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15 year tied in savings plan
Comments
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I am currently maxing out my ISA allowance, have a company pension ( for at least the moment anyway ) but I have about £50 month that I can easily put away. I would really like something that I can't touch that just grows away in the background and matures in about 15 years.
The standard advice for long term saving was to put it into equity but there is no fundamental reason for that to be true. Who is to say that the ftse 100 will ever get back to 6000? It is now less than it was 13 or 14 years ago. In these days of banks and countries going bust do not take anything for granted!0 -
Just remember anything that relies on stocks and shares for performance is not something that can be relied on to "grow away in the background".
The standard advice for long term saving was to put it into equity but there is no fundamental reason for that to be true. Who is to say that the ftse 100 will ever get back to 6000? It is now less than it was 13 or 14 years ago. In these days of banks and countries going bust do not take anything for granted!
Shares of funds that invest in shares are the best investment for the long term, especially if you are drip feeding.
1) The ftse pays about 3% in dividends so it neednt rise to give a moderate return. Taking this into account you could have got a total of roughly 50% over the past 10 years by investing in the FTSE100 index.
2) By drip feeding you are taking advantage of volatility - during times when the market is down you buy shares more cheaply. So again, unless you believe the FTSE is moving steadily down for eternity you will make some money
3) If you dont believe the FTSE is a sensible investment dont invest in the FTSE. With the right fund you can invest in any area of the world. Or do you believe that everyone everywhere is doomed?0 -
3) If you dont believe the FTSE is a sensible investment dont invest in the FTSE. With the right fund you can invest in any area of the world. Or do you believe that everyone everywhere is doomed?
Yes.0 -
Human population hitting 7 billion and rising, amount of agricultural land decreasing, fossil fuels running out(and if you are pinning your hopes on shale, that won't last in the long term either), infections becoming more and more resistant are just some of the reasons my answer to your question would be......
Yes.
Still not happened.0 -
My suggestions to the OP would be
1) put your £50 per month into the Temple Bar investment trust savings scheme. The minimum investment is £50 per month and there are no dealing charges. You only have to pay the 0.5% stamp duty and the total expense ratio stands at around 0.5% if I remember correctly. Performance has been good over the years and the yield is decent as well (~3.7%). See http://www.templebarinvestments.co.uk/literature01.htm
2) The other option would be to open a S&S ISA (if you don't have one already) with someone like https://www.iii.co.uk who have low minimum investment thresholds (iii have min of £20 per month). You can split the £50 between two funds, perhaps a FTSE tracker fund or a UK equity fund combined with a bond fund (M&G Strategic Bond?).0
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