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Furia posted:Anybody have any thoughts on LISAs? I’m looking to open my first stocks and shares ISA and figured a LISA would be a good starter account. If yes, why? If not, why not? Replying to this in the hope it is still of some help, appreciate your post was a while ago. Have spent some time thinking about my LISA recently anyway. This moneysavingexpert article is a good overview I think: https://www.moneysavingexpert.com/savings/lifetime-isas/ My (non-professional) analysis of what I've read is that a LISA is a good idea if you plan to use it to buy a home - though you also have to qualify as a first-time buyer (described in link). That said, a cash LISA is probably a better fit for this purpose over stocks and shares, unless buying a house is 5+ years off. If you don't plan to buy a home with it then you should look at as saving for retirement, as you'll lose the bonus + extra if you withdraw it before then. And aside from a few specific circumstances (also in link), most people would actually be better off saving through their work pension scheme or a SIPP vs a stocks and shares LISA. A standard stocks and shares isa won't give you the bonus, but you can put a lot more in each year if you want to (currently 20k vs 4k) and you'll be able to withdraw it without penalty should you need it. You also get more choice in terms of investment platform.
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Feb 22, 2020 09:16
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^^ all very good points, the only thing I would stress is that unless you're investing your pension into property of something wild like direct shares or a property development, a SIPP is bad value for money 90% of the time. A Personal Pension* affords you all of the same benefits for less of the costs if all you're doing is investing in collectives investments (ie Unit Trusts and OEICs). *you can get Stakeholder Pensions which are currently legally capped at an all in 1% fee, but the fund choice is usually locked to whatever garbage the provider is looking to hawk.
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Feb 22, 2020 22:46
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I've got a small (£8k) amount to invest. No idea what to do with it. Regular bank savings accounts look poo poo. Should I just find the best ISA I can and stick it in there?
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Feb 24, 2020 13:49
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If you have a separate emergency fund in liquid cash already and won't need that 8k for at least 5 years then yeah open a low cost Stocks and Shares ISA and put it into an index tracker fund
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Feb 24, 2020 18:55
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Doccykins posted:If you have a separate emergency fund in liquid cash already and won't need that 8k for at least 5 years then yeah open a low cost Stocks and Shares ISA and put it into an index tracker fund 5 years? I admire your optimism We'll be trading chicken nuggets for toilet paper in about 13 months time.
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Feb 24, 2020 19:18
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Doccykins posted:If you have a separate emergency fund in liquid cash already and won't need that 8k for at least 5 years then yeah open a low cost Stocks and Shares ISA and put it into an index tracker fund One of those Vanguard fellas? I do have an emergency fund, but its not huge, what kind of penalty am I looking at if I have to withdraw the investment?
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Feb 24, 2020 20:07
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Shut up Meg posted:5 years? I admire your optimism Lol if you haven’t already filled every empty space in your home with toilet paper. They laugh at me now but we’ll see who’s laughing when we go Australia style
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Feb 24, 2020 20:49
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alphabettitouretti posted:One of those Vanguard fellas? Shouldn't be for a stocks and shares ISA. Other than that maybe top up your emergency fund to three months' worth of income?
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Feb 24, 2020 21:23
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There's no charge to withdraw from a Vanguard S&S ISA, it's just the times you usually need emergency fund cash correlate to when the market isn't doing well and you have to pull money out at a poor return or loss
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Feb 24, 2020 21:58
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Doccykins posted:There's no charge to withdraw from a Vanguard S&S ISA, it's just the times you usually need emergency fund cash correlate to when the market isn't doing well and you have to pull money out at a poor return or loss The cardinal sin  E: I hate to invoke the boogeyman of "2008" because it was a once in a lifetime event, buuuut the S&P500 was down like 40% over 17 months by the time it bottomed out in March '09. It was up 100% 48 months after that. Point being if you had to withdraw cash for an emergency after March '09 you really would've ended up eating poo poo big time. Massively so when you're investing in index trackers. Theophany fucked around with this message at 22:31 on Feb 24, 2020 |
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Feb 24, 2020 22:27
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Soricidus posted:Lol if you haven’t already filled every empty space in your home with toilet paper. They laugh at me now but we’ll see who’s laughing when we go Australia style I have legit been advising businesses to do that since the run up to brexit day and I still am. In fact, when you see what face masks are currently selling for on the grey market, investing your savings in Andrex could prove to be a wise investment by this time next year.
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Feb 25, 2020 00:46
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Bank of England has slashed base rate again. Mortgage rates may be more attractive in the next few months
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Mar 12, 2020 20:20
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Right so Corona virus bullshit and all that. Is anyone considering keeping a cash stash handy for emergencies? I'm not sure if it's necessary or just a knee jerk reaction learned at mamma's knee
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Mar 13, 2020 21:07
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Sloth Life posted:Right so Corona virus bullshit and all that. Is anyone considering keeping a cash stash handy for emergencies? I'm not sure if it's necessary or just a knee jerk reaction learned at mamma's knee I'd say it's wise to have two bank accounts, two credit cards and enough cash to cover a couple of weekly shops and a tank of petrol. Not so much because of the curernt health situation, but because banking networks break far too often and your current account could be inaccessible for a week.
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Mar 13, 2020 22:02
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I don't know; there was that TSB thing in 2018, and RBS back in 2012; and, unless you're thinking Northern Rock 2.0 or something, that's it as far as I can remember for banking system meltdowns, both of which mostly blew over in a fortnight. I'd feel safer assuming I could walk into the bank with bank card, utility bill and driving licence in hand, and get cash+receipt from the counter staff, than I would keeping a fortnight's worth of cash in the house. Granted that's assuming a) there's a bank on your high street instead of Poundlands and Betfreds, b) you can easily get to said bank, and c) there's not shambling hordes of bewildered Boomers coughing all over the shop and trying the same thing when you get there. Fair point on being able to fill up the tank, though.
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Mar 14, 2020 11:26
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so I could say that I finally figured out what this god damned cube is doing. Get well Lowtax.
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I'm really bad at keeping cash on hand because 95% of all transactions I make can be done with contactless or online payment, in terms of divesting where your accessible money is I'm a bit better and always have a couple of cards to hand from different providers in case one doesn't work for whatever reason at the till Will try and do a deep dive of the budget this weekend and update the OP table with the new £9500 NI threshold
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Mar 14, 2020 11:34
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spincube posted:I don't know; there was that TSB thing in 2018, and RBS back in 2012; and, unless you're thinking Northern Rock 2.0 or something, that's it as far as I can remember for banking system meltdowns, both of which mostly blew over in a fortnight. I'd feel safer assuming I could walk into the bank with bank card, utility bill and driving licence in hand, and get cash+receipt from the counter staff, than I would keeping a fortnight's worth of cash in the house. Always have enough cash on hand so that if you lose your wallet and your phone you can survive a working week because that's what it'll take to minimise the disruption to your life while that stuff is getting restored.
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Mar 14, 2020 17:48
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Lots to think about here, I basically went completely liquid about a month ago which feels pretty lucky. My plan: - Going to transfer a stocks and shares ISA and buy a tracker fund after we bottom out, probably Vanguard - We're buying a house this year so mortgage rates and house prices are probably going to be really good for us as first timers - My (new) workplace deferred my pension contributions, I'm going to max them out when I go to HR tomorrow - Keeping emergency cash in a Revolut vault; for metal customers you get 1.35% annually paid daily which seems incredibly good Paper money: I went and drew out a few notes at about 7am this morning, and by the time I went to post office at 9am every ATM in town was empty. Anything else? Feel like this is the point where non-boomers and genx can prepare to not die in indentured servitude
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Mar 16, 2020 17:59
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Shelvocke posted:- Going to transfer a stocks and shares ISA and buy a tracker fund after we bottom out Don't be the guy that thinks they can do that. If you get in today, you're still buying at a near 30% discount to the 1st January if you're buying a tracker. If you're going to do it anyway and don't need the money in the next 5-7 years there's more to be lost trying to time the market.
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Mar 16, 2020 20:04
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Theophany posted:Don't be the guy that thinks they can do that. If you get in today, you're still buying at a near 30% discount to the 1st January if you're buying a tracker. If you're going to do it anyway and don't need the money in the next 5-7 years there's more to be lost trying to time the market. Yep this has been my play. Took the hit in the Target Retirement 2050 fund but am now sat on a ton of FTSE 100 Index Unit Trust and couldn't be happier. Leave that last margin at the bottom for someone with higher risk tolerance.
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Mar 17, 2020 13:03
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I've got my ISA application in and transfer letter sent. Fortunately there looks like there'll be a bit of a a buy in window. Good nudge about not waiting, this is as good a time as any
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Mar 17, 2020 13:08
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I read about an IFA in Northamptonshire today who has transferred 85% of his clients' investments to cash in the last week. He's bragging about it in our trade rags like he's some kind of clairvoyant. https://citywire.co.uk/new-model-ad...5285.1571337743 RIP the retirements of the poor bastards paying this poo poo artist.
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Mar 17, 2020 22:06
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Is it.. is it time to start buying gold? Seriously, though, I already have most of my money split between GBP and USD, the only thing I'm not safe against is hyperinflation. Feels like a dumb prepper move but a month ago so did buying dried beans and hand sanitiser. Sloth Life posted:Right so Corona virus bullshit and all that. Is anyone considering keeping a cash stash handy for emergencies? I'm not sure if it's necessary or just a knee jerk reaction learned at mamma's knee I always keep a couple hundred around in different currencies, mostly because it makes it easier on the first day of travelling, but having strategic pots of cash about the place always comes in handy when you least expect it, even if just because you forgot your card.
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Mar 19, 2020 08:58
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Jaded Burnout posted:Is it.. is it time to start buying gold? Gold is just a form of short term gambling, if you don't want equities then just hold cash. We are not going to see hyperinflation in the West. If there is hyperinflation then the only thing that will let you ride that out is having a house and a steady job.
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Mar 19, 2020 11:15
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How do I invest in online pornography? I sense it is a suddenly growing market.
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Mar 19, 2020 11:27
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Shut up Meg posted:How do I invest in online pornography? I sense it is a suddenly growing market. You joke but I invested in Frontier Developments as a punt and they're the only stock I have that's currently in the black (they announced an exclusivity deal with Formula 1 this week). Video games gonna do well.
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Mar 19, 2020 11:32
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So last night I was advised to self isolate because asthma. Unfortunately I'm a bank nurse, so I'm not entitled to sick pay - I have savings but looking to see if I can get a WFH NHS 111 job. I've emailed my landlord asking to take pity on me since they'll all be getting mortgage holidays , because, well, why not? My girlfriend works in one of the few retailers that will probably come out of this on top but things are definitely a lot more real this morning. Jaded Burnout posted:
My parents individually hammered into me this growing up, and since 2008 especially keeping some cash lying around seems like a good idea.
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Mar 19, 2020 12:14
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Jaded Burnout posted:Is it.. is it time to start buying gold? It's never time to start buying gold.
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Mar 19, 2020 12:27
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Jaded Burnout posted:I always keep a couple hundred around in different currencies, mostly because it makes it easier on the first day of travelling, but having strategic pots of cash about the place always comes in handy when you least expect it, even if just because you forgot your card. Shelvocke posted:My parents individually hammered into me this growing up, and since 2008 especially keeping some cash lying around seems like a good idea. I wonder how many Lira and Drachma you need to get toilet roll on the black market?
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Mar 19, 2020 17:01
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If you're prepared to sell your soul, here's some sage investment advice: 
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Mar 19, 2020 17:20
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So coming up on tax year end, check my thinking.... If my taxable pay (salary + shares bonus + overtime - pension) ends up being above £50k, would I be best placed in making a one-off contribution to my pension for the difference? My understanding is that I then can claim the extra tax relief on that amount and I'll effectively get a refund from HMRC? My usual pension contributions are salary sacrifice so I'm not quite sure how it works out if I do a one-off payment.
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Mar 20, 2020 11:47
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If you don't need the additional income over £50k and have a healthy emergency fund to hand, then yes. Depending on how your scheme operates, you'll get 20% basic rate tax relief at source and will be able to claim the additional 20% higher rate relief on your tax return. To make a one-off contribution it would likely be a case of reaching out to the scheme administrator who will provide you with the details for payment, or just opening your own personal pension account somewhere if you won't benefit from a matched employer contribution.
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Mar 20, 2020 12:42
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Theophany posted:If you're prepared to sell your soul, here's some sage investment advice: That's just about the worst thing I've ever seen
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Mar 21, 2020 21:58
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Shelvocke posted:That's just about the worst thing I've ever seen  
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Mar 21, 2020 22:03
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Sloth Life posted:Bank of England has slashed base rate again. Mortgage rates may be more attractive in the next few months I’m in this boat. Part of my mortgage expires in June and I can move the mortgage. I’ve calculated the savings over all the terms, but trying to figure out the best approach. I know it’s to do with the time value of money, but I’m not smart enough to figure it out. Like £3.5k saving over 5 years is better than £4.8k over 10 years. But it’s also to do with assumptions once the term is over. Given the current (and historic climate) I can’t see rampant inflation any time soon.
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Apr 8, 2020 10:51
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Oodles posted:
Uh, aside from the current global shutdown that's going to have unknowable knock on effects everywhere, there's a big event coming at the end of the year that will make everything more expensive.
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Apr 8, 2020 11:14
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Alchenar posted:Uh, aside from the current global shutdown that's going to have unknowable knock on effects everywhere, there's a big event coming at the end of the year that will make everything more expensive. Apologies, I got it the wrong way round. I meant I can’t see massive increases to interest rates.
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Apr 8, 2020 11:43
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So would this be a good time to start investing, maybe in non-uk funds? The rest of the world’s presumably going to recover faster since they only have the one disaster going on
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Apr 10, 2020 13:44
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Have you... seen the US?
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Apr 11, 2020 07:08
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Soricidus posted:So would this be a good time to start investing, maybe in non-uk funds? The rest of the world’s presumably going to recover faster since they only have the one disaster going on Assuming you are financially secure, the best time to start investing is always today. Read the long term investing thread, the principles are all the same just replace all the different number-letter schemes that are US specific with 'ISA'. My sensible savings money goes into primarily US index funds and I do some limited stock picking in the UK for fun. Stock picking is really dangerous right now so I wouldn't recommend it for someone starting.
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Apr 11, 2020 11:27
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