Savings and Investments thread

I've done some work with one of the Canadian pension funds back in the early 2000's, and they operated exactly like a hedge fund, with fairly simple requirements to modestly beat a benchmark for an acceptable risk (i.e. volatility).

Advantages:
- easy for them to outperform an index, as they didn't have to make a profit, like a private asset or money manager
- consolidates lots of small schemes and can therefore rationalise overheads
- can compete and pay for genuine investment and risk talent

That last point is why I think this approach is potentially safer than the current system, where you have legions of under-qualified 'investment professionals' that are raped on a daily basis by banks and other FIs.  VFM and performance is no doubt woeful right now, but scattered across lots of small schemes.

I hope what might be 'under the covers' is that they will rethink the liability driven investment regulations, which were ludicrous to start with and - predictably - nearly brought the pensions industry down when interest rates started to rise.  That should improve the allocation towards equities.

golfaddick said:

Huskaris said:

Correct me if I'm being overly simple, but isn't the idea here to get pension funds to invest in infrastructure to save the government having to do it and lay out the cash?

Not sure how that will work in reality..

Well, when a big scheme collapses or is curtailed (like HS2) then the pension scheme members lose shed loads of money. 

But the Government and public sector workers like teachers & nhs staff will be totally safe. 

I'm all right Jack !

HS2 should really have been a no-brainer. Possibly even more so if investor is a Government Pension fund who can then take a stake in the revenue generating train company that uses the line and can guarantee long-term, stable income.  More of an issue is how we allow ourselves to be ripped off in terms of costs in this country, a lot of which is down to planning restrictions. Have to see now whether those planned changes work and start bringing those costs down. 

TelMc32 said:

golfaddick said:

Huskaris said:

Correct me if I'm being overly simple, but isn't the idea here to get pension funds to invest in infrastructure to save the government having to do it and lay out the cash?

Not sure how that will work in reality..

Well, when a big scheme collapses or is curtailed (like HS2) then the pension scheme members lose shed loads of money. 

But the Government and public sector workers like teachers & nhs staff will be totally safe. 

I'm all right Jack !

HS2 should really have been a no-brainer. Possibly even more so if investor is a Government Pension fund who can then take a stake in the revenue generating train company that uses the line and can guarantee long-term, stable income.  More of an issue is how we allow ourselves to be ripped off in terms of costs in this country, a lot of which is down to planning restrictions. Have to see now whether those planned changes work and start bringing those costs down. 

I just hope these easier planning rules don't mean local views and common sense are ignored. At the time I lived in a village where the original eurostar rail linl was proposed. The incompetence, lack of planning, intelligence and arrogance of the planners was unbelievable. Fortunately it got changed. 

https://www.thisismoney.co.uk/money/saving/article-14127405/Premium-Bonds-prize-fund-rate-cut-NS-deals-blow-savers.html

Premium Bond prize fund cut again 

PragueAddick said:

Rob7Lee said:

@PragueAddick still holding Directline? 🤗

Got rid ages ago. 

sad times.........

Chaz Hill said:

https://www.thisismoney.co.uk/money/saving/article-14127405/Premium-Bonds-prize-fund-rate-cut-NS-deals-blow-savers.html

Premium Bond prize fund cut again 

No real surprise I guess.

Arsenetatters said:

I've got a couple of stocks and shares ISAs with different providers. Thinking of closing them both and sticking in a fixed term savings account. Any thoughts?

Why would you think of doing this? Unless you're likely to want the money soon or have an unbalanced portfolio, stocks and shares are likely to better in the long term. Whether you have invested in a good place is another matter. 

Arsenetatters said:

I've got a couple of stocks and shares ISAs with different providers. Thinking of closing them both and sticking in a fixed term savings account. Any thoughts?

Not sure what having them with different providers makes to your decision ? 

Why do you want to come out the market & go into cash?  Do you need the money soon ?

Also, dont take the money out as you'll lose the tax free advantage. At least transfer the money from one ISA provider to another ISA provider.. That way they will still be inside an ISA wrapper. 

Thanks all. I don’t need the money soon. I was just going through my finances today and realised I wasn’t actually doing anything with them. I got them a while back and had a bit of a play but don’t really know what I’m doing tbh. I’ll keep them and try to find some time to get my head round them. I have fixed rate savings accounts that have been boosting my income the last few years and I was just thinking of adding to them. 

Rob7Lee said:

Arsenetatters said:

Thanks all. I don’t need the money soon. I was just going through my finances today and realised I wasn’t actually doing anything with them. I got them a while back and had a bit of a play but don’t really know what I’m doing tbh. I’ll keep them and try to find some time to get my head round them. I have fixed rate savings accounts that have been boosting my income the last few years and I was just thinking of adding to them. 

If you are even anywhere near paying income tax then keep in an ISA wrapper. Whether that remains in stocks and shares or transferring to cash.

Sadly I pay income tax 

Arsenetatters said:

Rob7Lee said:

Arsenetatters said:

Thanks all. I don’t need the money soon. I was just going through my finances today and realised I wasn’t actually doing anything with them. I got them a while back and had a bit of a play but don’t really know what I’m doing tbh. I’ll keep them and try to find some time to get my head round them. I have fixed rate savings accounts that have been boosting my income the last few years and I was just thinking of adding to them. 

If you are even anywhere near paying income tax then keep in an ISA wrapper. Whether that remains in stocks and shares or transferring to cash.

Sadly I pay income tax 

I don’t know why people think it’s a bad thing to pay tax. Do these people expect everything for nothing? 

Huskaris said:

Arsenetatters said:

Thanks all. I don’t need the money soon. I was just going through my finances today and realised I wasn’t actually doing anything with them. I got them a while back and had a bit of a play but don’t really know what I’m doing tbh. I’ll keep them and try to find some time to get my head round them. I have fixed rate savings accounts that have been boosting my income the last few years and I was just thinking of adding to them. 

When you say not doing anything with them, they are still invested and growing I am guessing? You just don't have to do anything much to manage them?

Depends which fund(s) they are invested it. A US or global tracker then probably grown pretty well. A Bond fund not so much. 

Huskaris said:

Arsenetatters said:

Thanks all. I don’t need the money soon. I was just going through my finances today and realised I wasn’t actually doing anything with them. I got them a while back and had a bit of a play but don’t really know what I’m doing tbh. I’ll keep them and try to find some time to get my head round them. I have fixed rate savings accounts that have been boosting my income the last few years and I was just thinking of adding to them. 

When you say not doing anything with them, they are still invested and growing I am guessing? You just don't have to do anything much to manage them?

They seem to be growing but not as quickly as my Dad’s JP Morgan thing (now mine). I’ve probably got to study it all a bit more

Not long to go now, as we stand:

FTSE100 Level	8,312.89
Name	Level	Variance	% Variance
Solidgone	8323	10.11	0.12%
fat man on a moped	8301	11.89	0.14%
Lenglover	8301	11.89	0.14%
Pedro45	8325	12.11	0.15%
Rob7Lee	8350	37.11	0.45%
PragueAddick	8270	42.89	0.52%
thecat	8380	67.11	0.81%
blackpool72	8390	77.11	0.93%
holyjo	8398	85.11	1.02%
CAFCWest	8399	86.11	1.04%
Jamescafc	8401	88.11	1.06%
Redman	8409	96.11	1.16%
CharltonKerry	8410	97.11	1.17%
StrikerFirmani	8410	97.11	1.17%
Housty	8424	111.11	1.34%
Bangkokaddick	8425	112.11	1.35%
BalladMan	8443	130.11	1.57%
Carter	8455	142.11	1.71%
golfaddick	8484	171.11	2.06%
Addickinedi	8491	178.11	2.14%
RalphMilne	8494	181.11	2.18%
Covered End	8512	199.11	2.40%
LargeAddick	8513	200.11	2.41%
valleynick66	8526	213.11	2.56%
meldrew66	8540	227.11	2.73%
wwaddick	8555	242.11	2.91%
cafcpolo	8562	249.11	3.00%
TheGhostofTomHovi	8567	254.11	3.06%
aitchyaddick	8585	272.11	3.27%
bobmunro	8598	285.11	3.43%
WHAddick	8602	289.11	3.48%
Arsenetatters	8615	302.11	3.63%
Addick Addict	8642	329.11	3.96%
Hornchurch	8667	354.11	4.26%
Thread Killer	8681	368.11	4.43%
Er_Be_Ab_Pl_Wo_Wo_Ch	8687	374.11	4.50%
IdleHans	8697	384.11	4.62%
Salad	8710	397.11	4.78%
HardyAddick	8722	409.11	4.92%
guinnessaddick	8769	456.11	5.49%
Jon_CAFC_	8783	470.11	5.66%
@TelMc32	8800	487.11	5.86%