new to s&s isas

nellykim

Do you folks ever draw your money out ? or plan to draw your money out ?

If and when you do, do you spend it, put it into a current account, and then spend it, ( or think about spending it ) I am just curious.

Why not spend your money instead of your time ?

At what point do you " cash in" ( if at all) or is this idea always at the far edge of " the future"

When does "the future" become "today" When will you enjoy your money

So much time spent in choosing which way forward, how to save a few hundred here or there. Which is the best option,etc.

Nothing wrong in this planning ahead of course. Just wondered if there would be a point, for most people, where they would just stop investing and start reaping the rewards, and if so, at what age, what certain point do you say right thats enough of that, all saving and investing stops here and I now draw it all out, and enjoy ?

dunstonh

Why not spend your money instead of your time ?

Because I dont fancy only having a state pension income of £4500 a year. I dont fancy retiring at 67 either (which will be my state retirement age).

I may dip in occasionally but I find my own investing is not a case of sticking in a defined amount and then waiting for a defined period to then spend the lot. I also find that is not the case for most of my clients nowadays. Investing has moved away from that and increasingly people are investing as they go. Putting in odd amounts periodically and with no defined maturity dates they dip in and draw money almost like an account.

The old 10 year fixed plans have gone and modern open ended investments have taken over. Cheaper, flexible, easy to use and administrate and options that would have only been available to institutional investors are now available at retail level to every day consumers. Things have never been better.

nellykim

Well OK dunstonh, that seems fine to me if most people do dip in and draw money out to enjoy as they go along life's way - and obviously they would then need to keep topping up, to be able to do this - but it seems such a serious, time consuming pursuit, always on the hunt for the best deal.

I invest, but dont worry too much about going about it, or if the end result will give, or take abit, or alot. Its just a different view I think, to most peoples on this board.

Relax, Enjoy, Hey, its only money.

EdInvestor

Hello Inmydreams

I see that you didn;t get a reply to your earlier query about your endowment.If you can let us have some further info about it, we can take a view on what to do with it.

Surrender value,
Monthly premium,
maturity date
maturity forecasts
and interest rate payable on mortgage(s) are the figures needed.

InMyDreams

EdInvestor wrote: »

Hello Inmydreams

I see that you didn;t get a reply to your earlier query about your endowment.If you can let us have some further info about it, we can take a view on what to do with it.

Hi Ed, thanks
Although I'm not sure how relevant my answers will be as this endowment is not officially linked to a mortgage any more (albeit part of my virtual 'mortgage pot'). We kept it on as a savings scheme, reduced the premiums to the minimum and stripped away the life benefits to the minimum. (It guarantees to pay out £5k should one of us die but it's worth more than that at the moment anyway.)

Surrender value, around £6.5K (which would nicely fit into an ISA in one go)
Monthly premium, currently £15/month from which units to the tune of £2.80 are deducted (but there is no other annual charge).
maturity date October 2025
maturity forecasts Last Friday I was told at 6% I'd expect ~£21,100 back.
and interest rate payable on mortgage(s) are the figures needed. currently 5.3% fixed, but as I said, this endowment is nothing to do with our current mortgage (which is considerably more than £20k!). Our mortgage (due to end 2026) is mostly IO, but we are making other provisions for that (and intend to go completely IO next time we remortgage).

They are currently sending me the paperwork to cash it in. I'm sure it's a no-brainer and I should just stick this money into our 'mortgage pot' which is currently just cash (ISAs and regular savers) but I intend to take out another ISA (this time some funds though H&L) to 'replace' the endowment with.

Had to laugh when the guy I spoke to on the phone tried to use the fact that I've paid in more than the current value as a reason for me to stick with it, saying if I cash in now then I will have 'lost money'. Err, no. I've lost that money anyway, whatever I do. He then tried to explain how you really see the benefits of endowments in the final years, so I'd be loosing out by not seeing it through to those final years of 'snowball effect'. As if endowments have the monopoly on compounding returns :rotfl::rotfl:To be honest, if that's the best he can do to convince me to stay, then I'm not nearly so nervous about my decision any more. That said, I haven't filled in the paperwork yet...