2.8% is all i get with a Halifax online saver. Pretty crap. As a pretty cautious person what are my alternatives.

1. Not keen on shares, i'm not really a "player".
2. Not keen on becoming a landlord, too much hassle although property is cheap.

Mortgage paid off, and i put the full amount each year into a cash ISA (for what it's worth)

Any suggestions (except a weekend in Vegas and blow it on hookers and drugs)

 

I think you have answered your own question. If you want more than the high st sub 3% return then you'll have to invest rather than save.

It is your choice which asset class you feel might outperform cash. No asset class will come without risk and/or hassle

 

7% return on BTL's .... it's the only real return which is low risk.

 

Index linked savings certificates were great, but withdrawn when they got too great (too expensive to pay a real return after tax and inflation which shouldn't be much to ask but is).

 

I know local estate agents can manage them for you for around 5%. Anyone do this. I have a couple of questions.

1. Legally who is responsible. ie say a tenent dies from gas poisoning, is it you or the agent.
2. Say the agent runs the property and a tap leaks. The agent uses a local plumber who charges £100 to fix it. What is to stop all your profits being taken up by maintainence bills.

 

1. You are and take Insurance.

2. You maintain the property - not the agent.

 

Thats what i dont want, 3am phone calls because the boiler has gone.

 

Mm and what will you remember in your old age - a weekend in Vegas with hookers and drugs or a rental property ?
Seriously if you have paid the mortgage off and have your pension sorted (is this what the rental property will be ? (using my rentals for this reason), then I would honestly suggest a good holiday or some toy / hobby that would not normally do.

Richard

 

That may happen once in 10 years .... you will have it maintained well.

To be honest - if you have your Pension covered, buy a bolthole property - on the coast or country and enjoy weekends there.

 

So basically you want something for nothing right? You don't want risk to your capital and you don't want any hassle.

Well here is some free financial advice for you: stop dreaming!

 

funnily enough we had that on Saturday morning

irritating, yes -- but I would still rather have the (very nice) income it provides

sorted with a few phone calls, yet to see the bill though

 

For our rental property we took out a British gas service plan for around £17 pounds a month to cover such events, it also includes an annual gas safety check (cp12) which you'll need.

Nik

 

Not all of us have the financial clout to be able to purchase property as an investment. If you have to have a mortgage with it you end up with unoccupied risk. Also when you come to eventually sell you may have a tax to pay on the increase in the value of the property. Not saying its not a good investment, its very good but its not without risk.

You could use your ISA allowance for a stocks and shares ISA. The risk can be managed fairly easily and even with things as they are its not too hard to see a decent return. Single figure returns are OK I guess but if I can get double figure returns then I'm more than happy.

Doesn't always work out like that and I've got a couple of funds that have been nasty the last 12 months. One should come back strong soon enough, the other isn't going anywhere and will be dropped. I like to think I have enough of a handle on things to be able to make a reasonable decision.

 

The thing I'd ask any IFA (assuming that is what you are) is if you really do have a handle on things why do you need to work as an IFA??

If you can consistently make the correct decisions to get savings rate busting returns why don't you just borrow money at 4% from the banks and invest it and pocket the difference?

 

Some would suggest that the financial services industry makes money from being parasitic with fees regardless of performance, not from producing a favourable prospective risk:reward ratio.

 

I'm not an adviser but I work in the industry.

I've seen before that both of you have a very low opinion of the IFA world and any amount of trying from me won't change your attitude so I won't try. The equal amounts of ignorance and arrogance the pair of you display at times is laughable.

Suffice to say I'm confident in our ability to help our clients make the right financial decisions and make them a bit of money along the way. I won't waste my time trying to justify what we do to either of you.

 

^^ Don't understand the ultra-defensive response to two relatively commonly aired viewpoints. Didn't really understand the ultra-picky responses to my posts on the base rate thread either. Sounds like you know you're not quite as good as you tell other people you are, Edd.

 

How that then?

I posted saying there was a rumour about base rate coming down. You said it wasn't from the BoE and myself and Anonomous both presented you with evidence the MPC had discussed it when you said they hadn't. If I'm wrong then I obviously do no far less than I think but I understood those elected onto the MPC were fairly crucial figures within the BoE.

My issue was more the pompous way you posted rather than the content itself.

I've attempted to discuss financial matters with Dingdongler before and no matter what was put to him he clearly wasn't listening and just gave the usual blinkered arrogant responses we often see.

As for John Banks, I've read the "Parasite" quote before. How would you feel if someone posted that the industry you worked in was nothing more than a bunch of parasite only out for themselves - the ignorance displayed there is just laughable.

I knew my first post would garner the almost automatic responses by the latter two and I'm not surprised Telboy has tried to jump in and make up for a poorly worded post a couple of days ago.

No doubt you'll all enjoy picking holes in my post and doing the internet version of winding down the window, shouting your opinion then winding it back up before you risk hearing the response.

 

Edd i'll say it once more. At no point did i ever say the Bank of England didn't discuss lowering the base rate. I would go to a court of law to contest it on account of my posts on that thread. Sorry but i didn't read past that point.

 

Your guys need to invest in a sense of humour!









(see what I did there? )

 

Or a mirror that isn't from Snow White...


To the OP, 2.8% these days for risk-free money, not sure how that's "pretty crap" if i'm honest. Hard to improve on that without at least some element of risk these days.

 

Edd, I'm not going to pick holes in your post or shout out of the car window. I'm sure you're a decent chap and you provide your clients with a service they are happy with.

I also have products via an IFA (though I appreciate you are something different) that I'm bloody glad of ( critical illness/income protection) as that kind of cover can no longer be bought.

Perhaps I'm a control freak but I just can't give my money to somebody else to invest unless they are happy to share the risk with me. Not if I can lose but they can only win.

John's comment about parasites I'm sure was not directed at you personally. My own IFA who I first met over 20 years ago is a thoroughly decent guy. However, and this is the point, there are many many financial 'products' out there that because of charges and poor management will never really benefit the individual. They seem to only exist to make money for the industry

Never meant to get into a slanging match with you mate, so chill out

 

2.8% is shyte though. Obviously its short notice/instant access with a Bank. You won't get anything with any highstreet bank (best I have out the highstreet is a fixed rate bond @5%....no longer avaialble).

Currently my best lowish risk return is on selling equpiment to our local busniess on monthly finance (legal - I'm not a loan shark ). I own the equipment until paid in full, obviously you need to know who you are dealing with to do this kind of thing.

But a better/more practical return for me is my with profits growth bonds. I have one with the Prudential as a flexible investment plan with 100% of that invested in optimum return. Thats look like its buzzing around 8.3% return. However the current cash in value is lower as its not matured yet, so I can't touch it for quite some time (I can take out money if I want to, but obviously there is a penalty for that).

I have a similar with-profits gowth bond with Legal & General but thats not as good at around 6.3% (although thats based on last years statement...still waiting for this years).

Obviously with growth bonds you need to look at minmum returns; some have fixed minimum returns, some don't, some are high risk funds some are low risk. All are headache inducing.

And don't forget the Tax (unless its part of your ISA allowance ).

 

£9000 a year is the amount allowed to capitally gain , after a few years all you need to do if nessasary is split up on paper with the wife allow her to live their on paper for 12 months ,(her main residence) then she sells up and no tax is paid, get back together and live happily ever after in the knowegde that you have managed to shaft the current goverment out of a few grand

 

I have always found that the thought of running and jumping around over money is incredibly boring!

Les

 

secondary pump needs replacing, £469.00 plus £180.00 call out + VAT

thank god I put their rent up last month

 

you need to change yr plumber....average charge for a new pump is 200 notes all in

 

it's the central london tax I am afraid

charging £100 an hour, so soon adds up

 

Fools and their money .......... your plumber is avin' a larf mate!! And the jokes on YOU!

 

Yes, said YOUR instead of YOU .... very droll