Savers - a call to arms!

setmefree2

StevieJ wrote: »

Halifax 4 year fixed ISA is 4.25% which would be equivalent to around 7% to higher rate tax payer.

But who wants to take out a 4 year fix now when interest rates will surely be going up soon?

lisyloo

You'll find acquiring new skills and knowledge a lot harder when you're over 80, Cleaver, especially if you can't see or hear as well as you used to, and your memory is not what it was.

Is anyone suggesting that you don't do any financial planning until your 80's????

I am a daughter-in-law and I look after money for my folks in their 80s.
Make sure they pay as little tax as possible, get the right benefits and have the right products/rates.
I know some families are dysfunctionals but I would have expected the majority of families to look after their elderly members.
Does this not happen?

StevieJ

Loughton_Monkey wrote: »

Really? So imagine the uproar if an IFA went round to a 'woopie' [Well off old pensioner] with £750K of 'cash' to invest, and told him to put 100% of that in the Stock Markets (or even Bonds/Gilts etc.)

That's the trouble you see. The older you are, the more you need to keep to cash.

I am not sure Cleaver suggested that, I have told you a million times not to exaggerate

nearlynew

If it wasn't for the theft which is inflation, we wouldn't have to speculate and use fancy financial tricks in order to preserve the value of the money we have earned.

StevieJ

setmefree2 wrote: »

But who wants to take out a 4 year fix now when interest rates will surely be going up soon?

I probably will be for one, if there are no better around but that wasn't the question this was.

....... I'd be curious where the '1' is ....... let alone the '21'. referring to a ISA rate to beat inflation at the moment for a higher rate taxpayer

Niv

Joeskeppi wrote: »

If you rely on savings income aren't you.... bone idle and should get a job instead

*dangles rod*

Put your rod away this is a family friendly forum!

lisyloo

we wouldn't have to speculate and use fancy financial tricks in order to preserve the value of the money we have earned.

Absolutely, you should be entitled to completely safety and higher than inflation returns for doing sweet FA as a matter of course :-)

Cleaver

Loughton_Monkey wrote: »

Really? So imagine the uproar if an IFA went round to a 'woopie' [Well off old pensioner] with £750K of 'cash' to invest, and told him to put 100% of that in the Stock Markets (or even Bonds/Gilts etc.

Whilst no situation is perfect, the IFA in your example is not doing their job correctly. My understanding of an IFA is to listen to a customers requirements, profile their risk tolerance and objectives and build a portfolio based around them. I guess a great IFA might actually advise you to keep 75% of your money in cash if that's what suits your objectives and risk profile. I'm not an IFA, but if I met a pensioner who had £200k in a 0.4% interest account and seemed very adverse to risk I might suggest that they leave 50% of it in cash, then have very conservative 'investments' in index linked bonds etc. I certainly wouldn't be advising them to dump £150k in some Far East Small Caps Venture Fund.

Your argument seems to be along the lines that a pensioner shouldn't get financial advice because they could get a dodgy IFA. But you take that risk with every service or product you buy, so surely you shouldn't let that risk stop you doing what you need to do. For example, not all bathroom fitters are great, but you shouldn't let that put you off getting your bathroom done if it needs doing.

I stand by my reasoning that if you have £200k in the bank you should be doing something constructive with it.

LydiaJ wrote: »

Learning new stuff is a lot easier when your brain is young, like yours. You'll find acquiring new skills and knowledge a lot harder when you're over 80, Cleaver, especially if you can't see or hear as well as you used to, and your memory is not what it was.

That's very true Lydia. Therefore I think if you realise that learning how to manage your money isn't for you (and fully understand that it isn't for everyone) then you probably need to pay for professional advice.

I'll go back to my really simple problem that you have a craving for cake. For some reason, your objective is to eat a load of cake, yet there's no cake available. You have four options:

1) Do nothing and quietly moan about not having any cake
2) Rant and rave and see if someone will bring you some cake to shut you up
3) Learn how to make your own cake and make yourself one
4) Outsource the cake-making business and simply buy a cake from a shop.

Subsititute cake for interest on money.

Cleaver

nearlynew wrote: »

If it wasn't for the theft which is inflation, we wouldn't have to speculate and use fancy financial tricks in order to preserve the value of the money we have earned.

See my first option in the cake example above.

Whilst you might be correct in your opinion we are where we are and we do have inflation and people do use 'fancy financial tricks' to preserve or make money. So you can either moan about this or do something about it.

Strangely enough nearly, I imagine you do do something about it but also like to moan as well.

nearlynew

lisyloo wrote: »

Absolutely, you should be entitled to completely safety and higher than inflation returns for doing sweet FA as a matter of course :-)

I didn't mention, nor would I want "higher than inflation returns".

Just my money to hold its value.


Inflation is theft.