Savings and Investments thread

Small caps is where I’ve parked my money, biggest difference in price with large caps in something like 35 years. Obviously no big tech in there and it’s much higher risk so certainly not suitable for Prague. But seems a decent place to be exposed to any ai boom and equally keep safe from the ai bubble popping for companies like nvidia. 

PragueAddick said:

valleynick66 said:

PragueAddick said:

bobmunro said:

PragueAddick said:

RRob7Lee said:

Huskaris said:

Does anyone else find it really interesting/surprising/worrying that we are in a world where gold is up 47% YTD, and the S&P is up 14%?

It feels like everyone is terrified of missing out so pumping the S&P whilst being absolutely terrified of what is coming, so also pumping gold! 

I really wish I'd bought gold earlier this year, I might be about to get my hands on a little bit of cash and still think it would be a good purchase! 

I stopped buying gold about 12 months ago, I also sold what I had in a fund back in March, but still hold a fair amount of physical gold. Not sure I'd buy more at this stage but that's as much about already holding quite a lot, just buy a few gold sovereigns if you want to enter the market, or a fund if you have space in ISA/SIPP etc.

That said I've also liquidated around 2/3rd of my SIPP to lock in the growth since March, currently sitting in cash, which does earn last time I looked 2.5% (having slowly dropped this year from 3.25%) so not the end of the world.

You should be doing better than that in “cash”. Still 4% + in money market funds, and just about 4% for 1 year bonds with reputable British- based banks ( and HSBC😂)

There are a limited number of SIPP'able deposit account providers and very few, if any, would pay those sorts of rates on deposits. You may be able to get a bit more on MMFs but they do carry risk, although pretty low in normal times (which these are not!).

ok, I missed the “SIPP” context. I have a SIPP but as a tax NR it doesn’t fully function as such. I am busy de-risking it right now by gently cashing out  profits from any funds which have tech stuff. MMFs are not, as you say, risk-free but they are a lot less risky right now than many of the funds I am in. 

Can I ask what your rationale is for this?

Is it because you judge the AI/Tech bubble is set to burst or just the right time to bank the profit?

My curiosity, following these conversations where investors switch funds , is what makes people lose a bit of faith in the judgement of the fund managers. 

The US generally feels like it’s outperforming despite everything Trump does and should surely stall at some point but who knows when. 

The key thing here is my age (71) . If I were 51 I would not be doing this, not least because I wouldn’t be able to touch my SIPP whereas now I want to start using some of the hard-earned cash. 

I do think it has developed into a bubble, especially when someone like James Anderson, who remains a big believer in Nvidia, expresses his concerns about it. The other factor that has bothered me is that most of us who are mainly in funds rather than direct shares, hold far more tech than we realise in our broader based funds.

Appreciate the response. 

valleynick66 said:

PragueAddick said:

valleynick66 said:

PragueAddick said:

bobmunro said:

PragueAddick said:

RRob7Lee said:

Huskaris said:

Does anyone else find it really interesting/surprising/worrying that we are in a world where gold is up 47% YTD, and the S&P is up 14%?

It feels like everyone is terrified of missing out so pumping the S&P whilst being absolutely terrified of what is coming, so also pumping gold! 

I really wish I'd bought gold earlier this year, I might be about to get my hands on a little bit of cash and still think it would be a good purchase! 

I stopped buying gold about 12 months ago, I also sold what I had in a fund back in March, but still hold a fair amount of physical gold. Not sure I'd buy more at this stage but that's as much about already holding quite a lot, just buy a few gold sovereigns if you want to enter the market, or a fund if you have space in ISA/SIPP etc.

That said I've also liquidated around 2/3rd of my SIPP to lock in the growth since March, currently sitting in cash, which does earn last time I looked 2.5% (having slowly dropped this year from 3.25%) so not the end of the world.

You should be doing better than that in “cash”. Still 4% + in money market funds, and just about 4% for 1 year bonds with reputable British- based banks ( and HSBC😂)

There are a limited number of SIPP'able deposit account providers and very few, if any, would pay those sorts of rates on deposits. You may be able to get a bit more on MMFs but they do carry risk, although pretty low in normal times (which these are not!).

ok, I missed the “SIPP” context. I have a SIPP but as a tax NR it doesn’t fully function as such. I am busy de-risking it right now by gently cashing out  profits from any funds which have tech stuff. MMFs are not, as you say, risk-free but they are a lot less risky right now than many of the funds I am in. 

Can I ask what your rationale is for this?

Is it because you judge the AI/Tech bubble is set to burst or just the right time to bank the profit?

My curiosity, following these conversations where investors switch funds , is what makes people lose a bit of faith in the judgement of the fund managers. 

The US generally feels like it’s outperforming despite everything Trump does and should surely stall at some point but who knows when. 

The key thing here is my age (71) . If I were 51 I would not be doing this, not least because I wouldn’t be able to touch my SIPP whereas now I want to start using some of the hard-earned cash. 

I do think it has developed into a bubble, especially when someone like James Anderson, who remains a big believer in Nvidia, expresses his concerns about it. The other factor that has bothered me is that most of us who are mainly in funds rather than direct shares, hold far more tech than we realise in our broader based funds.

Appreciate the response. 

Your last point does tend a little to a lack of faith (to a degree) in the fund managers ie exposure to tech. 

As ever spotting when a fund is starting to lose its sparkle is a hard thing to do. 

A few fund management groups that I deal with have been reducing their exposure to US stocks & favouring UK, Europe & Emerging Mkts. Not by much, maybe a few % here & there, but it's been happening since the start of the year. 

Another opening bell with us equities at all time high. 

£125 on joint 92,5k 

6 prizes for Margaret totalling £300. 2 x £25 for me. Both on max holdings.

CheshireAddick said:

My wife is thinking about taking out her 25% tax free SIPP allowance. Has anyone heard if Rachel from Accounts is still planning to change the tax free allowance in the budget?. From what I'm hearing (on here and elsewhere) then it might be worth taking it our sooner rather than later. Any thoughts greatly appreciated . 

She is deliberately not saying.
I think it suits her to have the large withdrawals boosting the economy if it doesn't go straight into alternative savings.

CheshireAddick said:

Covered End said:

CheshireAddick said:

My wife is thinking about taking out her 25% tax free SIPP allowance. Has anyone heard if Rachel from Accounts is still planning to change the tax free allowance in the budget?. From what I'm hearing (on here and elsewhere) then it might be worth taking it our sooner rather than later. Any thoughts greatly appreciated . 

She is deliberately not saying.
I think it suits her to have the large withdrawals boosting the economy if it doesn't go straight into alternative savings.

Thanks for your thoughts on this 👍 

I withdrew my 25% tax free lump sum last October but I had a purpose for it and in the mean time I had it in savings or investments not subject to tax.
If you can do something as good with it then I say go for it, but there's not much point if you're going to put it somewhere where the returns are worse and also subject to tax as well.

CheshireAddick said:

Covered End said:

CheshireAddick said:

Covered End said:

CheshireAddick said:

My wife is thinking about taking out her 25% tax free SIPP allowance. Has anyone heard if Rachel from Accounts is still planning to change the tax free allowance in the budget?. From what I'm hearing (on here and elsewhere) then it might be worth taking it our sooner rather than later. Any thoughts greatly appreciated . 

She is deliberately not saying.
I think it suits her to have the large withdrawals boosting the economy if it doesn't go straight into alternative savings.

Thanks for your thoughts on this 👍 

I withdrew my 25% tax free lump sum last October but I had a purpose for it and in the mean time I had it in savings or investments not subject to tax.
If you can do something as good with it then I say go for it, but there's not much point if you're going to put it somewhere where the returns are worst and also subject to tax as well.

Planning to use it for some quality holidays over the next couple of years as we're not relying it as part of our pension pots.

I put "ours" in S&S ISAs and savings accounts in the wife's name, as she has no income so can earn £12,570 tax free allowance + £5,000 Starting rate for savings = £17,570 tax free (can't recall if she gets the extra £1,000 savings allowance as well.

Then you have £50K each maximum holdings in PSBs no tax to pay. 

CheshireAddick said:

Covered End said:

CheshireAddick said:

Covered End said:

CheshireAddick said:

My wife is thinking about taking out her 25% tax free SIPP allowance. Has anyone heard if Rachel from Accounts is still planning to change the tax free allowance in the budget?. From what I'm hearing (on here and elsewhere) then it might be worth taking it our sooner rather than later. Any thoughts greatly appreciated . 

She is deliberately not saying.
I think it suits her to have the large withdrawals boosting the economy if it doesn't go straight into alternative savings.

Thanks for your thoughts on this 👍 

I withdrew my 25% tax free lump sum last October but I had a purpose for it and in the mean time I had it in savings or investments not subject to tax.
If you can do something as good with it then I say go for it, but there's not much point if you're going to put it somewhere where the returns are worst and also subject to tax as well.

Planning to use it for some quality holidays over the next couple of years as we're not relying it as part of our pension pots.

And where would it be before taking those holidays?. Unless in ISA's then you're better off leaving it where it is until you need it.

Covered End said:

CheshireAddick said:

Covered End said:

CheshireAddick said:

Covered End said:

CheshireAddick said:

My wife is thinking about taking out her 25% tax free SIPP allowance. Has anyone heard if Rachel from Accounts is still planning to change the tax free allowance in the budget?. From what I'm hearing (on here and elsewhere) then it might be worth taking it our sooner rather than later. Any thoughts greatly appreciated . 

She is deliberately not saying.
I think it suits her to have the large withdrawals boosting the economy if it doesn't go straight into alternative savings.

Thanks for your thoughts on this 👍 

I withdrew my 25% tax free lump sum last October but I had a purpose for it and in the mean time I had it in savings or investments not subject to tax.
If you can do something as good with it then I say go for it, but there's not much point if you're going to put it somewhere where the returns are worst and also subject to tax as well.

Planning to use it for some quality holidays over the next couple of years as we're not relying it as part of our pension pots.

I put "ours" in S&S ISAs and savings accounts in the wife's name, as she has no income so can earn £12,570 tax free allowance + £5,000 Starting rate for savings = £17,570 tax free (can't recall if she gets the extra £1,000 savings allowance as well.

Then you have £50K each maximum holdings in PSBs no tax to pay. 

Looking at the returns people have made in PB's this month it may be time to re-think this strategy. PB's are for safety, not for returns.

golfaddick said:

Covered End said:

CheshireAddick said:

Covered End said:

CheshireAddick said:

Covered End said:

CheshireAddick said:

My wife is thinking about taking out her 25% tax free SIPP allowance. Has anyone heard if Rachel from Accounts is still planning to change the tax free allowance in the budget?. From what I'm hearing (on here and elsewhere) then it might be worth taking it our sooner rather than later. Any thoughts greatly appreciated . 

She is deliberately not saying.
I think it suits her to have the large withdrawals boosting the economy if it doesn't go straight into alternative savings.

Thanks for your thoughts on this 👍 

I withdrew my 25% tax free lump sum last October but I had a purpose for it and in the mean time I had it in savings or investments not subject to tax.
If you can do something as good with it then I say go for it, but there's not much point if you're going to put it somewhere where the returns are worst and also subject to tax as well.

Planning to use it for some quality holidays over the next couple of years as we're not relying it as part of our pension pots.

I put "ours" in S&S ISAs and savings accounts in the wife's name, as she has no income so can earn £12,570 tax free allowance + £5,000 Starting rate for savings = £17,570 tax free (can't recall if she gets the extra £1,000 savings allowance as well.

Then you have £50K each maximum holdings in PSBs no tax to pay. 

Looking at the returns people have made in PB's this month it may be time to re-think this strategy. PB's are for safety, not for returns.

Agreed, but the tax free winnings are particularly attractive to higher rate tax payers and not unattractive to tax payers who would exceed the £1,000 tax free savings allowance.

golfaddick said:

Covered End said:

golfaddick said:

Covered End said:

CheshireAddick said:

Covered End said:

CheshireAddick said:

Covered End said:

CheshireAddick said:

My wife is thinking about taking out her 25% tax free SIPP allowance. Has anyone heard if Rachel from Accounts is still planning to change the tax free allowance in the budget?. From what I'm hearing (on here and elsewhere) then it might be worth taking it our sooner rather than later. Any thoughts greatly appreciated . 

She is deliberately not saying.
I think it suits her to have the large withdrawals boosting the economy if it doesn't go straight into alternative savings.

Thanks for your thoughts on this 👍 

I withdrew my 25% tax free lump sum last October but I had a purpose for it and in the mean time I had it in savings or investments not subject to tax.
If you can do something as good with it then I say go for it, but there's not much point if you're going to put it somewhere where the returns are worst and also subject to tax as well.

Planning to use it for some quality holidays over the next couple of years as we're not relying it as part of our pension pots.

I put "ours" in S&S ISAs and savings accounts in the wife's name, as she has no income so can earn £12,570 tax free allowance + £5,000 Starting rate for savings = £17,570 tax free (can't recall if she gets the extra £1,000 savings allowance as well.

Then you have £50K each maximum holdings in PSBs no tax to pay. 

Looking at the returns people have made in PB's this month it may be time to re-think this strategy. PB's are for safety, not for returns.

Agreed, but the tax free winnings are particularly attractive to higher rate tax payers and not unattractive to tax payers who would exceed the £1,000 tax free savings allowance.

But as they say....don't let the tax tail wag the investment dog.

PB's might be tax free but if they are only giving you a 2% return wouldn't it be best to get 4.5% and pay tax on it ?

This is the nub isn’t it.  My own opinion for what its worth is I enjoy the monthly excitement of the draw. I fully accept I'd get a better guaranteed return (maybe) elsewhere but for what I have invested I've been lucky. I do agree with you though, a higher rate of 4.5 on a 50k investment is better than what a few average been getting as you don't just need to win when you have that much plumbed in, you need a decent win each month which I'd imagine takes some of the fun out 

I do about 50 a month on the euromillions and the national lottery, fully expecting not to see that again and thats mostly the case. At least with premium bonds you aren't losing your investment, it just doesn't make you anything 

https://www.fidelity.co.uk/markets-insights/personal-finance/personal-finance/i-put-my-cash-in-premium-bonds-are-they-still-worth-it/

golfaddick said:

Covered End said:

CheshireAddick said:

Covered End said:

CheshireAddick said:

Covered End said:

CheshireAddick said:

My wife is thinking about taking out her 25% tax free SIPP allowance. Has anyone heard if Rachel from Accounts is still planning to change the tax free allowance in the budget?. From what I'm hearing (on here and elsewhere) then it might be worth taking it our sooner rather than later. Any thoughts greatly appreciated . 

She is deliberately not saying.
I think it suits her to have the large withdrawals boosting the economy if it doesn't go straight into alternative savings.

Thanks for your thoughts on this 👍 

I withdrew my 25% tax free lump sum last October but I had a purpose for it and in the mean time I had it in savings or investments not subject to tax.
If you can do something as good with it then I say go for it, but there's not much point if you're going to put it somewhere where the returns are worst and also subject to tax as well.

Planning to use it for some quality holidays over the next couple of years as we're not relying it as part of our pension pots.

I put "ours" in S&S ISAs and savings accounts in the wife's name, as she has no income so can earn £12,570 tax free allowance + £5,000 Starting rate for savings = £17,570 tax free (can't recall if she gets the extra £1,000 savings allowance as well.

Then you have £50K each maximum holdings in PSBs no tax to pay. 

Looking at the returns people have made in PB's this month it may be time to re-think this strategy. PB's are for safety, not for returns.

Sure they are for safety but there’s always the chance you could win big. We’ve done ok so far this year, about a 4% return on our holding so not too shabby plus there’s always that hope.