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

moneyfoolish

latecomer wrote: »

I'm sure there are a lot of reasons - ignorance, fear, lack of trust, laziness to name a few

I've always worked in high tech companies and shares are very much part of the package (although not as much as back in 2000 when share options ruled everything). I've seen the down side of shares and specifically the risk of holding single company shares. My current company shares are up ~200% in 3 years. I've been here reading about investing for at least 5-6+ years. My OH is not as comfortable with shares/investing as I am at least in theory but I've still not invested in a S&S ISA despite having a moderately adverturous pension portfolio.

I do fear the value of investments going down despite knowing all the long term research saying that shares nearly always beat cash. I have been on the verge of moving my cash ISA to shares for several years but haven't done so... yet. I fear not getting the best deal in anything I do - I research and negotiate my next phone contract for weeks, same for broadband contracts etc. I know I need to make this small step but cant seem to do it.

Your post rings so many bells for me. Also worked in high tech company. OH not interested in investing at all. In fact, mine always tells me I'll die with lots of money in the bank having done nothing with it during my life! Fears of investments going down. On the verge of investing for years but never get around to it. Fear of not getting a good deal. However, no problems with getting best savings, telephone, gas/electicity, broadband, mobile deals.

Atreyu107

george4064 wrote: »

From my own personal experience, I am 24 years old and a lot of my friends don't dabble in investments but instead choose safe cash ISAs/bank accounts.. For a number of reasons;


- Some think that investing is only for the rich/wealthy, so they don't even bother looking into it
- Little or no understanding of the concept of risk and return, and just choose the easy/simple option (bank accounts, cash ISAs etc). with little, to no risk and little return.
- Simply do not understand how investments and investment portfolios work. And little to no understanding of different risks other than capital risks (inflation risk, shortfall risk etc).


I guess I am fortunate because I work in financial services, in particular corporate pension schemes and I have worked at a big stockbroker before. I know a lot about them, both from my work and my own personal research/monitoring. I'm always happy to talk about investments with my friends, encourage them to take a look at them but often they just shy away or say they can't afford it (I think this is mainly down to attitude to saving/investing seeing it as super risky/for the rich rather than genuinely having no spare money after expenses etc).

I read this post and half-believed I'd written it myself! Right down to working in FS/corporate pension schemes... Very strange!

But yes, absolutely agree. I find I've become somewhat of an educator (NOT an adviser, of course...) to my friends regarding investments recently and I'm more than happy to oblige, I really wish more people would take the time to learn

latecomer

moneyfoolish wrote: »

Your post rings so many bells for me. Also worked in high tech company. OH not interested in investing at all. In fact, mine always tells me I'll die with lots of money in the bank having done nothing with it during my life! Fears of investments going down. On the verge of investing for years but never get around to it. Fear of not getting a good deal. However, no problems with getting best savings, telephone, gas/electicity, broadband, mobile deals.

I'm leaving my current position at the end of next week and need to decide what to do with the vested share options I have. I'm tempted to hold them at least for the short term but everything I konw about holding individual shares from both research, reading here and personal experience says I shouldn't. There are tax implications too which cloudies the water somewhat........ arrggghhhh :rotfl:

Mind you at least I have to make a decision in the next 7 days so I cant pontificate for long

tara747

bertpalmer wrote: »

It really surprises me how few of my friends bother with investments. I think if I hadn't worked in the sector (back office admin!) I'd never have realised the potential of investing.

I guess it mainly comes down to education. I find it odd how Martin always talks about bank acc interest rates and finding the best one, but rarely talks about the benefits of investing. Same with TV adverts.

Malthusian wrote: »

Martin Lewis™ tells someone to invest in a fancy current account that pays 1% more than the competition and some cashback, after a year they have a few extra pennies, hooray for Martin.

Martin Lewis™ tells someone to consider investment in the stockmarket, after a year the market has fallen 10%, boo for Martin.

Five years later the current account has long slashed its interest to nothing (while keeping the monthly fee), and the stockmarket is up 26%, but no-one remembers what Martin Lewis™ said five years ago, and he's sold his shares in Moneysavingexpert anyway, so it hardly matters.

^^^ This.

Martin Lewis knows his audience. And a majority of people who watch him on TV aren't that financially savvy. They're also risk-averse.

They want something they understand... like getting a few extra quid in bank interest, saving a few quid in the shops, switching to a cheaper utility supplier.

PLUS (as Malthusian says), those are all "quick wins". People see an immediate benefit, everyone's happy.

Investment requires a much longer timeframe.

It also requires delayed gratification.

Have you noticed that most of Martin's tips involve consumption, rather than deferring spending??

moneyfoolish

latecomer wrote: »

I'm leaving my current position at the end of next week and need to decide what to do with the vested share options I have. I'm tempted to hold them at least for the short term but everything I konw about holding individual shares from both research, reading here and personal experience says I shouldn't. There are tax implications too which cloudies the water somewhat........ arrggghhhh :rotfl:

Mind you at least I have to make a decision in the next 7 days so I cant pontificate for long

Difficult! I worked for IBM for 24 years and a good few years after I started working for the company I joined the share scheme which allowed us to buy shares without dealing costs and at a discount (I think it was 15%). When we moved to our current house about 28 years ago I decided to sell my shares to put towards the house deposit. By pure chance it turned out that I sold at virtually the top of the market. I watched the share price after I sold and it took about 24 years before they got back to the price at which I sold!

gadgetmind

I also get share options of various kinds, and I tend to sell them as soon as practical. I then use the funds to diversify in S&S ISAs via various trackers.

I've been investing in S&S ISAs, and PEPs before them, since the late 80s. I've never taken a penny back out of them as they are for retirement.

alexmi

This thread is so smug and self-satisfied, it makes me want to puke.

Malthusian

This thread is so smug and self-satisfied, it makes me want to puke.

There is nothing smug about wanting others to be secure and content as you are.

If we were smug we would be rejoicing in the ignorance of those who don't invest because it makes us richer by comparison. Not asking what can be done (if anything) to make them better off.

jimjames

Malthusian wrote: »

There is nothing smug about wanting others to be secure and content as you are.

If we were smug we would be rejoicing in the ignorance of those who don't invest because it makes us richer by comparison. Not asking what can be done (if anything) to make them better off.

Absolutely. Any info here should hopefully trigger thoughts about how to look to improve your own situation. One reason I posted the thread some time back was to show that investment doesn't need to be scary and how returns work.
https://forums.moneysavingexpert.com/discussion/5336097
Hopefully the discussion here may be of use to some rather than triggering them to reach for the sick bucket.

ChesterDog

alexmi wrote: »

This thread is so smug and self-satisfied, it makes me want to puke.

Some years ago, my wife and I bought a business by using all our savings, taking out a loan and having a legal charge on the small amount of equity we had in our house. The business was very run down and it took years of extraordinarily hard work, long hours and every penny we owned. In spite of everything we tried so very hard to achieve, we were sinking. We worked every single day for five years without a single day off. Followed by another decade or so with just a handful. We actually agreed between us that if one of us died the other would not be able to go to the funeral: the business would collapse and was more important.

By the skin of our teeth, we pulled through. Just.

The business ultimately prospered and we sold it, but not before the sheer effort and stress of it had devastated my wife's health and damaged my own.

Once we turned that financial corner, we vowed never ever ever ever to put ourselves in that situation again.

Ultimately, the years of hell meant we were able to sell and invest the money to live on while retiring early. I say 'retiring early' but in fact my wife requires 24/7 care which I provide almost entirely myself.

But we have a high degree of financial security and that is because of investments and a low-consumption lifestyle.

People so often say that all that really matters is your health. It's not true. Financial security is vitally important. Investments can help to provide this, but you have to have the mindset to do it.

If you think I am smug because I enjoy what investments can provide, then try walking a mile in my shoes first.