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Why bother with Savings Accounts?

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Comments

  • LIB3RTY
    LIB3RTY Posts: 54 Forumite
    Depends where you are in your life plan, we have now made more than enough to live on and our only problem is making sure that we eventually spend it and enjoy it before dying. Why on earth would I want to risk our future trying to make more money that I will never live long enough to spend?

    The time to take risks is before you have made it, not after. I was a big risk taker from my 20's to 40's, now I am in my 50's and have more than I need is not the time to be taking significant risks, that would just be greedy.
    I hear ya, yes, past a certain point in life security is more important than seeking gains.

    I don't believe a bank account alone is very safe though. Have you considered hard assets at all? Precious metals are a bit "iffy" at the moment but if they drop a lot then I would perhaps look at them. Property should be a good buy in maybe 5 years or so (unless you can find a cheap foreclosure at auction) if you want some guaranteed monthly cashflow.
  • chucknorris
    chucknorris Posts: 10,795 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    edited 20 April 2012 at 7:04PM
    LIB3RTY wrote: »
    I hear ya, yes, past a certain point in life security is more important than seeking gains.

    I don't believe a bank account alone is very safe though. Have you considered hard assets at all? Precious metals are a bit "iffy" at the moment but if they drop a lot then I would perhaps look at them. Property should be a good buy in maybe 5 years or so (unless you can find a cheap foreclosure at auction) if you want some guaranteed monthly cashflow.

    My current portfolio is:

    66.0% investment property (bought in the early 90's and all on low margin tracker mortages)
    22.7% savings bonds
    5.9% shares
    5.4% pension

    I am aware that the mix isn't ideal but property is not liquid and I am going to hold until the market is priced to sell (i would guess about 2020-2015 ish)
    Chuck Norris can kill two stones with one birdThe only time Chuck Norris was wrong was when he thought he had made a mistakeChuck Norris puts the "laughter" in "manslaughter".I've started running again, after several injuries had forced me to stop
  • Stompa
    Stompa Posts: 8,393 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    LIB3RTY wrote: »
    Here

    Link

    Cuts off in 2012....
    Cuts off almost a year ago as far as I can see.
    LIB3RTY wrote: »
    ...but have you noticed any real decrease in prices? Electronics seem to have been the only things to go down in price in my experience.
    No, I haven't noticed any real decrease in prices, but I'm not sure how you conclude from that that we have a 'real inflation rate of around 8% - 10%'.
    Stompa
  • I'm unemployed, I need a small amount of money set aside for work clothes (if needed) when I do get employment, or money to tide me over for when I start work, from the time between when my JSA ends and I get paid. I need easy access to this cash, and I don't have very much to invest in stocks and shares, nor do I want to tie the small amount of money up.
  • thenudeone
    thenudeone Posts: 4,464 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    LIB3RTY wrote: »
    Property should be a good buy in maybe 5 years or so (unless you can find a cheap foreclosure at auction) if you want some guaranteed monthly cashflow.

    Do you think that a property gives a guaranteed monthly cashflow?

    There are certainly guaranteed outflows - interest, repairs, council tax, insurance, agency fees; but income depends on a willing tenant who pays on time. That is not guaranteed. Do you have any idea about the property market?

    Your comments seem more and more ill-informed with every post.
    We need the earth for food, water, and shelter.
    The earth needs us for nothing.
    The earth does not belong to us.
    We belong to the Earth
  • guitarman001
    guitarman001 Posts: 1,052 Forumite
    LIB3RTY wrote: »
    What did you invest in and when may I ask?

    I diversified at first in many FTSE100 shares. Learnt a lesson with Betfair IPO (got out without losing too much), got out flat with Tesco, made a little on BP after the oil leak, and plenty of others. Lost the majority on AIM miners - seems the fundies were going long on the metal and short on the miners (times of high inflation and record gold prices, though I would do ok). Still hold two of them but near 60% down. Never will I do AIM again...
  • guitarman001
    guitarman001 Posts: 1,052 Forumite
    I'm not keen on property as an investment. In fact I think it is completely abhorrent, but that's a personal view of mine.
  • 2010
    2010 Posts: 5,579 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    edited 21 April 2012 at 8:27AM
    LIB3RTY wrote: »
    I got out of that game back in 2009 and have seen gains as high as 660% playing the stock market and investing in hard assets. My worst performer was Gold which is only up 40%.

    This isn`t facts just shear fantasy.
  • Moist_von_Lipwig
    Moist_von_Lipwig Posts: 130 Forumite
    edited 21 April 2012 at 8:19AM
    LIB3RTY wrote: »
    Property should be a good buy in maybe 5 years or so (unless you can find a cheap foreclosure at auction) if you want some guaranteed monthly cashflow.

    How does property guarantee monthly cashflow? Your tenant may decide not to pay the rent, then refuses to leave your property - what then? An example

    What if you invest in commercial property and the next downturn strikes and you can't get tenants?
    ...Making Money :cheesy:

    Even if it's not your fault, it's your responsibility.
  • DiggerUK
    DiggerUK Posts: 4,992 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    Why do I hear the voice of silver threads past?
    ..._
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