Total Sum in Cash Savings Accounts

DoneWorking

InvesterJones said:

jimjames said:

DoneWorking said:

Then interest rates crept up

Inflation is eating away at my funds

But Im ok to accept this for now and will review it from time to time

You're worse off now than you were a year ago. Inflation is the hidden attack on your savings.

Interest rate of 1% and inflation of 3% means you're losing 2% per year.
Interest rate of 5% and inflation of 10% means you're now losing 5% per year.

As has been said before you don't need to put all your money into one thing or another. I'm about 5% cash but others would have a higher amount.

Hard to think of many other assets that would have fared better though. Stock falls of 20% (UK mid cap for e.g.) and inflation of 10% would mean you're losing 30% per year.

This has been my thinking over the last year

Having all my money in savings may not be perfect 
Interests less tax does not match loss due to inflation

However I feel that I would have been worse off if I had been in investments 
I am reviewing the situation regularly.
To be frank

If I could stay with savings account and reach a position where I would be down 5% pa due to inflation I would probably accept this

Rather than the ups and downs and uncertainty of investment

With the associated ongoing fees and costs

Swipe

InvesterJones said:

jimjames said:

DoneWorking said:

Then interest rates crept up

Inflation is eating away at my funds

But Im ok to accept this for now and will review it from time to time

You're worse off now than you were a year ago. Inflation is the hidden attack on your savings.

Interest rate of 1% and inflation of 3% means you're losing 2% per year.
Interest rate of 5% and inflation of 10% means you're now losing 5% per year.

As has been said before you don't need to put all your money into one thing or another. I'm about 5% cash but others would have a higher amount.

Hard to think of many other assets that would have fared better though. Stock falls of 20% (UK mid cap for e.g.) and inflation of 10% would mean you're losing 30% per year.

While that is very true, investments have the potential to recover over coming years and claw back the losses and easily beat inflation whereas savings are unlikely to over the medium to long term

DoneWorking

Swipe said:

InvesterJones said:

jimjames said:

DoneWorking said:

Then interest rates crept up

Inflation is eating away at my funds

But Im ok to accept this for now and will review it from time to time

You're worse off now than you were a year ago. Inflation is the hidden attack on your savings.

Interest rate of 1% and inflation of 3% means you're losing 2% per year.
Interest rate of 5% and inflation of 10% means you're now losing 5% per year.

As has been said before you don't need to put all your money into one thing or another. I'm about 5% cash but others would have a higher amount.

Hard to think of many other assets that would have fared better though. Stock falls of 20% (UK mid cap for e.g.) and inflation of 10% would mean you're losing 30% per year.

While that is very true, investments have the potential to recover over coming years and claw back the losses and easily beat inflation whereas savings are unlikely to over the medium to long term

Which is why I keep my eyes and options open

I may possibly go into investment in future 

But I'm glad I didn't go in during the last year

As mentioned many times

Investment might not be for a person of my temperament 

Swipe

DoneWorking said:

Swipe said:

InvesterJones said:

jimjames said:

DoneWorking said:

Then interest rates crept up

Inflation is eating away at my funds

But Im ok to accept this for now and will review it from time to time

You're worse off now than you were a year ago. Inflation is the hidden attack on your savings.

Interest rate of 1% and inflation of 3% means you're losing 2% per year.
Interest rate of 5% and inflation of 10% means you're now losing 5% per year.

As has been said before you don't need to put all your money into one thing or another. I'm about 5% cash but others would have a higher amount.

Hard to think of many other assets that would have fared better though. Stock falls of 20% (UK mid cap for e.g.) and inflation of 10% would mean you're losing 30% per year.

While that is very true, investments have the potential to recover over coming years and claw back the losses and easily beat inflation whereas savings are unlikely to over the medium to long term

Which is why I keep my eyes and options open

I may possibly go into investment in future 

But I'm glad I didn't go in during the last year

As mentioned many times

Investment might not be for a person of my temperament 

The future may be too late. For someone like you I'd start to auto buy monthly at this stage in the downturn and maybe check it once a year. That way, you are not subject to the investment roller coaster ride.

DoneWorking

Swipe said:

DoneWorking said:

Swipe said:

InvesterJones said:

jimjames said:

DoneWorking said:

Then interest rates crept up

Inflation is eating away at my funds

But Im ok to accept this for now and will review it from time to time

You're worse off now than you were a year ago. Inflation is the hidden attack on your savings.

Interest rate of 1% and inflation of 3% means you're losing 2% per year.
Interest rate of 5% and inflation of 10% means you're now losing 5% per year.

As has been said before you don't need to put all your money into one thing or another. I'm about 5% cash but others would have a higher amount.

Hard to think of many other assets that would have fared better though. Stock falls of 20% (UK mid cap for e.g.) and inflation of 10% would mean you're losing 30% per year.

While that is very true, investments have the potential to recover over coming years and claw back the losses and easily beat inflation whereas savings are unlikely to over the medium to long term

Which is why I keep my eyes and options open

I may possibly go into investment in future 

But I'm glad I didn't go in during the last year

As mentioned many times

Investment might not be for a person of my temperament 

The future may be too late. For someone like you I'd start to auto buy monthly at this stage in the downturn and maybe check it once a year. That way, you are not subject to the investment roller coaster ride.

My issue with investments is that I have no experience

I would therefore most likely have to use an IFA

I would also want climate friendly and ethical investments

Are there any fairly safe investment options I could buy regularly myself which would be climate friendly and ethical

Or would I still need an IFA to go with this auto buy option

Swipe

DoneWorking said:

Swipe said:

DoneWorking said:

Swipe said:

InvesterJones said:

jimjames said:

DoneWorking said:

Then interest rates crept up

Inflation is eating away at my funds

But Im ok to accept this for now and will review it from time to time

You're worse off now than you were a year ago. Inflation is the hidden attack on your savings.

Interest rate of 1% and inflation of 3% means you're losing 2% per year.
Interest rate of 5% and inflation of 10% means you're now losing 5% per year.

As has been said before you don't need to put all your money into one thing or another. I'm about 5% cash but others would have a higher amount.

Hard to think of many other assets that would have fared better though. Stock falls of 20% (UK mid cap for e.g.) and inflation of 10% would mean you're losing 30% per year.

While that is very true, investments have the potential to recover over coming years and claw back the losses and easily beat inflation whereas savings are unlikely to over the medium to long term

Which is why I keep my eyes and options open

I may possibly go into investment in future 

But I'm glad I didn't go in during the last year

As mentioned many times

Investment might not be for a person of my temperament 

The future may be too late. For someone like you I'd start to auto buy monthly at this stage in the downturn and maybe check it once a year. That way, you are not subject to the investment roller coaster ride.

My issue with investments is that I have no experience

I would therefore most likely have to use an IFA

I would also want climate friendly and ethical investments

Are there any fairly safe investment options I could buy regularly myself which would be climate friendly and ethical

Or would I still need an IFA to go with this auto buy option

Forget investing then if you only want climate friendly and ethical investments. You'll struggle to make inflation beating returns.

Rich1976

I don't think investing is the right thing for you to do. if it was you would have done it by now.
If I were you i would keep searching the best savings accounts you can find for your needs and stick to that. Investing is not essential and most people in the UK do not have any sorts of investments outside of their work pension. I think i read previously only about 3 million people have Stocks and Shares ISAS. Considering theres over 60 million people in this country, that is a very small minority. Most people stick to savings accounts. as an example I do not know a single person who invests. My parents haven't held any form of stockmarket investments since they retired over 20 years ago and they are quite happy living their retirement and are very comfortable.

enjoy your life because you only get one chance at it.

And also you need to consider if you did invest when times have improved, how would you react if the markets went down again a few months or a year later? i expect you would feel the same as now . Stockmarkets will always go down as well as up so you need to consider your reaction when that next happens and if that would scare you off then stay well clear. 

DoneWorking

Swipe said:

DoneWorking said:

Swipe said:

DoneWorking said:

Swipe said:

InvesterJones said:

jimjames said:

DoneWorking said:

Then interest rates crept up

Inflation is eating away at my funds

But Im ok to accept this for now and will review it from time to time

You're worse off now than you were a year ago. Inflation is the hidden attack on your savings.

Interest rate of 1% and inflation of 3% means you're losing 2% per year.
Interest rate of 5% and inflation of 10% means you're now losing 5% per year.

As has been said before you don't need to put all your money into one thing or another. I'm about 5% cash but others would have a higher amount.

Hard to think of many other assets that would have fared better though. Stock falls of 20% (UK mid cap for e.g.) and inflation of 10% would mean you're losing 30% per year.

While that is very true, investments have the potential to recover over coming years and claw back the losses and easily beat inflation whereas savings are unlikely to over the medium to long term

Which is why I keep my eyes and options open

I may possibly go into investment in future 

But I'm glad I didn't go in during the last year

As mentioned many times

Investment might not be for a person of my temperament 

The future may be too late. For someone like you I'd start to auto buy monthly at this stage in the downturn and maybe check it once a year. That way, you are not subject to the investment roller coaster ride.

My issue with investments is that I have no experience

I would therefore most likely have to use an IFA

I would also want climate friendly and ethical investments

Are there any fairly safe investment options I could buy regularly myself which would be climate friendly and ethical

Or would I still need an IFA to go with this auto buy option

Forget investing then if you only want climate friendly and ethical investments. You'll struggle to make inflation beating returns.

I've heard that ESG and Climate Friendly Ethical Investments do ok

DoneWorking

Rich1976 said:

I don't think investing is the right thing for you to do. if it was you would have done it by now.
If I were you i would keep searching the best savings accounts you can find for your needs and stick to that. Investing is not essential and most people in the UK do not have any sorts of investments outside of their work pension. I think i read previously only about 3 million people have Stocks and Shares ISAS. Considering theres over 60 million people in this country, that is a very small minority. Most people stick to savings accounts. as an example I do not know a single person who invests. My parents haven't held any form of stockmarket investments since they retired over 20 years ago and they are quite happy living their retirement and are very comfortable.

enjoy your life because you only get one chance at it.

And also you need to consider if you did invest when times have improved, how would you react if the markets went down again a few months or a year later? i expect you would feel the same as now . Stockmarkets will always go down as well as up so you need to consider your reaction when that next happens and if that would scare you off then stay well clear. 

Thanks

Maybe investment just isn't for me

I often wonder who alive today would have invested in the slave trade

I certainly wouldn't have done so

wmb194

It's easy to start investing. Open a brokerage account and buy some shares in e.g.,  renewable energy firms. Open a Nutmeg account and invest a small monthly sum in its SRI (aka ESG) portfolio. It doesn't have to be all or nothing. 

If you want an idea of what's going on start reading the FT and Investors' Chronicle.

Or just don't and stick to chasing the best savings accounts.