Interest rates so low - don't bother saving!

grey_gym_sock

Thrugelmir wrote: »

People appointed to handle finance should be both elected and accountable.

My issue is that politicians have no life skills. No experience. Relying instead on textbook theory to manage very complex issues.

if you don't like who's been elected, the options are:

(1) the electorate needs to do a better job. this is not necessarily a pointless sentiment. because there may be institutional changes which would help them (er ... us) to do a better job.

(2) restrict or remove the electorate's role. this is the anti-democratic option.

atush

I agree, and am always happy to mention my losses. I didn't make many during that time period though (apart from on paper), as I didn't sell then. Mainly only my bank shares are heavily down since then, everything else has rebounded strongly and quite a lot has grown well.

My aberdeen asian smaller companies (only a minor play for me at the time) has been a star.

In the meantime, I had a good dividend stream, much of which is reinvested.

Thrugelmir

GeorgeHowell wrote: »

If you're happy with the gamble, then fine. Next year, or the year after, could be very different. Like people who bet on horses, those who invest in equities only tend to talk about it when they win.

Its an accepted fact that a portfolio of investments. Will show both profits and losses. So personally I've predominantly held investment trusts over the years to have maximum diversity and not have to concern myself with active trading. Through my holdings I probably have exposure to around 600 global companies. I merely look to make a net gain (including reinvestment of dividend income) over the longer term. By using a SIPP I get the added benefits of tax relief on my contributions as well.

GeorgeHowell

Thrugelmir wrote: »

People appointed to handle finance should be both elected and accountable.

My issue is that politicians have no life skills. No experience. Relying instead on textbook theory to manage very complex issues.

Not unique to politics -- look at MBAs.

Thrugelmir

GeorgeHowell wrote: »

Not unique to politics -- look at MBAs.

Met a few in my time.

Narrowboatlife

Saving is a good thing, its just with interest rates so low do not save in fiat currency. Save in a competing money, like bullion.

Narrowboatlife

moneyinmypocket wrote: »

There will be no base rate rises untill the country is in full recovery and stable again - IMO we won't see any rises untill towards the end of the decade

In an ideal world yes, but the mess the economy is in is anything but ideal.

There will be no recovery by the end of this decade, but inflation pressure will force interest rates up regardless of the mess the ecconomy is in long before the end of this decade. Could well be 2013 if the BOE carries on adding billions of £s to the currency supply.

gadgetmind

Narrowboatlife wrote: »

inflation pressure will force interest rates up

Rather than raising interest rates, they can simply start to unwind the QE and take the surplus cash out of the economy that way.

lvader

If inflation comes from external pressures, i.e. high commodity prices then the BoE is pretty much powerless to respond. If they need to slow a run away UK economy (unlikely right now) there are a veriaty of measures that they and the government can take.

Glen_Clark

Commodity values in general are not rising.
Its the value of the pound that is falling.