Saving v Investing for older people

jimjames

Norman_Castle said:

Is there a good time to start investing? Obviously no one knows the future but are there patterns?

Just like the best time to plant a tree, 10 years ago. But failing that starting now is always a good option. Sooner you start the longer the money invested will have to grow. Timing it for other events is unlikely to be effective.

RG2015

Daliah said:

RG2015 said:

I also understand the dichotomy of investment concerns versus cost of living fears, but this is an investment board.

It's actually the Savings and Investments board, and your thread is specifically about savings vs investments. Obviously, with the cost of living crisis, most people will require more cash, and might therefore not be able to put as much into investments as they would otherwise like to. The need for more cash isn't a choice but is forced on most of us, whether we like it or not. If you are unaffected by the cost of living crisis, call yourself lucky. The vast majority of people, specifically older people, will be affected by it, and thereby their choices for savings and investments.

Sorry, I had not considered this. People previously making savings v investing decisions now are faced with concerns of making ends meet.

As you suggest, I would definitely call myself lucky. To date I have not seen any noticeable effect on my regular outgoings. I cannot see how, but my budget is still well in control.

I am though under no illusion that this will last for any length of time.

PS. The main drivers for my current good fortune are buying heating oil at £0.63/L just before the invasion of Ukraine when it increased to £1.50 (now at £0.90) and getting a two year electricity fix in March 2021.

InvesterJones

Norman_Castle said:

Is there a good time to start investing? Obviously no one knows the future but are there patterns?

What was that quote? The best time to invest was 40 years ago. The second best time is now.

Millyonare

Grumpy_chap said:

This thread is binary - saving v investing.
It really needs to be tertiary - saving v investing v spending.

Far too many senior people have good level of resource yet live excessively humble to the verge of discomfort because they won't spend.  I accept there are many seniors that do not have resources, but those that this thread is aimed at (with the consideration of saving or investing) also need to consider the need to spend. 
It means changing mindset from saving for the future to living for now and, almost inherently, those that have the choice of saving v investing, clearly previously had a saving mindset.
It is a massive change to accept that the total net assets at the end of the year might be lower than total net assets at the start of the year.

Agreed.

But it is often very hard to "teach an old dog new tricks".

Know a 64yo who has £1m in net cash and a £1m mortgage-free house -- but they refuse to quit work and retire because they are "scared their savings will decline" (their words). Instead of buying a Ferrari, they are about to buy a second-hand Mazda MX-5. Even showing them a spreadsheet, where they can blow £100k a year, risk-free, until their 80s makes no difference to their "must work" mindset. Utterly baffling.

RG2015

Millyonare said:

Grumpy_chap said:

This thread is binary - saving v investing.
It really needs to be tertiary - saving v investing v spending.

Far too many senior people have good level of resource yet live excessively humble to the verge of discomfort because they won't spend.  I accept there are many seniors that do not have resources, but those that this thread is aimed at (with the consideration of saving or investing) also need to consider the need to spend. 
It means changing mindset from saving for the future to living for now and, almost inherently, those that have the choice of saving v investing, clearly previously had a saving mindset.
It is a massive change to accept that the total net assets at the end of the year might be lower than total net assets at the start of the year.

Agreed.

But it is often very hard to "teach an old dog new tricks".

Know a 64yo who has £1m in net cash and a £1m mortgage-free house -- but they refuse to quit work and retire because they are "scared their savings will decline" (their words). Instead of buying a Ferrari, they are about to buy a second-hand Mazda MX-5. Even showing them a spreadsheet, where they can blow £100k a year, risk-free, until their 80s makes no difference to their "must work" mindset. Utterly baffling.

Are they happy?

LHW99

RG2015 said:

Millyonare said:

Grumpy_chap said:

This thread is binary - saving v investing.
It really needs to be tertiary - saving v investing v spending.

Far too many senior people have good level of resource yet live excessively humble to the verge of discomfort because they won't spend.  I accept there are many seniors that do not have resources, but those that this thread is aimed at (with the consideration of saving or investing) also need to consider the need to spend. 
It means changing mindset from saving for the future to living for now and, almost inherently, those that have the choice of saving v investing, clearly previously had a saving mindset.
It is a massive change to accept that the total net assets at the end of the year might be lower than total net assets at the start of the year.

Agreed.

But it is often very hard to "teach an old dog new tricks".

Know a 64yo who has £1m in net cash and a £1m mortgage-free house -- but they refuse to quit work and retire because they are "scared their savings will decline" (their words). Instead of buying a Ferrari, they are about to buy a second-hand Mazda MX-5. Even showing them a spreadsheet, where they can blow £100k a year, risk-free, until their 80s makes no difference to their "must work" mindset. Utterly baffling.

Are they happy?

That's the question - some people enjoy their work and money isn't the thing. If you do enjoy it and you're fit enough and capable enough why not?