Is 4% SM With Profits Series II a good return? AMC 1%? Any reason to stay?

kidmugsy

davyfm wrote: »

The summary seems to be a steady 2.96% return after fees (at current rates) with expectation of only limited additional returns if any.

Hm. The more I think about the budget the more I conclude that the government feels that the least bad way out of the current mess is a dose of inflation. Unless you feel that future inflation would lead to a rise from the 3% p.a. you currently get I suppose you could transfer to a SIPP and pop the lot into long-dated Index-Linked Gilts. Or an ILG ETF. Or perhaps one of those funds or ETFs that covers global index-linked bonds. Or a couple of the corporate IL bonds currently available. Most financial assets look a bit pricey to me. Not many people hereabouts seem to see much merit in gold but gold ETFs have done well for us so far. (But, hush hush whisper who dare, not as well as silver ETFs.) Or maybe you could buy a property fund - that might give you some protection from inflation. I doubt whether property is as over-valued as fixed-interest Gilts.

redbuzzard

kidmugsy wrote: »

Hm. The more I think about the budget the more I conclude that the government feels that the least bad way out of the current mess is a dose of inflation.

George and Dave are too committed to austerity to engage reverse and borrow to spend for growth, which probably wouldn't work either.

There isn't a snowball's chance in hell of avoiding what amounts to a UK default.

A swerve into gently accelerating inflation to erode the public debt is his only real option, and it looks as if Carney will be a bit more persuasive with the MPC than Mervyn has been.

Lord knows how far Labour might take that from 2015.

Borrowers will be collateral beneficiaries and savers will have to work hard to maintain the value of their assets, if it's even possible.

The fail-safe assumption now is that a sustained period of inflation and devaluation is on the way.

I'd stick with a nailed on 3% for a reasonable %age of my modest pot if I had that option.

Maybe I lack imagination, but I can't see past that at the moment - there's no way that UK plc can service the debt otherwise.

IMO of course.

kidmugsy

I know, let's join the Euro! That'll solve everything.

shorted

kidmugsy wrote: »

I know, let's join the Euro! That'll solve everything.

Or continue to do the Lottery!