Euro:
I am in the unusual (for me) position of having some spare cash which is currently earning 3% at the bank (barely covering inflation). As an agency driver I see various businesses and can pry to see how well they are faring. Should I buy some Stobart Group shares? At 92.5p they yield 6.4% and the company is valued at 10.4 times the its earnings (p/e). I would welcome any opinions or alternative suggestions.
A Self Invested Personal Pension (SIPP) investment trust is one of the most tax efficient investments you can buy, the gov will increase your money by 20% OVERNIGHT and you can also claim back tax relief via your tax return.
I invested £17k in one in 2009 and added £10k in Jan 2012 and its now worth £44k
Can’t touch money til I’m 55yrs though
The trouble with that is that you have to buy an annuity. £44k would get you between £2k and £2½K a year now.
I put my spare cash in a tracker ISA. For a lower rate taxpayer there is no great advantage to the tax free status but it does make it easier to manage. The Footsie 100 beats interest rates every time.
I can take a 25% tax free lump sum when I turn 55 but will prob leave it fully invested til I reach 60yrs.
I pay in a monthly amount and the gov tops it up too so “hopefully” it will be a slightly bigger “pot” than £44k in another 12yrs
The dilemma for those people who want to save for their retirement is that those savings or pension will reduce or cancel any benefits they might have claimed such as housing benefit.
I am not knowledgeable enough to quote figures but there is a point at which it becomes a positive disadvantage to have a pension. If you can save enough to climb above this then that’s OK but if not you are just wasting your money and would be better to use it to make your retirement better.
If you can access your cash then you can buy a better car, insulate your house, improve your heating and even take some holidays. If you invest in a pension then - yes - the government gives you the tax back, but you can only draw part as cash and have to buy an annuity with the rest. Annuity rates are very poor just now.
When I was in my 40s I was persuaded to top up my NHS pension with a free standing voluntary contribution. (FSAVC). I stopped it when I was made redundant and when I retired there was £4500 in the pot. That translates into £250 a YEAR. I will have to live more than eighteen years just to get my money back.
Santa:
When I was in my 40s I was persuaded to top up my NHS pension with a free standing voluntary contribution. (FSAVC). I stopped it when I was made redundant and when I retired there was £4500 in the pot. That translates into £250 a YEAR. I will have to live more than eighteen years just to get my money back.
During which time the bankers get all the interest on all the money being held back from it’s rightful owner.While the banks just keep saying that everyone is living longer and then use that bs as an excuse cut the returns given to pensioners even more,by asking for ever increasing contributions,for ever decreasing annuity ammounts,thereby boosting the bankers bonues even more.
switchlogic:
See everyone, Chickens (Ckn;Lon) bullet proof investment.
I doubt investing in the london market is a wise idea, you would probably get a better return on the chinese market
especially as (Ckn;Lon) is Clarkson PLC
McWilliam:
Just leave investing to the professionals and leave us truckers to trucking.
That is what an “Investment Trust” is all about, leave it to the “professionals” and you can get on with your normal day job or whatever.
Yes I know there is no such thing as a free lunch so a small % management fee is involved but I try in invest where the “Fund Manager” him/herself actually invest their OWN money so have a vested interest in that particular Trust
As an example on how to make easy money via Investment Trusts:
If you had invested £10k in the “Marlborough Special Situations” investment fund in 1998 it would be worth a cool £148k today and that is £9.2k per year increase for YOU doing sod all
If you had included it in an ISA “wrapper” you would not have to even mention your £138k “profit” in your tax return.
I invest in myself, not some fund where a bunch of big nose snobs - OH YES PHILLIP HAHA I’LL GET THIS ROUND OF DRINKS IN OLD BOY - Risk my money and play games as if this is magic beans.
Paying for motorbike license, will get artic license some day after lots more experience.
toby1234abc:
Offshore investment is no longer a good deal, used to be ok.
Like a having bank account in Cyprus.
If they can do it there they can do the same thing anywhere it’s just a question of time.There’s nothing stopping the governments anywhere effectively siezing people’s savings to pay off ‘national debts’ which no doubt will find it’s way into the pockets of the Chinese Communist Party with a few kickbacks for the Euro bankers for their help in what is effectively a form of theft.Although it’s no surprise that a global economy that is now run by Communists for Communists wouldn’t recognise private ownership and private property rights at least when it suits them.Although you can bet that the bankers and global big business interests and their cronies in government will make sure that their funds are protected from the raid.
invest your dosh in a dcpc training school cos they get money for nothing for teaching you stuff that you already know, only to teach you the same stuff again 5 years later, youwill have easy money for the rest of your life
na, what you gotta do is traffic a load of whores over from Bratislava and pimp them out, 20 pound for a blowie, 30 pound for full ■■■ and 40 pound for ■■■ in any position. dont have to pay tax either.
the only way I would go at the moment with spare cash is buy to let property, around here 2up 2 down properties are going for around the 45K mark,and renting easily for around £400 per month, a far better yield than most funds- nearer the university they are more expensive up around the 65K mark, but are renting out at £75 pw week per bedroom during term time and if you can you can fit the 3rd bedroom in ( not under HMO regs) I doubt if their is a fund out there to give an equivalent yield for the investment, and at the end of the day the mortgage is being paid out of the rent so even if you don’t get the property price rises we have seen before when you retire you still have bricks and mortar to sell that have been paying for themselves
you may get a higher return by playing higher risk investments, but you only a need a couple to crash and burn to wipe out what the Good uns have made
Deeireland:
Cyprus! [zb] could they do what they done there ,here?
I know inflation has already robbed us all but that’s just complete like it or lump it.
Knowing the Brit government and it’s Chinese Communist Party rulers they wouldn’t zb about taking around 10 % of everyones bank savings they’d just take the lot and all the equity in the house too and then give back whatever they see fit after a means test and subject to a housing requirement test probably resulting in a move to an inner city council flat in a tower block.
Rikki-UK:
the only way I would go at the moment with spare cash is buy to let property, around here 2up 2 down properties are going for around the 45K mark,and renting easily for around £400 per month, a far better yield than most funds- nearer the university they are more expensive up around the 65K mark, but are renting out at £75 pw week per bedroom during term time and if you can you can fit the 3rd bedroom in ( not under HMO regs) I doubt if their is a fund out there to give an equivalent yield for the investment, and at the end of the day the mortgage is being paid out of the rent so even if you don’t get the property price rises we have seen before when you retire you still have bricks and mortar to sell that have been paying for themselves
you may get a higher return by playing higher risk investments, but you only a need a couple to crash and burn to wipe out what the Good uns have made
The problem with buy to let is that you could put loads of money into buy to let property and then get left without rental income for a while for whatever reason ( no money by the the tenants to pay the rent most likely ) resulting in a shortfall on the buy to let mortgage assuming the place can’t be funded outright.In which case a load of equity could be turned into a total loss overnight night when the mortgage company re po the property and flog it off cheap at auction probably to a property firm with ‘connections’.The fact is the western economies are heading for the rocks and it’s no surprise that those at the top are using other people’s money to provide them with a buffer to protect their own funds and assets for as long as possible before they run for the exit leaving everyone else to pay the so called national ‘debts’ .
