# Where do We savers put our money now ??



## ChuckH (Nov 23, 2006)

OK Many benifit from the rate cuts But where do We savers put our money for a reasonable return ?? Abroad maybe ? 
Having just retired (51) My hard earnt savings have been realy hit ! We were encouraged for years to save Now it seems allmost worthless ! 
Sugestions please ? Other than spend it to help kickstart the economy !! :thumb:


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## TimNiceBut (Dec 21, 2007)

The problem with putting it abroad is that you'll incur additional currency risk. Even though it seems that the pound might fall further against other currencies (which might provide an additional return), there is always the chance that it doesa appreciate, in which case you might lose out both on the interest and the principal.

Unfortunately I don't have much in the way of suggestions either, I'm struggling to find anything at the moment that's not a fixed-rate bond that pays enough to keep up with inflation after deducting the tax. Being a higher rate taxpayer doesn't help...


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## EliteCarCare (Aug 25, 2006)

Invest in property, it's a buyers market, low prices and low mortgage rates! :thumb:


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## NickP (Nov 20, 2005)

Premium Bonds are a fairly safe bet 

Or if not something like Halifax Offshore regular Saver at 8% AER


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## Gary-360 (Apr 26, 2008)

EliteCarCare said:


> Invest in property, it's a buyers market, low prices and low mortgage rates! :thumb:


+1 :thumb:


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## Brazo (Oct 27, 2005)

Stick it under the mattress! - Seriously!

If interst rates drop to negative figures (whiuch they may!) you will have to pay the banks to hold your money:lol:


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## freon warrior (May 31, 2006)

Yes its got to be property for the long term. Stock market is also worth looking at, to spread it about a bit and to add a bit of spice to your life!!!


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## bilt-hamber kid (Dec 4, 2007)

There is no right and wrong answer for everyone, because we're all different. We all have different risk thresholds and risk capabilities, we are all aged differently, have different income and different aspirations and commitments. Property can be fine, but your investment is illiquid and you're overly reliant on timing and market sentiment - in effect, you have not much control. Imagine, for instance, wanting to cash your property portfolio in and retire at any time in the past 12 months. 

If you wanted to put some loot away for the moment, you'd be doing yourself a disservice at the moment by discarding without thinking, a quick look at for instance, the Keydata Issue 24 6 year income plan, chucking some money into a Brandeaux fund (one of the few property funds which really are worth looking at, at the moment) and dabbling a bit in the new Bio Ethanol Teeside project. Get the basics right. Take proper advice first, use your ISA allowance (rates vary there too, don't forget), make sure your pension is squared away and if you already have one, make sure you know how its being managed and what you're paying for it.

And above all, integrate your financial matters into a cohesive plan that is flexible yet realistic and productive.


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## BMW Shortie (May 27, 2008)

i think your safest bet at the moment is burrying it in your back garden.

I know what your saying about the property market, but i still dont think it is the right time to buy.
Property will drop anout 10 - 20 % next year according to prediction, so id hang fire on buying now


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## Vyker (Sep 17, 2008)

Inflating currencies are the killer for any savers, especially when rates are like they are now...

Therefore, I would recommend buying the least inflating currency and leave it there until things settle....

The pound and the dollar are fat inflating SOB's! So there is just no point in buying them!

The Yen is your best bet, it hasn't shown much inflation in years, and some say it may start to DEflat!

HTH


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## -ROM- (Feb 23, 2007)

Speak to a financial adviser. Until someone who is qualified to give financial advice has all the relevant information relating to your current financial situation and future plans then there will never be a correct answer.

You need to get a few things clear in your mind before you have an appointment, such as:

How much you want to invest
How much risk you are willing to take
How much return you'd be happy with
How long you want to invest the money for etc etc

Ideally speak to an independent financial adviser. However if you bank with lloyds tsb their scottish widows experts are also very good and IFA's recommend more scottish widows products than any other brand.


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## Jakedoodles (Jan 16, 2006)

^^ What he said. An IFA is the only person (if he or she is good) who can accurately surmise what's best market wise for you to put your cash into.


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## bilt-hamber kid (Dec 4, 2007)

rmorgan84 said:


> .. their scottish widows experts are also very good and IFA's recommend more scottish widows products than any other brand.


They do?

Which products?


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## -ROM- (Feb 23, 2007)

bilt-hamber kid said:


> They do?
> 
> Which products?


Well off the top of my head 60% of IFAs use their pesnion schemes over anyone elses. Also their critical illness cover is supposed to be second to none.


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## bilt-hamber kid (Dec 4, 2007)

Ok, thanks.


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## Awol (Jun 29, 2007)

My dad loves premium bonds! and although i know there are less prizes now because of lower interest rates, he still normally gets £50/£100 a month and is doing better than interest rates I think!

and always that chance you could win big!

Also as above, if you can pick the right moment then property is good, depending how much you have to invest of course! although property goes up and down it still goes up in the end!


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## Saqib200 (May 13, 2008)

Sit on it for the moment. Between now and the end of 2009, look for property and cheap mortgage deals. Buy as many as you can, put them on rent, and just sit on them. Hold on to them for a couple of years and you'll have a nice earner.


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## The Cueball (Feb 8, 2007)

Brazo said:


> Stick it under the mattress! - Seriously!
> 
> If interst rates drop to negative figures (whiuch they may!) you will have to pay the banks to hold your money:lol:


I'll go with the matress as well...

:thumb:


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## Estoril-5 (Mar 8, 2007)

isnt that how bradford and bingley collapsed, too many BTL landlords with high LTV's wre struggling with payments as their fixed rate deals ended?

if you were to do this and hold the property for 15 to 20 years it could be beneficial, there are many pros and cons to consider.

what if interest rates shoot up, what if you dont get a tenant for a while, what if the rent doesnt cover the mortgage payment, what if the house prices continue to reduce, will you be in a loss after a few years and then be commited to the property until youre out of negative equity.

too many people jumped on the property band wagon.

remember high gains normally means high risk which can lead to an epic fail, lol


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## richjohnhughes (Sep 24, 2007)

depending on how much money you are talking about.......

why not buy something that will hold and increase in price!!?/

i'm looking at buying a little project in the form of a 60's vespa. proper restored ones sell for almost double the cost of a new one over here.


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## bilt-hamber kid (Dec 4, 2007)

The Cueball said:


> I'll go with the matress as well...
> 
> :thumb:


Only problem being, you'll suffer from the corrosive effects of inflation and your fear of losing through risk becomes a self fullfiling prophecy.

As long as you're pragmatic, as long as you take good, proper advice and as long as you disperse your assets properly, you should be ok. Not many private investors are making big numbers at the moment - many are happy to accept reduced income and reduced profit. We've become used to things rolling forward without pausing for breath and in many ways, this is a useful reminder of the basics of investing.

One good thing to come out of this might be that people don't look on their own house as an investment vehicle, primarily. We need to regard them as our homes and not something to underpin personal spending. Because when things go pop, there's no reserve to fall back on.

Now then, about those Mongolian belly pork futures..


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## Nickos (Apr 27, 2006)

GOLD! coininvestdirect.com 

Btw, - This forum NEEDS more smilies!!!! :driver:

EDIT: someone give me their money so i can buy some shiny metal


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## JasonRS (Aug 8, 2006)

Commodities like gold and platinum are fairly safe bets.


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## Frothey (Apr 30, 2007)

not been that great over the last 12 months..... up and down like an up and downy thing and actually slightly down over the term.


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## Frothey (Apr 30, 2007)

lithium is the next commodity to get into (all those hybrid batteries) - especially the Peruvian stuff


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## JasonRS (Aug 8, 2006)

In The Detail said:


> not been that great over the last 12 months..... up and down like an up and downy thing and actually slightly down over the term.


That's due to over production in the last few years, which has now been constrained. Also, it should be considered as part of a long term portfolio, not a short term gain.

Given the growing economies in the far east, and their love of the shiny yellow stuff, along with the fact that it's a finite resource and used in all sorts of electronic and engineering processes, it's unlikely to lose in the long term.

However, I'm not sure that it'll hit the relative level it was at in the early 80's just yet.


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## Frothey (Apr 30, 2007)

for sure, but it depends whether you want "safe" or to make money....

buy it when gordon wants to sell - you can guarantee it'll be at its cheapest price


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## Ultimate Valet (Aug 28, 2006)

ChuckH said:


> OK Many benifit from the rate cuts But where do We savers put our money for a reasonable return ?? Abroad maybe ?
> Having just retired (51) My hard earnt savings have been realy hit ! We were encouraged for years to save Now it seems allmost worthless !
> Sugestions please ? Other than spend it to help kickstart the economy !! :thumb:


Under the mattress seems a safe place right now. I do feel for you right now. My mum is in the same situation. Lost 15K with HBOS shares and loads of money with the ICESAVE accounts.


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## wookey (Jul 13, 2007)

HSBC, Abbey or Barclays - all the rest are now in debt big time to the government - not good


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## rat20v (Oct 27, 2008)

Tell me about it i have lost 3k in a month on my pension!!! think i will just ride it out, or buy some shares in oil companies, desire petroleum or rockhopper seems like a good bet at the moment Desire shares are 30pence each but had a high of 108pence in june this year, they did dip to 19 pence a share, just think as soon as they find oil the share prices will shoot up!


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## Auto-Etc (Sep 17, 2008)

Property for me - I have just brought my 6th house the other 4 are all long term family lets, working really well for me


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## bilt-hamber kid (Dec 4, 2007)

rat20v said:


> Tell me about it i have lost 3k in a month on my pension!!! think i will just ride it out, or buy some shares in oil companies, desire petroleum or rockhopper seems like a good bet at the moment Desire shares are 30pence each but had a high of 108pence in june this year, they did dip to 19 pence a share, just think as soon as they find oil the share prices will shoot up!


Don't dabble and speculate right now, especially in commodities. Unless you're an expert it'll be a waste of time and money. Think long term, establish a strategy and go for that.

Find out how your pension is being managed and if you can, look into how the funds are invested. If you were in the default fund (which most are) you would have been stuck in UK equities and be taking a bit hit. 6 months ago, the advice would be to get out of FTSE and into gilts/bonds/cash. Now, things are a little more fluid, so take proper advice - but you are not powerless. If you can, also establish what you're paying in charges and look into having your fund actively managed. It might cost a little more but actively managed funds are far more agile and resilient and potentially far better than just being dumped in some huge fund with lots of other investors.


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## waxin'lyrical (Oct 16, 2008)

You could do worse than a simple term saver account with a New Zealand bank. Rates in NZ have historically been higher than UK by a fairly large amount. Have a look at Westpac Bank westpac.co.nz Rates for 60 days are, I think, around 5.5% depending on how much you have to invest. The Kiwi dollar is a good buy too, even with the pound down, it's around 2.71 dollars to the pound. Before doing anything, look at a couple of forex websites to check graphs of dollar/pound rates to get an idea of the risk.


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## Mat430uk (Sep 17, 2007)

share with a good yeild if you fine a safe bet such as tesco morrisons etc


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## Dipesh (Oct 12, 2007)

Auto-Etc said:


> Property for me - I have just brought my 6th house the other 4 are all long term family lets, working really well for me


I know atleast 2 people that thought this, there houses are in negative equity now :wall:

I guess its more buying at the right time, IMO now isn't the right time.


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## EliteCarCare (Aug 25, 2006)

Dipesh said:


> I know atleast 2 people that thought this, there houses are in negative equity now :wall:
> 
> I guess its more buying at the right time, IMO now isn't the right time.


It depends on the deal you get and the amount of equity you've invested in the property, mortgaging youself to the hilt is a bad idea for sure..

Alex


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## Huw (Feb 16, 2007)

Dipesh said:


> I know atleast 2 people that thought this, there houses are in negative equity now :wall:
> 
> I guess its more buying at the right time, IMO now isn't the right time.


Depends if you can buy at the 'right' price, rather than the timimg of the deal. Many savvy investors are buying houses, but only if they can get a substanial discount, i.e. 20-30% off, some are even trying to get 50% off.


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## ChuckH (Nov 23, 2006)

Thanks all for the interesting replies After consideration I think I will look at buying property in the 120 to 130K range and then rent out With the hope that one day the prices will rise and yield a good return !!..................:thumb:


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## Dipesh (Oct 12, 2007)

Yeah i see what you saying. its true when they say 'cash is king!'


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## rich-hill (May 13, 2008)

The problem with sitting on your money now 'under the bed' Is you loose imfation on it, which is currently running high. Alliance and leicester are offering some good deals at the moment


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## davidcraggs (Aug 1, 2007)

Premium bonds are fairly pants at the moment - payout is only 1.8%. Long term fix with a cash isa or tesco 6% instant access account. Buy to let mortgages aren't great at the moment - rates and restrictions - so its not something I'd be looking to get into right now for the first time.


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## christhesparky (Oct 5, 2008)

Barclays monthly saver, 6% 1 yr fixed rate, max £250 per month


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## ashg (Feb 25, 2008)

Spend some to make yourself happy and put the rest under the mattress :lol:


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