Shares and Stoozing.

CTT_2

Has anyone ever taken a risk with their stoozing pot and put some of that money into Shares. We hear about a rising Stock Market and would be interested to hear if someone has done this how they got on etc.

worried_and_confused

This would be madness... turning a guaranteed profit into a potentially nasty loss!

CTT_2

worried_and_confused wrote:

This would be madness... turning a guaranteed profit into a potentially nasty loss!

I agree but just sometimes it may pay off. Just sometimes it nice to be rectless but never more than you could comfortably afford. After all isn't what the banks are doing with our money. Gambling with it.

Milarky

In the ultimate stoozing scenario you'd never actually repay the debt - always moving it from place to place. Thus buying share in companies which have always paid a dividend in the past could in theory provide just enough for the minimum payments, the propsects for capital growth and the liquidity required to repay on demand. However stoozing can't be considered a long-term enough proposition really - the 0% deals could dry up sometime. But 'life of balance' makes some sense of this idea. The long term interest rate is probably a bit more than any dividend paid but taken with the growth potential in a share/portfolio it could perhaps pay off in the long term.

Going to the other extreme, people post about premium bonds a lot - which is just daft in my view - as a means of guaranteeing capital but with long odds of matching even savings account returns.

Then there are guaranteed equity bonds - which are fine if you don't need the cash for about six years - so not much of a starter with stoozing.

But it is a good point to raise - almost along the lines of: "What is stoozing for?". Stoozing is literally taking advantage of temporary no-risk loopholes to make near guaranteed profits. The 'skill' rests on being a bit organised [so it doesn't suit people who can't be bothered with regular payments etc] and somewhat patient about spotting offers and then applying for them.

Once you have a built up a largish stooze pot which hasn't gone down for a long time then you could consider a more diverse approach for a part of that cash [where LOB cards could be used maybe?]

OK. I just happen to have a LOB offer from Sainsburys bank for 5.9% [no fee before 31st December] on which I could borrow £3000 and pay back at 3% of the reducing balance. Can anyone suggest how I could make money on this? I would take about 5 yrs to repay about 80% of this amount - but I would be reducing the level invested effectively also. Putting it into a tracker ISA could allow the payments to be taken directly by surrendering units I imagine, but the required return* would still have to be 6% plus.

[Any comments on this?]

*That's 'average' return, of course, not '6% x time x original loan'

CTT_2

Milarky,

Thanks for a very informative reply and you certainly have given food for thought on this subject. I just returned from my 30 mile cycle ride and have decided to invest a
Small amount of my stoozing pot. I have done my research and feel happy with the share I have chosen for this exercise. The share will of course will remain secret as I do not wish to be known as a ramper. Will report back on how things are going and whether this was a good idea.

save-a-lot

Hi

I am stoozing £5K in shares, and luckily the gains have out-weighed the loses. The way I look at it the stoozed £5K is letting me invest now with a reasonable sum. Every month I pay a bit more off, so the eventual aim is to make that £5K mine and keeping the money invested over a longer term. Seems it is a gamble that is paying off.

smarmo

Yikes. I think you folk investing your stoozing money in the stockmarket are NUTS. One bad call, or a fall in the market (almost inevitable come January) and you will be up to your ears in debt. Don't do it. If you've done it...quit if you're ahead.

I've been stoozing for 7 years and make £1500+ a year with no risks taken whatsoever.

Good luck.