Investments - Strategies, Ideas, Options & advice

[harpo_72]

I am totally confused, why are saving ISAs fixed at so low percentages when the stocks and share ISAs are absolutely smashing it? 4-7% per annum vs 3-8% per month … even if the markets calm down the savings ISA should be looking at 10% .. of have I misunderstood?

 

[Mel Smooth]

I am totally confused, why are saving ISAs fixed at so low percentages when the stocks and share ISAs are absolutely smashing it? 4-7% per annum vs 3-8% per month … even if the markets calm down the savings ISA should be looking at 10% .. of have I misunderstood?

Risk v reward plus the people supplying your savings ISA have to cover the guaranteed interest rate plus their own profit (which is probably way above the few percent they are giving back).

 

[harpo_72]

Risk v reward plus the people supplying your savings ISA have to cover the guaranteed interest rate plus their own profit (which is probably way above the few percent they are giving back).

I suspect they are doing very well .. perhaps a more positive approach to customers is required. It stuff like this that turns me away from most financial services

 

[Crazyface]

In my experience, once you’ve started drawing it, that’s it
Which is why it pays to get proper advice that gives you all the options before you start taking your pension.

It might cost a few thousand, but is well worth it in the long run

Yes, but I had £76k and knew I wanted to get it on a draw down. I HAD to go to through and advisor, and despite me telling him from the outset that is what I wanted to do and why was he bothering to do all his sums. Well I know now. He gets a fee for doing it. It actually cost me nothing. So he went away with all my personal and private details, Christ Alive they want to know EVERYTHING. He came back with all his projections and rubbish and told me he advised to put it, oh I forget, and have a monthly pension of something stupid like £200 a month. This ment I would have to live till I was about 86 to get all me money. And also the pension fund could keep it all. Because of this, it took me about 3 months to find a company who would take it on as a draw down as everyone else was scared to death to touch it once I had been advised to take it as pension. It's all a con!!!!

 

[PhilTheFragger]

Yes, but I had £76k and knew I wanted to get it on a draw down. I HAD to go to through and advisor, and despite me telling him from the outset that is what I wanted to do and why was he bothering to do all his sums. Well I know now. He gets a fee for doing it. It actually cost me nothing. So he went away with all my personal and private details, Christ Alive they want to know EVERYTHING. He came back with all his projections and rubbish and told me he advised to put it, oh I forget, and have a monthly pension of something stupid like £200 a month. This ment I would have to live till I was about 86 to get all me money. And also the pension fund could keep it all. Because of this, it took me about 3 months to find a company who would take it on as a draw down as everyone else was scared to death to touch it once I had been advised to take it as pension. It's all a con!!!!

Using the 4% rule , ( you draw down a maximum of 4% of your £76000 a year. ) That should give you around 250 per month, keeping the £76k intact.

The danger with drawdown is you run out of money, before you die.

76k isn’t a lot and you can’t just live on that, therefore there will be the temptation to take a bit extra, which will quickly reduce your available cash.

Therefore , in this instance, a smaller annuity might be better in the long term as it will keep on paying until you croak

The professional indemnity insurance that IFA’s have to have is very very expensive, they absolutely have to do it by the book.

If an IFA , with all relevant information and aware of your wishes suggests a certain course of auction, I’d be listening to them

 

[PNWokingham]

I am totally confused, why are saving ISAs fixed at so low percentages when the stocks and share ISAs are absolutely smashing it? 4-7% per annum vs 3-8% per month … even if the markets calm down the savings ISA should be looking at 10% .. of have I misunderstood?

Not 100% sure what you mean - but if you mean cash ISAs - they are guaranteed to make what they say until they change the rate and it will all be based around the BOE base rate. Anything is stocks and bons funds/ individual investments is purely speculative - you will make more over the long-term but you could lose a lot in the short term.