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Savings advice

Roy1983 said:
1) How so? In idiots terms please :). If I put away a grand today it'll still be a grand in 14 years time. I do kinda get what you mean.

2) it's literally just my salary being withdrawn. So tax will have already been taken. My wife will know where it is and no one else.
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Roy, wealthy people do not keep the bulk of their wealth in cash.

People wishing to become wealthy might do well to follow their example.

The top three mutual funds over the past 10 years, bearing in mind the bloodbath over the past month or so:

Old Mutual Smaller Companies 355.1% (£1000 = £4551)
First State Asia Pacific 346.5% (£1000 = £4465)
First State Greater China Growth. 337.2% (£1000 = £4372)

3079 funds to choose from.

Drip feed your dough by direct debit, eliminates the timing risk. Use your ISA allowance and proceeds are tax free.

trustnet.com
 
markysimmo said:
Do you actually win though, my dad has £5k worth he has had since June and has won nothing as yet
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It does. Putting money in there has guaranteed are far greater return than any ISA or high interest account. Had a payout every month for the last 13.
 
spitshine said:
Premium bonds. Much better and greater return than any savings account.
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I think statistically you need to invest £25K in premium bonds to get a long term average 5% rtn. How about sticking it into Tesco shares? They are pretty much rock bottom at the moment, but will be paying a 4% dividend before any capital growth. They still account for 28% of UK food sales and are ridiculously undervalued.
 
inkpenspur said:
. How about sticking it into Tesco shares? They are pretty much rock bottom at the moment, but will be paying a 4% dividend before any capital growth. They still account for 28% of UK food sales and are ridiculously undervalued.
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Tell that to Warren Buffett.
 
inkpenspur said:
I think statistically you need to invest £25K in premium bonds to get a long term average 5% rtn. How about sticking it into Tesco shares? They are pretty much rock bottom at the moment, but will be paying a 4% dividend before any capital growth. They still account for 28% of UK food sales and are ridiculously undervalued.
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Maybe it's luck. Although the minimum is £25 opposed to the when it was £50, it generally pays out on more than one number.
Shares - SSE pay a very good dividend.
As you say Tesco may be worth a punt, I see Mike Ashley got involved. Depends how much they are likely to drop. What's the current price around £1.80?
 
Aldo said:
Tell that to Warren Buffett.
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reducing his holding from 4% to 3%... but admittedly taking a big paper loss as he paid around £3.00 a share for much of that holding. However, he can afford it! Tesco is still the UK retail behemoth, but it now trades at an incredibly cheap 5.4 times earnings. Management are still anticipating trading profits of between £2.4bn and £2.5bn this financial year, even if that is down from original analyst expectations of £2.8bn.
The UK market, is growing faster than any other major economy. Employment is up, and if wages finally start rising too, that could put more money into shopper’s pockets again. The bad news is all out now in the public domain, so the market won't react further to more bad news, whilst any good news will come as a nice surprise. Tesco looks like a tempting buy right now — provided you don’t mind not following the greatest investor of them all!

Buying big companies like Tesco when they have hit hard times can make your fortune. You just lock in at the lower share price, and give the stock plenty of time to recover.
 
inkpenspur said:
reducing his holding from 4% to 3%... but admittedly taking a big paper loss as he paid around £3.00 a share for much of that holding. However, he can afford it! Tesco is still the UK retail behemoth, but it now trades at an incredibly cheap 5.4 times earnings. Management are still anticipating trading profits of between £2.4bn and £2.5bn this financial year, even if that is down from original analyst expectations of £2.8bn.
The UK market, is growing faster than any other major economy. Employment is up, and if wages finally start rising too, that could put more money into shopper’s pockets again. The bad news is all out now in the public domain, so the market won't react further to more bad news, whilst any good news will come as a nice surprise. Tesco looks like a tempting buy right now — provided you don’t mind not following the greatest investor of them all!

Buying big companies like Tesco when they have hit hard times can make your fortune. You just lock in at the lower share price, and give the stock plenty of time to do

Do they pay a generous dividend ?
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Expect it to be reduced to about 4% from 6%... but there aren't many bank accounts offering that. Long term average they have returned a dividend around 6.4%. If you can afford to lock up your investment for three to four years I think they are a pretty good bet as you'll get some capital growth back too.
 
inkpenspur said:
Expect it to be reduced to about 4% from 6%... but there aren't many bank accounts offering that. Long term average they have returned a dividend around 6.4%. If you can afford to lock up your investment for three to four years I think they are a pretty good bet as you'll get some capital growth back too.
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This is the first time I've ever seen Tesco take a dip like that. Until this month I regularly advised people that they are "recession-proof"!

I'll be keeping my money there and probably buying a bit more later this month.
 
Roy, thought I'd better make this clear:

We're just a bunch of ****wits giving advice on an internet forum. Whilst we all take whatever risks with our own money that we choose, it's not our place to take risks with yours.

This is just one source of advice, if you're looking to invest a significant proportion of your income then you should get some independent advice. Your bank probably sells ISAs and will advise you on how best to use them. They will also be able to illustrate how low/med/high risk investments compare over time and what's most appropriate for your invesment timescale.
 
scaramanga said:
Roy, thought I'd better make this clear:

We're just a bunch of ****wits giving advice on an internet forum. Whilst we all take whatever risks with our own money that we choose, it's not our place to take risks with yours.

This is just one source of advice, if you're looking to invest a significant proportion of your income then you should get some independent advice. Your bank probably sells ISAs and will advise you on how best to use them. They will also be able to illustrate how low/med/high risk investments compare over time and what's most appropriate for your invesment timescale.
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Don't listen to him Roy ! Put it all on fawkner in the Cox Plate over here this Saturday , should get 6/1 . No bank will give you that return in 10 years *







* this may actually be stupid advice
 
scaramanga said:
Roy, thought I'd better make this clear:

We're just a bunch of ****wits giving advice on an internet forum. Whilst we all take whatever risks with our own money that we choose, it's not our place to take risks with yours.

This is just one source of advice, if you're looking to invest a significant proportion of your income then you should get some independent advice. Your bank probably sells ISAs and will advise you on how best to use them. They will also be able to illustrate how low/med/high risk investments compare over time and what's most appropriate for your invesment timescale.
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I've booked an appointment with my bank just today funnily enough :)
 
scaramanga said:
Roy, thought I'd better make this clear:

We're just a bunch of ****wits giving advice on an internet forum. Whilst we all take whatever risks with our own money that we choose, it's not our place to take risks with yours.

This is just one source of advice, if you're looking to invest a significant proportion of your income then you should get some independent advice. Your bank probably sells ISAs and will advise you on how best to use them. They will also be able to illustrate how low/med/high risk investments compare over time and what's most appropriate for your invesment timescale.
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scara do you honestly think banks give independent advice?
 
If you want a simple savings account or NISA......... http://www.moneysavingexpert.com/banking/ .......find best rates here....click and apply.

For unit trusts/shares/etf's etc I like the way Hargreaves Lansdown operates as a company, as Scara says not the cheapest but not expensive either.

If your bank manager pushes you a fund that is really no different than a tracker (try etf's) except for high management and other ****y fees....he really needs to jog on.

Do your own research and if you're not comfortable keep it simple.
 
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