Stocks n Shares ISA

MackemBob said:
Yes, and I will take advantage in a small way, but I expect dividends to be increased at some companies to encourage shareholders to not sell up for cash investments.
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That's an Interesting angle, and something to maybe consider. My worry is/would be being too heavily exposed in the s&s markets. We have about 50% of our investments there currently (actually quite a bit more than that if including private pensions) . Sold a b2l house and the cash has been largely doing nowt in a variety of accounts, so might slowly stick chunks into 1 or 2 year fixed rates if the %'s keep going north which they almost surely will. Don't have a mortgage to pay down as already paid ours off 10 years early. Also not bothered about inflation out performing most returns you can get as doing something is definitely better than doing nothing, can also be smarter with discretionary spending, indeed all spending.
 
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I’m expecting to get about £35/£40k through the sale of a property in next few months. Thinking of investing it in S&S rather than paying off a lump sum of an IO mortgage. £100k IO mortgage is £250 a month. I’m thinking that the £40k investment should generate more than £3k a year…. Or am I missing something obvious here?? Obviously I’ll be getting some expert advice but keen to know what investors on here think
 
Copacabana said:
Markets and my portfolio seem to be slowly recovering.

Is anybody holding cash and having inflation anxiety? If so what are plans for your cash?
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Yes, feeling a bit annoyed about my reading day fund.
No idea what I could do about it though. Needs to be safe and instant access...
 
Big Jeff said:
My Premium Bonds have won a few times this year giving me a better return than a savings account but without the risk of the value going down.

I don’t feel the effect of inflation eroding value in real terms so I don’t worry about it.
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You should be worried , inflation at circa 10% and your “investment “ is eroding by the day, you’ll feel the effects when you cash them in and try and spend the proceeds.
 
buster said:
You should be worried , inflation at circa 10% and your “investment “ is eroding by the day, you’ll feel the effects when you cash them in and try and spend the proceeds.
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The thing is I have no spending plans. They are just sitting there increasing in value. As I have no plans to buy anything I am not losing anything.
 
buster said:
Premium bonds cannot increase in value .
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Mine have roughly increased by around 1.8% year on year over past 10 year as I just reinvest any winnings into new PB
Ok not the greatest but it’s safe and always a chance of the biggie plus can get them immediately if needed, my motto is don’t put all your eggs in one basket so I have a few different plans and PB is one of them 😉
 
safccfas said:
I’m expecting to get about £35/£40k through the sale of a property in next few months. Thinking of investing it in S&S rather than paying off a lump sum of an IO mortgage. £100k IO mortgage is £250 a month. I’m thinking that the £40k investment should generate more than £3k a year…. Or am I missing something obvious here?? Obviously I’ll be getting some expert advice but keen to know what investors on here think
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That's a 7.5% yield, I think you might struggle, especially in the short term.

I think you're expecting too much as your mortgage only costs you 3% so that's what you should be looking to beat.
 
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safccfas said:
I’m expecting to get about £35/£40k through the sale of a property in next few months. Thinking of investing it in S&S rather than paying off a lump sum of an IO mortgage. £100k IO mortgage is £250 a month. I’m thinking that the £40k investment should generate more than £3k a year…. Or am I missing something obvious here?? Obviously I’ll be getting some expert advice but keen to know what investors on here think
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AndrewP said:
That's a 7.5% yield, I think you might struggle, especially in the short term.

I think you're expecting too much as your mortgage only costs you 3% so that's what you should be looking to beat.
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Yep. Maybe, pay 20k off mortgage & 20k in a S&S ISA (your annual allowance)?
 
Copacabana said:
Markets and my portfolio seem to be slowly recovering.

Is anybody holding cash and having inflation anxiety? If so what are plans for your cash?
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Always like to hold about 6 months of essential living costs in cash. Mind is split between a few thousands in instant access (to cover holidays and unexpected big bills) and the rest in Premium Bonds and Cash ISA (rates are slowly going up now). Nowhere near inflation but better than being under the bed.

In terms of S&S, there are some small signs of a recovery, especially in the US. The outlook in the UK is still grim though. If there is a recession on the way then I'd be looking at overseas funds.
 
Any advice for where to hold my emergency fund? Last 2 years its been in a totally useless cash isa earning pretty much zero.
Wouldn't need *instant* access, but a few weeks to a month would be required.
 
PTR said:
Any advice for where to hold my emergency fund? Last 2 years its been in a totally useless cash isa earning pretty much zero.
Wouldn't need *instant* access, but a few weeks to a month would be required.
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Zopa, can boost to 1.95% if you're prepared to give 31 days notice, otherwise it's 1.85% for instant access.
 
Big Jeff said:
I am fortunate to have funds elsewhere too.
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If youve exhausted other avenues then premium bonds has its merits given the guarantee. It doesn’t bear interest though is the point Longy was making I think. They probably will increase the prize pool but it will be nowhere near 18%! Be lucky to see 3%
 

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