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controversial dig at savers
Comments
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Bazn has a certain logic to his post. However many, especially pensioners, who have saved are probably not that investment savvy. so they have the option of financial advisers, who are giving advice to make money. They either operate "free" by having a commission on their sales, in which case their advice is not particularly independent, or they take a fee, which may not be advisable if the sum in question is small, also even there there is the problem of churning.0
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What the complainers are neglecting is that the high interest rates they were used to, and now demand, were largly due to the income generated by said "greedy b******ds".0
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I saw one of the news channels interviewing an 85 year old women who was complaining that the savings rates were going down and she was losing out. She had over £300k in savings and didnt see why she had to dip into the income.
Well at the risk of also being slapped down. I think she should have to dip into her savings. We are all hit in a recession. My husband and I are dipping into our savings. They were for a rainy day and that day is here. The government is likely to get some of this when she passes on. With savings like that I suspect she will have a substantial house with no mortgage. You cannot have low borrowing rates and high savings rates. It doesnt work like that. We are all in this together!
totally agree. go spend some of it. your gonna be dead soon. cant take it with you. should be grateful they arent a pensioner living on minimal income. worried about food or fuel and which one to chose. its just being plain tight and gready0 -
I saw one of the news channels interviewing an 85 year old women who was complaining that the savings rates were going down and she was losing out. She had over £300k in savings and didnt see why she had to dip into the income.
Well at the risk of also being slapped down. I think she should have to dip into her savings. We are all hit in a recession. My husband and I are dipping into our savings. They were for a rainy day and that day is here. The government is likely to get some of this when she passes on. With savings like that I suspect she will have a substantial house with no mortgage. You cannot have low borrowing rates and high savings rates. It doesnt work like that. We are all in this together!
money savvy to the extreme. was she compos mentis0 -
SavingSteve wrote: »What the complainers are neglecting is that the high interest rates they were used to, and now demand, were largly due to the income generated by said "greedy b******ds".
But of course....resulting from the money generated by depositors on trust not on a global casino.
And this forum's name? "Money Saving Expert.Com" rather than "Feel Sorry For The B*****s In Red Braces.0 -
ScarletBea wrote: »I am completely averse to risk, so I don't want to go near the stockmarket (except through my pension plan at work, and even there, the percentage is low). So where should I put my money?
To say you're completely averse to risk isn't true. By deciding to leave money in asset classes, such as cash, that have low long-term returns you risk your future purchasing power (because of inflation). Very risky indeed.0 -
That statement is only true if the individual realizes they are taking that risk.To say you're completely averse to risk isn't true. By deciding to leave money in asset classes, such as cash, that have low long-term returns you risk your future purchasing power (because of inflation). Very risky indeed.Hope for the best.....Plan for the worst!
"Never in the history of the world has there been a situation so bad that the government can't make it worse." Unknown0 -
I completely agree with OP. Savings accounts are fine for emergency funds and planned expenditure; completely unsuitable for income.
Interest rates are unpredictable. And especially for tax-payers, the returns you get aren't enough to compensate for inflation. You spend your interest and then the value of your capital has gone down in real terms.
Some posters are concerned about stock market risks (even after recent declines mean there's good value out there). However we're talking about income here, not capital. The fluctuation of dividend income is very low and pretty stable. Expect capital fluctuations but they shouldn't matter.
Coporate bonds, which pay a fixed coupon, are another asset class to consider.
A recent article highlights getting exposure through bond funds and equity income funds:
http://www.thisismoney.co.uk/investing/article.html?in_article_id=459569&in_page_id=1660 -
Darling and Brown made one big mistake. They should have nationalised the lot of them and imprisoned the likes of Goodwin for malfeasance.
lol there will be plenty of other opportunities to lambast the banks! My point here was the folly of relying on cash savings as an income source.
but otherwise some very interesting opinions! i particularly like the view that those sitting on a cash pile complaining about the interest should use it and be reminded how lucky they ae compared to many people suffering through this recession.
True, for those who know no better, an IFA might be needed to help put the money somewhere better... but if the aim is to generate significant income, then the capital amount is going to have to be pretty sizeable. So despite the fees, an IFA is likely to be worthwhile.0
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