Savings or investing?

noclaf

VXman said:

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)

Not invested in pure shares. Not enough knowledge and too risky for me. Current investments are Vanguard LS and HL UK fund. These haven't even recovered from dips in the last year or so yet. I realise it's not touching inflation but it's a better return than any of my investments.

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.

I am in a similar boat albeit 20 years away from retirement but have some house rennovation funds that need to stay in cash for next 2 years so aside from £10k into a fixed cash ISA, the other £10K into Vanguard S&SISA and rest spread amongst easy savers. I will take a hit on interest tax as in higher rate tax band but something is better than nothing right.

jimjames

VXman said:

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.

Long term being pointless made me laugh. I'm not far off that and hope I've got many years to go. You could still have a 20+ year investment horizon ahead, fine if you have plenty of cash available but otherwise that could risk running out if the cash doesn't keep pace with inflation.

dealyboy

What would you do with £200k? invest or savings account?

Above a certain amount investing is the choice, some would say that point is over and above that to which you might need easy access e.g. for emergencies.

GazzaBloom

dealyboy said:

What would you do with £200k? invest or savings account?

Above a certain amount investing is the choice, some would say that point is over and above that to which you might need easy access e.g. for emergencies.

In my opinion, the key to deciding where to put money is the timeframe it will be needed, not necessarily the amount.

1-2 years: Cash savings/Cash ISA
3-5 years: Fixed term saver
5-10 Years: Low/Medium risk investments - multi-asset fund or mix of stocks/bonds
10-15 Year: Medium/High risk 100% blended "middle of the road" stocks funds (such as global index/S&P500 etc.)
15 years+: Higher risk 100% stocks funds such as Tech/Emerging Markets

Doctor_Who

GazzaBloom said:

dealyboy said:

What would you do with £200k? invest or savings account?

Above a certain amount investing is the choice, some would say that point is over and above that to which you might need easy access e.g. for emergencies.

In my opinion, the key to deciding where to put money is the timeframe it will be needed, not necessarily the amount.

1-2 years: Cash savings/Cash ISA
3-5 years: Fixed term saver
5-10 Years: Low/Medium risk investments - multi-asset fund or mix of stocks/bonds
10-15 Year: Medium/High risk 100% blended "middle of the road" stocks funds (such as global index/S&P500 etc.)
15 years+: Higher risk 100% stocks funds such as Tech/Emerging Markets

I agree with GazzaBloom. It's rarely a question of saving or investing (although that is often the question asked), but rather saving and investing. Knowing when you will require the money is key. Then apportioning money so you have enough at each stage (e.g. emergency cash) and don't need to sell out of the market in a downturn just to pay the bills.

VXman

jimjames said:

VXman said:

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.

Long term being pointless made me laugh. I'm not far off that and hope I've got many years to go. You could still have a 20+ year investment horizon ahead, fine if you have plenty of cash available but otherwise that could risk running out if the cash doesn't keep pace with inflation.

Well, my monthly income from final salary pension and a rental income is more than enough to live on, including a lot of holidays and fairly generous socialising. It is index linked so going up by inflation each year. Currently £250,000 in savings/investments  which is for extra ordinary expenditure - i.e new car, any big house maintenance,  once in a life time holiday etc. In 6 years time between me and the wife we'll have another £20k per year instate pension. House worth £600,000 and paid for. I really don't see the point in investing with a 20 year horizon. I'll be 81. What will i want to spend it on then? Even if the £250K is all gone pensions will still be more than I will be able to spend.