So what you are saying is that a savings account could perform better than shares and nobody could guarantee otherwise. That’s always been my belief.
Investment
- Thread starter pete01
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Here lies the problem. You will be over paying for your retail gold and getting skinned when you sell. This is why you might want to think on™. But of course since some gold is legal tender depending how you buy it, there may be no capital gains tax to pay when you sell.
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There is a 90+% probability that a broad tracker will outperform cash in the bank over a 10 period. the 1999 - 2009 period has been the only decade where it hasn't.
| Investment Horizon | Approximate Probability of Beating Cash |
|---|---|
| 1 Year | ~60% – 65% |
| 3 Years | ~75% – 80% |
| 5 Years | ~85% |
| 10 Years | ~91% |
| 20 Years | ~99% |
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They are very good at telling you how much they will charge.
Only British coins from the Royal Mint that are legal tender are free of capital gains tax. This is principally Britannias and sovereigns. They are also widely traded here.
Silver is subject to 20% VAT when you buy it, which you will not get back, and has a wider buy/sell spread, so pretty much a non-starter.
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So is britannia and sovereigns a good investment ?
Bet he don't answer
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avoids any questions like the plague
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think on™
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Nobody can tell you if something is good. It all depends on your risk appetite. For example:
I doubled my money on NVDA in a few short weeks, but knew it was risky. Single stocks and high tech stocks are not for those who aren't happy seeing them go up and down as much as 50%. On the other hand I am very happy with my VWRP gains this year which is a broad spread tracker and up about 13% in ~6 months.
I actually consider the second a better investment since it has outperformed my expectations.
You have to decide on your risk appetite. If you are looking for better than a bank and as low risk as possible then I would look at a tracker. Probably not a FTSE100 or 250 one, but even those (LON:MIDD) are up 9% this year.
I doubled my money on NVDA in a few short weeks, but knew it was risky. Single stocks and high tech stocks are not for those who aren't happy seeing them go up and down as much as 50%. On the other hand I am very happy with my VWRP gains this year which is a broad spread tracker and up about 13% in ~6 months.
I actually consider the second a better investment since it has outperformed my expectations.
You have to decide on your risk appetite. If you are looking for better than a bank and as low risk as possible then I would look at a tracker. Probably not a FTSE100 or 250 one, but even those (LON:MIDD) are up 9% this year.
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I am going to leave my money in the bank, I don't want to risk losing any of it. I dont mind spending it but to lose it I would be gutted.
Just put it in fixed rate one year bonds. Or ISA's. You can have the interest paid out monthly if you pick the right ones. Currently we have 1 year fix ISA's paying out monthly from Kent Reliance, 4.34%, Coventry BS, 4.5%, Lloyds, 4.46%. We also have 1 year fix ISA's with Shawbrook, 4.94%. We also have 15 month fixed bonds with Nationwide, 5.0%, 1 year fixed guaranteed income bond accounts paying monthly from NS&I, 4.69% (but now currently 4.99%) and an instant access account with the Post office, 4.4%, Spring at 3.82% and Chase, a piddling 2.25% now the introductory boost has expired but a guaranteed 4.5% for new applicants.Oh, and a little bit in Premium bonds. The NS&I, Post Office and Chase accounts are taxable so are in Mrs Motties name as she is retired but not yet old enough for state pension so has a £12.5k personal allowance that we use. Better than just sitting in the bank. All guaranteed. No risks whatsoever. We're more than happy enough with those. Get in there!
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No no no
Nobody sane puts all their money in one place.
I just had to deal with one of my wife's ISAs which let's say had £100 in it. I'd left it in where she had it, for a year.
Just before notifying the place that she'd died, I put
£90 in a fixed interest fund which has earned £4
and £6 in a High Dividend fund which has earned 6.6% divi and gone up 12% as well so that's £1.12
(Dividend funds tend not to drop as much with the market - they're a safe haven.
AND You get the dividend regardless of what happens to the fund.)
Also I'd put £4 in Polar Capital Global Tech, which went up a lot, earning £2.76
That's £7.88%
A heck of a lot better than the £4.44 it would have got in the fixed interest fund.
If the market had crashed in a big way, like a one in ten year event, the divi fund would have at least partly recovered, looking at history, so say it would come out ~ flat , and I'd have lost maybe 25%, a quid, on the Tech fund.
So I'd still have got £4 + 40p divi , minus £1 = 3.4%
So you don't lose, you just make a bit less, in a particularly bad year. Otherwise as in this last year, I won an extra 3.44%. Pretty decent odds,
and quite significant if your capital amount adds extra zeroes on to the £100.
If it were NOT an ISA, you'd pick a means of getting a Capital Gain rather than taxable interest. Highly worthwhile especially if you're on higher rate tax.
Some funds aren't taxable , and if you do get some capital gain, there's a £3k tax free allowance which may cover it.
Nobody sane puts all their money in one place.
I just had to deal with one of my wife's ISAs which let's say had £100 in it. I'd left it in where she had it, for a year.
Just before notifying the place that she'd died, I put
£90 in a fixed interest fund which has earned £4
and £6 in a High Dividend fund which has earned 6.6% divi and gone up 12% as well so that's £1.12
(Dividend funds tend not to drop as much with the market - they're a safe haven.
AND You get the dividend regardless of what happens to the fund.)
Also I'd put £4 in Polar Capital Global Tech, which went up a lot, earning £2.76
That's £7.88%
A heck of a lot better than the £4.44 it would have got in the fixed interest fund.
If the market had crashed in a big way, like a one in ten year event, the divi fund would have at least partly recovered, looking at history, so say it would come out ~ flat , and I'd have lost maybe 25%, a quid, on the Tech fund.
So I'd still have got £4 + 40p divi , minus £1 = 3.4%
So you don't lose, you just make a bit less, in a particularly bad year. Otherwise as in this last year, I won an extra 3.44%. Pretty decent odds,
and quite significant if your capital amount adds extra zeroes on to the £100.
If it were NOT an ISA, you'd pick a means of getting a Capital Gain rather than taxable interest. Highly worthwhile especially if you're on higher rate tax.
Some funds aren't taxable , and if you do get some capital gain, there's a £3k tax free allowance which may cover it.
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Yes yes yes.
Lots of people do and they are very happy with that arrangement. If I was happier with something else, I’d do it. All the money in the world can’t bring you health or happiness but there’s plenty that think it’s the be all and end all. It isn’t.
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Mrs Mottie - even if she's not earning anything she can put £2880 pa into a SIPP, which HMG makes up to £3660.
If she's not earning enough to pay tax, she can take it all out a year+ later and pay no tax on the £720 gain.
Or of course just leave it there to accumulate. Pick a proper fund and you should make more than 5% - if it DOES drop, well you started £720 up!
You can add the same to it each year, up to age 75.
This is quite a Good Thing.
If you put 2880 into the SIPP for 5 years, you wind up, assuming a 10% pa growth which is very modest for the stock market, with £24580.
Not bad for a cost of 14400.
To get that amount of money without the government uplift, you would have had to get a return of about 18.4% pa..
If you'd chosen that Schroder High dividend fund
Schroder ISF Glb Div Mxmsr C Dis GBP Q
It would have given you just over the 10% and you'd have wound up with about £24650. (divis reinvested)
The fund is quite well behaved:
If you'd put 2880 into a building society at 5% pa, you'd wind up with £16700, 8k less, and taxable.
When you take money out of a SIPP, there IS tax to consider. You could take 25% tax free and eg you could transfer the rest to an annuity payer free of tax, but you'd pay tax on the payouts as any other pension.
If she's 65 she can pay in for 10 years, a total of 28,800. At 75 she's have 69,000 with the same figures.
She could get an annuity at 75 with that sum, paying about 7kpa for life.
