Savings and Investments thread

robinofottershaw · February 18

There have been a few posts on here regarding individuals moving away from saving towards spending, be it due to retirement, inheritance tax considerations etc.

I was watching The Rest of Politics: US podcast and Anthony Scaramucci had a pile of books on his desk, one of which was The Art of Spending Money - Simple Choices For A Richer Life by Morgan Housel. Not my typical choice of reading but, given discussions my wife and I often have, I thought I would give it a go.

An interesting read in terms of covering individual's relationship with money, spending on things that don’t bring you joy, or not spending on things that enhance your mental well-being. It covers lots of things with interesting true stories and anecdotes. Talks about one of the biggest conflicts when managing money in terms of finding the delicate balance between compound interest - which can turn patience today into fortunes tomorrow and the fact that you are one day closer to death than you were yesterday - so make the most of your short time here and enjoy every day you are lucky enough to be alive (excluding of course days that follow a 3-1 home defeat to Portsmouth)!

Also discusses how some individuals become so fixed over their lifetime in saving for the future that they cannot switch gears to spending. Suggests you value the ability to change your mind, change your lifestyle, alter your spending and try something new. Cautions as to how some individuals ambitions are limited as a consequence of inheritance.

Just thought I would mention it as I found it quite thought provoking.

golfaddick · February 18

robinofottershaw said:

There have been a few posts on here regarding individuals moving away from saving towards spending, be it due to retirement, inheritance tax considerations etc.

I was watching The Rest of Politics: US podcast and Anthony Scaramucci had a pile of books on his desk, one of which was The Art of Spending Money - Simple Choices For A Richer Life by Morgan Housel. Not my typical choice of reading but, given discussions my wife and I often have, I thought I would give it a go.

An interesting read in terms of covering individual's relationship with money, spending on things that don’t bring you joy, or not spending on things that enhance your mental well-being. It covers lots of things with interesting true stories and anecdotes. Talks about one of the biggest conflicts when managing money in terms of finding the delicate balance between compound interest - which can turn patience today into fortunes tomorrow and the fact that you are one day closer to death than you were yesterday - so make the most of your short time here and enjoy every day you are lucky enough to be alive (excluding of course days that follow a 3-1 home defeat to Portsmouth)!

Also discusses how some individuals become so fixed over their lifetime in saving for the future that they cannot switch gears to spending. Suggests you value the ability to change your mind, change your lifestyle, alter your spending and try something new. Cautions as to how some individuals ambitions are limited as a consequence of inheritance.

Just thought I would mention it as I found it quite thought provoking.

All books like that should be banned in my view. No need for financial advice if you are just going to spend it all. 🤬😆

golfaddick · February 18

Came on here to say the FTSE100 broke through the 10700 barrier this afternoon.

Competition might be out of date soon......😄

robinofottershaw · February 18

golfaddick said:

robinofottershaw said:

There have been a few posts on here regarding individuals moving away from saving towards spending, be it due to retirement, inheritance tax considerations etc.

I was watching The Rest of Politics: US podcast and Anthony Scaramucci had a pile of books on his desk, one of which was The Art of Spending Money - Simple Choices For A Richer Life by Morgan Housel. Not my typical choice of reading but, given discussions my wife and I often have, I thought I would give it a go.

An interesting read in terms of covering individual's relationship with money, spending on things that don’t bring you joy, or not spending on things that enhance your mental well-being. It covers lots of things with interesting true stories and anecdotes. Talks about one of the biggest conflicts when managing money in terms of finding the delicate balance between compound interest - which can turn patience today into fortunes tomorrow and the fact that you are one day closer to death than you were yesterday - so make the most of your short time here and enjoy every day you are lucky enough to be alive (excluding of course days that follow a 3-1 home defeat to Portsmouth)!

Also discusses how some individuals become so fixed over their lifetime in saving for the future that they cannot switch gears to spending. Suggests you value the ability to change your mind, change your lifestyle, alter your spending and try something new. Cautions as to how some individuals ambitions are limited as a consequence of inheritance.

Just thought I would mention it as I found it quite thought provoking.

All books like that should be banned in my view. No need for financial advice if you are just going to spend it all. 🤬😆

Don’t worry Golfie, this guy has quite a balanced perspective. His own philosophy has been to invest because it has enabled him to have independence and more freedom of choice. He cautions against spending if you are driven by status and how much other people might admire you for the size of your house, your car etc. But he does caution you to assess what you want from life.

My wife and I are fortunate that as a result of decent pensions, good growth plus dividends from investments and comparatively good interest on cash deposits in recent years, we are still accumulating in retirement. We are happy to spend money on a couple of nice holidays a year, weekends away etc. We also upsized as opposed to downsizing when we moved house post-retirement. We appreciate we are really fortunate, but didn’t come from privileged backgrounds and don’t feel a desire to spend frivolously. I guess that peaked my interest in this book.

Diebythesword · February 20

Probably going to be a crazy green day in the market today, Supreme Court has just ruled the tariffs trump implemented just under a year ago are unconstitutional.

bobmunro · February 20

Diebythesword said:

Probably going to be a crazy green day in the market today, Supreme Court has just ruled the tariffs trump implemented just under a year ago are unconstitutional.

Not as crazy as I expected.

Diebythesword · February 20

bobmunro said:

Diebythesword said:

Probably going to be a crazy green day in the market today, Supreme Court has just ruled the tariffs trump implemented just under a year ago are unconstitutional.

Not as crazy as I expected.

Initial surge and then the realisation what a legal minefield this is now going to be. They’re going to have to refund all the tariff money, a huge amount to Chinese businesses.

Addick Addict · February 20

Trump has said that he has a back up plan and in all probability he's going to try and use other executive powers with the same end.

The US is in real trouble anyway. The likes of Carney and Canada, who don't want to be bitten once let alone twice, are putting in place other avenues for business that will ultimately impact on trade with the US. Countries and institutions don't like uncertainty and there is nothing more certain than Trump creating uncertainty.

bobmunro · February 20

Diebythesword said:

bobmunro said:

Diebythesword said:

Probably going to be a crazy green day in the market today, Supreme Court has just ruled the tariffs trump implemented just under a year ago are unconstitutional.

Not as crazy as I expected.

Initial surge and then the realisation what a legal minefield this is now going to be. They’re going to have to refund all the tariff money, a huge amount to Chinese businesses.

Importers pay the tariffs - it's US businesses that will be getting the refunds.

valleynick66 · February 20

bobmunro said:

Diebythesword said:

bobmunro said:

Diebythesword said:

Probably going to be a crazy green day in the market today, Supreme Court has just ruled the tariffs trump implemented just under a year ago are unconstitutional.

Not as crazy as I expected.

Initial surge and then the realisation what a legal minefield this is now going to be. They’re going to have to refund all the tariff money, a huge amount to Chinese businesses.

Importers pay the tariffs - it's US businesses that will be getting the refunds.

Likewise some of the sums being quoted aren’t clear if that’s the total tariffs received or just the ‘change’ in the tariff amounts. Headline versus actual amounts.

I’m sure Trump has exaggerated for effect the true change from those increases albeit they are still meaningful amounts.

Alwaysneil · February 20

Yeah, $150bn is fairly decent money

bobmunro · February 20

Alwaysneil said:

Yeah, $150bn is fairly decent money

Yes it is, very much so - but it is money that is paid by US businesses and consumers (i.e. a tax on US citizens).

For the US to regain its manufacturing base will take decades. I know the theory is that these foreign manufacturers will relocate their manufacturing plants to the US but a) at the moment the figures being spouted by the US (overstated by multiples) for investment by overseas companies are more vague intentions than concrete and steel in the ground and b) the cost of imported goods, even with tarifs, are still probably competitive with a comparable product made in the US in the future. Besides, China for example are looking at other markets for their goods, and it would appear are being very successful in doing so.

There is a reason no other US administration has chosen to weaponize tarifs like this - the pain is too great in the short and medium term, with no guarantee that things will get better in the longer term. Rightly or wrongly globalisation has changed international trade and the genie is out of the bottle.

From an investment perspective, I do not see the US as a good long-term bet if the current approach continues - but I don't think it will and sense will eventually prevail.

Please note - the above are my economic thoughts on the matter, they are not meant to be political.

Diebythesword · February 20

bobmunro said:

Alwaysneil said:

Yeah, $150bn is fairly decent money

Yes it is, very much so - but it is money that is paid by US businesses and consumers (i.e. a tax on US citizens).

For the US to regain its manufacturing base will take decades. I know the theory is that these foreign manufacturers will relocate their manufacturing plants to the US but a) at the moment the figures being spouted by the US (overstated by multiples) for investment by overseas companies are more vague intentions than concrete and steel in the ground and b) the cost of imported goods, even with tarifs, are still probably competitive with a comparable product made in the US in the future. Besides, China for example are looking at other markets for their goods, and it would appear are being very successful in doing so.
There is a reason no other US administration has chosen to weaponize tarifs like this - the pain is too great in the short and medium term, with no guarantee that things will get better in the longer term. Rightly or wrongly globalisation has changed international trade and the genie is out of the bottle.

From an investment perspective, I do not see the US as a good long-term bet if the current approach continues - but I don't think it will and sense will eventually prevail.

Please note - the above are my economic thoughts on the matter, they are not meant to be political.

I think it’s more that the reason why other presidents haven’t used tariffs is they’re crap and they provably don’t work and that the world economy isn’t a zero sum game - it’s actually good if your trading partners get richer by buying/selling things to you.

bobmunro · February 21

Diebythesword said:

bobmunro said:

Alwaysneil said:

Yeah, $150bn is fairly decent money

Yes it is, very much so - but it is money that is paid by US businesses and consumers (i.e. a tax on US citizens).

For the US to regain its manufacturing base will take decades. I know the theory is that these foreign manufacturers will relocate their manufacturing plants to the US but a) at the moment the figures being spouted by the US (overstated by multiples) for investment by overseas companies are more vague intentions than concrete and steel in the ground and b) the cost of imported goods, even with tarifs, are still probably competitive with a comparable product made in the US in the future. Besides, China for example are looking at other markets for their goods, and it would appear are being very successful in doing so.
There is a reason no other US administration has chosen to weaponize tarifs like this - the pain is too great in the short and medium term, with no guarantee that things will get better in the longer term. Rightly or wrongly globalisation has changed international trade and the genie is out of the bottle.

From an investment perspective, I do not see the US as a good long-term bet if the current approach continues - but I don't think it will and sense will eventually prevail.

Please note - the above are my economic thoughts on the matter, they are not meant to be political.

I think it’s more that the reason why other presidents haven’t used tariffs is they’re crap and they provably don’t work and that the world economy isn’t a zero sum game - it’s actually good if your trading partners get richer by buying/selling things to you.

I was never a Reagan fan but this makes perfect sense to me.

https://www.reaganlibrary.gov/archives/speech/radio-address-nation-free-and-fair-trade-4

IdleHans · February 21

Diebythesword said:

bobmunro said:

Alwaysneil said:

Yeah, $150bn is fairly decent money

Yes it is, very much so - but it is money that is paid by US businesses and consumers (i.e. a tax on US citizens).

For the US to regain its manufacturing base will take decades. I know the theory is that these foreign manufacturers will relocate their manufacturing plants to the US but a) at the moment the figures being spouted by the US (overstated by multiples) for investment by overseas companies are more vague intentions than concrete and steel in the ground and b) the cost of imported goods, even with tarifs, are still probably competitive with a comparable product made in the US in the future. Besides, China for example are looking at other markets for their goods, and it would appear are being very successful in doing so.
There is a reason no other US administration has chosen to weaponize tarifs like this - the pain is too great in the short and medium term, with no guarantee that things will get better in the longer term. Rightly or wrongly globalisation has changed international trade and the genie is out of the bottle.

From an investment perspective, I do not see the US as a good long-term bet if the current approach continues - but I don't think it will and sense will eventually prevail.

Please note - the above are my economic thoughts on the matter, they are not meant to be political.

I think it’s more that the reason why other presidents haven’t used tariffs is they’re crap and they provably don’t work and that the world economy isn’t a zero sum game - it’s actually good if your trading partners get richer by buying/selling things to you.

They did use them in the 20s/30s. Pure coincidence that The Great Depression happened about then, I'm sure.

SantaClaus · February 21

Like a few others on here I'm glad I've reduced my exposure to the American markets since Trump's ascension to power. My hedge is a broad based European stocks tracker which has been trundling along nicely since I bought it in April. Up around 22% this year which isn't too shabby for a lower risk diversified investment.

hoof_it_up_to_benty · February 24

I genuinely don't understand how Congress has sat back and let the tariff policy chaos unfold. Hard to see where this will end as it seems to change on a daily basis.

Interesting from a legal perspective - the US is undoubtedly at a crossroads.

Fortune 82nd Minute · February 24

Premium Bond investors will be hit with lower average returns and slimmer odds of winning monthly prizes from April.

National Savings & Investments (NS&I) will cut the prize fund rate on the popular savings product from 3.6pc to 3.3pc.

The Treasury-backed savings bank will also lengthen the odds of a single Premium Bond winning a prize from one in 22,000 to one in 23,000.

golfaddick · February 24

Fortune 82nd Minute said:

Premium Bond investors will be hit with lower average returns and slimmer odds of winning monthly prizes from April.

National Savings & Investments (NS&I) will cut the prize fund rate on the popular savings product from 3.6pc to 3.3pc.

The Treasury-backed savings bank will also lengthen the odds of a single Premium Bond winning a prize from one in 22,000 to one in 23,000.

What did I tell you a few months back.

It will only get worse when the BOE base rate us cut again this year.

Rob7Lee · February 25

golfaddick said:

Fortune 82nd Minute said:

Premium Bond investors will be hit with lower average returns and slimmer odds of winning monthly prizes from April.

National Savings & Investments (NS&I) will cut the prize fund rate on the popular savings product from 3.6pc to 3.3pc.

The Treasury-backed savings bank will also lengthen the odds of a single Premium Bond winning a prize from one in 22,000 to one in 23,000.

What did I tell you a few months back.

It will only get worse when the BOE base rate us cut again this year.

Yer, but it’s fun!! 🤩

Hornchurch · February 25

Do any of the professionals on here have a view on True Potential?

My FA is pushing me towards them

bobmunro · February 25

Hornchurch said:

Do any of the professionals on here have a view on True Potential?

My FA is pushing me towards them

Restricted Advice rather than independent, and the fees are quite high.

The bastard son of St James Place?

That said, I've never used them (or SJP for that matter) but I'm sure @golfaddick as an Independent FA will have a view.

golfaddick · February 25

Hornchurch said:

Do any of the professionals on here have a view on True Potential?

My FA is pushing me towards them

I can only imagine that he works for them then. True Potential are a Network who "employ" advisers to recommend their products. If your FA is tied to True Potential then he/she can only offer their funds.

IdleHans · February 26

Fortune 82nd Minute said:

Premium Bond investors will be hit with lower average returns and slimmer odds of winning monthly prizes from April.

National Savings & Investments (NS&I) will cut the prize fund rate on the popular savings product from 3.6pc to 3.3pc.

The Treasury-backed savings bank will also lengthen the odds of a single Premium Bond winning a prize from one in 22,000 to one in 23,000.

Completely unbothered by this - I cant win even less than F all.

Carter · February 26

Am I thinking of this, objectively on the right lines?

When things like that reduce, in theory things like food, energy, utilities, etc should also reflect that so fir the wider UK populus this should be good news.

Subjectively I think its a piss take, its already a lottery. This and previous governments do all they can to pinch tax and take without giving anything back or even giving value. Wankers

Rob7Lee · February 26

Carter said:

Am I thinking of this, objectively on the right lines?

When things like that reduce, in theory things like food, energy, utilities, etc should also reflect that so fir the wider UK populus this should be good news.

Subjectively I think its a piss take, its already a lottery. This and previous governments do all they can to pinch tax and take without giving anything back or even giving value. Wankers

Broadly It just means interest rates are down.

RaplhMilne · March 2

Well good old Donald, has kicked in again. FTSE down 130 points with only Oil an Defence stocks showing a positive. Markets anticipate this to be over quite quickly, could be worrying if this drags on.

Addick Addict · March 2

Contracts worth US$529m were made and tied to the timing of attacks on Iran. Two contracts worth US$150m were bet on the removal of Khamenei as supreme leader.

A mystery trader previously made roughly US$410,00 profit betting on the ousting of Venezuelan president Nicholas Maduro.

Some people are really lucky. Or corrupt.

bobmunro · March 2

Addick Addict said:

Contracts worth US$529m were made and tied to the timing of attacks on Iran. Two contracts worth US$150m were bet on the removal of Khamenei as supreme leader.

A mystery trader previously made roughly US$410,00 profit betting on the ousting of Venezuelan president Nicholas Maduro.

Some people are really lucky. Or corrupt.

They are both - corrupt in their dealings and lucky they don't get caught.

golfaddick · March 2

Addick Addict said:

Contracts worth US$529m were made and tied to the timing of attacks on Iran. Two contracts worth US$150m were bet on the removal of Khamenei as supreme leader.

A mystery trader previously made roughly US$410,00 profit betting on the ousting of Venezuelan president Nicholas Maduro.

Some people are really lucky. Or corrupt.

Would their Exchange Commission look into this ? Insider dealing at its worst.

Savings and Investments thread

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