Savings account - thank you Mr Barclays!

[Helicopter123]

I've been moving clients with excess cash into a cautious and well diversified portfolio paying 4.5%.

Yes, some modest investment risk, but if you are a 5+ year investor then why would you leave money in cash earning nowt?

[Ozzie Osmond]

"cautious and well diversified"

The proof of the pudding is in the eating.

[droopsnoot]

Helicopter123 said:

Yes, some modest investment risk, but if you are a 5+ year investor then why would you leave money in cash earning nowt?

For me, the issue is there are so many options, so many choices, so many "what's the best investment for me?" questions to read, that I just struggle to do anything at all. I'm about 75% in cash, and it frustrates me beyond belief that I can't quite persuade myself to do better with it, and here I am another year later and just the same. Doesn't help that when I finally did some investments based on the suggestion at my building society, by the time I got the first annual statement it had halved in value and then took years to get back to anything like what I'd invested in the first place.

[Helicopter123]

droopsnoot said:

Helicopter123 said:

Yes, some modest investment risk, but if you are a 5+ year investor then why would you leave money in cash earning nowt?

For me, the issue is there are so many options, so many choices, so many "what's the best investment for me?" questions to read, that I just struggle to do anything at all. I'm about 75% in cash, and it frustrates me beyond belief that I can't quite persuade myself to do better with it, and here I am another year later and just the same. Doesn't help that when I finally did some investments based on the suggestion at my building society, by the time I got the first annual statement it had halved in value and then took years to get back to anything like what I'd invested in the first place.

Does sound as if you've been sold something quite risky of it has halved in value. Unless this is specifically the type of product you have asked for, then you have grounds for a complaint.

I have a booklet designed to inform those struggling to take that first step away from cash. PM me for a free copy.

[Ozzie Osmond]

droopsnoot said:

I just struggle to do anything at all.

That's something I well understand. I've been investing for many years but always find it difficult to actually do things.

The secret is, I think, to make sure your head rules your heart. You have to get over your natural emotional fears and just do it, based on a coherent strategy.

droopsnoot said:

I'm about 75% in cash, and it frustrates me beyond belief that I can't quite persuade myself to do better with it,

IMO what you have to tell yourself is that under current circumstances holding cash is a 100% certain way to lose money. Its value is being eroded by inflation more quickly then interest is being earned.

droopsnoot said:

by the time I got the first annual statement it had halved in value and then took years to get back

Yes, that's the inevitable hazard and it never feels nice. However, as per my first point above you just have to believe that you have a sensible long term strategy and press on.

In your situation what would I do? I'd take 20% to 25% of your cash and just invest it in some mainstream equity funds right now, then sit back and do nothing for 6 months. Review the situation early 2017 and work out what to do next.

If at all possible use ISA and/or pension to get the tax advantages. If you can get 20% or 40% tax relief buying pension then you can sustain a 20% or 40% drop in stock markets without losing a penny! At least, that's the way I think of it.

[droopsnoot]

Helicopter123 said:

Does sound as if you've been sold something quite risky of it has halved in value. Unless this is specifically the type of product you have asked for, then you have grounds for a complaint.

I have a booklet designed to inform those struggling to take that first step away from cash. PM me for a free copy.

Thanks, I'll send you a PM now. I'm not sure I could get away with a complaint as I do recall the chap showing me the graph of how if I'd invested six year prior to when I did, my value would have almost doubled, but then making the point that there was no guarantee that would repeat itself. When I've visited the BS for a review each year (when they still did those), I can comprehend all the information they give me while I'm in the room, but it's like they've got magnets or something in the door frame, and as soon as I'm away it's all unclear again - and the only bit that sticks is the warnings about value going down as well as up.

Ozzie Osmond said:

If at all possible use ISA and/or pension to get the tax advantages. If you can get 20% or 40% tax relief buying pension then you can sustain a 20% or 40% drop in stock markets without losing a penny! At least, that's the way I think of it.

Thanks for that, and the rest of your thoughts. A typical example of a mistake / my lethargy is that I've been paying in a small monthly sum into an S&S ISA held at the Nationwide, but their choice of funds is quite limited so my intention was to cancel that and open a new S&S ISA somewhere else in the current tax year. Fast-forward to April 3rd and I remember that I haven't cancelled the monthly payment, the blurb says it will take 28 days to cancel, the payment goes though on the 7th-odd, so I've blown it for another year. I guess I'll have to use the allowance up for a cash ISA and then transfer it across in the next tax year. And no, I still haven't cancelled the monthly payment.

I have read up on various things, but not in any great detail. One of the biggest issues is I have no life plan, I can't say when or if I'll need to pull money out of any investment, and I can't define my attitude to risk - when I was switching to some investments back in 2000/2001, they didn't use to ask about attitude to risk. I've read some of Motley Fool which is a challenge largely due to the forum format, MSE to an extent, Monevator, and a few others. But nothing jumps out, which usually just leaves me thinking 'play it safe'. I know, all I'm doing is safely losing value.

Edited by droopsnoot on Monday 12th September 10:54