Savings advice

[Phil]

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

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.

[Grahamm]

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.