save at 3% or re-invest?

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  • edited 26 February 2012 at 9:25AM
    missilemissile Forumite
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    edited 26 February 2012 at 9:25AM
    Thanks for all your replies.
    My IFA tells me that I should always keep a decent proportion of my portfolio in investments and long term he is probably right..
    How good has his previous advice been? i.e. what return?

    The spivs in suits often quote past performance is no guarantee :rotfl:
    Be careful, "long term" these sharks are the ONLY ones guaranteed to make a profit from your investments.
    "A nation's greatness is measured by how it treats its weakest members." ~ Mahatma Gandhi
    Ride hard or stay home :iloveyou:
  • Thanks for all your replies.
    My IFA tells me that I should always keep a decent proportion of my portfolio in investments and long term he is probably right. But recent years have not been good ones as we all know. Unfortunately I began investing in 2007 not long before the credit crunch.
    Yes I already have cash ISAs and other savings but have not fully funded my S & S ISA this year. That would be a more accessible alternative.
    It's just that I wanted to keep as flexible and accessible as possible for the next 12 months pending potential house move. Once that is done, and relevant expenditure dealt with, I might consider investing again for the long term eg for care fees or for my children to inherit if there is any left.

    It's absolutely the first time I have seen, on this or any other forum, the idea expressed of saving/investing for care fees. 9 times out of 10, or 99 out of 100, the idea is expressed in opposing terms i.e. I shouldn't/my parent shouldn't have to pay for own care fees, how to save or shelter any available funds from being 'stolen by the government'. We've all seen these kind of ideas expressed and have responded according to our own beliefs and system of ethics. 'They worked hard all their lives, paid taxes and saved, why should they be penalised...'

    I must admit, many people who know I'm still saving often wonder what I'm saving FOR, why not spend it, go on a cruise, you'll get everything paid for if you allow your savings to slip below a certain level. My answer is always that I prefer to have the choice, and we don't know what is to come round the next bend in the road. You mention care fees. Well, I hope that won't be necessary for OH and me - we've spent time, effort, thought and energy in making this little bungalow as convenient and easy-care as possible. But if it should become necessary then I'd much rather have the freedom of choice which having some savings would bring.

    Yes, your IFA is right - or he goes along with what many experts say - in that you should always keep a decent proportion of your assets in long-term investments. I used to take on board what FF50, FancyFree, used to say. She talked a lot of sense, but unfortunately she died. My portfolio is with Hargreaves Lansdown, too small for them to manage for me - that would be £100K! - but I do read the information they send out, the information on their website, and I take it on board.

    I'm fortunate at present that I can save, that I don't need all my income for spending and that there are the 2 of us who share. But all that could change, who knows.
    [FONT=Times New Roman, serif]Æ[/FONT]r ic wisdom funde, [FONT=Times New Roman, serif]æ[/FONT]r wear[FONT=Times New Roman, serif]ð[/FONT] ic eald.
    Before I found wisdom, I became old.
  • jem16jem16 Forumite
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    HL have what they call their 'Wealth 150' list, 150 funds which they think will do best.

    You have to be careful with their Wealth 150 list as it's really mostly a marketing list with the funds that will pay HL best.
  • jem16jem16 Forumite
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    I have chosen this board as it suits my context better than general savings and investments.

    I realise why you have chosen this board but you may get better answers from the other board you mentioned.

    Not too sure about the idea of using an Investment Bond for £40k but there may be reasons for your IFA using it such as the need to shelter it from care home fees although it would need to be documented differently.

    What terms are being offered for this Bond?
  • Newly_retiredNewly_retired Forumite
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    I have not yet got as far as the details of the terms of the investment. It was a preliminary telephone fact-find update and next steps to consider.
    The IFA mentioned that it would not come into consideration with regard to any future care fees, though this is not the major reason for the choice. I think it also suits my risk profile, and is not going to casue me any tax problems eg erosion of Age Allowance.
  • jem16jem16 Forumite
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    The IFA mentioned that it would not come into consideration with regard to any future care fees, though this is not the major reason for the choice.

    Important nonetheless. You did mention wanting to leave something as an inheritance.
    I think it also suits my risk profile,

    I would imagine there are other investments that would do the same.
    and is not going to casue me any tax problems eg erosion of Age Allowance.

    A very good reason to use the Bond tax wrapper so it certainly sounds like the IFA has a handle on things.
  • jem16 wrote: »
    You have to be careful with their Wealth 150 list as it's really mostly a marketing list with the funds that will pay HL best.

    Thanks for the warning. I have mostly used the information that they give. There are thousands of funds out there and I can't possibly research them all myself. One that HL like very much is doing very well but it invests in tobacco, so not for me.
    [FONT=Times New Roman, serif]Æ[/FONT]r ic wisdom funde, [FONT=Times New Roman, serif]æ[/FONT]r wear[FONT=Times New Roman, serif]ð[/FONT] ic eald.
    Before I found wisdom, I became old.
  • jem16jem16 Forumite
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    Thanks for the warning. I have mostly used the information that they give. There are thousands of funds out there and I can't possibly research them all myself.

    It will be interesting to see how HL handle the Paltform Review which, if it goes ahead, will see their way of charging banned.
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