Tax free cash ISA allowance to be cut

[Mottie]

It's almost as guaranteed as you can get. Goes up year after year.

My fixed rate interest is guaranteed. Definitely.

 

[denso13]

My fixed rate interest is guaranteed. Definitely.

I'm 9% up since April, even with Trump. That has happened every year except 2020. Just saying.

 

[Justin Passing]

My fixed rate interest is guaranteed. Definitely.

Unless they go Northern Rock.
Start small. If you're not up 4.35% in 4.35 months, sell.

 

[Mottie]

I'm 9% up since April, even with Trump. That has happened every year except 2020. Just saying.

Well done. I knew someone that lost over £50k on RBS shares.

 

[JohnD]

All your questions are answered if you read the link

If you read the thread you can count how many questions I asked.

 

[Justin Passing]

Well done. I knew someone that lost over £50k on RBS shares.

You canlose the lot in a day if you're daft as a brush.
That particular 2008 scenario couldn't happen today, things have changed. Basel 2,3....
Eggs and baskets. Fancy having all your money in one small financial institution. Like a little one in Kent? Daft?
That MAN fund, for example, invests in governments and large institutons worldwide.

If you knew someone who had an accident in a Reliant Robin 16 years ago when someone pushed it over, would you walk everywhere now, because cars are dangerous?

 

[Justin Passing]

I honestly can't see why Labour would cap a very simple tax free savings platform and force people to invest in stocks.

Nobody suggested that.

At the moment, building societies & banks take your money, pay you the least they can get away with, and make bundles investing your money overseas where the growth is.
She's trying to steer some of that money into Brit companies, but making a hash of it.
At the same time somehow squeezing people who have saved up "large" amounts of money ( which they paid tax on).

Sounds like she's making a bit of a Horlicks of it so far.
Patterns repeat.

 

[motorbiking]

It's exactly what was proposed. Cut the tax free cash ISA allowance, but not the S&S allowance.

 

[motorbiking]

Well done. I knew someone that lost over £50k on RBS shares.

9% is pretty terrible performance. You could have picked almost any stock on the NASDAQ and be up 30% since April.

When the markets crashed in April bought ORCL and NVDA 75%+ growth since. I actually posted on this forum about it. I don't have JohnDs invest-time-machine, where I can look back and pretend I invested in historically high performing stock.

Not much use to someone who just wants to put some savings in a bank and beat inflation.

 

[Diver Fred]

If Rachel wants people to invest in Stocks and Shares she really needs to explain to people on how it works - Maggie should have done the same. Maybe HMG needs to get Martin Lewis involved to produce a school level lesson/course.
Another helper would be to make the first £1000 of dividends Tax Free for all so completing a Tax return is not needed for the majority of investors - not just S&S ISA's.
So few of the beneficiaries of the 80's privation schemes held onto their shares selling quickly as a get money quick scheme. My mate in the USA look at what they do (most have lots of small holdings in companies that given them good service) and look at what happens in the UK with surprise at our lack of investment knowledge and understanding.

 

[motorbiking]

If your investment is in an ISA dividends and capital growth are tax free.

In the US there is no CGT on investments over 12 months.

Dividends are subject to withholding tax. Still better than here.

 

[Justin Passing]

It's exactly what was proposed. Cut the tax free cash ISA allowance, but not the S&S allowance.

No, you're conflating your interpretation with the effect.

Quoting a particular period on the SM , only makes sense if the period is long enough. It certainly makes no sense to quote a particulat company's shares, expect in a few very long known cases.

"Since April" fools nobody - the SM dived into April this year, if you had funds you wouldn't have had if you'd wanted steady growth.

In fact one would have to ask "which April did you mean".

That sort of response DOES NOT HELP. Stop it!

The world seems to be full of people getting things wrong - usually on purpose - so they can try to win an argument. Even on the Money Programme the expert asserted that the stock market bounces up and down all the time. That's just low quality rubbish.
There has ALWAYS been a part of the SM referred to as FIXED INTEREST.
Institutions can make up any fund they want to, they do it all the time, so making one which performed EXACTLY like a BS wouldn't be hard.
Some existing ones pay out a stated rate in dividends, you can just put it back into the fund so it grows at the stated rate.
It would take almost no tweaking of that fund to make it look just like a BS account.
Guaranteeing "Bank rate plus 1%" would satisfy most people.

BS fund rates are pegged very closely to the "Bank Rate", That's available on the SM.
They tend to have funny names, but here's one "everyone" interested knows about. Referred to as "Cash 2".

They're all based on the Money Market.

Sure you can have these in your S & S ISA.

---
If you go to Hargreaves Lansdown, you can (once you found the right bit) add SECTORs as well as individual funds to a chart.
So here are three over the last 12 months, which is a fair period because it contained an unusually large disruption. which we haven't seen in the last few years. (Nowt special about HL except their charting tool).

The orange line is the one I keep on about.
The brown one is the money market, pretty much the same as Building Societies. (Remember though that you aren't committed to a period, you can sell whenever you like)
The grey is the average of that sector, which is a good choice if you can stand a bit of wobble. It's all Bonds, not company shares.
It will contain some higher rate short term bonds etc.

The orange one does well because they're clever. When the underlying sources dip, they go "short" , as many funds do, and they use other techniques I won't bore you with, and I may not have quite right.

Using equities (company shares) it's easy to beat these, but clearly some don't want to "go there" - fine. No need. Stop pretending you have to! You can quite easily use better sectors, shortish term, like for a few months, but that does take some effort!. EG FInancials is doing particularly well in the last 3 months. Or semiconductors, or AI, etc etc.

IF Rache steers us down this route, I'm sure the likes of HL will announce new and renamed funds, to the benefit of many.

 

[JohnD]

I don't have JohnDs invest-time-machine, where I can look back and pretend I invested in historically high performing stock.

Bikers post is a fiction he has fantasised in his overheated brain.

 

[motorbiking]

Bikers post is a fiction he has fantasised in his overheated brain.

Nobody cares about your pretend investments.

 

[JohnD]

Nobody cares about your pretend investments.

Poor biker fantasises that people he doesn't like can't be investors. And invents lies.

Can he produce an example to support his delusion?

Unlikely.

Perhaps he read it on one of his made-up press releases.