Yes, but you’ve got common sense, our leaders not so much.
Indeed, but so have many other policies been, but that hasn’t stopped them going ahead with them.
I’d love to know who’s advising Reeves.
Possibly the same person who’s advising mad Ed.
Best savings account?
- Thread starter Merlin5
- Start date
I’d love to know who’s advising Reeves.
Possibly the same person who’s advising mad Ed.
Means tested state pension is self defeating, all it would do is stop people saving toward private pensions. So I don't think it will happen. What will is pushing out the age of eligibility even more and just a general higher tax burden on pensioners by making them pay NI etc. Even fiscal drag will see the state pension taxed soon unless something changes.
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NI is a misnomer in itself. It is just another mechanism to raise tax for general taxation with the current benefit that pensioners do not pay it. I'm suggesting or thinking to get of rid and adjust income tax bands / thresholds accordingly, so everyone pays, regardless of age or employment status, including the self-employed. Presumably, pension providers have to notify HM revenue / DWP of an individuals pension income?! I've no ideas if I'm honest.
However, saying you've paid x years of NI and thinking you're going to be entitled to y amount is for the birds in the coming decades. I fully expect to get nothing when I hit 67/8/9 in the next decade or so. It is what it is.
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I'm not sure. The idea is that NI is rolled into general income taxation. Effectively, the tax intake by the government remains the same. Work and private pensions will provide a much better income at pensionable age, and an individual can still receive a means-tested pension. However, this state pension will be significantly reduced compared to an individual who has not been able to make such provision, for whatever reason, and will therefore receive a higher state pension.
Anyway, going well off topic
I have had a cash isa for a few years and only started a stocks and shares ISA this April.
It's doing very well compared to my cash ISA.
But, and there's always a but! I'm invested in two ETFs, an Ftse all world and a ftse European top 500
There are some UK stocks in those funds, but if I was restricted to UK only stocks it wouldn't makes sense, the returns simply aren't good enough.
So I'm not adverse at all to cash ISAs being slightly restricted as I plan to utilise my stocks and shares ISA much more going forward.
Without doing a detailed analysis, I think I'd be better off paying tax on global investments rather than making tax free losses on the UK...lol! That's just how it is.
Seems like a daft idea... People will just use ISAs a lot less of they are forced to invest in the UK.
It's just hurting the average saver whilst completely failing to address the issue of the very wealthy still having mechanisms to pay no tax at all.
'Rearranging the deckchairs on the Titanic' is a phrase that springs to mind.
It's doing very well compared to my cash ISA.
But, and there's always a but! I'm invested in two ETFs, an Ftse all world and a ftse European top 500
There are some UK stocks in those funds, but if I was restricted to UK only stocks it wouldn't makes sense, the returns simply aren't good enough.
So I'm not adverse at all to cash ISAs being slightly restricted as I plan to utilise my stocks and shares ISA much more going forward.
Without doing a detailed analysis, I think I'd be better off paying tax on global investments rather than making tax free losses on the UK...lol! That's just how it is.
Seems like a daft idea... People will just use ISAs a lot less of they are forced to invest in the UK.
It's just hurting the average saver whilst completely failing to address the issue of the very wealthy still having mechanisms to pay no tax at all.
'Rearranging the deckchairs on the Titanic' is a phrase that springs to mind.
Compared to cash UK stocks have done fine. It's only when you compare to US tech it looks bad.
It's not even USA stocks.. I purposely invested in a global fund and a European fund rather than just the S&P500.
As whilst most global funds are pretty USA heavy anyway (because they are performing well) I wanted more global diversity, hence buying into VEUA (ftse European Inc UK).
My European ETF is actually out performing my global etf at the moment, my global etf being so biased to the USA it's may aswell be the S&P500 anyway, the way it's weighted.
If I was forced to only buy UK stuff.. Well, I just wouldn't...
There's no way I'll be making £400 per month from a £20k investment in a UK only ETF
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No offence but you've been investing 5 minutes, you can't compare on a timescale of a few months.It's not even USA stocks.. I purposely invested in a global fund and a European fund rather than just the S&P500.
As whilst most global funds are pretty USA heavy anyway (because they are performing well) I wanted more global diversity, hence buying into VEUA (ftse European Inc UK).
My European ETF is actually out performing my global etf at the moment, my global etf being so biased to the USA it's may aswell be the S&P500 anyway, the way it's weighted.
If I was forced to only buy UK stuff.. Well, I just wouldn't...
There's no way I'll be making £400 per month from a £20k investment in a UK only ETF
Very true! No offence taken.
I was seriously thinking of putting ten grand into my cash ISA next year, and ten into stocks and shares ISA anyway.. So what I was trying to say is I don't really mind putting more into ETFs in an isa as I'm kinda heading that way anyway.
What I think would be fundamentally disadvantagaious to UK domicile 'personal/private investors' for want of a better word, would be to deny them the right to invest in what they choose.
That would be the price of entry to an insanely generous tax wrapper wouldn't it? Still worth it!
Assuming a UK only ETF for example would generate more gains than a global one.. Even tax free, I have my doubts. I think I'd sooner just put the money in a normal savings account with a guaranteed % return.
I'm too risk adverse to be buying individual stocks and trying to time the market etc.
And I think a lot of people are the same... We don't want to bet our retirement funds on a roll of the dice..
I'd rather get a lower more consistent guaranteed return.
Soldato
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- 23 May 2006
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indeed. my current job has an unusual tax set up and I do not pay UK tax (my tax is covered by my company direct to the government and I am essentially on diplomat rules (no immunity however
) I am given the choice of paying NI and this is purely for pension credits. it would be pretty bad if the government after taking a voluntary payment from me to cover pension credits ** then chose not to pay out because of my savings.** yes I know generally NI is not specific for pension but in my case that is the only reason for making voluntary payments.
(why would anyone make optional back payments of NI if not for the pension?)
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To give you a comparison, my S&S are still down 10% from the ****-show Trump caused with his tariffs. They have recovered a little as I was down 20%. You're just lucky you bought during the dip.
S&S are long term (5+ years) savings, you can't judge performance at a micro level of just a few weeks
One thing to keep in mind at the moment is that the dollar has lost value vs the pound since the begining of the year about 10% or so even though the S&P has recovered and is at "all time highs" when you take into account the FX impact its flat or down to the pound. I think personally world ETF's are a strong bet i've gone with FWRG but the vanguard global all cap or VWRP as a ETF or ACWI or others are fine too just need to check fees and platform fees.
I think having a mixture of both Investments and Cash is a safe bet.. But even talking to my parents they refuse to invest and have 90K+ sitting in cash in interest accounts due to perceived risk of losing it all. I do think the public needs more education on this and maybe nudging the cash isa will help but no one size fits all. I think it comes down to general education about finances, saving and investing that we are sorely lacking among the general public. The amount of young people in work who opt out of the pension is unbelivable and that's got the most time to grow! Plus they are leaving free money from the company on the table.
I think having a mixture of both Investments and Cash is a safe bet.. But even talking to my parents they refuse to invest and have 90K+ sitting in cash in interest accounts due to perceived risk of losing it all. I do think the public needs more education on this and maybe nudging the cash isa will help but no one size fits all. I think it comes down to general education about finances, saving and investing that we are sorely lacking among the general public. The amount of young people in work who opt out of the pension is unbelivable and that's got the most time to grow! Plus they are leaving free money from the company on the table.
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Soldato
- Joined
- 23 May 2006
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I admit my fear of risk has meant i have been less than savvy with my savings. i have put it all in cash ISAs which are tax free which is nice but the interest off them is less than inflation.
That said, given most people these days barely have any rainy day money saved at all, combined with there not being that much of an incentive for young people to save anyway (but a lot of pressure to increase credit limits and spend spend spend!) i guess i am in a better position than most. i have just opened my 1st ever investment ISA however and hope to put more into that over the next few years.
That said, given most people these days barely have any rainy day money saved at all, combined with there not being that much of an incentive for young people to save anyway (but a lot of pressure to increase credit limits and spend spend spend!) i guess i am in a better position than most. i have just opened my 1st ever investment ISA however and hope to put more into that over the next few years.
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It's not even USA stocks.. I purposely invested in a global fund and a European fund rather than just the S&P500.
As whilst most global funds are pretty USA heavy anyway (because they are performing well) I wanted more global diversity, hence buying into VEUA (ftse European Inc UK).
My European ETF is actually out performing my global etf at the moment, my global etf being so biased to the USA it's may aswell be the S&P500 anyway, the way it's weighted.
If I was forced to only buy UK stuff.. Well, I just wouldn't...
There's no way I'll be making £400 per month from a £20k investment in a UK only ETF
Wait so you have made £426.18 last month ?
what are you investing in and how much ? how do i make that in a month ?
EDIT: just seen this is an ISA stocks and share, im out of my limit this year.
If i can make £426 worth of profit in a month from one type of product, i may concider this next year, which ISA stocks and share product did you go for?
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You could also lose £426 the next month. Don't just look at the shiny numbers in isolation.
Yeh i guess
Whats the consistency though ? lots of people on here invest in Stocks and shares ISA? whats the ratio of number of months losing money vs number of months gaining money ? surely if lots of people were losing money most months they wouldnt invest
It literally says what he's invested in in the picture. You know it's not guarenteed right, he could lose that much and more next month...
The joys of investing.
Because you look at it over several years, and the trend is usually up over a long time period.