£85k FSCS cap - Risk to reward appetite!

jimjames

Darnhall123 said:

Albermarle said:

Darnhall123 said:

masonic said:

You're looking at a difference of about 0.8%, so putting >£15-35k at risk (however small that risk may be) for £125-£300 extra interest per year. It's up to you whether you are comfortable with that level of risk, and are happy with that level of reward for the risk you'd be taking.

If you are comfortable with that sort of risk, perhaps you should consider the use of a S&S ISA for some of the money.

Great advice and certainly worth consideration. I currently only hold cash ISAs and have never properly dabbled with S&S because a) I like the certainty of a guaranteed return and b) I have zero knowledge of S&S trading. 
I think the way to go will be to put part of next years allowance in Shawbrook keeping me under the £85k threshold and put the rest in S&S. If it proves fruitful (as most say it will Vs cash ISAs), I may put future allowances in S&S too. 

Probably a good start to clarify some definitions.

To most people, trading in investments means a lot of very short term buying and selling, usually of individual stocks. It is very risky and can be very time consuming if done properly. 

This is not what is being suggested to you when posters say it could be a good idea to invest some of the money in a S&S ISA. Normally it is advised to invest via funds that hold many many different shares from all over the world, and maybe some bonds. Often these will just follow general developments in financial markets, and not be affected by one or other company having problems. Then leave the investment alone for many years. 
It is often called Buy & Hold investing.
You can do the same with certain types of pension and get some tax breaks as well.
What is your pension situation ?

Albermarle said:

Darnhall123 said:

masonic said:

You're looking at a difference of about 0.8%, so putting >£15-35k at risk (however small that risk may be) for £125-£300 extra interest per year. It's up to you whether you are comfortable with that level of risk, and are happy with that level of reward for the risk you'd be taking.

If you are comfortable with that sort of risk, perhaps you should consider the use of a S&S ISA for some of the money.

Great advice and certainly worth consideration. I currently only hold cash ISAs and have never properly dabbled with S&S because a) I like the certainty of a guaranteed return and b) I have zero knowledge of S&S trading. 
I think the way to go will be to put part of next years allowance in Shawbrook keeping me under the £85k threshold and put the rest in S&S. If it proves fruitful (as most say it will Vs cash ISAs), I may put future allowances in S&S too. 

Probably a good start to clarify some definitions.

To most people, trading in investments means a lot of very short term buying and selling, usually of individual stocks. It is very risky and can be very time consuming if done properly. 

This is not what is being suggested to you when posters say it could be a good idea to invest some of the money in a S&S ISA. Normally it is advised to invest via funds that hold many many different shares from all over the world, and maybe some bonds. Often these will just follow general developments in financial markets, and not be affected by one or other company having problems. Then leave the investment alone for many years. 
It is often called Buy & Hold investing.
You can do the same with certain types of pension and get some tax breaks as well.
What is your pension situation ?

Pension isn’t fantastic if I’m being honest and I understand that the most sensible thing would be to pile as much as I can in, while I’m still working. I’m 62 and plan / hope to retire in 3 years when I’m 65, take out 25% to see me through the 2 years till I get state pension. 

Pension (especially if salary sacrifice available) is probably the best option as it is effectively instant access for you based on your age. Someone age 40 would have to wait 17 years. You can also have cash funds inside a pension so would behave as a savings account paying similar rates but with the added bonus of tax relief added in.

Isthisforreal99

Don't want to go down the rabbit hile of speculation but next minths budget may take away the option of £20k into tour cash ISA anyway but let's wait and see what actually happens but the £85k cap may not be an issue.

Albermarle

Darnhall123 said:

Albermarle said:

Darnhall123 said:

masonic said:

You're looking at a difference of about 0.8%, so putting >£15-35k at risk (however small that risk may be) for £125-£300 extra interest per year. It's up to you whether you are comfortable with that level of risk, and are happy with that level of reward for the risk you'd be taking.

If you are comfortable with that sort of risk, perhaps you should consider the use of a S&S ISA for some of the money.

Great advice and certainly worth consideration. I currently only hold cash ISAs and have never properly dabbled with S&S because a) I like the certainty of a guaranteed return and b) I have zero knowledge of S&S trading. 
I think the way to go will be to put part of next years allowance in Shawbrook keeping me under the £85k threshold and put the rest in S&S. If it proves fruitful (as most say it will Vs cash ISAs), I may put future allowances in S&S too. 

Probably a good start to clarify some definitions.

To most people, trading in investments means a lot of very short term buying and selling, usually of individual stocks. It is very risky and can be very time consuming if done properly. 

This is not what is being suggested to you when posters say it could be a good idea to invest some of the money in a S&S ISA. Normally it is advised to invest via funds that hold many many different shares from all over the world, and maybe some bonds. Often these will just follow general developments in financial markets, and not be affected by one or other company having problems. Then leave the investment alone for many years. 
It is often called Buy & Hold investing.
You can do the same with certain types of pension and get some tax breaks as well.
What is your pension situation ?

Albermarle said:

Darnhall123 said:

masonic said:

You're looking at a difference of about 0.8%, so putting >£15-35k at risk (however small that risk may be) for £125-£300 extra interest per year. It's up to you whether you are comfortable with that level of risk, and are happy with that level of reward for the risk you'd be taking.

If you are comfortable with that sort of risk, perhaps you should consider the use of a S&S ISA for some of the money.

Great advice and certainly worth consideration. I currently only hold cash ISAs and have never properly dabbled with S&S because a) I like the certainty of a guaranteed return and b) I have zero knowledge of S&S trading. 
I think the way to go will be to put part of next years allowance in Shawbrook keeping me under the £85k threshold and put the rest in S&S. If it proves fruitful (as most say it will Vs cash ISAs), I may put future allowances in S&S too. 

Probably a good start to clarify some definitions.

To most people, trading in investments means a lot of very short term buying and selling, usually of individual stocks. It is very risky and can be very time consuming if done properly. 

This is not what is being suggested to you when posters say it could be a good idea to invest some of the money in a S&S ISA. Normally it is advised to invest via funds that hold many many different shares from all over the world, and maybe some bonds. Often these will just follow general developments in financial markets, and not be affected by one or other company having problems. Then leave the investment alone for many years. 
It is often called Buy & Hold investing.
You can do the same with certain types of pension and get some tax breaks as well.
What is your pension situation ?

Pension isn’t fantastic if I’m being honest and I understand that the most sensible thing would be to pile as much as I can in, while I’m still working. 

I’m 62 and plan / hope to retire in 3 years when I’m 65, take out 25% to see me through the 2 years till I get state pension. 

My pot currently stands around £300k, but I do like having savings (currently around £125k in ISAs). I also have about £20k in other savings. 

I’m putting around £1700 a month into my pension now that I’m mortgage free. 

£300K is way above the average, if that makes you feel better 

However there are two things that most people get wrong;
1) They underestimate how much money they need to build up
2) They underestimate how long they are going to live.

Of course a lot depends on how much you plan to spend when retired, and of course adding £1700 per month now will help a lot.

You have said you do not understand investing, which is fair enough.
However your pension money will be in investments, so do you understand how that is invested? Or have you made no choices and hope the pension provider is 'sorting it out'?

Darnhall123

Albermarle said:

Darnhall123 said:

Albermarle said:

Darnhall123 said:

masonic said:

You're looking at a difference of about 0.8%, so putting >£15-35k at risk (however small that risk may be) for £125-£300 extra interest per year. It's up to you whether you are comfortable with that level of risk, and are happy with that level of reward for the risk you'd be taking.

If you are comfortable with that sort of risk, perhaps you should consider the use of a S&S ISA for some of the money.

Great advice and certainly worth consideration. I currently only hold cash ISAs and have never properly dabbled with S&S because a) I like the certainty of a guaranteed return and b) I have zero knowledge of S&S trading. 
I think the way to go will be to put part of next years allowance in Shawbrook keeping me under the £85k threshold and put the rest in S&S. If it proves fruitful (as most say it will Vs cash ISAs), I may put future allowances in S&S too. 

Probably a good start to clarify some definitions.

To most people, trading in investments means a lot of very short term buying and selling, usually of individual stocks. It is very risky and can be very time consuming if done properly. 

This is not what is being suggested to you when posters say it could be a good idea to invest some of the money in a S&S ISA. Normally it is advised to invest via funds that hold many many different shares from all over the world, and maybe some bonds. Often these will just follow general developments in financial markets, and not be affected by one or other company having problems. Then leave the investment alone for many years. 
It is often called Buy & Hold investing.
You can do the same with certain types of pension and get some tax breaks as well.
What is your pension situation ?

Albermarle said:

Darnhall123 said:

masonic said:

You're looking at a difference of about 0.8%, so putting >£15-35k at risk (however small that risk may be) for £125-£300 extra interest per year. It's up to you whether you are comfortable with that level of risk, and are happy with that level of reward for the risk you'd be taking.

If you are comfortable with that sort of risk, perhaps you should consider the use of a S&S ISA for some of the money.

Great advice and certainly worth consideration. I currently only hold cash ISAs and have never properly dabbled with S&S because a) I like the certainty of a guaranteed return and b) I have zero knowledge of S&S trading. 
I think the way to go will be to put part of next years allowance in Shawbrook keeping me under the £85k threshold and put the rest in S&S. If it proves fruitful (as most say it will Vs cash ISAs), I may put future allowances in S&S too. 

Probably a good start to clarify some definitions.

To most people, trading in investments means a lot of very short term buying and selling, usually of individual stocks. It is very risky and can be very time consuming if done properly. 

This is not what is being suggested to you when posters say it could be a good idea to invest some of the money in a S&S ISA. Normally it is advised to invest via funds that hold many many different shares from all over the world, and maybe some bonds. Often these will just follow general developments in financial markets, and not be affected by one or other company having problems. Then leave the investment alone for many years. 
It is often called Buy & Hold investing.
You can do the same with certain types of pension and get some tax breaks as well.
What is your pension situation ?

Pension isn’t fantastic if I’m being honest and I understand that the most sensible thing would be to pile as much as I can in, while I’m still working. 

I’m 62 and plan / hope to retire in 3 years when I’m 65, take out 25% to see me through the 2 years till I get state pension. 

My pot currently stands around £300k, but I do like having savings (currently around £125k in ISAs). I also have about £20k in other savings. 

I’m putting around £1700 a month into my pension now that I’m mortgage free. 

£300K is way above the average, if that makes you feel better 

However there are two things that most people get wrong;
1) They underestimate how much money they need to build up
2) They underestimate how long they are going to live.

Of course a lot depends on how much you plan to spend when retired, and of course adding £1700 per month now will help a lot.

You have said you do not understand investing, which is fair enough.
However your pension money will be in investments, so do you understand how that is invested? Or have you made no choices and hope the pension provider is 'sorting it out'?

“Have you made no choices and hope the pension provider is 'sorting it out'?”
Exactly that!

I’ve had the same pension advisor (through work) for 20+ years and in fairness he’s always done a decent job for me. 

He recently transferred most of my pot into bonds just before everyone’s ‘share heavy’ pots took a hit, so I didn’t see any falls. 

He’s aware of my situation and 2 year plan and knows that long term isn’t an option now so protective of what I’ve got, while I’m still adding to it each month. 

It’s crazy to think you need a £1M pension pot to retire on £40k a year, isn’t it!

I’ve done my sums and I’ll be fine. We don’t have an expensive lifestyle and more than happy with a takeaway / bottle of wine a few times a month. My pension pot / savings will take care of that easily. 

I’ve only recently opened a Dodl account and I’m quite enjoying the ride so far! Very basic to a seasoned investor I’m sure, but it only costs a quid a month and no trading fees. 

Thanks for your input here. Much appreciated. 

masonic

Darnhall123 said:

He recently transferred most of my pot into bonds just before everyone’s ‘share heavy’ pots took a hit, so I didn’t see any falls. 

Interesting, it is most unusual for a financial adviser to try to time the market. Did he transfer it back before everyone's 'share heavy' pots recovered and reached new highs? Because if not, you could be worse off overall.

Albermarle

Darnhall123 said:

Albermarle said:

Darnhall123 said:

Albermarle said:

Darnhall123 said:

masonic said:

You're looking at a difference of about 0.8%, so putting >£15-35k at risk (however small that risk may be) for £125-£300 extra interest per year. It's up to you whether you are comfortable with that level of risk, and are happy with that level of reward for the risk you'd be taking.

If you are comfortable with that sort of risk, perhaps you should consider the use of a S&S ISA for some of the money.

Great advice and certainly worth consideration. I currently only hold cash ISAs and have never properly dabbled with S&S because a) I like the certainty of a guaranteed return and b) I have zero knowledge of S&S trading. 
I think the way to go will be to put part of next years allowance in Shawbrook keeping me under the £85k threshold and put the rest in S&S. If it proves fruitful (as most say it will Vs cash ISAs), I may put future allowances in S&S too. 

Probably a good start to clarify some definitions.

To most people, trading in investments means a lot of very short term buying and selling, usually of individual stocks. It is very risky and can be very time consuming if done properly. 

This is not what is being suggested to you when posters say it could be a good idea to invest some of the money in a S&S ISA. Normally it is advised to invest via funds that hold many many different shares from all over the world, and maybe some bonds. Often these will just follow general developments in financial markets, and not be affected by one or other company having problems. Then leave the investment alone for many years. 
It is often called Buy & Hold investing.
You can do the same with certain types of pension and get some tax breaks as well.
What is your pension situation ?

Albermarle said:

Darnhall123 said:

masonic said:

You're looking at a difference of about 0.8%, so putting >£15-35k at risk (however small that risk may be) for £125-£300 extra interest per year. It's up to you whether you are comfortable with that level of risk, and are happy with that level of reward for the risk you'd be taking.

If you are comfortable with that sort of risk, perhaps you should consider the use of a S&S ISA for some of the money.

Great advice and certainly worth consideration. I currently only hold cash ISAs and have never properly dabbled with S&S because a) I like the certainty of a guaranteed return and b) I have zero knowledge of S&S trading. 
I think the way to go will be to put part of next years allowance in Shawbrook keeping me under the £85k threshold and put the rest in S&S. If it proves fruitful (as most say it will Vs cash ISAs), I may put future allowances in S&S too. 

Probably a good start to clarify some definitions.

To most people, trading in investments means a lot of very short term buying and selling, usually of individual stocks. It is very risky and can be very time consuming if done properly. 

This is not what is being suggested to you when posters say it could be a good idea to invest some of the money in a S&S ISA. Normally it is advised to invest via funds that hold many many different shares from all over the world, and maybe some bonds. Often these will just follow general developments in financial markets, and not be affected by one or other company having problems. Then leave the investment alone for many years. 
It is often called Buy & Hold investing.
You can do the same with certain types of pension and get some tax breaks as well.
What is your pension situation ?

Pension isn’t fantastic if I’m being honest and I understand that the most sensible thing would be to pile as much as I can in, while I’m still working. 

I’m 62 and plan / hope to retire in 3 years when I’m 65, take out 25% to see me through the 2 years till I get state pension. 

My pot currently stands around £300k, but I do like having savings (currently around £125k in ISAs). I also have about £20k in other savings. 

I’m putting around £1700 a month into my pension now that I’m mortgage free. 

£300K is way above the average, if that makes you feel better 

However there are two things that most people get wrong;
1) They underestimate how much money they need to build up
2) They underestimate how long they are going to live.

Of course a lot depends on how much you plan to spend when retired, and of course adding £1700 per month now will help a lot.

You have said you do not understand investing, which is fair enough.
However your pension money will be in investments, so do you understand how that is invested? Or have you made no choices and hope the pension provider is 'sorting it out'?

“Have you made no choices and hope the pension provider is 'sorting it out'?”
Exactly that!

I’ve had the same pension advisor (through work) for 20+ years and in fairness he’s always done a decent job for me. 

He recently transferred most of my pot into bonds just before everyone’s ‘share heavy’ pots took a hit, so I didn’t see any falls. 

He’s aware of my situation and 2 year plan and knows that long term isn’t an option now so protective of what I’ve got, while I’m still adding to it each month. 

It’s crazy to think you need a £1M pension pot to retire on £40k a year, isn’t it!

I’ve done my sums and I’ll be fine. We don’t have an expensive lifestyle and more than happy with a takeaway / bottle of wine a few times a month. My pension pot / savings will take care of that easily. 

I’ve only recently opened a Dodl account and I’m quite enjoying the ride so far! Very basic to a seasoned investor I’m sure, but it only costs a quid a month and no trading fees. 

Thanks for your input here. Much appreciated. 

You are probably lucky to get free pension advice via work. Most people get no advice and the rest have to pay for it.
However as the previous poster said, it is unusual for advisors to try and second guess markets, which have recovered nicely from the Trump Tariff dip.