"Only a fool puts his money on deposit"
"Only a fool puts his money on deposit"
Author
Discussion

Backtobasics

Original Poster:

1,182 posts

213 months

Tuesday 26th February 2013
quotequote all
I was reading an article around the proposed (but unlikely to happen) negative interest rate. One poster stated that only a fool puts his money on deposit now.

Which got me thinking, shares are not really as safe a bet as some suggest, with even large firms having bad news and the market still being volatile. Gold seems to have topped out for now, art and classic cars are for people with in depth knowledge. So it brings me onto the question of where can you put money for a safe reasonable return?

zcacogp

11,239 posts

274 months

Tuesday 26th February 2013
quotequote all
Find a fund with a fund manager with a proven record and take the plunge. I'm no city boy, able to talk about going short and being a bear and whatnot but I have a bit of cash in Fundsmith and it's doing OK. A damned sight better than it would in building societies at any rate.

www.fundsmith.co.uk. Terry Smith seems to know his onions and I very much like his investment style. (Yes, I know, his 'investment style' is nothing more than a sales pitch and is written to appeal to gulluible types like me, but I stand by my statement!)


Oli.

harveybobbles

154 posts

171 months

Tuesday 26th February 2013
quotequote all
zcacogp said:
Find a fund with a fund manager with a proven record and take the plunge. I'm no city boy, able to talk about going short and being a bear and whatnot but I have a bit of cash in Fundsmith and it's doing OK. A damned sight better than it would in building societies at any rate.

www.fundsmith.co.uk. Terry Smith seems to know his onions and I very much like his investment style. (Yes, I know, his 'investment style' is nothing more than a sales pitch and is written to appeal to gulluible types like me, but I stand by my statement!)


Oli.
Good shout.

I'm looking for a fund to invest in at the moment and like his simplistic style, although, I probably am the gullible type you mention too.. I'm a bit fed up looking at funds where I don't understand 80% of the jargon which makes me much less likely to invest.

Any other recommendations (from anyone, particularly knowledgeable types) would be appreciated!

CRB14

1,494 posts

182 months

Tuesday 26th February 2013
quotequote all
Invesco perpetual high income for me. 11% up since November and a slow steady rise plus it pays dividends.

Simple, zero thought process investing. Yes there are always risks but hey...

ringram

14,702 posts

278 months

Wednesday 27th February 2013
quotequote all
Or fairly boring, something like the recent 6% paragon bond, just listed and instant 1.5% cap gain as well.
Retails bonds can be bought through an ISA or SIPP, so thats 6% tax free.

But yes ISA and SIPP low risk reliable divi or bonds beat cash deposits by a factor of at least 3x at present.
Bonds for less capital risk, shares for more upside potential..

But agreed. Cash deposits for fools. (Excepting the recommended ~3 months cashflow cover)

Excepting of course the optionality that cash gives you for opportunistic purchases...

Backtobasics

Original Poster:

1,182 posts

213 months

Wednesday 27th February 2013
quotequote all
Thanks, I'll take a look at all of these

Hoofy

80,124 posts

312 months

Wednesday 27th February 2013
quotequote all
Kinda relevant... I was busy this morning but heard on LBC something about negative interest rates for savings?? Might have been my imagination?

Backtobasics

Original Poster:

1,182 posts

213 months

Wednesday 27th February 2013
quotequote all
Hoofy said:
Kinda relevant... I was busy this morning but heard on LBC something about negative interest rates for savings?? Might have been my imagination?
The idea has been discussed by the BoE

Hoofy

80,124 posts

312 months

Wednesday 27th February 2013
quotequote all
Backtobasics said:
The idea has been discussed by the BoE
Should I start blowing my savings and rack up a massive debt? Guess the Vantage will be coming quicker than I thought!

mrmr96

13,736 posts

234 months

Wednesday 27th February 2013
quotequote all
Hoofy said:
Kinda relevant... I was busy this morning but heard on LBC something about negative interest rates for savings?? Might have been my imagination?
There will be no negative interest rate on savings for consumers or businesses. It's a negative interest rate for high street banks who deposit their money with Bank of England instead of lending it to people. The negative interest rate would be an encouragement to the high street banks to lend more, because they're currently just "sat on" the QE money, not lending it out.

Hoofy

80,124 posts

312 months

Wednesday 27th February 2013
quotequote all
mrmr96 said:
There will be no negative interest rate on savings for consumers or businesses. It's a negative interest rate for high street banks who deposit their money with Bank of England instead of lending it to people. The negative interest rate would be an encouragement to the high street banks to lend more, because they're currently just "sat on" the QE money, not lending it out.
CRAP! Too late! Can you lend me a fiver? biggrin

That's a relief.