The material on this website is for information only
and is not intended as any recommendation or endorsement of any products or companies mentioned. We are not licensed by the FSA to give financial advice, and none of the material on this website constitutes or is intended to constitute financial ...
News
Mirror.co.ukWhat it's REALLY like to work for Ryanair: Staff threatened with punishments if they miss sales targets, work for ...Mirror.co.ukEach passenger is charged on average £12 extra for excess luggage, payment with credit cards, travel insurance and in-flight food and drink, according to a study by travel consultancy Ideaworks. “Fly To Win”, Ryanair's scratch card game charges players ...and more »
iNewsI'm 25 and a graduate, but don't think I'll ever get to buy a houseiNewsResearch by the Young Women's Trust found many young people are having to borrow on credit cards, from their overdraft, pay day lenders or their family to make it to payday each month. The charity spoke to 4,000 18- to 30-year-olds. A quarter of women ...
The IndependentTradorax: Binary trading website ceases operations after encouraging people to 'fraudulently' bet on marketsThe IndependentEarlier this year lawyers and savers alleged to The Independent that dozens of people's accounts were being frozen and hundreds of mainly pensioners were being refused payouts after investing on websites, including Tradorax. Many such platforms ...
This is MoneyFund firms will be forced to reveal hidden fees to pension savers from January, City watchdogs confirmThis is MoneyBy Tanya Jefferies for Thisismoney.co.uk. Published: 12:36 ... The move will force them to reveal transaction costs and administration charges in a standardised format - details that pension savers and personal investors have lacked until now despite ...Tony Byrne: FCA needs to lift DB transfer suspensionsMoney Marketingall 14 news articles »
The IndependentLendable: the next generation lending platform that can give borrowers a small loan within two hoursThe IndependentThe first way he achieved this was through more effective use of the personal financial data that banks and other financial institutions started collecting from UK consumers in the 1980s. He notes that this would have been impossible in ... The second ...
Have you met...
Latest Members:


John Morteen


cheaplingerie


femto


hoowei


hejian


Jensen Breck


Xuwanghuan

 

Homebuyers are cheering, but what about savers?

Interest rates down to 3.75% and at their lowest for almost 50 years - so there’s the expectation that mortgages will cost less too. But of course what applies to home loans applies to savings too – and savers are far from happy anticipating even less interest on their money.
Not so long ago when interest rates were low the answer was to invest in the stock market. Equity based investments like unit trusts, investment trusts, Oeics (open ended investments companies) bonds and stocks and shares all offered the chance of a better return.
But that was before all the recent uncertainty in the economy. Investors have always been warned that the value of their stocks and shares could go up as well as down but for several years that warning seemed irrelevant. And then the markets fell. Those who didn’t need to sell their holdings because they didn’t need the cash are currently sitting on investments of vastly reduced value – waiting for the market to bounce back.
And it will and that’s the best time to invest. But has that point has been reached? And in the meantime if you’ve got money and those bank and building society savings rates don’t seem very attractive what do you do?
Take advice. Talk to at least three financial advisers. Ask how they charge. Tied advisers get commission from the companies they sell for. Independent advisers may be on commission or may charge a fee up front. You may feel happier with advice that you’re paying for directly.
Think about how much risk you’re prepared to take. Generally the more risk you take the higher the returns if your gamble pays off. But of course the higher the risk the more chance you may lose money in turbulent times.
Think about how long you can afford to have your money tied up for. Investments of this sort are long term because in most cases charges for administering and managing them come out of initial payments so it takes some time to make any return.
How much can you afford to invest and at what intervals? Are you looking for income or for capital growth?
What you invest in depends on all of the above. If you want to be sure the capital you invest will be safe you could go for bonds such as Guaranteed Income Bonds. They’re issued by insurance companies and pay a fixed rate of interest for a fixed period and you’re guaranteed your capital back at the end. The interest is paid minus income tax. The Newcastle’s Capital Safe Bond is a 5 year fixed term account. The interest is linked to the performance of 4 stock markets around the world including the FTSE 100 and the Nikkei 225. The initial capital invested is guaranteed. The Guaranteed Property bond is a fixed term account linked to the housing market. If house prices keep rising your interest goes up. If prices fall your original capital is still guaranteed.
The most risky investments are shares in individual companies. If you put all your eggs in one basket you leave yourself open to the greatest risk. Spread the risk. Buy in several companies in different sectors so that if one company or sector does badly it may be balanced out by another doing better.
Investment and unit trusts and Oeics spread the risk. You put your money into a fund along with money from other investors. The fund is used to buy a spread of equities. Different funds offer a different mix of companies and sectors - some invest in property or in overseas markets. Because your money is part of a bigger pot the whole amount can be used to buy reasonable numbers of shares. The bigger and wider the spread the more the ups and downs of individual company market performances are smoothed out. The level of risk you’re taking depends on which shares the funds hold.
Whatever you do has to be your own decision. That’s why it’s important to take a range of advice and don’t invest in anything risky if you can’t afford to lose.
Advertise with us  |  Privacy  |  Terms & Copyright                                                                                     Website maintained by USP Networks