Ten year saving plans

Aidanjm

After receiving a leaflet through the post I have been thinking more and more about starting a ten yr savings plan then will try and start another one every 5 years for next 3 terms i.e. 15 years.

I'm 44 currently so thinking ahead to aged 55, 60 then 65, maybe even 70 but I will be well retired by then.

Anyone know of pitfalls or whether they are worth it

And, what the current best deals on market are currently

Thanks

atush

Ptifalls, expensive and limited returns. Inflexible, ill liquid. Not worth it.

Better to save into S&S isas, or investment trust savings plans (in or out of ISAs) and save for ten, 15, 20 years etc. Costs lower, possible returns higher, flexible, liquid.

BarrBru

You haven't told us anything about this 10 year savings plan so it is hard to comment with no information given.

If you're asking about savings then yes they're a very good idea but there is NOTHING to be gained from cash.

Keep rainy day money in cash and invest for the long term in an equity backed investment be it a fund, investment trust or direct.

atush

I believe they are talking about old fashioned friendly society 10 yr plans.

dunstonh

The only plans that still exist that force a 10 year or 15 year term are friendly society plans and a few obscure endowments. If it is these then dont do it. Stocks & Shares ISA is the first point of call.

planteria

Aidanjm wrote: »

After receiving a leaflet through the post I have been thinking more and more about starting a ten yr savings plan then will try and start another one every 5 years for next 3 terms i.e. 15 years.

I'm 44 currently so thinking ahead to aged 55, 60 then 65, maybe even 70 but I will be well retired by then.

Anyone know of pitfalls or whether they are worth it

And, what the current best deals on market are currently

Thanks

who are they from Aidanjm? i have some friendly society investments.

Aidanjm

Thanks all for your thoughts and comments.

Yes, the savings plan is with The Scottish Friendly called 'My MoneyBuilder ISA'

I already have shares that I keep with The Share Centre and monthly savings with two credit unions (this is taken direct from my salary which is great) so this savings plan would be extra!

Playing the markets is great but sometimes you need a bit of security and a longer term fix hence my thoughts around this 10yr plan.

Just trying to gauge folks' reaction to them and if thy are glaringly pants I'll go elsewhere

Thanks again

innovate

There is probably one person, and perhaps their mate, on this forum who thinks that ISA is a great idea. The rest here, and on other sites, will tell you you can do a lot better elsewhere. E.g. http://www.candidmoney.com/askjustin/862/scottish-friendly-moneybuilder-worthwhile

jimjames

Aidanjm wrote: »

Playing the markets is great but sometimes you need a bit of security and a longer term fix hence my thoughts around this 10yr plan.

Just trying to gauge folks' reaction to them and if thy are glaringly pants I'll go elsewhere

Thanks again

If you are buying investments then you are taking the risk that they will decrease at times as well as increase in value over the longer term. Why would you want to have any security or fix to a specific timescale? Surely the best option is something where you are not fixed and can get your money if it has increased massively or you need it for a specific project?

If you are happy being fixed to a certain payment for the term, paying over the top charges and getting poor performance then a friendly society plan would be ideal for you.

planteria

overly harsh, i feel. if prepared to commit to invest for a fixed term the charges are irrelevant and good returns can be achieved, including on money not yet invested:)

jem16

planteria wrote: »

overly harsh, i feel. if prepared to commit to invest for a fixed term the charges are irrelevant and good returns can be achieved, including on money not yet invested:)

The charges are not irrelevant.

However what is more important is the quality of the investment and that cannot be achieved by using the limited scope of a Friendly Society. Once you add in the charges it makes a Friendly Society even more of a bad investment.