Savings or investing?

VXman
Forumite Posts: 434
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Savings rates are getting reasonable now and my investments aren't doing much.
Wondering whether sticking money in a savings account is the best option at the moment. It's ok, I'm not considering taking the money from the investments yet! Talking about additional non invested cash.
So what would you do with £20000 ISA allowance this year - cash or S&S?
(Assuming no short term need for the cash but not looking at long term investment anyway - too old for that!)
Wondering whether sticking money in a savings account is the best option at the moment. It's ok, I'm not considering taking the money from the investments yet! Talking about additional non invested cash.
So what would you do with £20000 ISA allowance this year - cash or S&S?
(Assuming no short term need for the cash but not looking at long term investment anyway - too old for that!)
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Comments
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If you are sitting on the fence about what to do - £10,000 in each perhaps?0
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VXman said:Savings rates are getting reasonable now and my investments aren't doing much.
Wondering whether sticking money in a savings account is the best option at the moment. It's ok, I'm not considering taking the money from the investments yet! Talking about additional non invested cash.
So what would you do with £20000 ISA allowance this year - cash or S&S?
(Assuming no short term need for the cash but not looking at long term investment anyway - too old for that!)1 -
Cash savings rates are still well below the rate of inflation - 5 or 6% is nothing to get all gooey over.
What are you invested in? Some stocks and shares funds are up 35% YTD:
Fund Performance|Total Returns|Legal & General Global Technology Index Trust I Class Accumulation|ISIN:GB00B0CNH163 (morningstar.co.uk)
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GazzaBloom said:Some stocks and shares funds are up 35% YTD:
Fund Performance|Total Returns|Legal & General Global Technology Index Trust I Class Accumulation|ISIN:GB00B0CNH163 (morningstar.co.uk)3 -
Swipe said:GazzaBloom said:Some stocks and shares funds are up 35% YTD:
Fund Performance|Total Returns|Legal & General Global Technology Index Trust I Class Accumulation|ISIN:GB00B0CNH163 (morningstar.co.uk)
Personally, I only really get interested the 10 year performance, which is still a bit short term for me, I wish there was 20 & 30 year performance history easily available for funds, well the ones that have endured that long that is...1 -
Swipe said:GazzaBloom said:Some stocks and shares funds are up 35% YTD:
Fund Performance|Total Returns|Legal & General Global Technology Index Trust I Class Accumulation|ISIN:GB00B0CNH163 (morningstar.co.uk)
https://www.morningstar.co.uk/uk/funds/snapshot/snapshot.aspx?id=F0GBR06I57&tab=3
All companies which are capable of making a lot of money but which are at risk of being overvalued and liable to lose a lot especially if the tech sector becomes more strictly regulated.
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Depends on one's timeline and one's tax band. A 45% taxpayer with a 5.2% cash ISA for 3 years is effectively "guaranteed" 9-10% gross. Makes things much more attractive.
For me, I'd do a hybrid. Put half in a cash ISA at 5.2%, and half in a US or Global tracker S&S ISA.
Not advice, etc.0 -
Doshwaster said:Swipe said:GazzaBloom said:Some stocks and shares funds are up 35% YTD:
Fund Performance|Total Returns|Legal & General Global Technology Index Trust I Class Accumulation|ISIN:GB00B0CNH163 (morningstar.co.uk)
https://www.morningstar.co.uk/uk/funds/snapshot/snapshot.aspx?id=F0GBR06I57&tab=3
All companies which are capable of making a lot of money but which are at risk of being overvalued and liable to lose a lot especially if the tech sector becomes more strictly regulated.
Some people may not see that concentration (which is market cap weighted) as a problem and actually desire holding that group of stocks.
After all, It's a technology fund, the name is on the tin, it's not trying to be a fully diversified multi-asset fund is it?
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GazzaBloom said:Cash savings rates are still well below the rate of inflation - 5 or 6% is nothing to get all gooey over.
What are you invested in? Some stocks and shares funds are up 35% YTD:
Fund Performance|Total Returns|Legal & General Global Technology Index Trust I Class Accumulation|ISIN:GB00B0CNH163 (morningstar.co.uk)
I'm 61, already been retired for 3 years so long term is pointless. I'm just looking for places to put my money (£150K) for immediate use or short term savimgs, some to put aside for 3/5 years. 10 years max.0 -
Yeah 3-10 years is probably too short a time frame for a volatile fund, which the L&G Tech one would probably class as with a 3yr std deviation of over 20% (for comparison, a GBP denominated S&P 500 tracker has under 13% 3yr std deviation).3-5yr time frames are decidedly medium to short term investments and I'd want to add bonds into the mix (especially at the moment) to dampen down the volatility. You might not beat inflation in the short term, but you're minimising the inflation loss, rather than having to take it AND wait for volatility to average out over a long time period.1
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