Santander dropping interest to 2%

masonic

Pincher wrote: »

It's that or try to be a prostitute when you are 70 years old.

Well they do say it's the oldest profession. :rotfl:

MarkFromCornwall

Pincher wrote: »

It's that or try to be a prostitute when you are 70 years old.

That's possibly an over-reaction to a rumour that one bank might be planning to cut the interest rate on one of its current accounts from 3% to 2%.

mgarl10024

Deleted_User wrote: »

There's an active discussion on this topic on the Banking and Budgeting board which you might find helpful.

https://forums.moneysavingexpert.com/discussion/5500065

mapk

Pincher wrote: »

It's that or try to be a prostitute when you are 70 years old.

And well beyond when you consider the likelihood of a pension deficit for boomers

Pincher

MarkFromCornwall wrote: »

That's possibly an over-reaction to a rumour that one bank might be planning to cut the interest rate on one of its current accounts from 3% to 2%.

Or is it the thin end of the wedge?

I have been dreading the coming of Winter, and now it is here.
Jon Snow, tell us what to do.

I'm going to buy some more dividend shares.

I like Lloyds, very high dividend cover.

bigadaj

Pincher wrote: »

More and more people will be forced into the stock/bond market in search of yield.

It's that or try to be a prostitute when you are 70 years old.

Desperation is an entirely terrible thing.

Careful, this might turn into a waspi thread!

moneyfoolish

If these high interest current accounts disappear it will give people like me a big problem. I have every penny of my savings in high interest current accounts, cash ISAs, NS&I Index Linked Bonds and NS&I Pensioner Bonds and at the age of 71 I don't really want to be putting money in the stockmarket which leaves me very little chance of earning anything worthwhile!

bigadaj

chucknorris wrote: »

Equities are excellent value, nobody needs to force me, especially now, with a tax free allowance of £5k on dividend income, that means a gross equivalent of around 6% is easily available for HRT payers. In addition you pay less tax on dividend income than most (if not all) alternatives, once ISA and pension wrapper annual allowances are used up.

Many would argue that equities aren't currently excellent value, measures such as cape show many major markets to be over valued in comparison to long term trends.

As to whether the markets will correct given near zero interest rates across much of the world is an interesting question, whether continued use of qe is sufficient to maintain share valuations remains to be seen.

chucknorris

bigadaj wrote: »

Many would argue that equities aren't currently excellent value, measures such as cape show many major markets to be over valued in comparison to long term trends.

As to whether the markets will correct given near zero interest rates across much of the world is an interesting question, whether continued use of qe is sufficient to maintain share valuations remains to be seen.

My horizon is still about 15 years away, we have about £1.1m in equities now, and when I sell some property I will be investing more. Although I accept that equities aren't for the faint hearted (that's why I deleted my post, I realised that I was probably to get dragged into discussions with bears that are wary of the stock market), but I can weather the volatility.

chucknorris

moneyfoolish wrote: »

at the age of 71 I don't really want to be putting money in the stockmarket which leaves me very little chance of earning anything worthwhile!

You could earn more (net, due to the favourable tax treatment of dividend income), but I agree at 71 it wouldn't be particularly wise. I wouldn't feel comfortable due to the danger of a prolonged trough hitting the capital value. I will be looking to move out of equities in my early 70's (earlier if there are any signs of ill health).