Why bother with Savings Accounts?

LIB3RTY

ruperts wrote: »

53.5% is very impressive. For how many years do you think you can maintain that level of return? At that rate it will only take you another ten years to become a millionaire with no additional investment. Another 15 years after that and you will be a billionaire. If you could keep it up for 43 years from today you'd have £1,158,323,787,513.00

Well I can guarantee I won't make that kind of return this year as I am being quite conservative and sitting mainly on cash until I feel the time is right and some bottoms form in the stocks I like. I think I'll be at around 15% up by the end of the year unless Hecla has a big bounce before it hit's its bottom. In that case I should make a little more.

Next year will be a tricky one. I am anticipating another "credit crunch" scenario so there will not be much made next year. The entirety of that year will be about picking bottoms and then just waiting a year or 2 for things to rise again.

LIB3RTY

Found something better than Hecla. I'm into AUQ now. I think this will pay out big time. Wish me luck.

racing_blue

Dude, good luck

Anthorn

sorcerer wrote: »

Not everybody will have your attitude to risk, especially when they are older, you might find losing the capital is too much of a risk. But I understand your point of view.

Exactly! I'm nearly 62 years old and my instant access savings account is primarily a means of keeping the balance of my current account down and earns some interest. The dual purpose is as an emergency fund and a Christmas fund. Beyond that is a cash ISA which in turn keeps the balance of the savings account down and earns me more interest which is tax free.

Younger people can have riskier investments because if those investments go bad they have the time to recover. Older people don't have that time!

Noviceinvestor

62 is not old. :j

badger09

Noviceinvestor wrote: »

62 is not old. :j

62 is brilliant - especially when in my head, I'm still about 23

Too old for risky investments though :eek:

chucknorris

chucknorris wrote: »

I just updated my portfolio this morning actually now its:

63.8% property
24% cash
6.2% shares
6.0% pension

I'm not actually worried about the property, especially as I am on low margin tracker mortgages (1.1% over base). However I am looking forward to getting rid of them after 20 years of being a landlord, but of course I will wait until the right time, probably about 10-15 years.

Just updated my portfolio, it is now:

60% property
23% cash
6% shares
11% pension

I am doing what I need to with my pension but looking at the %'s I obviously should have also bought more shares.
EDIT: whoops spotted an error on my spreadsheet, I had halved the value of my house (wife will pay half in future but hasn't done so yet), should have been:

20% cash savings
9% pension
5% investments (shares)
66% property

tr7man

Just wondering how to calculate what percentage of what I have.

I have a pension fund, some cash in a cash Isa, a property I rent out (which is paid off) but no shares (yet)

Fe you say 60% property - does that mean just the actual value of the buildings if sold (so must be a best guess at least) and do you calculate in cgt as a minus or incoming rent as a plus to find a net worth?

thanks, just learning this stuff

P

chucknorris

tr7man wrote: »

Just wondering how to calculate what percentage of what I have.

I have a pension fund, some cash in a cash Isa, a property I rent out (which is paid off) but no shares (yet)

Fe you say 60% property - does that mean just the actual value of the buildings if sold (so must be a best guess at least) and do you calculate in cgt as a minus or incoming rent as a plus to find a net worth?

thanks, just learning this stuff

P

I keep a spreadsheet for my assets, I have to after the turmoil with the banks a few years ago caused my cash to be spread over multiple accounts. At the top of the spreadsheet I have asummary which shows the percentages. The percenatges are a snapshot in time so any rent received will be included in my bank account at that particular time.

The 60% is the net worth after disposal costs, so yes I deduct CGT (and other costs like estate agents fees etc).

atush

chucknorris wrote: »

Just updated my portfolio, it is now:

60% property
23% cash
6% shares
11% pension

I am doing what I need to with my pension but looking at the %'s I obviously should have also bought more shares.

But what is in your pension? Mine is mostly equities (the OH has one that is mainly otherwise) so if yours is like mine I would say you could lump the shares and pensions together.

you are still a bit overweight in property though.