Where is everyone putting their £5,100 on April 1st?

DiggerUK

MsDee wrote: »

I've just had a little read - it says that on £10,000 invested after a year you will get rougly £300 paid in interest.

From March 2009 to March 2010 on 10K you would get 371.25 Index Linking, + 85 for the annual bonus interest in the first year, making a total of 456.25.
That is a net rate of 4.5625%.
Check the Telegraph last paragraph.
"What if I had invested a year ago, how much would I earn today?"

Edit, forgot to add that as part of a pension pot I think they are sound, because they are safe in present climate.
They can also give you flexibility in the future, as you are not stuck with them
forever.

Kavor

The only problem with index linking is that the timing of your investment makes a big difference. If you'd invested £10,000 in March 2009, you would have earnt £456 in interest. However, if you'd invested the same amount in February 2009, you would have earnt £333 in interest, or just £190 interest if you'd invested the £10,000 in January 2009.

tradetime

MsDee wrote: »

Hi everyone,

Thanks for all the hints and tips so far - some I understand more than others:D. I am saving for my pension I am nearly 30 and have not a penny saved and want to leave my job and go self employed which means getting organised for the future. I was advised that if I can save the max each year into a cash ISA (£5,100) until I retire this would be safer than investing in private pensions that could or may go bust, thus losing everything and having no pension.

I can't seem to quote and post to all the responses in one post, so will have to do it in seperate ones.

Since this seems to be pension related, you may also want to make some pension queries in this thread.

http://forums.moneysavingexpert.com/forumdisplay.html?f=19
Whilst I wouldn't claim to be any sort of pension expert (quite the opposite ) I can't see how simply saving into a Cash ISA is an adequate way to organize a pension, may I ask in what capacity did someone give you that advice?

Jonbvn

Geoffo_M wrote: »

You've got to make a lot of capital growth to get any advantage from S&S ISAs - especially with Capital Gains so high

You are missing the point. Over several years you can accumulate a large pot which will exceed the CGT limit. See this couple in The Times who have managed to accumulate in excess of £1 million in PEPs and ISAs.

In addition to the above, you can also invest in bonds in a S&S ISA, where the income is paid gross. Some of the bond funds in my S&S ISA are paying way more than any cash ISA and they have risen 20%+ in value over the last year!!!

cogito

Me and Mrs Cog will be putting £20400 into income funds like Invesco Distribution as the income is our priority and these funds are yielding about 5%. Any capital growth would be a bonus.

MsDee

Kavor wrote: »

The only problem with index linking is that the timing of your investment makes a big difference. If you'd invested £10,000 in March 2009, you would have earnt £456 in interest. However, if you'd invested the same amount in February 2009, you would have earnt £333 in interest, or just £190 interest if you'd invested the £10,000 in January 2009.

Crikey that's a lot of difference between two months Jan and March - is March the best month out of the calendar year to invest in then?

derrick

cottager wrote: »

Use the Multi-Quote button (to the right of the blue Quote one). Click this in each message you want to quote, then the Reply button at the foot of the thread, and they'll all copy ready to edit or whatever.

aaronmanz wrote: »

The button on the RIGHT of the Quote button will allow you to quote multiple replies, just press it for all the ones you want to quote, then press "Quote" on just one of them. The whole lot should appear in your reply then. HTH :j:j:T

The multi quote will only allow a maximum of 3 quotes, if you need any more than this you will need to do more than one multiple quotes then copy and paste the extra ones into one post.

MsDee

tradetime wrote: »

Since this seems to be pension related, you may also want to make some pension queries in this thread.

http://forums.moneysavingexpert.com/forumdisplay.html?f=19
Whilst I wouldn't claim to be any sort of pension expert (quite the opposite ) I can't see how simply saving into a Cash ISA is an adequate way to organize a pension, may I ask in what capacity did someone give you that advice?

In a pub!!! It wasn't financail it was purely a discussion about if you save £5,000 per year untiil you retire into your ISA it will be £150,000 not including the interest, which the other person thought was the most safest and easiest option. I personally don't think it is enough though.

Baldur

MsDee wrote: »

In a pub!!! It wasn't financail it was purely a discussion about if you save £5,000 per year untiil you retire into your ISA it will be £150,000 not including the interest, which the other person thought was the most safest and easiest option. I personally don't think it is enough though.

It'll probably cost you the best part of £150k for a pint in 30 years time......

tradetime

MsDee wrote: »

In a pub!!! It wasn't financail it was purely a discussion about if you save £5,000 per year untiil you retire into your ISA it will be £150,000 not including the interest, which the other person thought was the most safest and easiest option. I personally don't think it is enough though.

Ah.....fair enough, there needs to be some protection against inflation, not sure a pint will cost £150K......or I'm stocking up now! But the slant is relevant, just saving into an ISA probably won't cut it. If you want to manage your own pension, which is a fair enough goal, then you need to start familiarizing yourself with investments of various descriptions.