Advice please - savings and small investment

eskbanker

Spiggle wrote: »

Thank you xylophone, eskbanker, coldiron and cloud_dog. Sorry its taken a while to reply again.
I need to go back and think on the RS. It seems like I'm losing hand over fist to inflation doing it my way.

I can't speak for the others but should stress that I wasn't trying to discourage you from using regular savers or to downplay their benefits. Even though a regular saver paying 5% AER doesn't pay 5% of the final balance, it does pay 5% on everything that's in the account at any point in time and so beats anything with a lower AER, especially when you can be earning interest on the money before drip-feeding it into the regular saver to increase the aggregated interest earned on the final balance.

On your other point about BTL v S&S, I'd strongly favour the latter - taking on a BTL, with all the obligations on landlords and the increasingly disadvantageous tax regime, seems ever less tempting, whereas S&S, once researched on here and elsewhere isn't as intimidating as it might appear.

Spiggle

Thank you so much eskbanker.
My brain is not up to calculating the benefit of earning in the feeder account plus the RS calc but having reread through the notes and calcs I'd done before and the OP I realised I was forgetting that.
I didn't want to appear as if I was ignoring the replies so when I put the computer on and saw I'd missed all you replies wanted to get on and read what you'd said before giving myself a bit of a slow down check!
Your thoughts on BTL are much appreciated. Not sure I could go through the LL course to get certified which I believe is now a req in Wales if not in whole of UK. Funnily enough our DD was considering BTL when they changed the stamp duty and tax regime for them so I hadn't considered it now for myself but thought a quick check on opinions on here would be useful. Thanks again.
Do you know anything about VCTs? I can't seem to find the threads I was reading last week but there was a james (I think) who seemed quite knowledgeable. I'll have to try advanced search on contributor name.
All the best,
Spigs

AnotherJoe

Just to pick on on one point, you are not in the right demographic for VCTs. Steer clear.

Spiggle

OK, thank you for that AnotherJoe.
It was only the part about investing in my choice of area in an ethical sense that caught my attention so thanks for the guidance.
I believe it was jamesd I read - possibly on the pensions etc board.
Thanks again,
Spigs

Spiggle

xylophone wrote: »

...
Had you considered contributing £2880 to a SIPP as here?

https://forums.moneysavingexpert.com/discussion/5580163/paying-2880-into-pension-when-retired

Ok, I've had the briefest of scans of this thread xylophone, thank you. I need to read through the whole thread and then do some separate research as well I suspect. I may have a clear day tomorrow so will spend some time then looking at this.
And I suppose I need to set up an online account with HMRC so I can look at the state pension picture again. Trouble is I prefer to speak to HMRC rather than doing it online but at least I'll be saved from hours of Vivaldi and his Four Seasons!
I'll be back tomorrow.
Thanks all,
Spigs

Thrugelmir

Spiggle wrote: »

Do you know anything about VCTs? I can't seem to find the threads I was reading last week but there was a james (I think) who seemed quite knowledgeable. I'll have to try advanced search on contributor name.

Personally I'd suggest sticking to more mundane investments. VCT's aren't for beginners or those looking to protect their capital.

Spiggle

Thanks Thrugelmir,
I'm getting that message loud and clear!
All the best,
Spigs

Spiggle

xylophone wrote: »

Have you obtained a new state pension statement?

https://www.gov.uk/check-state-pension

...
Had you considered contributing £2880 to a SIPP as here?

https://forums.moneysavingexpert.com/discussion/5580163/paying-2880-into-pension-when-retired

Right on the first point above, thank you xylophone, it appears that even though I have 35 years of full conts that it isn't enough for full pension. Is the general advice to pay the difference to bring it up to 39 years before the 2018-19 TY is counted and then consider again please? Should I separate and move this element to the pensions thread btw?
On the SIPP aspect, I think I understand the concept of the recycling the cash and I'll try to get something sorted as soon as I can. Though I do need to look a bit longer term too at the balance of things.
All the best,
Spigs

Spiggle

eskbanker wrote: »

I can't speak for the others but should stress that I wasn't trying to discourage you from using regular savers or to downplay their benefits. Even though a regular saver paying 5% AER doesn't pay 5% of the final balance, it does pay 5% on everything that's in the account at any point in time and so beats anything with a lower AER, especially when you can be earning interest on the money before drip-feeding it into the regular saver to increase the aggregated interest earned on the final balance.

Hi eskbanker or anyone else who is on here and looking.

Thanks for that explanation in nice simple terms. So the FD RS and Sant123 RS are opened to run alongside the existing NW RS.

So, if a RS pays more than the 1.5% from Sant123 (assuming all other t&c are met which they are) and I have sufficient cash to cycle/recycle, any RS paying 2% will earn me more than leaving it in Sant123? For example, if a RS pays 2%AER and allows up to £500 per month to be paid in for 12 months, I would be better opening that RS than leaving it in Sant123. (And accepting it won't beat inflation!)

Or have I yet again misunderstood?

TIA for any replies,
Spigs

eskbanker

Spiggle wrote: »

So, if a RS pays more than the 1.5% from Sant123 (assuming all other t&c are met which they are) and I have sufficient cash to cycle/recycle, any RS paying 2% will earn me more than leaving it in Sant123? For example, if a RS pays 2%AER and allows up to £500 per month to be paid in for 12 months, I would be better opening that RS than leaving it in Sant123. (And accepting it won't beat inflation!)

Or have I yet again misunderstood?

In that scenario it really is as simple as comparing the quoted AERs - every pound that's left in the 123 is earning 1.5% interest (pro-rated per day, and ignoring the fixed monthly fees) and every pound that's in the RS is earning 2% (also pro-rated per day), and therefore the RS makes sense!