker. On the surface, all looks proper and best practice, but under the surface just a vague feeling that it sort of cuts corners. All that said, if we use it mainly to invest in funds, then even if they went tits-up our investments in the funds would be secure ?QatarNapsy said:
Don't know much about KeyTrade, but interesting to read they do not charge custody fees. I know that DeGiro, Internaxx (Luxembourg), Swissquote, SaxoBank are options for you in Europe, also Interactive Brokers in US as they all accept non-residents, but i guess you are already aware of these.PragueAddick said:Would anyone from or close to the banking sector be able to say whether there is any reason not to invest some money with KeyTrade Bank of Luxembourg? . They are not a retail bank but rather offer an investment platform, closer to Hargreaves Lansdowne et al. I want to create an account for my wife for her birthday, which I would have done with H-L or any of their competitors, but all the British platforms refuse to take people who are non -resident in the UK (unless of course their name is Abramovic, doubtless). KeyTrade are happy to accept "foreigners". As far as I can tell it has so far not been involved in any controversy and so I suppose the "risk" is no different to that when you entrust loads of money to H-L and Fidelity. But maybe someone has an informed comment?
The platform itself is a pale shadow of the UK ones in terms of the range of funds etc available, but the Uk ones want to confine themselves to the island, so this looks like the best I can get, and believe me I have been scouring Europe.
@QatarNapsy I certainly looked at some of them. Internaxx had a different fee model, prefer KeyTrade's. There was a problem with Saxo, which has an local office in Prague but I can't remember what it was. I'll take a look at the others, thanks for the tips. We want a platform for funds for long term investment, not share-trading. She's got her Unilever shares, which are storming ahead again after a pause (see earlier) and I want to help her diversify. But bloody hell, what a stock that is, and what a lesson in the value of long term holds.
Speaking of which, what do people understand by the term "value stocks"? Is Unilever such a stock, a rather "boring' business with a robust long term model, and which keeps churning out decent dividends?0 -
An account for an investment account, what a birthday gift that is, you old romantic Prague!
On a more serious note, I've been looking at opening something for my son so your posts have been pretty useful, although I think we're gonna use something Chinese as it's pretty 'crash proof'1 -
36 and yeah first gaffRob7Lee said:
Age?shine166 said:I've got 30k coming from a relative that passed away and want to put it away for a couple years while we save for a house. What would people here do with it ?
Will it be your first house? If so look at a LISA, £4k a year and the government gives you £1k, can only use for first house or pension though or you lose 25%.0 -
PragueAddick said:
@newyorkaddick Good question. I will ask them:-) When dealing with them, I can't help thinking it's all a bit Jean-Claude Juncker. On the surface, all looks proper and best practice, but under the surface just a vague feeling that it sort of cuts corners. All that said, if we use it mainly to invest in funds, then even if they went tits-up our investments in the funds would be secure ?QatarNapsy said:
Don't know much about KeyTrade, but interesting to read they do not charge custody fees. I know that DeGiro, Internaxx (Luxembourg), Swissquote, SaxoBank are options for you in Europe, also Interactive Brokers in US as they all accept non-residents, but i guess you are already aware of these.PragueAddick said:Would anyone from or close to the banking sector be able to say whether there is any reason not to invest some money with KeyTrade Bank of Luxembourg? . They are not a retail bank but rather offer an investment platform, closer to Hargreaves Lansdowne et al. I want to create an account for my wife for her birthday, which I would have done with H-L or any of their competitors, but all the British platforms refuse to take people who are non -resident in the UK (unless of course their name is Abramovic, doubtless). KeyTrade are happy to accept "foreigners". As far as I can tell it has so far not been involved in any controversy and so I suppose the "risk" is no different to that when you entrust loads of money to H-L and Fidelity. But maybe someone has an informed comment?
The platform itself is a pale shadow of the UK ones in terms of the range of funds etc available, but the Uk ones want to confine themselves to the island, so this looks like the best I can get, and believe me I have been scouring Europe.
@QatarNapsy I certainly looked at some of them. Internaxx had a different fee model, prefer KeyTrade's. There was a problem with Saxo, which has an local office in Prague but I can't remember what it was. I'll take a look at the others, thanks for the tips. We want a platform for funds for long term investment, not share-trading. She's got her Unilever shares, which are storming ahead again after a pause (see earlier) and I want to help her diversify. But bloody hell, what a stock that is, and what a lesson in the value of long term holds.
Speaking of which, what do people understand by the term "value stocks"? Is Unilever such a stock, a rather "boring' business with a robust long term model, and which keeps churning out decent dividends?
You would need to understand the client money rules in Luxembourg and how/where positions are custodied - I don't think owning funds as opposed to individual stocks would make a difference as you would not be on the fund's shareholder register directly.With regard to value stocks, I broadly define them as stocks which screen as 'cheap' on the usual metrics (eg price/earnings, price/book etc.). The key is avoiding 'value traps' (stocks which are cheap because they deserve to be) in favour of situations where there is either some hope for a turnaround at either the specific stock or broader sector specific area (and thus an upward re-rating of the stock). Obvious places to search for value stocks today would include airlines, banks, autos, retail, homebuilders, miners etc. though again many will be 'value traps'.
I personally wouldn't describe Unilever as a value stock - it's traditionally had defensive characteristics (stable growth prospects) which led it to have a relatively high price/earnings multiple. However today Unilever and other consumer products companies like it have significant l/term challenges from own-label brands, new competition (much easier to launch brands today), consumer trends (towards healthier food, environmentally-friendly goods etc.). Just look at the share price of Kraft Heinz which tried to buy Unilever in Feb 2017 (down 67% since).
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