Does anyone else do an annual savings review?

enthusiasticsaver

I thought it would be interesting to find out whether other people do as I do and work out an annual savings target, review interest rates on savings accounts etc etc as I have just done mine for 2016.


At the beginning of this year I embarked on stocks and shares investing for the first time and have been investing monthly in the Vanguard LS60 fund since January and also transferred a cash isa into it earlier on this year. It is slightly down over the year but I knew that was a risk and luckily I don't intend to withdraw from it any time soon. I will therefore continue investing into it but am upping my monthly payment to £500 with the intention of also transferring a regular saving cash isa into it when it matures next May and other lump sums over the year. I expect to therefore have around £50k invested in it by the end of next year which is about £14k over the year.


I have also just opened two new current accounts earning 5% in TSB and Nationwide and also a 5% regular saver with TSB. These go alongside the two Santander 123 accounts I already hold. The current accounts are already full but I will be putting £3000 into the regular saver which is the maximum over the year of £250 per month. So I am aiming for £15000 over the year in total or £1250 per month. That is a 25% increase on this year so ambitious I know. The money is being saved for us to retire in three to four years time and the ratios I am using is 50% of our total savings are in liquid form (current accounts, cash isas) and 50% invested in more long term investments.


Anyone else do the same and how do you decide how much to leave in liquid assets or invest longer term?

InvestInPoker

For my cash holdings I keep a close eye on the interest rates offered on my savings accounts. Occasionally one provider will drop the rate and I will have to move.

For my market investments I am 100% equities in a range of funds chosen myself. I keep a close eye, not because I worry if they go down in value but just because I like to be informed. I have a mix of active and passive funds and if something major was to happen, like NW retiring, I would move out of that fund.

Basically I do a lot more than a yearly check. Pretty much daily tbh .

chucknorris

Not really, as I don't have much in savings, I used to look at the situation periodically, but I got out of cash about 2-3 years ago.

Futuristic

Occasionally check my interest accounts every month to check rate and ensure requirements are met and quarterly review for investments.

colsten

For my savings, I certainly won't wait for an annual review. I change them around any time as required, e.g. when an account has matured, when a better deal comes along etc.

The vast part of my investments are in a final salary pension scheme and that's where they will stay as there is no chance any other investment could better that. So no review at all for those. My other investments are almost exclusively passive investments of the ACC incarnation and I usually just look at them in any detail when I add my ISA and SIPP allowances in April each year. I do have a reasonably current view on the worth of those investments though as they are tracked in my AceMoney, which can easily be updated with the current fund values.

Turtle

I have a spreadsheet completed on the first of every month of our overall position, ie mortgage debt, investments, savings, shares. Cash is moved around as necessary if rates move / to skim off interest.

Eco_Miser

Interest rates and conditions are reviewed continually (I read this forum and any communications from my banks).
I've never had a savings target except 'whatever is left over after spending', the spending target being 'as little as possible commensurate with my health and happiness'.
That's not quite accurate: opening Regular Savers sets targets for some savings, but that's not necessarily new money.

Kendall80

Turtle wrote: »

I have a spreadsheet completed on the first of every month of our overall position, ie mortgage debt, investments, savings, shares. Cash is moved around as necessary if rates move / to skim off interest.

Similar for me. Monthly updating of the spreadsheet (which contains all accounts, cards, debts, plans, graphs etc). However, i'm too lazy to skim interest and move cash around manually so i've SO's for those. I keep updated on investments and stock markets daily as i've no fixed date for the monthly drip-feeds to S&S ISA and SIPP. I try to get it in on dips however small.

Playing_with_Fire_2

I do an annual review of all my spending; I use a spreadsheet to categorise it and check that it is in line with my budget. I also check in December that I am on track to put the right amount into my pension and isa before the end of the tax year. I try to keep a list of the dates that deals end or start; and make sure that I check that regularly so that I'm not surprised by a 0% deal ending or savings interest dropping to 0.01%.

I think that November is a great time to do an annual review. You can budget for an appropriate Christmas, have a think about what changes you want to make for January resolutions, and have time to enjoy the changes before the tax year ends.

For cash vs long term investments; anything that is deferred spending rather than saving (saving for house renovations, car repair, holidays) stays in cash and is excluded from any saving ratio. For longer term savings, I plan for 80% to be invested and 20% to be held in cash over a year, but I vary how much is invested in any month. My pension is high in equities, and my ISAs are lower in equities, due to the timeframes when I expect to be spending them.

droopsnoot

I also have a spreadsheet with various savings account balances, interest rates etc, and also stuff like total balance between linked banks etc. I check the value of investment stuff once a month - I think if I checked more often than that, it would be too much to bear.


The frustrating thing is that the spreadsheet tells me I have accounts that are under-performing and I should do something about it, but doesn't really give me the knowledge or impetus to actually get on with it.

JohnRo

Turtle wrote: »

I have a spreadsheet completed on the first of every month of our overall position, ie mortgage debt, investments, savings, shares. Cash is moved around as necessary if rates move / to skim off interest.

Same, monthly audit, but on the 5th when most of the DD's and bank transfers have been processed. Also do a monthly incomings and outgoings sheet at the same time, interesting to look back at as it's changed over time. No targets set though.