Total (terrified) Newbie
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Thanks all, I'll feed back once I've had a proper read through and given it some thought.
To get the ball rolling;
1. what are you saving FOR (buying a house, rainy day, old age etc),
We want a good return on this cash to supplement our savings, it's a complex situation. I'll explain more in a while.
2. and how long will it be before you are likely to need the money ?
About 4-5 years.“If you trust in yourself, and believe in your dreams, and follow your star. . . you'll still get beaten by people who spent their time working hard and learning things and who weren't so lazy.”0 -
If you are Australian, as others have suggested, Ratesetter over there pays 10% on the 5 year market. Slightly less on the 3 year market. If it's the same product and system as the uk version then it's got a lot of fans here... and we only get 6%.0
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The only problem is that the £UK is very weak against the $Au at present, factor in transfer costs and it may not really work in my favour.
How secure is a ratesetter investment?“If you trust in yourself, and believe in your dreams, and follow your star. . . you'll still get beaten by people who spent their time working hard and learning things and who weren't so lazy.”0 -
You would have to do your own research there.
If I could get 10% on a product I was happy getting 6% on... I would snap it up. I dont know much about the oz version but the uk ratesetter has never lost a penny due to their provision fund.
Do your own due diligence. People here can only really offer suggestions and the rest is up to you.0 -
Thanks BB, I would, of course, do just that. One has to take responsibility for our decisions. But the helpful advice I have got here has steered me well, that's why I keep coming back for more.“If you trust in yourself, and believe in your dreams, and follow your star. . . you'll still get beaten by people who spent their time working hard and learning things and who weren't so lazy.”0
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I agree with silver145, I think this is a personal one.
Also having mortgage at 2% when you can invest and get a better return makes sense.
However a mortgage is normally a long term commitment. I seem to remember that back in the 1960's this was the standard advise you got from the experts. When the inflation and interest rates went up quickly, many people found it difficult paying their mortgage. Most debt I think will be much higher than 2%.
As a "rule of thumb" I find that debt tends to encourage people to live beyond their means. Its whats banks count on after all.
I do not know how long this low bank and inflation rate will last for. Hence, I prefer little or no debt.
You and Silver are advocating emotional investing.
Which is in general unwise investing.0 -
Thanks all, I'll feed back once I've had a proper read through and given it some thought.
To get the ball rolling;
1. what are you saving FOR (buying a house, rainy day, old age etc),
We want a good return on this cash to supplement our savings, it's a complex situation. I'll explain more in a while.
2. and how long will it be before you are likely to need the money ?
About 4-5 years.
given no2, i would only invest 20% of your excess and save the rest in cash.0 -
Thanks "atush", we were thinking along the lines of 50:50“If you trust in yourself, and believe in your dreams, and follow your star. . . you'll still get beaten by people who spent their time working hard and learning things and who weren't so lazy.”0
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I do not know how long this low bank and inflation rate will last for. Hence, I prefer little or no debt.
I don't know either. It's already been 8 years with no end in sight. That's nearly 1/3 of a standard mortgage term. I agree it's not for everyone and some might prefer to know mortgage is paid but from a purely logical MSE viewpoint it isn't a great financial decision to pay off debt at 2% when you can earn 5% on the money. Obviously if you're going to spend it instead then paying mortgage makes sense but if the choice is £500pm into mortgage or £500pm into investments or 5% savers then the financial choice isn't mortgage.
I'd also point out that the money is still there to pay off mortgage should rates rise massively. For me at least it's not a case of just spending the money instead of mortgage.Remember the saying: if it looks too good to be true it almost certainly is.0 -
^^
I've taken on as much affordable CC debt as I can get hold of at zero cost. It's crazy not to imho, if you can't beat them join them, play the banks at their own game etc.
If the worst comes to the worst I pay it all back and it's cost me nothing.'We don't need to be smarter than the rest; we need to be more disciplined than the rest.' - WB0
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