Why don't people invest?

BucksLady

trailingspouse wrote: »

It's complicated, it's time consuming, and if you get it wrong there's a lot at stake.

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There's always the possibility of taking 'professional' advice

Amoux

There is a unnatural amount of fear when it comes to investing in the stock market. I know many people who think that it is either reckless and/or think they aren't clever enough to do it. The truth is that it neither has to be reckless or complicated. This is opposed to something like property which is widely understood to be a investment - and yet the common man seems to not attach the same kind of fear or complication to buying a home.

There is also unfortunately a wide lack of knowledge in the investing area and no-one really teaches you these things at school. I only got into investing my S&S ISA really at an off chance when a friend casually told me he was doing it and convinced me enough to read into it.
And there are some people who are just so adverse to even the slightest risk that they would take a lot more convincing. Which is a definite shame - as many young people with a long time horizon would be almost certainly financially better off by doing so.

Glen_Clark

BucksLady wrote: »

There's always the possibility of taking 'professional' advice

The memory of salesmen and worse posing as financial advisers is perhaps what frightens many off?
They may be more regulated and professional now than they have ever been.
But I doubt if they have restored widespread public trust yet?

Keep_pedalling

demonloop wrote: »

Investing in the current climate is tricky and I would be very reluctant to offer the closest of friends any advice.

Up until the beginning of this year I had all my eggs in the managed funds basket, but I'm convinced there is a stock market correction on the horizon.

I sold the lot in February and invested it in BTL. The returns are similar, but tax is higher. Whilst the investments aren't as liquid as funds, I feel more comfortable with the BTLs right now.

Unless you had the lot tied up in ISAs you must be looking at a substancial CGT bill on that move.

Fed

- Can't afford it
- Prefer to spend money on more immediate wants
- Scared to lose hard earned money
- Don't understand it
- Don't want to pay for an adviser

I saved up a fortune in numerous savings accounts, it was only once rates started plummeting and I read about passive investing on here that I realised it can be pretty straight forward.

I look forward to the 'Why do people invest' thread when we hit the next crash

Audaxer

chucknorris wrote: »

If you need to withdraw money, it shouldn't be invested, investing is for the medium to long term, not the short term, you were speculating, not investing.

I am retired and recently invested lumps sums and plan to take some natural income and hopefully some capital gains in the next few years. In my view its okay in these circumstances to withdraw some money in the short tem as long as you plan to leave the original invested capital for the long term.

Monbretia14

I agree - certainly my view is put as much as you could possibly do into a pension fund as you are 'saving' by investing in the pension scheme (choose wisely) and more than anything saving tax big time whilst you are working.
I have now stopped work and claiming both private and state pension (in which I invested maximum allowable amount under the pension scheme and full NI's into state scheme and I am very much grateful that both are RPI linked.
However, I did take maximum lump sum - I do small investments with cash (using bank accounts and credit cards and high regular savings accounts ) and ISA's with monthly interest returns which may be small but just keeping up with current 3% inflation. More management yes, but much less payout in fees and the sanctity of not being concerned about changes in share prices/bonds/equities etc.

Monbretia14

As a mid 60 plus aged girl - I do note that many women my age are so used to being the flexible parent who stayed at home - compromised their career - then worked part time - then looked after aged relative - then helped with grandchildren - flexibility of not working does not equal money in the bank but what a contribution to society.
There was no clear view of how to personally invest and earn ones own money in a meaningful way to enable self sufficiency
In my working experience younger women are very wised up, financially independent and financially savvy if they have a good job or career.
I followed the latter route, despite age and bucked the trend. I am sure there are many others like me but much better off! Don't knock women - look at what was/ is expected of them.

vacheron

capital0ne wrote: »

I work with highly skilled and trained engineers, but none of them will consider investing in equities, either through shares, funds, ITs or ETFs and I often wonder why.
....................
To me it's no-brainer, it's so easy as well with the wealth of info on-line, soy why is it people don't invest?

I think the simple answer is that the topic simply does not interest them.

I'm an engineer and I work with a team of engineers. Some sail, some travel, some like cycling. I happen to have an interest in finance and investing so I have taken the time to learn.

You could turn the question on its head and ask:

"I work with highly skilled and trained financial advisers, but none of them will consider running their own home servers or writing home automation applications using embedded Arduino hardware and I often wonder why."

Fundamentally, if you have no interest in something then it is very difficult to voluntarily dedicate precious free time towards that thing.

In my particular experience the one thing which has really sparked quite an interest around the office is the company Sharesave scheme. This is an easy and safe step onto the ladder with defined outcomes and minimal effort to set up.

Chickereeeee

capital0ne wrote: »

I work with highly skilled and trained engineers,

What do you mean by 'engineer' ?
The European kind (Degree - at least - in the subject, with additional post-eductaion qulaifications) or
The UK kind: can hold a spanner

I originally trained as the former, and have worked with very many Engineers, and ALL, as far as I am aware, invest in equities. Often, along side BTL.

K