Moneysavingexpert campaign to help savers

PasturesNew

I am looking at the proceeds of the sale of my parents' house and wondering how long it'll be able to pay for care fees and all the extra costs that brings. Care fees are the start of it, the elderly still need to 'live' on top of that, with services such as chiropody, hairdressing, day centres, assisted bathing, ironing/cleaning done..... each care solution is different and brings a raft of extras that are needed. So ... how long will it last .... if rates were better more would feel able to pay their own way, rather than worrying about what happens when their money runs out.

And, for now, having to pay for the care, before I've even a clue how long the house will take to sell and at what price, so can't even do the figures with any certainty.

Certainly no "investments" in our family - we just understand "savings" ... put it in the bank, when you want/need it it's there still ... as opposed to investments which seem to involve decisions about stuff you've no idea about, slick salesmen and big fees.... and the big fat warning about losses being possible and risk being entered.

Cleaver

hallmark wrote: »

Anyone with net savings is a saver IMO.

Eh?

I dunno. I just think that you get on with life and deal with what's thrown at you. I guess I agree that 'savers' have been shafted, but life is pretty much made up of people trying to shaft you and then you basically trying to make the most of it. If interest rates are low and savings aren't paying much you have two choices: moan about it but accept it, or do something else with your money that fits your risk profile. That doesn't mean gambling it all in property, or shares, or metals or anything like that. Just having a balanced portfolio that will hopefully return more than cash over the long term. Even OAPs shouldn't be anywhere near 100% in cash.

Cleaver

PasturesNew wrote: »

Certainly no "investments" in our family - we just understand "savings" ... put it in the bank, when you want/need it it's there still ... as opposed to investments which seem to involve decisions about stuff you've no idea about, slick salesmen and big fees.... and the big fat warning about losses being possible and risk being entered.

You pays your money and you takes your choice.

Investing does take some research, but it really isn't rocket science and it certainly doesn't require salesmen and massive fees. Six or seven years ago I didn't understand investing, so I took some time out, read a few bits and bobs and then understood what I needed to to get started. As I've said before to you Pastures, Tim Hale's 'Smarter Investing' book is very simple, sensible and tells you pretty much everything you need to know. And he's very, very anti-fees. But if you don't want to do a few weeks doing a bit of research then I guess you have to keep your money all in cash. I think a small amount of effort is worth it in the long run.

And you always need to remember that the words 'risk' and 'loss' are not limited to investments, they apply to cash savings in bank accounts too, they are just different types of 'loss' and 'risk'. The loss against inflation and the risk that you'll earn a lot less than you would have done by investing some or all of the money.

SingleSue

Cleaver wrote: »

Is there such a thing as a 'saver'? I.e., someone who saves all their money?

The majority of people, I suspect, have a mixture of secured debt, unsecured debt, savings, investments and pensions. I certainly have all those things aside from unsecured debt, although I do use a credit card. On one hand I'm benefiting from a low(ish) mortgage rate, but my savings are seeing quite a poor return. My investments have recently taken an absolute battering. Should we therefore have a campaign to help investors? Have I 'done the right thing' or not?

I guess the point I'm making is that I don't know anyone who is just a saver. And if you do have everything you own in savings maybe you should consider diversifying your money so that you can generate a better return.

My parents have savings, investments and pensions, they have never owned a credit card and the only debt they had was for their mortgage and even then, that was only for about 4 years.

I on the other hand, have no savings, a lapsed pension but no debt either (apart from to the bank of mum and dad), I do have a credit card but only use it for very small amounts (and I mean small amounts, less than £40 a month) and pay it off straight away to keep my credit rating ticking over.

We don't really believe in finance in this family......

hallmark

Cleaver wrote: »

Even OAPs shouldn't be anywhere near 100% in cash.

Do you know many OAPs? Getting them to transfer their money from under the mattress into a bank is a challenge. Getting them to move from the 0.01% paying crudhole of an account they've used all their lives "Because they know them" into something paying 3.0% is almost impossible.

Getting them to transfer into something other than cash? I guarantee you have never done this personally, with the very outside possibility of maybe one OAP you're very related to & even that would have been a substantial achievement.

Conrad

Increasing rates on the squeezed productive middle rump of working Britain would have a disproportionaly detrimental effect on them and tip many into destitution. Thus we'd be back into recession and low rates.

The fact some older folk are stuck in thier ways is inconsequential, they have options to invest elsewhere whereas a young family have no alternative to paying the mortgage and the rates set by lenders.

It's about time older folk got out of thier confined reality tunnels and invested in more productive investments.

mcc100

HAMISH_MCTAVISH wrote: »

the doom-mongers who wished economic armageddon on the nation have been proven wrong

So we're in the clear and it is now plain sailing with regards to the economy and the Eurozone .....

PasturesNew

Conrad wrote: »

It's about time older folk got out of thier confined reality tunnels and invested in more productive investments.

Many old people's concept of saving is under the mattress, having come from a generation where you put your pennies into jars to save towards bills that'd come. How do you explain to somebody of 80-95 about investments when they can't even understand how to turn the telly on, or work the heating, or remember where they left their teeth?

I'm younger and have no idea about investments ... it's a big fat mystery with slimy greaseball salesmen as gatekeepers... and fat cats taking big fees to spend on champers.

OptionARMAGEDDON

PasturesNew wrote: »

I am looking at the proceeds of the sale of my parents' house and wondering how long it'll be able to pay for care fees and all the extra costs that brings. Care fees are the start of it, the elderly still need to 'live' on top of that, with services such as chiropody, hairdressing, day centres, assisted bathing, ironing/cleaning done..... each care solution is different and brings a raft of extras that are needed. So ... how long will it last .... if rates were better more would feel able to pay their own way, rather than worrying about what happens when their money runs out.

And, for now, having to pay for the care, before I've even a clue how long the house will take to sell and at what price, so can't even do the figures with any certainty.

Certainly no "investments" in our family - we just understand "savings" ... put it in the bank, when you want/need it it's there still ... as opposed to investments which seem to involve decisions about stuff you've no idea about, slick salesmen and big fees.... and the big fat warning about losses being possible and risk being entered.

ticket to dignitas would be much cheaper. Think ofthe savings! very money saving expert!

DervProf

HAMISH_MCTAVISH wrote: »

I'm SAVING a fortune on my mortgage thanks to these once in a lifetime low rates.

Thanks savers.:beer:

In that case..........


I'm willing to give up some interest on my savings (and see many pensioners with savings do the same) in order to maintain/increase the value of my house. :beer:

Have out "out-selfished" McTavish ?