Stocks and shares ISA - any point

Options
2»

Comments

  • moneysaverz83
    moneysaverz83 Posts: 223 Forumite
    Options
    eskbanker wrote: »
    Not an unreasonable view - it might seem different to someone bumping along on the minimum wage but as you refer to a good job while single with no dependents, it does beg the (perhaps a bit impertinent!) question of why you only have £1,000 put by from several years ago and would only be looking at 'aiming' to contribute £50/month in future, especially given your username?


    I wouldn't read too much into a username.



    And various reasons. - got a mortgage and bills around that time, I have a pension. I look to spend the rest on hobbies and travel as you only live once and can't take it with you. I'm financially OK enough I reckon
  • Snow_Dog
    Snow_Dog Posts: 690 Forumite
    First Anniversary Combo Breaker
    Options
    Is a collectible liquid asset expensive wine - sorry just had to throw that one in there.


    £1200 in a cash ISA? personally I would aim to get some return on it that actually beats real inflation (as compared to the processed official rate) by sticking it into a current account paying 5% at the very least, eg Nationwide, TSB, Lloyds.


    And no, £1200 in a S&S ISA isnt a lot and on its own with no increase in capital wont be a whole lot more in 10 years.
  • bostonerimus
    bostonerimus Posts: 5,617 Forumite
    First Anniversary Name Dropper First Post
    edited 17 January 2019 at 11:23PM
    Options
    Saving and investing is a lifetime activity. You don't bail out as that kills all the advantages of compounded growth.

    1) do a budget and see where you can save money.
    2) Pay off all high interest debt
    3) Save 6 months to a year's spending into your bank account
    4) Put as much as you can into your pension.
    5) Put as much as you can into and ISA.

    The pension and ISA will save you lots in tax as well over your lifetime.
    It's good to have hobbies and you do need to live your life rather than being a monk, but make sure you get value for the money you spend and emphasize saving in your budget. You should probably put food, housing and utilities first, but then saving ahead of hobbies, Sky subscriptions, beer, consumer electronics etc.
    “So we beat on, boats against the current, borne back ceaselessly into the past.”
  • Zero_Sum
    Zero_Sum Posts: 1,567 Forumite
    Options
    moneysaverz83 wrote: »
    Good option. Which saver?
    And what about p2p, are they still giving 7-10% or whatever

    Some of the more risky p2p's can get those sort of returns, but can still get about 5% in a safer option like zopa
  • MaxiRobriguez
    MaxiRobriguez Posts: 1,780 Forumite
    First Anniversary First Post Name Dropper
    Options
    How old are you? When you planning to retire? And is that age earlier than when you'll get access to your pension (currently 55 but probably going to go up in near future).

    Can you put in £100 a month rather than £50. It's not that much more to save and in a years time you'll double your money in it.

    This thread reads less like a strategic discussion and more of a discipline one. You can keep the money (and add to it), or you can spend it.
  • moneysaverz83
    moneysaverz83 Posts: 223 Forumite
    Options
    Possibly



    I guess I feel as I'm in my mid 30s, life is for living.



    I hand equity in a mortgage the last 4 years (25yr), I have 30pcm I've been putting into the pension the last 8 years.



    And I spend on holidays and hobbies, after what's left after bills



    I'd like to save more, its just the vehicle I use and how much... 50 more realistic, 100 is possible, depends on variability of work
  • AlanP_2
    AlanP_2 Posts: 3,253 Forumite
    Name Dropper First Anniversary First Post
    Options
    moneysaverz83 wrote: »
    Possibly



    I have 30pcm I've been putting into the pension the last 8 years.




    And how much retirement income do you realistically think that will give you in 30 years time?

    Assuming you put £30 pm in for 40 years and gained 5% growth after inflation / fees etc. you would have a pot of ~£46k - how long can you live on that for?

    At the very least increase the £30 by inflation each year.

    Is your employer contributing to your pension as well?
  • bostonerimus
    bostonerimus Posts: 5,617 Forumite
    First Anniversary Name Dropper First Post
    Options
    moneysaverz83 wrote: »



    I guess I feel as I'm in my mid 30s, life is for living.

    Yes it is, but while "take no thought for the morrow" might be ok for some it's not a very sensible philosophy in 21st century Britain. So you need to make arrangements so you can live comfortably when you can't or don't want to work anymore. Money you save now will grow over the next decades and you can spend it when you are in your dotage. If you plan for tomorrow now you have a chance of being able to live without having to work or worry about money. I started saving and investing in my mid 20s and 30 years later I'm retired and have enough pension and investments so that I never have to worry about money again and I really can live for today as I know I'll have money tomorrow.
    “So we beat on, boats against the current, borne back ceaselessly into the past.”
  • MaxiRobriguez
    MaxiRobriguez Posts: 1,780 Forumite
    First Anniversary First Post Name Dropper
    Options
    moneysaverz83 wrote: »
    I guess I feel as I'm in my mid 30s, life is for living.

    £1000 isn't really going to help you "live". It might buy you a plane ticket somewhere, but if you wanted to do that I suspect you might have done it already.

    You sound a little bit underwhelmed with the returns on savings in the short term, which is fair enough, as it takes a while for these things to get going as you add to your capital, but over time that headstart really does help as you chalk up the gains in your mid 40's/50's.

    Either really go and live your life, or put aside the money so you can fob off work earlier than 75, but the middle ground doesn't give you either experiences or comfort.
This discussion has been closed.
★ ★ ★ Meet your Ambassadors

Categories

  • All Categories
  • 343.2K Banking & Borrowing
  • 250.1K Reduce Debt & Boost Income
  • 449.7K Spending & Discounts
  • 235.3K Work, Benefits & Business
  • 608.1K Mortgages, Homes & Bills
  • 173.1K Life & Family
  • 248K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards