'I’m looking forward to watching... Savers in trouble: ITV1 Tonight' blog discussion

MSE_Martin

home_alone wrote: »

I was disappointed in the show, I know that a fixed rate account is a good idea and as I am over 65 the 3 options to alternative "saving" do not apply property(what another house that nobody wants to buy), shares (markets in freefall)and bet spreading (gambling), so forget the hype what do people do in a very low interest environment Martin.
I would have thought the best idea would have been to get all savers together to have a go at Brown and Darling, petitions e mail etc.

gary (is it just me)

Remember a TV show is broad brush - the aim was to give the message that you can be active and look at some of the options. Tonight wanted a focus on investment as well; which as you know isn't my area - and this is ultimately an 8pm friday night programme it needs to have a wide spread and not be overladen with complexity.

The full detail of what to do are here on the site.

As for low interest rate environment - the answer for safety is maximise your interest - using every opportunity. There's still 6% available in regular savers 4% plus in fixed accounts, over 4% variable (if you've over 25k).

Then realise that with inflation plummeting (RPI now at 0.9%) you're now actually better off in real terms and as I explained on teh programme if we're heading to deflation - you could actually spend some capital and still spend your purhcasing power.

It's not easy and it is going to require a mental change - but we have to get there. Even spending some capital if you've 3% interest (after tax) and 1% inflation leaves you better off than when we had 4.5% interest (after tax) and 4.9% inflation - it just doesn't feel it.

I know this sounds harsh but its crucial that people start to think in the light of this changing recession environment. And its crucial politicians start to realise savers are hurting and need to be considered too.

Martin

home_alone

MSE_Martin wrote: »

Remember a TV show is broad brush - the aim was to give the message that you can be active and look at some of the options. Tonight wanted a focus on investment as well; which as you know isn't my area - and this is ultimately an 8pm friday night programme it needs to have a wide spread and not be overladen with complexity.

The full detail of what to do are here on the site.

As for low interest rate environment - the answer for safety is maximise your interest - using every opportunity. There's still 6% available in regular savers 4% plus in fixed accounts, over 4% variable (if you've over 25k).

Then realise that with inflation plummeting (RPI now at 0.9%) you're now actually better off in real terms and as I explained on teh programme if we're heading to deflation - you could actually spend some capital and still spend your purhcasing power.

It's not easy and it is going to require a mental change - but we have to get there. Even spending some capital if you've 3% interest (after tax) and 1% inflation leaves you better off than when we had 4.5% interest (after tax) and 4.9% inflation - it just doesn't feel it.

I know this sounds harsh but its crucial that people start to think in the light of this changing recession environment. And its crucial politicians start to realise savers are hurting and need to be considered too.

Martin

Thank you for your quick response, please understand that I am not having a dig at you but I was looking for answers where there are no answers and the questions keep changing daily. I have my savings, where up until the end of 2009 they will give me a very good return its after that I will have a problem unless the world has reached some sort of normality by then, I think that there are many others in the same boat. There are many others that are in a far more difficult situation than myself, it must be awful to have no job and a young family to support.

gary

Errata

Then realise that with inflation plummeting (RPI now at 0.9%) you're now actually better off in real terms and as I explained on teh programme if we're heading to deflation - you could actually spend some capital and still spend your purhcasing power.

I can't understan how the £100k car was thought to be a good example of this, other than it gave a big fat number. How many people can relate to spending that much cash on a car? It felt a bit like Brown's cut in vat - spend £100 quid and you'll only have to fork out £97.50.
The car example added to the savings example of only £300k told me the programme wasn't relavent to my life, or the lives of any of my family or friends.
A great pity Roaring Ros Altman wasn't given a bigger slot.

rb10

Dinah93 wrote: »

ITV doesn't have an online player to watch this does it? I missed it.

Yes, it does: http://www.itv.com/ITVPlayer/Video/default.html?ViewType=5&Filter=35336

(If it doesn't play, go to http://www.itv.com/silverlight2/ )

neilp

I watched the programme - it was as I expected; useful and informative. However, I was very concerned that it appeared to promote spread betting as an alternative to cash savings. To be frank, this is untrue and borders on being irresponsible. Spread betting at best is a very specialised form of investment, which should not be undertaken by novices, and at worst it is straight gambling.

MSE_Martin

neilp wrote: »

I watched the programme - it was as I expected; useful and informative. However, I was very concerned that it appeared to promote spread betting as an alternative to cash savings. To be frank, this is untrue and borders on being irresponsible. Spread betting at best is a very specialised form of investment, which should not be undertaken by novices, and at worst it is straight gambling.

THanks for the kind words. Its interesting to read your perception of the section on spread betting.

Our aim was to be very clear that investing was about risk - its something I pushed very hard in sripting.

The start of the Lions den and throughout - it was reiterated - even by the spread betting man; who's start was that this was high risk and only at most for a small amount of cash. THe question was asked "isn't this like betting at the 4.30 at newmarket" - sadly my reply to Justin Urqhart Stewart of "isn't share investing exactly the same" - had to be cut for time.

If you get a chance, do have a look again, I hope we were pretty clear.

And ultimately Im not sure spread betting in commodities, currencies or gold is inherintly substantially more risky than putting money in the single shares.

Martin

oliveoyl

Dinah93 wrote: »

ITV doesn't have an online player to watch this does it? I missed it.

Yes, it's available to watch online here