Martin Lewis: Cash ISA limit could be cut – this is 'p*ss people off economics'

gilesco

Robin_Ainsworth said:

I am one of the risk-averse to which Martin refers and agree that the likely change will NOT make me switch from savings to investment.  My only forret into the stock market was two working days before Black Monday.  Whilst I know this was simply chance and that the stock market consistently out-perform savings, I will never again willingly enter a stock-market related investment, therefore for me the potential reduction of the cash proportion of the ISA allowance effectively means that the ISA allowance will be cut - to perhaps £4k instead of £20k.  Perhaps I will enjoy spending the difference instead!

If you randomly invested in stocks Friday 16th October 1987 (the trading day before Black Monday) then you would have still have made a profit by September 1989 (unless you sold your holdings in panic).

Hoenir

Middle_of_the_Road said:

westv said:

Do we need another thread?

No, we need another chancellor. I propose Martin 🙂

Only time I heard him commenting on the "budget". He admitted to being hopelessly out of his depth. One thing being a people's champion and having to make tough decisions are at the opposing ends of the spectrum. 

Shylock_249

Plenty of companies went to the wall on Black Friday and never recovered.

Swipe

Hoenir said:

Middle_of_the_Road said:

westv said:

Do we need another thread?

No, we need another chancellor. I propose Martin 🙂

Only time I heard him commenting on the "budget". He admitted to being hopelessly out of his depth. One thing being a people's champion and having to make tough decisions are at the opposing ends of the spectrum. 

Yes, and look at the damage he did with the broadband annual price rise.

gilesco

Shylock_249 said:

Plenty of companies went to the wall on Black Friday and never recovered.

Amazon does well on Black Friday, everyone knows that!  - although seriously, can you think of any big company that went bust on Black Monday ? The market recovered half of its losses the next day.

Also, when I said "randomly" I was trying to mean "bought a diverse set of investments".

Middle_of_the_Road

Hoenir said:

Middle_of_the_Road said:

westv said:

Do we need another thread?

No, we need another chancellor. I propose Martin 🙂

Only time I heard him commenting on the "budget". He admitted to being hopelessly out of his depth. One thing being a people's champion and having to make tough decisions are at the opposing ends of the spectrum. 

That's not prevented others from presiding over our economy 🙄

mebu60

Swipe said:

Hoenir said:

Middle_of_the_Road said:

westv said:

Do we need another thread?

No, we need another chancellor. I propose Martin 🙂

Only time I heard him commenting on the "budget". He admitted to being hopelessly out of his depth. One thing being a people's champion and having to make tough decisions are at the opposing ends of the spectrum. 

Yes, and look at the damage he did with the broadband annual price rise.

Indeed, mine went up more in fixed £s than it would have done under the old CPI plus 3.9% system. 

And not forgetting his advice to people to abandon Cash ISAs back when rates were very low to get marginally better returns on taxable savings but still tax-free within their savings allowance. Then when rates soared many found themselves paying tax on their savings interest and had lost previous years' ISA allowances for good. Which could be even more detrimental if Cash ISA annual limit is reduced. 

mebu60

People can still invest in premium bonds, use their savings allowances and go into short dated gilts if they need to - or even (shock, horror) pay a slither of tax on their interest in everyday savings accounts. No one's stopping them saving cash.

40% is not a 'slither'. 

artyboy

mebu60 said:

People can still invest in premium bonds, use their savings allowances and go into short dated gilts if they need to - or even (shock, horror) pay a slither of tax on their interest in everyday savings accounts. No one's stopping them saving cash.

40% is not a 'slither'. 

And nor is 45%!

But sod it, tax the rich. It was always going to happen, whatever the protestations to the contrary.

Exodi

Middle_of_the_Road said:

westv said:

Do we need another thread?

No, we need another chancellor. I propose Martin 🙂

I might be a tad contrarian here, but I don't think he would make a good chancellor-  in fact I wouldn't wish the role of chancellor on my worst enemy.

It's incredibly easy and popular to be against cuts and for giving people more money. Much harder when you're the person responsible for finding the money and realising it's got to come from somewhere.

Inevitably there will need to be tax rises (other methods to increase revenues seem to have failed), which of course will also not be popular with the public, else otherwise she'll need to break her self-imposed rule of requiring day-to-day government costs to be paid for by tax income, rather than borrowing; and to get debt falling as a share of national income over a five year period. Either way she'll need to break a promise.

It's also an utterly thankless job where you're effectively blamed for everything, despite every country being in similar circumstances. That said I won't lose too much sleep over it, as it probably counter-balances Labour getting in by blaming the Tories for everything such as interest rates, inflation, etc the previous few years, despite it largely being out of their control and affecting the whole world. Unfortunately (as was seen in many countries), 'the other party' was voted in after successfully convincing the electorate that high inflation and high interest rates was due to the current governments mismanagement. 

EDIT: sorry, upon reading more of the thread it seems it's not as contrarian as I imagined.

Hoenir said:

Middle_of_the_Road said:

westv said:

Do we need another thread?

No, we need another chancellor. I propose Martin 🙂

Only time I heard him commenting on the "budget". He admitted to being hopelessly out of his depth. One thing being a people's champion and having to make tough decisions are at the opposing ends of the spectrum.