old - Fazer Owners Club - old
General => General => Topic started by: slimwilly on 06 February 2014, 06:33:31 pm
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The mother inlaw has 9 grand sat in a bank doing nothing,making nothing,
so whats a better way to invest this witout risk?
ISA,s ,are they an opption?
what do you know,,,thanks
and no Christo,,she does not want to invest in a Fazer :lol
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How about e-Go aeroplanes? It is a risky investment, but I know how determined the CEO is. And it's bloody cool! :D
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Premium bonds.
My Mum has about 10k's worth and wins something nearly every month.
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Give it to me, I'll look after it for her :lol
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I am not qualified to give financial advice and you do any of the following at your own risk also information given may not be accurate and I may of also made it all up
Isas,
But she has more than the max limit for the year which starts in April, she needs to put the max limit she can into one now its somthing like 5,900
So she will hve put the max in for the year 2013/2014 ending april 5th
Then after april 6th she can put in the rest and she can also add onto that up to the 2014/2015 max limit
These will be instant access cash isas or if she wants to get more interest she can lock in in for longer, but as interest rates may soon be going up she could be better off instant cash one ind be free to move it to a better paying one
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Watching the TV yesterday some companies posted their end of year (2013) results:
BP (only) made £8.2 billion down from 10billion last year -as a result their share price plummeted. :\
However a company called Ocada seems the way forward. They do the home deliveries for Waitrose & a few supermarkets. In the last 14 years of trading they have never EVER made a profit & yesterday posted a 2013 loss of £14.5 million pounds.
Their share price went up significantly. :eek
Now how the hell is it that a company that makes a profit year in year out e.g BP the shares go down but a company that makes has never made a profit EVER i.e run at a loss in 14years of trading - the shares go up?
Apparently Ocada shares are due to go through the roof exponentially in the next few years as on line trading is going to shut down the high street. So that's where you should put your MIL's money :)
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ocadas shares that go up --- or any others that make a loss and they go up because the loss could of been less than the brain dead sheep on the trading floor were expecting it to be.
Bps shares were riding high on the back of high oil price which has now come down and the shares have come down in line with that
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So how do you buy ISAs ?
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So how do you buy ISAs ?
Any bank - you go in and its basicly just opening a savings account, proof of id and stuff
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Got an ISA......but not impressed with it........premium bonds sounds like a good bet.......been thinking about moving my lloyds accounts to the halifax..........bit different to other banks as I think the bank is owner by the customers....unless of course you know different :rolleyes
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Thing is with ISA's they, the banks, offer nice interest rates come April that last a year then they drop the interest rates on those ISA's. Then they introduce "The New Sparkley Egg ISA" with xxx% interest....
What a bloody pain up the arse. I've lost count of the amount of times I've moved money from an old ISA just to bung it in a NEW ISA to get more interest. Talk about wasting time.
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Buy some gold ideally coins, as its tender you dont pay much tax, it goes up and down, but sell at the right time and you can make a nice profit
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I'd second Premium Bonds too. I've got £5k worth and have won £275 in the last year. That works out to 5.5% so a pretty good return and you can take your money out any time you like. 100% safe too, unlike shares, at worst all you lose is the value against inflation.
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Buy some gold ideally coins, and you can make a nice profit
Hey you could make a mint !
Thing is with ISA's they, the banks, offer nice interest rates come April that last a year then they drop the interest rates on those ISA's.
Yes so like you do already you just move it to another/ better one, it dosent cost you anything to move it and the new isa providers will do all the work
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I'd second Premium Bonds too. I've got £5k worth and have won £275 in the last year. That works out to 5.5% so a pretty good return and you can take your money out any time you like. 100% safe too, unlike shares, at worst all you lose is the value against inflation.
Ok now the rest of your story --- how long have you had your 5k in the bonds
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Isas seem to be 1.5%, isthat all they give?
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Silver - it's used a lot in solar panels etc., so as well as being a precious metal it has a value as a commodity.
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I was working for a jeweler recently and he said the new investment trend for those with cash is DIAMONDS :eek
He had a customer recently buying a diamond for £127,000, purely to resell in a while, diamonds are a currency of their own,similar to gold.
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I'd second Premium Bonds too. I've got £5k worth and have won £275 in the last year. That works out to 5.5% so a pretty good return and you can take your money out any time you like. 100% safe too, unlike shares, at worst all you lose is the value against inflation.
Ok now the rest of your story --- how long have you had your 5k in the bonds
Just over a year. Started with £2k and got £25 on the first draw they were in and have added the extra £3k since. I appreciate that over a longer period they may not pay out as often (my daughter had £100 in bonds bought for her as a christening present and has since over doubled her money. However, she is now 26.......). But with banks only giving 1-2% on savings at best, it's still at least as good if not better. And there's always the chance that you win the million with much better odds than the lottery!
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The idea of peer to peer lending is tempting: Funding Circle lends to small businesses, Zopa lends to individuals, Ratesetter and Wellesley are other companies offering fixed term deals. There is more risk, of course, some have a provision fund which should cover defaulting borrowers, but they aren't covered by the FSCS.
Alternatively, a stocks and shares ISA can be good and has the advantage that any gains are tax exempt. You can go with a package that tracks a particular index like the FTSE or, if you're feeling brave, self select with a broker like TD Waterhouse. If you opt for self-select, buy shares in 5 to 8 companies to spread the risk (more than that and the dealing charges start to become significant).
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I am a member of the local credit union, and get ~4% on savings. Its also handy if I need a loan but don't want to touch my savings (the credit union im with run a plan which will allow you to take a loan out equal to the value of any savings you have for 3%APR - provided you don't touch what you have invested).
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Rustyrider you could see where I was going to go with that one, and kindly demonstrated it with your daughters bonds
You know what the real answer is - and we have all with our replies said it. Its that you have to have a little bit of everything.
Now mickvp I guess that I just google it but I am interested in credit unions and need to know more
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pretty simple really mate. mines is basically a normal type of savings account (I can get the money out any time I need/want to). Its run/owned by its members as opposed to an actual bank, and so instead of profits from the investments being passed onto shareholders, they members get paid a slightly better APR as payment.
I have a standing order setup so a small amount each week comes off my wage and goes into it which builds up over time.
your best bet is to contact your local credit union (credit unions have strange acceptance criteria - usually the type of job you are in, or your locality) and they can answer any of your questions as the way they operate can vary slightly between unions in terms of both how they operate, and what financial products they offer.
...or you could just google it :lol
-Mick
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Got an ISA......but not impressed with it........premium bonds sounds like a good bet.......been thinking about moving my lloyds accounts to the halifax..........bit different to other banks as I think the bank is owner by the customers....unless of course you know different :rolleyes
The Halifax isn't owned by it's customers, it's owned by Lloyds..... ;)
The Nationwide is still a building society so is owned by it's customers and there's still a few other smaller building societies around.
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The mother inlaw has 9 grand sat in a bank doing nothing,making nothing,
so whats a better way to invest this witout risk?
Get as much as possible (ie £5760) into a Cash ISA before the 6th of April, then after the 6th (ie a new tax year) she can put the rest of it in.
This gives instant access, tax free interest and is risk-free as it's covered by the Financial Services Compensation Scheme which protects up to £85,000 in one Financial Institution.
The best Instant Access rate at the moment is 1.75% (but remember that's tax free). You can get 2.05% but that requires locking it away for 2 years. Also the 1.75% may have strings (eg have a bonus for 1 year and then drop down again, so always check for these as you may need to move the money next year).
See Martin Lewis' Money Saving Expert (http://www.moneysavingexpert.com/savings/best-cash-isa) site for more information.
PS Premium Bonds aren't worth it see http://www.moneysavingexpert.com/news/banking/2013/07/premium-bond-chances-of-winning-cut--are-they-really-worth-it (http://www.moneysavingexpert.com/news/banking/2013/07/premium-bond-chances-of-winning-cut--are-they-really-worth-it)
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Nationwide put some of my funds in Legal & General ([/color]L&G (N) Tracker Trust A (Acc) )[/size] a few years back, I was a bit dubious as I'd worked in a Bank & knew this could be risky, plus my Mother had lost savings this way, however, they have performed well and increased value to keep up with inflation. As Nationwide not a Bank have more confidence in them.[/size]
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Got an ISA......but not impressed with it........premium bonds sounds like a good bet.......been thinking about moving my lloyds accounts to the halifax..........bit different to other banks as I think the bank is owner by the customers....unless of course you know different :rolleyes
The Halifax isn't owned by it's customers, it's owned by Lloyds..... ;)
The Nationwide is still a building society so is owned by it's customers and there's still a few other smaller building societies around.
thanks for putting me right pat..........i`ll have a look at nationwide and see what they are offering ;)
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Although there is a £2 the Santander 123 account pays 3% if conditions are met. Have to put £500 in to it each month but that can be 100 quid put in and out 5times blah blah blah. It also gives cash bavk on certain bills paid from it. So I use my account as savings but transfer the £500 in to cover bills on DDebit which then gives me cash back which more than covers the £2 charge.
If she pays tax on her savings an isa paying 2.5% would be better, opening with max allowed before April then putting rest in after April.
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whenever anyone considers investing in a company , do remember it isn't risk free. Don't invest any money you cant afford to lose. A 9k lump sum isn't big TBH , but is maybe a persons life savings, so protecting it is key. Isa is a good safe bet for slow growth with 100% protection.
Isa can be set up online. I have a Tesco one which was reasonable interest last year , like kartman says its been reduced this year ...come march there will be better deals as the scramble for cash increases, so probably will switch it somewhere else.... We wont get good interest rates anywhere as so much investment cash goes unused ...
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Although there is a £2 the Santander 123 account pays 3% if conditions are met. It also gives cash bavk on certain bills paid from it. then gives me cash back which more than covers the £2 charge.
Here are some of those conditions -you do not get 3% here is the small print
1.00% on your entire balance, once your balance is £1,000 or over.
2.00% (variable) on your entire balance, once your balance is £2,000
3.00% (variable) on your entire balance, once your balance is £3,000
(up to a maximum of £20,000).
So if you have less than £1000 in there then you get NO interest.
Please whatever cockamamey schemes and swindles or "extras" they come up with DO NOT open an account that you have to pay for.
The banks want all accounts to be fee paying ones, ok you say its only £24 a year and I get other benefits, but I guarantee you that once fee paying accounts take over then the extras will be removed and the fees will go up.
By opening a fee paying account you are sleepwalking into opening your pocket and letting the banks take what they want.
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Although there is a £2 the Santander 123 account pays 3% if conditions are met. It also gives cash bavk on certain bills paid from it. then gives me cash back which more than covers the £2 charge.
Here are some of those conditions -you do not get 3% here is the small print
1.00% on your entire balance, once your balance is £1,000 or over.
2.00% (variable) on your entire balance, once your balance is £2,000
3.00% (variable) on your entire balance, once your balance is £3,000
(up to a maximum of £20,000).
R
So if you have less than £1000 in there then you get NO interest.
Please whatever cockamamey schemes and swindles or "extras" they come up with DO NOT open an account that you have to pay for.
The banks want all accounts to be fee paying ones, ok you say its only £24 a year and I get other benefits, but I guarantee you that once fee paying accounts take over then the extras will be removed and the fees will go up.
By opening a fee paying account you are sleepwalking into opening your pocket and letting the banks take what they want.
Forgive me for my poor education that has me believing £9000 is more than £3000 and less than £20000 ;)
The £2 charge is actually being paid for by santander. Paying £400 santander mortgage through the account pays me £4 add the other bills , water, phone etc I'm in profit. I literally only use the account a (what has now become a high interrest) savings account). Transfering money for the cashback attracting bills to it from my main current account. Far as I'm concerned it makes perfect financial sense and martin lewis would be proud of me for being paid to save :)
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All right -- all right. All I was doing was making it clear that you do not get 3% as your post would sugest.
the Santander 123 account pays 3% if conditions are met.
Ok it works for you now but my warning still stands as later down the line once all accounts are fee paying - you will be out of pocket, so by taking the bribe now you will be paying back later.
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Transfering money for the cashback attracting bills to it from my main current account.
Im sure that you are aware that transfers from other Santander accounts do not count for interest - here is that small print
transfers from any other Santander accounts do not count towards the monthly funding amount
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Has she got a mortgage? If so, you are better (if she can afford to) paying off some more mortgage as savings rates are nowhere near what mortgage rates are - that'll be best value for money I would think.
ISAs are terrible at the moment. Shares ISAs are different though. In the last 6 months I've invested £1200 in a shares ISA, and my balance is £1350 - it's a risk, but find me a savings account that can do that. It's all managed by an IFA and everything so nothing to worry about. Paid about £3600 in total over the years and my balance is closer to £4200.
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Transfering money for the cashback attracting bills to it from my main current account.
Im sure that you are aware that transfers from other Santander accounts do not count for interest - here is that small print
transfers from any other Santander accounts do not count towards the monthly funding amount
Yeah cheers I am aware, I read every smallprint looking for the negatives. As for the 3% interest, in the case I was lending advice too it will pay 3%. I didn't spell out all the detail as I wouldn't expect anyone to jump straight in without further investigations of their own.
As for the paying for accounts, if its going to happen it will do so regardless of my boycotting it now so I may as well take the gain now while its on offer, ready to close account as soon as incentives are stopped.
Some would also argue that we are paying for the free accounts as well anyway through the poor interest rates.
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Has she got a mortgage? If so, you are better (if she can afford to) paying off some more mortgage as savings rates are nowhere near what mortgage rates are - that'll be best value for money I would think.
Ageed, but only if quick access to money isn't needed. I was told by bank once that I am entitled to have any overpayments paid back to me, so they make perfect saving if prepared to wait for repayment.
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That said I'm actually better off keeping my money in the 123 account as its 1% cashback on the monthly mort payment (inc the capital repayment portion)
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Ive got two kids at university, what does savings mean?
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I will leave this now --- but with this
if its going to happen it will do so regardless of my boycotting it now so I may as well take the gain now while its on offer,
It wont be just you boycotting it though -- it will be you and me
ready to close account as soon as incentives are stopped
And thats what I am saying, because every one will wake up into the new world where every bank are now charging extra fees and NO incentives will be left, and you will say "my god what have I done"
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So how do you buy ISAs ?
Sites like these help to show rates and good deals
http://www.moneysavingexpert.com/savings/best-cash-isa (http://www.moneysavingexpert.com/savings/best-cash-isa)
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Most if not all savings accounts of low risk are paying less than 2% inflation is about 2.5% so a NEGATIVE rate of return on just about anything that has tax deducted at source. Take a look at 'peer to peer' lending which can return 6-9 % try looking at zoopla slightly higher risk but spread over many accounts but much higher interest. Otherwise you're better off redeeming any long term debt as someone else pointed out, but p2p may be worth a look....
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Most if not all savings accounts of low risk are paying less than 2% inflation is about 2.5% so a NEGATIVE rate of return on just about anything that has tax deducted at source. Take a look at 'peer to peer' lending which can return 6-9 % try looking at zoopla slightly higher risk but spread over many accounts but much higher interest. Otherwise you're better off redeeming any long term debt as someone else pointed out, but p2p may be worth a look....
I was trying to remember the name of this, nearest I got was community banks. Yes peer to peer seems very good option and you can decide the level of risk too:)
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Spend it on an bloody good holiday--cos all your doing is paying the friggin banks debts --no interest worth talking about, but at least you could have great memories of a bloody good holiday :pc :o
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ISAs are terrible at the moment. Shares ISAs are different though. In the last 6 months I've invested £1200 in a shares ISA, and my balance is £1350 - it's a risk, but find me a savings account that can do that. It's all managed by an IFA and everything so nothing to worry about. Paid about £3600 in total over the years and my balance is closer to £4200.
Yes, you can make good returns on stocks and shares ISAs, but you can also lose a lot if you invest at the wrong point.
I have a FTSE 100 tracker ISA and I wait until the market takes a big dive, then chuck in £1000 from my cash ISA because the market will recover, it just might take a while so it's a long term investment whilst I've got enough in the instant access cash ISA to cover any contingencies.
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Well thanks for the replies, my wife was with her today in a meeting in the bank and they transferred the 5 grand max into accessible savings ISAs ,and will move the rest after April. interest is not great but last year she go £25 interest on £9 grand :'( ,, she will only get a hundred now but it is an improvement. :)
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I recently had some money to invest/save, but will need it soon to pay for house improvements. I opened a 123 account last December. Gas, Electricity, water, council tax, TV/phone direct debits all moved to Santander so the cashback pays the monthly fee. Interest paid £39.76 (£9.94 tax deducted at 20%) so I'll have a bit more tax to pay. My current ISA gives 2% tax free. You have to pay in £500 a month, but this can be from another bank account, eg Barclays. Standing orders set up to move it back and forth.
So if you have all your ISA allowance sorted and want easy access and low risk, the Santander 123 seems to be the best on the market. Once they stick their charges up, reduce the interest rate, stop the cashback or whatever, I'll move my money elsewhere. I think ALL banks do this on savings accounts, tempt you in with an attractive bonus interest rate than after 1 year the interest rate plummets. You have to keep on top of it, just like car/bike/house insurance. Also companies like Sky/Virgin who put your fees up each year ahead of inflation hoping you dont notice and stick with them.
For stockmarket shares, I went for 'preferential' shares. These are safer than normal shares if the company go under as they are higher up the pecking order. They are long term investments and give a set return. The difference between buy and sell price is large, so you dont trade these regularly.
I didnt buy these Aviva8.75% CUM IRR PRF GBP1, but I'm using as example
https://apps.barclaysstockbrokers.co.uk/Pricing/Pricing/Index?stockId=AV.A (https://apps.barclaysstockbrokers.co.uk/Pricing/Pricing/Index?stockId=AV.A)
8.75% GBP1 means they pay 8.75% of the issue price which was £1, so will pay 8.75p per share. These shares are currently on the market at £1.34, thats a return of 6.5% on your £1.34. 10% tax on dividends.
If they dont pay the dividend because of lack of profits, they give you extra shares. I'll be keeping these for 10 years or so I reckon.
Just my opinion and what I've done, not financial advice.
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So that's about 1.1%. Shocking.
Still glad you're happily sorted now :)
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You've come in too late Phil grrrrr :lol
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Started typing that whilst eating my tea and watching the news. Who said men cant multitask, just a bit slow :lol
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For stockmarket shares, I went for 'preferential' shares.
Unless you know what you're doing, it's much better to get a Stocks and Shares ISA (eg like the FTSE 100 Tracker ISA I have) because these have the lowest charges and it spreads the risk over a wide portfolio, rather than risking all your eggs in one basket.
But shares are, of course, a long term investment and can go down as well as up!
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For stockmarket shares, I went for 'preferential' shares.
Unless you know what you're doing, it's much better to get a Stocks and Shares ISA (eg like the FTSE 100 Tracker ISA I have) because these have the lowest charges and it spreads the risk over a wide portfolio, rather than risking all your eggs in one basket.
But shares are, of course, a long term investment and can go down as well as up!
All of this investing lark has risks.
The dealing charges for the shares I've bought came to £39, plus £28 stamp duty. So about 1.2% costs so far. Thats all the charges I'll pay until I sell the shares. The Stocks and Shares ISAs have yearly management charges, typically 1.5%? So if your £5000 investment does well and goes up 10% to £5500, next year your yearly management charge will be £82.50. Then if the shares drop the next year, you wont have the same capital growth but did have but have paid a load of money. You will have dividends in the meantime, I haven't a clue what the average of the FTSE 100 is. Some pay 5%, some 1-2%, some none.
If inflation rates stay low I think my preferential shares will be a good investment. I do wonder what the share price will be in 10 years time though. There wont be a demand for the shares if the 8.75p per share isn't actually worth much, and the share price wont be pushed up a lot due to the fixed return. What is certain though, I wasn't getting much interest in the savings account I had the money in.
Next tax year I might do a Stocks and Shares ISA. I'm thinking a fund based around investing in property might be a good idea as the housing market recovers.
2009-2011 I made quite a bit just buying and selling Barclays shares. I kept buying at £2.70 and selling at £2.95 when the markets were fluctuation. Everytime the American President open his gob about Banks the share prices dropped :lol
My step dad bought 87 shares in the National Grid around 1995 when the company was formed from the MEB and whatever. He has had dividends most years. They were £2.05 back then and are now £7.92. Thats way ahead of inflation. The reason why he chose those was just because he was an electrician, nothing else.
Sometimes my head has felt like exploding thinking about it all, and think I should have spent it on another holiday as someone suggested earlier.
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The dealing charges for the shares I've bought came to £39, plus £28 stamp duty. So about 1.2% costs so far. Thats all the charges I'll pay until I sell the shares. The Stocks and Shares ISAs have yearly management charges, typically 1.5%?
As mine is a simple tracker fund, it only charges 1%. What I do is wait until the index takes a dive, then chuck a grand in from the Cash ISA.
The best one was when the market dropped below 3,500 a few years ago, that money has now gone up around 80%!
Next tax year I might do a Stocks and Shares ISA. I'm thinking a fund based around investing in property might be a good idea as the housing market recovers.
Or until the ridiculously over-inflated property bubble bursts.
NB The Bank of England is (at last) ending the Funding for Lending scheme which has been pumping money into the housing market and keeping savings rates low (because the banks haven't had to offer competitive interest rates on savings as the government is filling their coffers). So I wouldn't be suprised to see house prices (especially those in London) finally dropping to a realistic level.