Premium Bond Winner ?

Type_45

Swipe said:

Type_45 said:

Swipe said:

Type_45 said:

If you've got £50k, and you have no plans for it, it should be invested. You'd need the risk tolerance of a church mouse to keep it in PBs.

That all depends on how much you already have invested. With a signifiant % of my cash in equities I'd rather have £50K in premium bonds than £50K in bonds at the current moment in time.

What's your "significant percentage" in equities? £10k?

85% so work it out

You have £283k in equities?

Type_45

pbcpdeveloper said:

The minimum stake for the lottery is £2 a week, play the lottery for a year and the reality is your will end up down £104.

The minimum stake for Premium Bonds is £25, play Premium Bonds for a year and the reality is you will end with £25.

(I am not totally sure what the question is anymore).

The question is this:

Is £50k in bonds for a year a cop out when you win next to nothing....   as oppose to £50K in a passive tracker such as VLS100 in which you will gain about 25% interest (£12,500 interest)?

pbcpdeveloper

I have a Vanguard Lifestyle 100, I took some money out of Premium Bonds to top it up in the ISA when the markets dropped last year. 

But where do you draw the line. Isn't investing in a passive tracker like VLS100 a cop out when you could have invested in Tesla & Bitcoin.

grumiofoundation

Type_45 said:

pbcpdeveloper said:

The minimum stake for the lottery is £2 a week, play the lottery for a year and the reality is your will end up down £104.

The minimum stake for Premium Bonds is £25, play Premium Bonds for a year and the reality is you will end with £25.

(I am not totally sure what the question is anymore).

The question is this:

Is £50k in bonds for a year a cop out when you win next to nothing....   as oppose to £50K in a passive tracker such as VLS100 in which you will gain about 25% interest (£12,500 interest)?

1) VLS doesn’t pay interest 
2) You really shouldn’t be expecting 25% gains every year and there is certainly no “will” about it! 

Type_45

grumiofoundation said:

Type_45 said:

pbcpdeveloper said:

The minimum stake for the lottery is £2 a week, play the lottery for a year and the reality is your will end up down £104.

The minimum stake for Premium Bonds is £25, play Premium Bonds for a year and the reality is you will end with £25.

(I am not totally sure what the question is anymore).

The question is this:

Is £50k in bonds for a year a cop out when you win next to nothing....   as oppose to £50K in a passive tracker such as VLS100 in which you will gain about 25% interest (£12,500 interest)?

1) VLS doesn’t pay interest 
2) You really shouldn’t be expecting 25% gains every year and there is certainly no “will” about it! 

1) stop being pedantic 
2) we all know that

[Deleted User]

Type_45 said:

So it's like playing the lottery, only it ties up large amounts of your capital and you've even less chance of winning?

I played the lottery for years the most I ever won was £10/£20 once or twice. And I lost money on every play.

With PB I lose nothing but can win, but I admit it is kind of a lottery but you have nothing to lose. Unless you can think of somewhere else to put the money and earn more interest.

Type_45

[Deleted User] said:

Unless you can think of somewhere else to put the money and earn more interest.

Have you heard of the stock market?

grumiofoundation

Type_45 said:

grumiofoundation said:

Type_45 said:

pbcpdeveloper said:

The minimum stake for the lottery is £2 a week, play the lottery for a year and the reality is your will end up down £104.

The minimum stake for Premium Bonds is £25, play Premium Bonds for a year and the reality is you will end with £25.

(I am not totally sure what the question is anymore).

The question is this:

Is £50k in bonds for a year a cop out when you win next to nothing....   as oppose to £50K in a passive tracker such as VLS100 in which you will gain about 25% interest (£12,500 interest)?

1) VLS doesn’t pay interest 
2) You really shouldn’t be expecting 25% gains every year and there is certainly no “will” about it! 

1) stop being pedantic 
2) we all know that

1) Accuracy is important. As opposed to making misleading/incorrect statements that could lead to someone making invalid comparisons if someone treated them as accurate. 
2) Why did you say will then? See point 1). 

Edit: to keep on topic, no wins this month. Another month of missing out on that 25% you promise I will get…

[Deleted User]

Type_45 said:

[Deleted User] said:

Unless you can think of somewhere else to put the money and earn more interest.

Have you heard of the stock market?

Yes but you can lose money in stocks.

I have invested in that also but only very small compared to PB

underwhelmed_saver

Deleted_User said:

With PB I lose nothing

In the short term maybe, but PBs aren't a great investment once inflation eats away at spending power

My Dad is adament that the £10 he invested in PBs the 1970s or whenever is the safest investment he's ever made because he'll get his £10 back, even though a tenner doesn't buy you much as it did 4 decades ago!