Knee deep in current accounts. Go for more, or increase investments?

Temrael

I think Consumerist's point was more that it looks like it was headed down currently.

That looking at the long term graph (whose overall trend is obviously upwards) there are obviously rhythmic ups and downs and it looks, at the moment, like it might be headed down "for a bit".

I didn't read it as he was predicting the fall of capitalism as we know it.

masonic

Temrael wrote: »

I think Consumerist's point was more that it looks like it was headed down currently.

That looking at the long term graph (whose overall trend is obviously upwards) there are obviously rhythmic ups and downs and it looks, at the moment, like it might be headed down "for a bit".

I didn't read it as he was predicting the fall of capitalism as we know it.

I don't think what has happened since the summer can be used to predict what will happen in the coming weeks or months, which was the substance behind my first response to Consumerist's original "topped-out" comment.

Paradoxically, the shorter the time interval over which you are trying to make predictions about market returns, the less likely you are to correctly predict the trend. It is much easier to predict the general outcome over 30 years than it is over a month or a quarter or indeed a year.

enthusiasticsaver

We have around £50k in cash in current accounts and regular savers so have the ones you already have plus Nationwide flex direct and regular saver at 5% and bank of Scotland and 2 tescos at 3% so you could also look at those for feeding regular savers which is what I do. Personally I would also look to put a proportion of your redundancy in your vgls 80 as well as some in cash. Do you have any of your isa limit left for this year? I keep my vgls60 within a stocks and shares isa, don't bother with cash ones anymore.

Temrael

enthusiasticsaver wrote: »

We have around £50k in cash in current accounts and regular savers so have the ones you already have plus Nationwide flex direct and regular saver at 5% and bank of Scotland and 2 tescos at 3%

That's interesting, thanks for that. If you don't mind me asking, what's your thinking behind having as much as that in cash at the moment?

Is it simply that with some fairly attractive rates about on those savings accounts, you don't feel the need to risk your capital in investments (for the chance of a slightly higher return if markets behave)?

Consumerist

Temrael wrote: »

. . . Is it simply that with some fairly attractive rates about on those savings accounts, you don't feel the need to risk your capital in investments (for the chance of a slightly higher return if markets behave)?

Speaking for myself, I think it's also a question of age. As has been alluded to earlier, in the long run stock-market returns have outstripped savings returns and it is inevitable that over the long term the market will return to form.

The big question in my mind is: just how long will it be before the world economies will allow "normal" trends to be restored. Will I still be around to reap the benefits?

Consumerist

masonic wrote: »

. . . So, perhaps I can be forgiven for reading meaning into your comments that wasn't intended. I didn't realise you were just commenting on the shapes you were seeing on your screen without intending to make any reference to the topic of this thread.

It is just in your nature to pick a fight with anyone who dares to disagree with you.

Consumerist

Temrael wrote: »

. . . Is it simply that with some fairly attractive rates about on those savings accounts, you don't feel the need to risk your capital in investments (for the chance of a slightly higher return if markets behave)?

If you fancy something a bit more exciting than savings accounts but less daring than the stock market, you could have look as something like peer-to-peer lending.

Temrael

Thanks for that.

Yep I did dip my toe in that with Zopa a couple of years back but I found I was consistently getting a bit lower than the advertised returns. And comparing those returns against regular savers and top rate current accounts etc. it felt like a step up in terms of risk (i.e. Zopa has a guarantee fund but it is not limitless) but for a slightly lower return.

It didn't seem to quite stack up to me at the time but I'll certainly have another look at them and Ratesetter etc.

masonic

Consumerist wrote: »

It is just in your nature to pick a fight with anyone who dares to disagree with you.

If I have upset you then I apologise. I didn't think any of my posts here were particularly aggressive, and certainly weren't intended to be.

masonic

Temrael wrote: »

Thanks for that.

Yep I did dip my toe in that with Zopa a couple of years back but I found I was consistently getting a bit lower than the advertised returns. And comparing those returns against regular savers and top rate current accounts etc. it felt like a step up in terms of risk (i.e. Zopa has a guarantee fund but it is not limitless) but for a slightly lower return.

It didn't seem to quite stack up to me at the time but I'll certainly have another look at them and Ratesetter etc.

Most of my P2P money is generating >10% interest. Of course, my final return after bad debt is likely to be lower than that, but so far I've not been involved in any loans that have defaulted and I've seen quite a number complete without issue.