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Bank of England has upgraded its growth forecast ....
Comments
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grizzly1911 wrote: »Like pensioners you mean. Investment strategy to switch out of more risky investments to cashlike safer alternatives. Unfortunately that usually means lower returns.
Not everyone can or is capable of chasing investments or BTLs.
..and nor should they.
I don't think pensioners are the daft ones TBH. They're getting something from the deal in terms of nominal safety and understand (even if they don't like it).
The irony is that negative returns on cash are nothing new but a perpetual surprise to younger savers.0 -
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The irony is that negative returns on cash are nothing new but a perpetual surprise to younger savers.
It is not just young savers many people don't understand. They also don't understand the alternatives or appreciate how they work."If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
Are they not allowed to use the capital part of their savings?grizzly1911 wrote: »It is not just young savers many people don't understand. They also don't understand the alternatives or appreciate how they work.0 -
grizzly1911 wrote: »Like pensioners you mean. Investment strategy to switch out of more risky investments to cashlike safer alternatives. Unfortunately that usually means lower returns.
Not everyone can or is capable of chasing investments or BTLs.
In my experience it's the other way round.
Firstly, the BBC and other parts of the press have recently been thumping the tub about "pensioners 'forced' to move to riskier investments owning to low savings rates.....".
Secondly, spend some time on the pensions board. During the 2008 - 2009 general attrition in the stock market, you get loads of <40 year olds griping. "I've just had a pension statement... lost 13% this year.... I've been mis-sold.... mate down the pub told me to take it out and put it in a SIPP cos that's better innit?...". Typically, they are putting in 25% of what they need to anyway..... I don't think older people are generally that stupid.
I admit to having given up on savings rates. I still keep a bit in cash for stability and balance, and have tended to keep around 33% in equities. I'm up to nearer 50% but the 'extra' has all gone into 'absolute' funds and [touch wood] they have returned 3.8% in a couple of months.0 -
Are they not allowed to use the capital part of their savings?
Do they consider having a capital part to their savings?"If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
Loughton_Monkey wrote: »In my experience it's the other way round.
Firstly, the BBC and other parts of the press have recently been thumping the tub about "pensioners 'forced' to move to riskier investments owning to low savings rates.....".
Secondly, spend some time on the pensions board. During the 2008 - 2009 general attrition in the stock market, you get loads of <40 year olds griping. "I've just had a pension statement... lost 13% this year.... I've been mis-sold.... mate down the pub told me to take it out and put it in a SIPP cos that's better innit?...". Typically, they are putting in 25% of what they need to anyway..... I don't think older people are generally that stupid.
I admit to having given up on savings rates. I still keep a bit in cash for stability and balance, and have tended to keep around 33% in equities. I'm up to nearer 50% but the 'extra' has all gone into 'absolute' funds and [touch wood] they have returned 3.8% in a couple of months.
I wouldn't class you as the average punter."If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
The capital part is what earns the interest. The interest that is earned is added to the capital or removed.grizzly1911 wrote: »Do they consider having a capital part to their savings?0 -
The capital part is what earns the interest. The interest that is earned is added to the capital or removed.
Thanks for clarifying.
They are having to anyway because necessary living costs always outstrip interest income alone. That growinglevel of attrition effectively subsidising the spendthrift nature and debt obligations of others.
Makes a mockery of providing for your future."If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
The Bank of England/government had a choice to make.grizzly1911 wrote: »Thanks for clarifying.
They are having to anyway because necessary living costs always outstrip interest income alone. That growinglevel of attrition effectively subsidising the spendthrift nature and debt obligations of others.
Makes a mockery of providing for your future.
Let the banks crash and those savings would disappear anyway as part of the wealth destruction or take out the current policy.
I'm sure which I prefer, some people may not be happy but they are usually the ones that are very rarely happy.0 -
grizzly1911 wrote: »Thanks for clarifying.
They are having to anyway because necessary living costs always outstrip interest income alone. That growinglevel of attrition effectively subsidising the spendthrift nature and debt obligations of others.
Makes a mockery of providing for your future.
I can see why you say that, but short term problems should never be used as an excuse not to follow sensible long term strategies.
I don't think you can look back at any (say) 5 year period and find one in which every 'constituent' of the population is financially "happy". In other words, savers are nicely getting a real return on their savings, investors are getting even better returns for the risk. Mortgage payments are considered 'affordable', house prices are holding up well, renters believe their rent is 'reasonable', inflation is considered well controlled, wages and salaries are keeping good pace over inflation and everyone feels better off this month than they did last.....
Life is never like that. Life goes in cycles - some good, some bad. The well informed can turn the cycles to their advantage, the non-informed will survive on a swings & roundabouts basis. The ill-informed will [as I see so often nowadays] use every negative signal at any one time as an 'excuse' not to save, not to invest, not to buy, not to sell, not to work, not to move... you name it!
I don't know if it's education, social trends, or pure ignorance causing it, but I distinctly notice a bad dose of "short termism" that has crawled to the forefront of modern life. It takes many forms, the most dangerous of which surrounds a casual regard to education [what's the point of going to university? Won't get a job when I come out......]
We are becoming a nation of 'victims'. Hindsight will show that these are victims not of high house prices, low wages, high unemployment, high energy prices..... name what you like..... but they are victims of their own negativity and failure to think long term.0
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