Independent Financial Advice on Pensions & Savings

gadgetmind

saver861 wrote: »

However, in the 2000's I'm betting there are some out there who would have been happy to average 3% !!!

I've done considerably better than that because, 1) I have multi-asset portfolios, 2) I invest globally, 3) I have continued to put money in.

I've also dabbled in tech shares, but even ignoring that (which we should as it doesn't represent the norm), I've been happy being in equities for the last decade and a half.

saver861

gadgetmind wrote: »

I've done considerably better than that because, 1) I have multi-asset portfolios, 2) I invest globally, 3) I have continued to put money in.

Clearly the 1% average returns for the 2000's did not impact on everyone in the same way - nor was it the case everyone lost. I drip fed monthly into a fund, from the dot com drop in 2000 for over four years, all through the 9/11 drop etc. I stopped the drip feed in 2004 when the markets rose. The value of it has trebled since then due to buying at basement prices - perhaps more luck than judgement on my part!

However, there were many losers in that decade. Many people had to either postpone their retirement or take a big hit on their retirement pots in the 2000's. Retirement plans were swept away in an instant. There were many fingers burned and so I'd be surprised if the general attitude to risk has not changed somewhat from pre 2000.

gadgetmind

saver861 wrote: »

Many people had to either postpone their retirement or take a big hit on their retirement pots in the 2000's.

Well, those planning on taking out an annuity were presumably very heavy in bonds, so will have benefited from the lower yields even if they then lost what they won at annuity time.

But yes, investing isn't a one way street, never has been, and never will be.

Daniel54

saver861 wrote: »

So, as it stands, maxing out current accounts with £100k will bring in over 3% average, no risk and instant access.
/QUOTE]
You then get to pay 20%/40%/45% tax

There are estimated to be nearly 5 million higher rate or above tax payers in the current financial year

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/306826/Table_2.1.pdf

An average of 3% on £50k per individual would seem about right

Handy for cash but not a substitute for investment

I think a critical difference between now and the 90s is that memories of the property crash have faded and individuals are taking more risk with regard to property buying and financing than I would have done

So here may have been a shift towards property but I am not sure everybody has become more risk averse