ISAs - I give up!

lhsecons

vigman said:

Having just moved all ISAs to the Post Office 1.1% easy access account, I get a notification today that it is falling to 0.86%.
I just can't risk going the S&S ISA or investment route, but this chasing tiny percentages is getting ridiculous.
Just in case I've missed a trick, is there any current ISA people are going to please?
TIA
Vigman

Is the post office ISA flexible?
If so you could move up to £50000 out into premium bonds. The prizes are tax free and with average luck you should get a return of at least1.2%. If you wish to protect the ISA staid you could move the money back just before the end of the tax year.
In the short term inflation rates are likely to fall rather than reach Zimbabwe like levels so your real returns should be positive.

masonic

vigman said:

If you are aware of inflation, have you considered the relative likelihood of cash being rendered worthless vs investments being rendered worthless?

There have been several events in living memory that have resulted in people's cash savings falling in value by 99+%. This has happened as recently as 2008 in Zimbabwe, 1994 in Yugoslavia, and after the second world war in Hungary and Greece.

Putting all your eggs in one basket, such as cash, is riskier than you seem to appreciate.

No, to be honest, I hadn't considered a 'wheelbarrow cash society' in the UK. Are there any projections of the likelihood of this, please?

It's not likely, but probably more likely than the >50% investment loss scenario that has caused to to shun all investments in favour of holding cash.

vigman said:

I just wish I'd bought more gold when I was advising others to do the same!

When was that?

vigman

masonic said:

vigman said:

If you are aware of inflation, have you considered the relative likelihood of cash being rendered worthless vs investments being rendered worthless?

There have been several events in living memory that have resulted in people's cash savings falling in value by 99+%. This has happened as recently as 2008 in Zimbabwe, 1994 in Yugoslavia, and after the second world war in Hungary and Greece.

Putting all your eggs in one basket, such as cash, is riskier than you seem to appreciate.

No, to be honest, I hadn't considered a 'wheelbarrow cash society' in the UK. Are there any projections of the likelihood of this, please?

It's not likely, but probably more likely than the >50% investment loss scenario that has caused to to shun all investments in favour of holding cash.

vigman said:

I just wish I'd bought more gold when I was advising others to do the same!

When was that?

The last time I made any significant gold coin purchases, Krugers were £400 and Sovereigns c £70.
However, a few months ago I considered more sovereigns at c £210 each only to see them now at £360.
Although gold dips like everything else, its underlying trend has been upwards
Info for last 10 years in Troy ozs:

Current Price	£1,383.19
10 Year High	£1,450.85
10 Year Low	£674.18
10 Year Change	£+543.11 (64.65 %)

My reluctance to go to investments, as I believe I said previously, was after a big loss on unit trusts bought through an independent financial adviser ....and don't get me started on the endowment mortgage taken out in 1984 which had a possible projection of an average 10% pa. 
Vigman

EdGasketTheSecond

NS&I ISA does not accept transfer-ins.

You can add Venezuela to the list of countries with inflation problems. How likely here? Well do you think govt's can just keep creating currency out of thin air with no consequences? Do you think people furlough'd at home are creating wealth and prosperity for the country? Are there supply chain issues due to Covid and reduced productivity due to social distancing? Do you think the gov't will get rid of it's debt by defaulting or by inflation lessening the burden?

Now you can answer your own question re.  'wheelbarrow cash society'. You will find a range of predictions from the official line which is 'that inflation is not a problem' to 'likely hyperinflation' . My own view is high inflation very likely, like we saw in the 70's and worse.

PS. It's not too late to buy gold; it is good value compared to other asset classes. Silver is also a good investment and better value than gold at the moment. It is also a strategic metal for industry and defense.

masonic

vigman said:

masonic said:

vigman said:

If you are aware of inflation, have you considered the relative likelihood of cash being rendered worthless vs investments being rendered worthless?

There have been several events in living memory that have resulted in people's cash savings falling in value by 99+%. This has happened as recently as 2008 in Zimbabwe, 1994 in Yugoslavia, and after the second world war in Hungary and Greece.

Putting all your eggs in one basket, such as cash, is riskier than you seem to appreciate.

No, to be honest, I hadn't considered a 'wheelbarrow cash society' in the UK. Are there any projections of the likelihood of this, please?

It's not likely, but probably more likely than the >50% investment loss scenario that has caused to to shun all investments in favour of holding cash.

vigman said:

I just wish I'd bought more gold when I was advising others to do the same!

When was that?

The last time I made any significant gold coin purchases, Krugers were £400 and Sovereigns c £70.
However, a few months ago I considered more sovereigns at c £210 each only to see them now at £360.
Although gold dips like everything else, its underlying trend has been upwards
Info for last 10 years in Troy ozs:

Current Price	£1,383.19
10 Year High	£1,450.85
10 Year Low	£674.18
10 Year Change	£+543.11 (64.65 %)

My reluctance to go to investments, as I believe I said previously, was after a big loss on unit trusts bought through an independent financial adviser ....and don't get me started on the endowment mortgage taken out in 1984 which had a possible projection of an average 10% pa. 
Vigman

Although equities dip like everything else, their underlying trend has been upwards (to a greater extent than gold). They also offer inflation protection so long as the underlying companies can continue to provide goods and services people want and need.

A 65% return over 10 years is about 5% annualised, so you would have been better off in equities for a comparable level of risk. Cherry picking the last 20 years, gold has actually done quite well, but over 30 years and longer time periods it has been a poor investment choice.

If you are reluctant to go to investments, then gold would be excluded on that basis (being an investment with a significant loss potential).

I can't see any mention of your previous unit trust loss in this thread. What was the reason for you selling at a loss?