I don't understand why people can't be bothered!

bigfreddiel

The number of people I talk to at work, old and young, who can't be bothered to just do some very simple investment or savings decisions always astounds me.

For example, many years ago I started a cash ISA, made me £90 tax free interest that year. So I saved myself £18 in tax. My mates all laughed at me. Said it was a waste of time!

Now some years later, learning along the way, I moved from cash ISA's to stocks and shares ISA's and it's producing £500/month, or £6,000/year. Tax saving £1,200. My mates aren't laughing now!

What is it that stops anyone even starting a modest investment portfolio?

With all the online tools and research sites it's easy to learn how to invest, so there is no excuse now is there?

I suppose a few excuses could be lack of money, no time, too busy doing other things, too hard to understand.

Just my observation.

Cheers fj

CLAPTON

you might note that
non ISA savings sometimes pay more (net of tax) than ISA
many investments made in 2000 are still showing a lose
maybe they all don't pay higher rate tax


investing is easy : making a profit is less so

PasturesNew

I've never had the spare money, nor the understanding/time to think it through. Every time I ever got £1k together it was gone in a big bill (usually the car breaking down or having to move, or similar big unexpected stuff).

Investments are for people who have "money left over". I've spent months in the last 15 years without the lights on or heating on.

Why'd I risk what I've got with some speculative gamble. A bird in the hand.... and all that.

monitorsit

bigfreddiel wrote: »

What is it that stops anyone even starting a modest investment portfolio?

Apathy, lack of interest, f ecklessness, lack of confidence, inability to spend less than they earn.

Also, when it comes to S&S ISAs, inability to think long term, fear of a loss, ignorance, inability to make a decision, fear (well founded) that they will (with hindsight) not have made the best investment...

jimjames

CLAPTON wrote: »

many investments made in 2000 are still showing a lose

I'd be interested to know which they are? Do you have some examples of mainstream ones that the average investor would have held?

bigfreddiel wrote: »

The number of people I talk to at work, old and young, who can't be bothered to just do some very simple investment or savings decisions always astounds me.

What is it that stops anyone even starting a modest investment portfolio?

With all the online tools and research sites it's easy to learn how to invest, so there is no excuse now is there?

I do wonder that too sometimes. Many at work are in the same position as me yet spend all their money every month. I guess investments aren't something discussed as easily as which is the best car to get.
Even for posts on here there seems to be a lack of understanding of risk and suggesting that investments are a gamble when if invested in diversified funds it shouldn't be the case that you could lose the lot.

Eco_Miser

PasturesNew wrote: »

Investments are for people who have "money left over". I've spent months in the last 15 years without the lights on or heating on.

So have I, they're frequently not needed.

PasturesNew wrote: »

Why'd I risk what I've got with some speculative gamble. A bird in the hand.... and all that.

There's neither speculation nor gamble in putting up to £2000 into a TSB Classic Plus current account and earning 5% AER (nearly £100 a year). It's possible to put over £50,000 into bank current accounts earning over 3%, with absolutely no risk.

A long-term buy and hold funds portfolio isn't speculation or a gamble either, although there is a small risk of having to delay plans.

justme111

Fear.
When money is in the bank with government guarantee it feels as if it was ok.
If money is somewhere in funds held through online platform for which there seem to be no more than numbers on the screen it is unnerving.

marleyboy

I would not trust my money in stocks\shares. I may as well invest it in lotto tickets. For me its a case of not knowing enough about investments and caring even less than I know about them.

Archi_Bald

justme111 wrote: »

When money is in the bank with government guarantee it feels as if it was ok.

FSCS is an industry scheme, not a government one. The industry is required by law to provide the scheme. http://www.fscs.org.uk/

CLAPTON

jimjames wrote: »

I'd be interested to know which they are? Do you have some examples of mainstream ones that the average investor would have held?

I do wonder that too sometimes. Many at work are in the same position as me yet spend all their money every month. I guess investments aren't something discussed as easily as which is the best car to get.
Even for posts on here there seems to be a lack of understanding of risk and suggesting that investments are a gamble when if invested in diversified funds it shouldn't be the case that you could lose the lot.

ft100


but banks haven't done too well
some oil stocks aren't great
the odd supermarket isn't doing too well

Archi_Bald

marleyboy wrote: »

I would not trust my money in stocks\shares. I may as well invest it in lotto tickets. For me its a case of not knowing enough about investments and caring even less than I know about them.

As you have admitted it already, I can confirm that you don't know enough about it.

It's a crying shame that most people weren't taught in school what savings and investments, and their differences are, and why everybody should want to invest for their own future.

There are a lot off great books and websites about investing, and everyone should care about acquiring at least some basic understanding. Especially with the advent of workplace pensions, it seems pretty critical that people have some basic grasp of investments.