Investments - Strategies, Ideas, Options & advice

[Deleted member 35927]

Interesting. I've always been a saver rather than an investor.
When I opened some investment ISAs years ago I found it quite stressful. It's hard to resist the urge to keep checking what they're doing on a daily basis. I guess you're either cut out for it or you aren't. I closed them after a few months.

Ironically, after a few months of regular emails telling me my savings accounts rates were going down, I actually opened a balanced risk GIA yesterday.
I'll see how it does while making a concerted effort to avoid constantly seeing how it's doing.

There can be some wild swings that's for sure, just see the whole trump tarrif stuff. For stocks and shares ISA your looking at long term , typically minimum 5 years.

 

[Fade and Die]

Sounds like there is going to be an advertising campaign to get people investing as opposed to saving cash.

Who by, a private company or the government? Seems risky if its the government telling people to take their cash nest egg and gamble with it.

 

[RichA]

There can be some wild swings that's for sure, just see the whole trump tarrif stuff. For stocks and shares ISA your looking at long term , typically minimum 5 years.

Not an ISA this time as I'm already fully loaded for this year. Only put a smallish amount in, just to get a feel for it.

Swings though - yes, I've seen a prime example of it and it doesn't help my cautious attitude. My late BiL put everything in max risk max reward stocks and was a Tesla nut from startup, so that had a large chunk. My sister has seen her portfolio double then halve about 6 times in the last 3 years.

 

[Deleted member 35927]

Who by, a private company or the government? Seems risky if its the government telling people to take their cash nest egg and gamble with it.

Whats a cash nest egg? And it's not gambling either . Pretty much all my life savings are tied up in funds and equities.
Where do you think our pensions are ?
As you get nearer retirement you can taper to less risk.

 

[Mudball]

Sounds like there is going to be a advertising campaign to get people investing as opposed to saving cash.

Cue.. 4 years from now... "have you been missold Investment scheme, we can help recover your money"..

What is the benefit for the Govt to get people investing.
1) People will invariably lose money
2) Govt gets tax per transaction and if outside ISA, they will get capital gains tax. The capital gains will mostly be offset anyways.
3) People draining money from banks is bad news for banks. They cant offer lower rates if they are not able to meet capital adequacy ratios


In India, Govt is asking people to slow down. Too much money from banks is moving into stock markets. Banks are struggling. People are losing their shirt by betting in F&O segments without knowing which way is up. So Govt recently started tightening supply side. They have started cracking down on the F&O segment and asking some people to stop.

 

[Mudball]

Not an ISA this time as I'm already fully loaded for this year. Only put a smallish amount in, just to get a feel for it.

Swings though - yes, I've seen a prime example of it and it doesn't help my cautious attitude. My late BiL put everything in max risk max reward stocks and was a Tesla nut from startup, so that had a large chunk. My sister has seen her portfolio double then halve about 6 times in the last 3 years.

agree... i have a big position in Tesla for a while now... its either handbrake & burning rubber or accelerate like a loony..

 

[Deleted member 35927]

Cue.. 4 years from now... "have you been missold Investment scheme, we can help recover your money"..

What is the benefit for the Govt to get people investing.
1) People will invariably lose money
2) Govt gets tax per transaction and if outside ISA, they will get capital gains tax. The capital gains will mostly be offset anyways.
3) People draining money from banks is bad news for banks. They cant offer lower rates if they are not able to meet capital adequacy ratios


In India, Govt is asking people to slow down. Too much money from banks is moving into stock markets. Banks are struggling. People are losing their shirt by betting in F&O segments without knowing which way is up. So Govt recently started tightening supply side. They have started cracking down on the F&O segment and asking some people to stop.

Yes it's tricky , as nation we have this love of cash, which is ok, but as a long term investment we know it's not going to pay much at all.

 

[Fade and Die]

Whats a cash nest egg? And it's not gambling either . Pretty much all my life savings are tied up in funds and equities.
Where do you think our pensions are ?
As you get nearer retirement you can taper to less risk.

Im sure you know, but a cash nest egg is something a lot of people who are maybe older or risk adverse have. A pot of money in the bank or post office. Rainy day money if you like. If the government start telling them to invest it in the stock markets and they do and something like tariffs or covid comes along and their nest egg goes from £50k to £16k there will be riots, suicides and litigation.
The stock market is risky. Cash in the bank is not.

 

[Deleted member 35927]

Im sure you know, but a cash nest egg is something a lot of people who are maybe older or risk adverse have. A pot of money in the bank or post office. Rainy day money if you like. If the government start telling them to invest it in the stock markets and they do and something like tariffs or covid comes along and their nest egg goes from £50k to £16k there will be riots, suicides and litigation.
The stock market is risky. Cash in the bank is not.

50k in a savings account last 20 years , would have netted you pretty much zero returns by today in real terms.
Wheres as 50k in a basic all world etf would have seen you more than double your money.
I'm not advocating every put their life savings into the stock market, but the notion that cash is risk free is misguided.

 

[D-S]

50k in a savings account last 20 years , would have netted you pretty much zero returns by today in real terms.
Wheres as 50k in a basic all world etf would have seen you more than double your money.
I'm not advocating every put their life savings into the stock market, but the notion that cash is risk free is misguided.

Is that ‘double your money’ in real terms too?

 

[Deleted member 35927]

Is that ‘double your money’ in real terms too?

Yes

 

[pendodave]

Whats a cash nest egg? And it's not gambling either . Pretty much all my life savings are tied up in funds and equities.
Where do you think our pensions are ?
As you get nearer retirement you can taper to less risk.

Tbh, in the somewhat precarious world in which we currently live I'd always want to have 6 months of salary in a reasonably liquid savings account.

 

[Deleted member 35927]

Tbh, in the somewhat precarious world in which we currently live I'd always want to have 6 months of salary in a reasonably liquid savings account.

Yes I'd agree with this, always good to have some cash on the side.

 

[Fade and Die]

50k in a savings account last 20 years , would have netted you pretty much zero returns by today in real terms.
Wheres as 50k in a basic all world etf would have seen you more than double your money.
I'm not advocating every put their life savings into the stock market, but the notion that cash is risk free is misguided.

Like a previous poster you seem incapable of seeing any other point of view. I max mine and my wife's ISA allowance every year, I also hold Crypto but i also like to have money in Premium bonds and on deposit in the bank. Its just how i like my money. I do however know many people that do not want any exposure to risk, they want their "£50k" to be worth £50K tomorrow and the next day and next. Regardless of some orange gobshite or any pseudo crisis created by the media. The stock market is a gamble. simple as that.

 

[Deleted member 35927]

Like a previous poster you seem incapable of seeing any other point of view. I max mine and my wife's ISA allowance every year, I also hold Crypto but i also like to have money in Premium bonds and on deposit in the bank. Its just how i like my money. I do however know many people that do not want any exposure to risk, they want their "£50k" to be worth £50K tomorrow and the next day and next. Regardless of some orange gobshite or any pseudo crisis created by the media. The stock market is a gamble. simple as that.

Sadly your 50k won't be worth 50k the next day and the next, inflation will see to that.
Keep your money how you like , but in a thread about investments, cash is not going to get you much as a long term investment.

 

[Neilds]

Sadly your 50k won't be worth 50k the next day and the next, inflation will see to that.
Keep your money how you like , but in a thread about investments, cash is not going to get you much as a long term investment.

50k is always 50k - what you can get for it may go down but it is always worth 50k

 

[Deleted member 35927]

50k is always 50k - what you can get for it may go down but it is always worth 50k

Yes which is what makes cash seem so appealing, but in the long term you will lose out.

 

[Fade and Die]

Sadly your 50k won't be worth 50k the next day and the next, inflation will see to that.
Keep your money how you like , but in a thread about investments, cash is not going to get you much as a long term investment.

And 50k in the stock market might be 39k next week …Anyway you never answered my question in #222, who will be advertising that people should invest their hard earned in the stock markets?

 

[Deleted member 35927]

And 50k in the stock market might be 39k next week …Anyway you never answered my question in #222, who will be advertising that people should invest their hard earned in the stock markets?

Idk, banks, investment companies I assume, theres an article on the BBC
Yes, but stock market investment is a long term strategy so if your initial investment drops by 20% after 3 days then it doesnt really matter. It's what you have after 5 years plus.

 

[Fade and Die]

Idk, banks, investment companies I assume, theres an article on the BBC
Yes, but stock market investment is a long term strategy so if your initial investment drops by 20% after 3 days then it doesnt really matter. It's what you have after 5 years plus.

Thanks for the steer, a quick read confirms my initial thoughts.

there is a plan in the Treasury to encourage people to invest for better returns, which would also boost growth in the UK economy. (so getting savers to take the burden of risk to aid growing the economy.)

In the newly-announced Treasury proposals, there is a potential for some of the warnings to be watered down. (Obviously, see Endowment mortgages for reference)


The golden rule with investing (like any form of gambling) is only invest what you can afford to lose which I think answers why a lot of people don't invest and stay in cash which is protected if the bank goes bust!

Not rocket science, plus the financial markets don't exactly have a trustworthy reputation

It’s will be wrong for so many people who cannot afford to lose access to their saving for 5 years to tie their money up in the stock markets.

Mud ball is right, expect in 10 years time “Were you mis-sold a stocks and shares isa” ads.