Over 100k in savings - am I using the right accounts?

greenglide

Because, in general, without a need for cash savings of a huge amount (£100k of cash savings is "unusual" unless saving for property etc) there are better places than cash savings.

MSE used to refer the savings as "losings" (with good reason) although I havent heard this recently. The effect of inflation on savings must be recognised.

jimjames

greenglide wrote: »

Because, in general, without a need for cash savings of a huge amount (£100k of cash savings is "unusual" unless saving for property etc) there are better places than cash savings.

Absolutely. I keep the absolute minimum of cash savings which can fairly easily be covered by the decent rate accounts and everything else gets put into investments or pension. Obviously it's different if you're saving for a specific short term event like house purchase but holding large amounts of cash for no good reason isn't a great idea for long term wealth.

bundly

teddysmum wrote: »

You can sneak in an extra payment , if the saver is opened near the end of the month, followed by subsequent payments early the next and subsequent months.

I LOVE these kind of Sneaky Genius tips!

DennisTenus

jimjames wrote: »

Absolutely. I keep the absolute minimum of cash savings which can fairly easily be covered by the decent rate accounts and everything else gets put into investments or pension. Obviously it's different if you're saving for a specific short term event like house purchase but holding large amounts of cash for no good reason isn't a great idea for long term wealth.

Except that recently the markets have been terrible. I invested in October 2017 and majority are down (I'm down overall).

eskbanker

DennisTenus wrote: »

Except that recently the markets have been terrible. I invested in October 2017 and majority are down (I'm down overall).

....which is why jimjames refers to investment being considered more appropriate for the long term, i.e. at least five years and preferably ten or more. There will always be short term fluctuations, so being down over a period of six months is nothing to be concerned about, and anyone looking for a home for money for six months obviously shouldn't consider investments rather than savings for this very reason!

The worst thing you could do is to lose faith at this point and sell at a loss, whereas more seasoned investors will see lower prices as buying opportunities....

DennisTenus

eskbanker wrote: »

....which is why jimjames refers to investment being considered more appropriate for the long term, i.e. at least five years and preferably ten or more. There will always be short term fluctuations, so being down over a period of six months is nothing to be concerned about, and anyone looking for a home for money for six months obviously shouldn't consider investments rather than savings for this very reason!

The worst thing you could do is to lose faith at this point and sell at a loss, whereas more seasoned investors will see lower prices as buying opportunities....

Yes I realise it's for the long term. Problem is it's either that or generally rubbish rates in the short term, with little in between. I know there is 2/3 year bonds/fixed rate accounts but these are generally only slightly better than instant access with the downside of not being to access it.

And yes I have been buying.

I take it you would have no doubt in recommending that I put this years 20K ISA allowance straight in now at the start of the tax year if I can afford it with enough cash left over for emergencies?

eskbanker

DennisTenus wrote: »

I take it you would have no doubt in recommending that I put this years 20K ISA allowance straight in now at the start of the tax year if I can afford it with enough cash left over for emergencies?

I wouldn't necessarily recommend it as a one-size-fits-all solution when everyone's individual circumstances will differ, but put it this way, that's what I'm doing!

MM2002

eskbanker wrote: »

I wouldn't necessarily recommend it as a one-size-fits-all solution when everyone's individual circumstances will differ, but put it this way, that's what I'm doing!

I’m looking to do the same, have 20k in vanguard cash isa, waiting to transfer to lifestrategy 60 or 80.
I know all about it being long term investment but still wondering whether to wait and see what happens with us/syria about to kick off.
Is this likely to make much of a difference or would you still just get it in now eskbanker?
I understand vls is in very diverse stocks so any one conflict probably won’t impact more than a percentage or so, but is it still worth waiting to see?

eskbanker

MM2002 wrote: »

I’m looking to do the same, have 20k in vanguard cash isa, waiting to transfer to lifestrategy 60 or 80.
I know all about it being long term investment but still wondering whether to wait and see what happens with us/syria about to kick off.
Is this likely to make much of a difference or would you still just get it in now eskbanker?
I understand vls is in very diverse stocks so any one conflict probably won’t impact more than a percentage or so, but is it still worth waiting to see?

You'll see the old adage about "time in the market not timing the market" used frequently on here and, as with all such sayings, it's not infallible but it's a decent rule of thumb.

Something else often mentioned is that any such uncertainties that the average punter knows of are already affecting markets, so being vaguely aware of potential geopolitical volatility isn't really much of an advantage.

Or to put it another way, carry on regardless....

Having said that, don't go in with an expectation that fluctuations will be of the order of a single percentage point - the global nature of VLS (and other similar products) does have a damping effect but doesn't flatten movements to that degree!

DennisTenus

MM2002 wrote: »

I’m looking to do the same, have 20k in vanguard cash isa, waiting to transfer to lifestrategy 60 or 80.
I know all about it being long term investment but still wondering whether to wait and see what happens with us/syria about to kick off.
Is this likely to make much of a difference or would you still just get it in now eskbanker?
I understand vls is in very diverse stocks so any one conflict probably won’t impact more than a percentage or so, but is it still worth waiting to see?

Someone will probably say I'm wrong, but so far VLS 80 is one of my worst performing funds atm!