Pensioners and savers.

Gray_colt

We are all loosers and here today we have mervyn king saying his happy with higher inflation and low interest rates! Im sure he is..are we?? Lets inflate away a few billion and at the same time help out those poor old mortgage payers sob sob, dont forget savers out number 7-1. Totally immoral from merv, his remit is 2%! How many other jobs can you constantly FAIL at and still have £150k salary!

edinburgher

Never mind!

bendix

Gray_colt wrote: »

We are all loosers and here today we have mervyn king saying his happy with higher inflation and low interest rates! Im sure he is..are we?? Lets inflate away a few billion and at the same time help out those poor old mortgage payers sob sob, dont forget savers out number 7-1. Totally immoral from merv, his remit is 2%! How many other jobs can you constantly FAIL at and still have £150k salary!

I'm not losing. If you're losing, you need to take a good long hard look at yourself and work out what it is you're doing wrong.

Old_Slaphead

bendix wrote: »

I'm not losing. If you're losing, you need to take a good long hard look at yourself and work out what it is you're doing wrong.

Bendix - today, if you received a windfall of £50,000 and didn't want to take any risk with your capital, where would you 'invest' it to get the 5-7% that you're getting on your cash?

bendix

Old_Slaphead wrote: »

Bendix - today, if you received a windfall of £50,000 and didn't want to take any risk with your capital, where would you 'invest' it to get the 5-7% that you're getting on your cash?

The basic premise of your question is wrong. There is always risk.

I'm getting 7.3% on some of my cash, but it's overseas. Is there a risk? Yes, there's a currency risk at face value, but it's not a risk that I'm bothered about because I won't be using the money in the UK. If I was using it in the UK - which I'm not - and I was bothered to do the sums I'm sure my real rate of return taking into account the strong Kiwi dollar for the last year is more likely closer to 20-20%.

But like I said, i don't think like that. I have xxxxxx Kiwi dollars earning money there, xxxxxx Australian dollars there, xxxxxx pounds doing what they do here, xxxxxx Thai baht there etc etc.

And it depends on your definition of risk. For me, investing in some high yield shares is not risky, because if I was buying them for a 5-7% yield, I wouldn't be interested in selling them. Ergo no capital value risk.

So the key component of your question - if we are deconstructing it - is what I, bendix, would do with a windfall of £50,000 with MY attitude to risk. I can't answer your question any other way. I can't answer it to make it sensible to Old Slaphead, who might have fundamentally different needs, attitudes etc.

My answer would be irrelevant because others have a different attitude to risk, worrying even about the minutae of splitting large sums between different banks in case they default, which is about as likely as me marrying Angelina Jolie.

One person's risk is another person's perfectly normal trade off for decent returns.

Angela41

Onawingandaprayer wrote: »

Sorry Angela41. That wasn't aimed at you! It was aimed at the original poster, who seems to be going one and on and on and on and on. zzzzzzzzzzzzzzzz

Not you at all! I admired your post.

Thank you, though I did think it advise anyway!!!! x

Angela41

le_loup wrote: »

Getting less money to avoid tax is not really a good idea! You only pay tax on the amount of income over your tax free allowance, not on all of it. Better to earn more interest on which you pay tax than less interest on which you don't.

Agree in principal since the more you pay the more your earning, but in my case in that instance because of my tax free allowance (and not having an income whilst raising kids) I landed up paying tax when had my payment date on the capital been ealier I could have avoided paying any on the same interest and same capital..

Gray_colt

When houses slip the next excuse the MPC will come out with is we need to support houses, i can see it coming already. King will stand up and say long suffering home owners need a helping hand in hard time! Us savers have been fed to the sharks And we all know it. This government and the last encourage debt and your better off being in debt because they will bail you out everytime. Classic example is it you have over 16k in the bank you dont get support, if your pennyless you get full support and rent paid! What message does this send out.

Aegis

Gray_colt wrote: »

When houses slip the next excuse the MPC will come out with is we need to support houses, i can see it coming already. King will stand up and say long suffering home owners need a helping hand in hard time! Us savers have been fed to the sharks And we all know it. This government and the last encourage debt and your better off being in debt because they will bail you out everytime. Classic example is it you have over 16k in the bank you dont get support, if your pennyless you get full support and rent paid! What message does this send out.

It sends the message that if you are careless enough to reach retirement age with nothing at all in the bank and nowhere to live, you'll be able to survive. State benefits are hardly going to allow for a great deal of enjoyment through retirement, so it's very much a consolation prize for those who just didn't do enough planning.

bendix

Is it just me, or does anyone else think that Gray_colt taken over Asheron's rightful position at MSE's most tedious one-issuer poster?