Finance & Investments

[Blackpool Rock]

There are occasional posts regarding finance & investments and I thought about starting a specific Finance & Investment thread 2 or 3 years ago but didn't however it's never too late to start 

I see this an an opportunity for people to share thoughts and tips on where may be a good place to invest and where you should perhaps be moving your money out of, some posters on other threads did seem to have quite a good and deep understanding of various investing aspects and it would be good to get their guidance

I've been investing for about 25 years though back then it was small change as I never had much money and not much of that was ever spare and then I got hammered by the dot com bubble bursting about 3 weeks after I got in 

I picked up investing properly about 14 years ago once i'd paid my mortgage off early and suddenly had spare cash that i knew would get wasted unless I tied it up, I am fortunate that once i've hived it off into a stocks ISA fund then I class it as untouchable and effectively a tax free extension to my pension

As anyone who invests will know it can be a bumpy and at times a very bumpy ride like being on the Big one at Blackpool pleasure beach 
It's certainly not for the feint hearted and you have to be prepared to hold your nerve when the markets are all heading downwards and not sell out.
Not an issue for me as i've always been a gambler and when I did a personal risk profile assessment it came back saying that i had almost no risk adversity 

In the last 5 years 1st Covid sent the markets into a panic and then Ukraine did the same thing a couple of years later just as things were looking up again.
I was fortunate with my decision when covid hit to sell out of certain underperforming sectors like the UK which was still suppressed on the back of Brexit and buy into Global Tech which was an area I only had a small holding in but wanted to increase that, my investments went up by about 50% in 3 or 4 months as Tech boomed on the back of everyone working from home etc 

The last couple of years have basically been shit due to Ukraine however things did start to show signs of picking up about 6 months ago or rather valuations continued to move sideways though I guess they were falling in real terms once high inflation is factored in.
I started to see some real signs of recovery 3 or 4 months ago where gains appeared to be held onto rather than going up 1 week and dropping back a week or so later, there had been 5 or 6 previous Bear market rallies which build your expectations before quickly pulling the rug from under you 

The upturn does seem to be a bit broader across various sectors now but the real winners over the last few months and again at present is the Global Tech sector which is booming
From what i've read this sector performed badly for the 12 months prior as it's adversely affected by high and rising interest rates more than other sectors, now that inflation and interest rates appear to have peaked and are falling back then Tech valuations are on the up

So anyone got any tips / info / thoughts to share 

Unsurprisingly my current tip would be to invest in Global Technology as I see this sector continuing to rise sharply for the next 1-2 years as interest rates continue to fall back
What I would also say is to invest in more than 1 fund as when I look at my Tech holdings they can perform quite differently when compared to each other so i look to average things out a bit

Also don't just invest in Tech as you need to have a broad and diversified portfolio just in case a sector takes a dive as you don't want all eggs in 1 basket no matter how tempting it is to go all in on whatever is making the most at the time   


And this isn't just about investing spare money in a stocks ISA as most people will have a company pension scheme which is probably invested in whatever shitty / boring / mediocre returning funds the cautious pension people have decided is best for you 
If you're able to choose your own funds then do some homework and start moving the money about so that you build a bigger pension pot, taking the time to read up on this stuff really is time well spent (A bit like researching a punt can pay dividends and avoid pitfalls)

Hell it may mean being able to retire a few years earlier than intended and then having both more time and more money to indulge in your favourite retirement hobbies, now I wonder what they might be then   

[billybob69]

It is only over the last few years have I started to have a few extra quid to allow me to make some stock investments. I read the book Smarter Investing by Tim Hale and came to the conclusion that I would never beat the market so opened a Vanguard account.

I bought a range of funds there just when it seemed that we were coming out of Covid and I think that I had something like a 12% return that year. Most of that interest was spent on a trip to Pattaya :-) That trip felt all the more sweeter knowingly that it had been paid for from me just being smart.

The years after had been very poor return, so I decided to take it out and stick it in a 5% savings account.

It feels like the stock market is now a safer place to return to, so are planning to invest some more in the US stock market. Although I am going to stay away the UK for the time being. It feels like we are a basket case at the moment.

[Darren101]

I’ve always been curious about ETFs / indexes.  Those involve investments in multiple companies so spreads the risk. The S&S ISAs also have a mix of stuff including Gov bonds so I’ve just started with one of these with the tax free benefit.

I’ve also dabbled in crypto.  Only have a bit but they are more of a gamble.  I made £100 yesterday.  Would be £170 but it’s dropped £70 today…  a Meme Coin.  Just playing with £500

I had about £30-40K in random coins a few years backand that money is now in the Premium Bonds.  Think I only broke even due to collapse of a certain coin I had a chunk in. I don’t rending this as an ‘investment’ but there’s good gains or huge losses.

[PepeMAGA]

Great thread.
Currently invested in Rolls Royce and that's doing very well right now. Bit late to the party too invest now compared to a year ago, but it still has great potential if it gets the government SMR contract and reintroduces dividends.

[Bloodymary]

Consider my ISA pot as a place to play a little with shares so have some cash spread across a range of UK stocks that seemed cheap as well as some in Berkshire Hathaway and a tracker or 2 - it’s pretty clear I’d do better sticking in one or two index funds rather than dabbling in individual stocks but then again I enjoy it and I see my pension fund as the more conservative pot

One fund I have been in that has done really well over past few years is a Fidelity Global Tech which has given me close to a 100% return

[Blackpool Rock]

Consider my ISA pot as a place to play a little with shares so have some cash spread across a range of UK stocks that seemed cheap as well as some in Berkshire Hathaway and a tracker or 2 - it’s pretty clear I’d do better sticking in one or two index funds rather than dabbling in individual stocks but then again I enjoy it and I see my pension fund as the more conservative pot

One fund I have been in that has done really well over past few years is a Fidelity Global Tech which has given me close to a 100% return

I've got that one too, added it to my ISA just over a year ago and it's showing 24% annualised return, couple of other Tech funds (Liontrust and Polar Capital) that i've held for longer (about 4 years) are both showing over 100% return and just over 19% annualised return 
My Axa Framlington fund is a shade under 17% annualised, still better than a poke in the eye and a damn site better than i'd have got in a building society account

I put the Polar capital and Liontrust ones in my pension about 8 months ago and they are both a shade under 30% up in that time

[RandomGuy99]

Rolls Royce is doing well as are the arms manufacturers.

[Darren101]

I got a small S&S pot in Wealthify. I only really started it for a free £50 and it's only got me 4.69 percent.  The Fidelity Tech ones sound interesting. Are they ISAs? Where do you get them from?

[sir wanksalot]

I've got that one too, added it to my ISA just over a year ago and it's showing 24% annualised return, couple of other Tech funds (Liontrust and Polar Capital) that i've held for longer (about 4 years) are both showing over 100% return and just over 19% annualised return 
My Axa Framlington fund is a shade under 17% annualised, still better than a poke in the eye and a damn site better than i'd have got in a building society account

I put the Polar capital and Liontrust ones in my pension about 8 months ago and they are both a shade under 30% up in that time

It isn't that easy though. If you're fortunate to invest in a sector that is soaring then it's difficult NOT to make a decent return but timing is key. How do you know that the market hasn't topped out?

I'd seriously consider putting more effort into stocks but I think I'm too old now. The safest returns are when you hold onto something for 10-20 years.

Still kicking myself I never got into Games Workshop years ago!

[Blackpool Rock]

I got a small S&S pot in Wealthify. I only really started it for a free £50 and it's only got me 4.69 percent.  The Fidelity Tech ones sound interesting. Are they ISAs? Where do you get them from?

They are funds which are basically a collection of investments in a certain market sector so you aren't investing in 1 single stock like Tesla; Meta or Google but smaller amounts across a wider range of these and similar Tech companies.
What that does is spread the risk if for example something unforeseen happens and Elon Musk decides to shut down Tesla for no good reason or meta gets sued out of existence for lack of safeguarding controls then your exposure to those individual companies isn't too high

There are many investment platforms that you can choose to invest with like Fidelity External Link/Members Only and I know other people who like Hargreaves Lansdown External Link/Members Only but there are loads of them and AJ Bell have recently been advertising on TV External Link/Members Only
I've used Fidelity for quite a while now and they have some really good tools for comparing investments and tracking how they are doing Vs the rest of the market etc, by comparison I also had some ISA funds with Jupiter but their website was shit and it didn't even tell me what my annualised return was so I switched it to Fidelity

Hopefully this link to the Tech fund works and you can then see the various data etc without having to be logged into an account, just looking at the holdings and there are a total of 106 different shares in the fund and the top 10 holding account for around 33% of the fund value so if any 1 goes caput then it's manageable
 External Link/Members Only

The thing is with investing these days you don't have to be mega rich to do it, years ago people were put off going into a bank and buying shares etc and invariable they would then try and sell you one of their own products however these days you can set up an account and drip feed in something like £25 or £50 a month into it, believe me you won't notice the money has gone each month from your bank account and it does build over time but once you get the bug and see some decent returns then you will start putting more in

[Darren101]

Thanks. I will do some research.  I have heard of all those companies but didn't know about these funds.

[Blackpool Rock]

It isn't that easy though. If you're fortunate to invest in a sector that is soaring then it's difficult NOT to make a decent return but timing is key. How do you know that the market hasn't topped out?

I'd seriously consider putting more effort into stocks but I think I'm too old now. The safest returns are when you hold onto something for 10-20 years.

Still kicking myself I never got into Games Workshop years ago!

It's not just about being fortunate and happening to be in the right sector at the right time though, I read various daily article and e-mails that i've signed up to which provide market insights about what may happen in the next 6-12 months etc and then make decisions based on the knowledge that i now have
You are partly right that in a generally rising Bull market then even the poor stocks and funds can to an extent get dragged along and upwards however the converse is also true when the market takes a dive and good investments also fall back in the general sell off.
You need to work on averages and as already posted these investments need to be viewed as long term rather than trying to make a quick buck then pulling your money out

I tipped Global Tech in my original post and it's been doing well for 3-4 months now but wasn't doing well for 12 months or so prior to that, so why did I tip it 
I tipped it from logic which implies that the valuations were low after the sector falling for 12 months + and now there appears to be a general improvement in the markets (so logically most things should see an improvement) however the tip came more from the knowledge that i've acquired from reading market insights -
As a general rule the financial markets move up or down 6-12 months ahead of what you see in the high street and what's happening in the various world economies, sound crazy but the markets move on what they think / predict is going to happen to the economy rather than what's actually happening here and now
Currently interest rates appear to have peaked and are predicted to start going down this year, also inflation has fallen back considerably from it's high though there is still some way to go
Lower interest and inflation rates is considered to be good for business as people should start going out and buying more crap they don't need etc which get the economy moving and brings in more taxes etc

The value of Tech stock are more susceptible to high interest rates so their value was hit while interest rates were on the up however now they appear to have peaked and are predicted to come down the value of Tech is surging on this expectation plus it's still taking up the slack that it previously lost, pasted from the net -
For the most part, rising interest rates are negative for high-valued technology stocks. Higher interest rates make the present value of company future cash flows less valuable, and most technology companies are valued on the basis that a large chunk of their profits will come many years in the future.

You can stick a pin in a list of stocks and may get lucky but the more I read then the more it's clear knowledge is power when it comes to investing

[Blackpool Rock]

Thanks. I will do some research.  I have heard of all those companies but didn't know about these funds.

most of the funds can be held in a stocks ISA and also in a SIPP if you have one plus if you are lucky enough to have maxed out your £20K a year ISA allowance then you could just hold them as funds but any gains would be taxable

[Darren101]

Great.  I will switch to one of those next month as I've already paid into a S&S ISA  this tax year.  I still have plenty of ISA allowance.

[Sannylove143]

Thanks for the thread. I am always in search of right investment opportunities and have been a consistent investor since a teen. Brought my first property from the profits of shares, second property after exitinf crypto. Recently started with Angel investing, which I am liking but haven’t seen any returns yet.

I enjoy investing as much as sex and I enjoy spending the money that my money made rather than my hard earned money! Maybe I am stupid but it is my way to enjoy success.

If anyone is interested, this is what I have been doing. I invest only in Indian and US stock market (just because I have more knowledge about them)

Previously I used to research on midcaps and small cap stocks and invest longterm in them. Now I don’t have that much time so I have been investing through SIP (a fixed amount into mutual funds). To give you an idea how beautiful this is in longterm, let’s say I am investing £1000 every month, excepted annual returns in the market is at least 15%, in 20yrs this investment would be worth £1.5M, guess how much it would be in 25yrs, whopping £3.2M! I have started doing this when I had my first kid, aiming that 50% will be for her and 50% will be for my retirement fund.

In another story, my angel investing is like a planned/researched lottery. I put the money I can afford to loose it would be like a jackpot if it works where I can move my plans around.

Anyone young here, my advice would be start early with whatever you can. For the ones not so young, start making your money make money for you.

[PilotMan]

Taking a different route, does anyone invest in property?

There's an increasing demand from both local authorities and Housing Associations for social housing. There are a growing number of small funds that you can invest in social housing, kind of like a REIT but you own the property, or part of it. I'm thinking about investing in one particular fund, returns are fixed and guaranteed at 10% income per annum, with a 30% capital uplift after 3 years.

I'm currently invested in single residential rentals, but I'm selling those as I'm now investing in HMO'S as the returns are better, especially if you do the conversion from a C3 to a C4. I also invest in small scale residential new build developments, the returns are around 50% ROCE. It's obviously a lot more hands on than sticking your money in a fund.

If you want to get in to private property investments, there are plenty of property networks where individuals are seeking capital for property development, either as a straight investment or JV.

You may have to be a certified HNWI or a certified sophisticated investor, and you should also get legal advice before entering in to any agreement.

[PilotMan]

You can also use a SSAS and lend yourself money to fund further developments.

[lewisjones23]

Aside from financial investments, invest in your health, it'll be the best one that you make

Eat well, take regular exercise, try to maintain a reasonable sleeping pattern, reduce stress where possible

[billybob69]

If you want to get in to private property investments, there are plenty of property networks where individuals are seeking capital for property development, either as a straight investment or JV.

You may have to be a certified HNWI or a certified sophisticated investor, and you should also get legal advice before entering in to any agreement.

I have often wondered about a 'certified HNWI'. Is it a framed certificate with "you are dead rich" on?

[Blackpool Rock]

Thanks for the thread. I am always in search of right investment opportunities and have been a consistent investor since a teen. Brought my first property from the profits of shares, second property after exitinf crypto. Recently started with Angel investing, which I am liking but haven’t seen any returns yet.

I enjoy investing as much as sex and I enjoy spending the money that my money made rather than my hard earned money! Maybe I am stupid but it is my way to enjoy success.

If anyone is interested, this is what I have been doing. I invest only in Indian and US stock market (just because I have more knowledge about them)

Previously I used to research on midcaps and small cap stocks and invest longterm in them. Now I don’t have that much time so I have been investing through SIP (a fixed amount into mutual funds). To give you an idea how beautiful this is in longterm, let’s say I am investing £1000 every month, excepted annual returns in the market is at least 15%, in 20yrs this investment would be worth £1.5M, guess how much it would be in 25yrs, whopping £3.2M! I have started doing this when I had my first kid, aiming that 50% will be for her and 50% will be for my retirement fund.

In another story, my angel investing is like a planned/researched lottery. I put the money I can afford to loose it would be like a jackpot if it works where I can move my plans around.

Anyone young here, my advice would be start early with whatever you can. For the ones not so young, start making your money make money for you.

Yes the power of compounding your investment returns should never be underestimated, time in the market is everything.

I did a calculation a few years ago based on someone investing £250/month over a 30 year period and getting an average annualised return of 10% which is possible if you actively manage your portfolio, the results were staggering -
After the 1st 10 years you would have invested £30K, by my back of fag packet calculations the pot would be worth £50200 which doesn't seem that impressive then after 20 years you would have invested £60K and the returns were looking better at £180415 so triple your investment however after 30 years and £90K invested the pot is worth a staggering £518154 which does look really good IMO 

Now imagine a person leaving Uni and getting their 1st job age 21, the age you can start drawing pension money is going up to 58 in the next few years so continue investing for a further 7 years and the pot of money is then worth over a £Million at £1039620 cool or what  and while £250/month may be a struggle for someone just starting out for many it's not if you are prepared to make a few sacrifices, it's the concept of deferred gratification 

OK so there are a few things to factor in like inflation meaning your Million isn't worth a Million in todays money however you also need to factor in that the likelihood is that as you start earning more then you can increase your monthly contribution to compensate for inflation

I wish i'd been more careful / sensible with my money when I was younger rather than blowing most of it on fuck all, I did get shafted by a 1980's pension mis-selling scandal and a similar investment I put money into and it put me off a bit but by my mid 20's most cash was going to keep my head above water with mortgage payments.

I only started investing properly about 14 or 15 years ago and these days I spend my money on whores, plus I still waste a bit too     

[Blackpool Rock]

Aside from financial investments, invest in your health, it'll be the best one that you make

Eat well, take regular exercise, try to maintain a reasonable sleeping pattern, reduce stress where possible

That's very true as your health is the most valuable thing you can have and many people lose sight of that in the pursuit for money

I often quote that if you ask most people what they would wish for if they were granted 1 wish then the answer would be to win £10Million on the lottery or similar
However then put it to them that the following day they are diagnosed with a terminal illness and ask whether they would trade their new found fortune for their health back 

There's no point being the richest man in the graveyard 

[PilotMan]

I have often wondered about a 'certified HNWI'. Is it a framed certificate with "you are dead rich" on?

Can you imagine how many people would be making fake certificates and showing people 

"Certified Minted" 

The easiest way is have your professional advisor (accountant, solicitor, investment professional) give a requesting third party confirmation. You could also provide various documentation, such as investment /
Bank statements, but nobody wants to be sharing that information out.

[Munter84]

Good topic.

Despite all the information readily available out there about investing, it's still remarkably difficult to get commonsense, plain-English investing advice, especially from a UK-centric viewpoint AND not from a social media grifter who's trying to sell you something. I know a few people who have read up on investing from a few well-recommended books and promptly put all their spare cash in the S&P 500, because that's what their American coffee-table book told them to do. Presumably these same people are trying to figure out how to max out thir Roth IRA and 401ks.

I started dabbling with investments about a decade ago and thanks to the same widespread ignorance (which I definitely include myself in) I concluded the best way to reliably get rich was peer to peer (p2p) investing - great yields, they kind of resembled retail bonds (which according to conventional wisdom are lower risk than picking stocks), what could go wrong! The financial crash, Brexit and Covid, that's what. I was VERY lucky to have made enough early profit to be able to exit at a modest net gain.

Having had that sharp lesson I switched to ISA sharedealing and luckily did most of my buying at the bottom of the financial crash - all luck, very little skill, I assure you. My portfolio is still at an overall positive, the best performers have been banks, oil and defence stocks (go figure!) and I've enjoyed the dividends. I know I shoudl reinvest them by default but they mostly go towards funding punts and other indulgences.

Aside from that I pay pretty heavily into a defined benefits pension which I'm imagining will be my main (but definitely not sole) income stream one day.

My advice to a rookie investor right now would be to sling your first few thousands into cash savings accounts, interest rates are good for the first time in 15 years, so make hay while the sun shines!

[RandomGuy99]

Good topic.

Despite all the information readily available out there about investing, it's still remarkably difficult to get commonsense, plain-English investing advice, especially from a UK-centric viewpoint AND not from a social media grifter who's trying to sell you something. I know a few people who have read up on investing from a few well-recommended books and promptly put all their spare cash in the S&P 500, because that's what their American coffee-table book told them to do. Presumably these same people are trying to figure out how to max out thir Roth IRA and 401ks.

I started dabbling with investments about a decade ago and thanks to the same widespread ignorance (which I definitely include myself in) I concluded the best way to reliably get rich was peer to peer (p2p) investing - great yields, they kind of resembled retail bonds (which according to conventional wisdom are lower risk than picking stocks), what could go wrong! The financial crash, Brexit and Covid, that's what. I was VERY lucky to have made enough early profit to be able to exit at a modest net gain.

Having had that sharp lesson I switched to ISA sharedealing and luckily did most of my buying at the bottom of the financial crash - all luck, very little skill, I assure you. My portfolio is still at an overall positive, the best performers have been banks, oil and defence stocks (go figure!) and I've enjoyed the dividends. I know I shoudl reinvest them by default but they mostly go towards funding punts and other indulgences.

Aside from that I pay pretty heavily into a defined benefits pension which I'm imagining will be my main (but definitely not sole) income stream one day.

My advice to a rookie investor right now would be to sling your first few thousands into cash savings accounts, interest rates are good for the first time in 15 years, so make hay while the sun shines!

Now you have to try to avoid making too much interest on your cash. 

Standard tax payers are allowed to make £1000 year without paying tax
Higher rate tax payers are only allowed to make £500 a year

And I discovered if you make over £100,000 a year you lose £2 off your personal allowance for every £1 you make over £100,000, so if you're not careful you end up with a zero personal tax allowance.

[Pillowtalk]

Now you have to try to avoid making too much interest on your cash. 

Standard tax payers are allowed to make £1000 year without paying tax
Higher rate tax payers are only allowed to make £500 a year

And I discovered if you make over £100,000 a year you lose £2 off your personal allowance for every £1 you make over £100,000, so if you're not careful you end up with a zero personal tax allowance.

And you pay 60% tax as you lose your zero rate personal allowance. Let's see if Jeremy can put that right in the budget....

[Munter84]

Now you have to try to avoid making too much interest on your cash. 

Standard tax payers are allowed to make £1000 year without paying tax
Higher rate tax payers are only allowed to make £500 a year

And I discovered if you make over £100,000 a year you lose £2 off your personal allowance for every £1 you make over £100,000, so if you're not careful you end up with a zero personal tax allowance.

Very true, and it highlights the use of ISAs to protect your cash/investments from tax. People with more than £20k a year to save/invest will have to use other means (a nice problem to have), Premium Bonds being a nice safe place to park funds tax-free and FSCS-protected.

[Blackpool Rock]

Very true, and it highlights the use of ISAs to protect your cash/investments from tax. People with more than £20k a year to save/invest will have to use other means (a nice problem to have), Premium Bonds being a nice safe place to park funds tax-free and FSCS-protected.

Yes Premium bonds are better for higher rate tax payers than basic rate tax payers

[Blackpool Rock]

I know i've tipped Global Tech in my posts above but i've just read this which demonstrates just how well it's done recently -

The Nasdaq meanwhile is now above 16,000, compared with 10,000 at the market low in October 2022.

So a 60% rise in 16 months from it's market low and it's only really gathered pace more recently 

More generally -

Shares continue to move further into record territory with markets around the world enjoying a bumper February. While interest rate expectations remain a key driver, investors are looking to earnings growth to justify now historically high valuations.

Another month, another high

February was a positive month pretty much wherever you look. In the month to last Friday the S&P 500 rose 4.3% and the tech-heavy Nasdaq was 5.5% higher. The S&P is already above the 5,100 that many market watchers had pencilled in for the end of 2024.

[Blackpool Rock]

It's the budget today, need to be careful as this obviously rubs up against politics so i'll keep my comments just about the financial aspect rather than any party politics but it's been on the news for the last couple of days about various things that are likely to be announced the biggest being a 2p reduction in the NI rate

These stories must be leaked intentionally but why  If it's not intentional then they need to have a serious look at who leaks this stuff as it's been going on for years now
The only thing I can think of is that by leaking it they can gauge the reaction of the people; financial markets; business etc and then change direction a bit if something doesn't go down well 

They were talking about 3 different ways in which a "tax cut" could be given and it was then quoted that NI was the cheapest way to do it or basically cheaper than cutting income tax or raising the tax threshold however i'm surprised about doing it this way as it only benefits people earning a wage and not retired pensioners who are statistically more likely to vote

If income tax had been reduced then those with state and personal pension income above £12570 / year would also benefit but the way most people win is by increasing the tax threshold from £12570 which has been frozen for 2 years and looks set to be frozen for a further 4 years
I'm think that isn't being changed as he implemented it and doesn't want to look like a U turn 

Anyway it's called fiscal drag, interesting article on it here originally from the OBR in March 23 -

External Link/Members Only

[JontyR]

These stories must be leaked intentionally but why  If it's not intentional then they need to have a serious look at who leaks this stuff as it's been going on for years now
The only thing I can think of is that by leaking it they can gauge the reaction of the people; financial markets; business etc and then change direction a bit if something doesn't go down well 

Nah, its about maximising the media coverage and controlling the narrative.

This way there will be preliminary stories and fully fleshed out pieces on the actual day and afterwards. More people read or watch reports than the actual speech and so its how it is reported that is often the most important

There is also the possibility of misdirection, all the coverage is presently on these matters, and some guff on local government misspending, and not on any "bad news" items

[RandomGuy99]

Greggs seems to have been a good investment

External Link/Members Only

[Darren101]

Speaking of Greggs, so they introduced some sort of £5K ISA for British investments in the budget.  Is that on top of the existing allowance or just giving you an option with the existing allowance?

I feel everyone should have at least some investments and start as early as possible.  Read this and thought this country’s tax system wants to keep everyone poor making people want to earn less in order to be better off!  Does not affect me but a work colleague is panicking over it even though taxman actually made a mistake as their earnings were now under £100K unlike before and taxman made an assumption using old figures and took away the childcare benefit (what a joke)

External Link/Members Only.

So the 2p NI reduction gives us more money to play with.  Either 3 budget friendly punts or I can put the £450 saving into investments/savings.

[PepeMAGA]

Speaking of Greggs, so they introduced some sort of £5K ISA for British investments in the budget.  Is that on top of the existing allowance or just giving you an option with the existing allowance?

I feel everyone should have at least some investments and start as early as possible.  Read this and thought this country’s tax system wants to keep everyone poor making people want to earn less in order to be better off!  Does not affect me but a work colleague is panicking over it even though taxman actually made a mistake as their earnings were now under £100K unlike before and taxman made an assumption using old figures and took away the childcare benefit (what a joke)

External Link/Members Only.

So the 2p NI reduction gives us more money to play with.  Either 3 budget friendly punts or I can put the £450 saving into investments/savings.

I think it's on top.
It will cause some complications with Isa set ups though.
If you invest 5k in a uk business, can it never be moved to a US (for example) stock? I think they would need to have it as a separate Isa, which is just a ballache.
They should have scrapped stamp duty or dropped it to 0.25 instead

[Darren101]

It sounds like it has to be separate S&S with onlyBritish companies.  Sounds confusing. How many British companies are now Chinese owned? Does that still count as a British company?

The other ISAs can be transferred to other types. Maybe it’s the same or maybe not initially. Years ago, cash could be moved to S&S but not the other way round.  Nowadays, I think you can. More allowance would be a good thing though if you can use it and happy with added risk to your capital.

[Squire Haggard]

Changes for ISAS come into effect on April 6. Probably more important that the new ''British'' one.

''In November's Autumn Statement, the Chancellor announced several changes which will come into force from 6 April 2024:

1. No more single Isa limit
Savers will be able to open and pay into multiple Isas of the same type annually. That will replace current rules that only let you put money into one of each type of Isa every tax year.

The change will enable savers to easily move between different providers and is intended to encourage competition. With cash Isas still enjoying record rates of 5% AER or more, this is good news for savers searching for higher returns.''

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[Darren101]

1. No more single Isa limit
Savers will be able to open and pay into multiple Isas of the same type annually. That will replace current rules that only let you put money into one of each type of Isa every tax year.


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Wicked.  That crappy rule stopped me opening a better and more flexible IsA this year so I’ve been waiting to do it next month.  Glad they’re doing away with it. I don’t really understand why they had this rule in the first place.

The new IsA came out after I opened and paid into a different one and it has higher interest and flexible.

[PepeMAGA]

It sounds like it has to be separate S&S with onlyBritish companies.  Sounds confusing. How many British companies are now Chinese owned? Does that still count as a British company?

The other ISAs can be transferred to other types. Maybe it’s the same or maybe not initially. Years ago, cash could be moved to S&S but not the other way round.  Nowadays, I think you can. More allowance would be a good thing though if you can use it and happy with added risk to your capital.

I would guess British based companies that are listed on LSE AIM etc.
There's been quite a few companies move from the LSE so I think in part it's to try to slow that

[PilotMan]

Any recommendations for a savings account with good access and ability to withdraw funds gradually over 12 months?

I'm selling some properties over the next year, so will have funds coming in, but I'm developing some over the next year, so will have funds going out.

[Blackpool Rock]

I think it's on top.
It will cause some complications with Isa set ups though.
If you invest 5k in a uk business, can it never be moved to a US (for example) stock? I think they would need to have it as a separate Isa, which is just a ballache.
They should have scrapped stamp duty or dropped it to 0.25 instead

Just read this which covers the British ISA, looks to be in addition to the £20K however no firm details on how it will work so too late for this years allowance -

The Chancellor took no chances with the final Spring Budget before the general election. There was no risk of any of the announced measures backfiring for the simple reason that most of them were given a thorough airing in the weekend papers.

British ISA confirmed

The announced measures included a new British ISA, designed to support UK businesses, increase investment in UK-listed companies and so give a boost to our shrinking domestic stock market. As previously flagged, this will take the form of a new £5,000 allowance in addition to the existing £20,000, but restricted to UK-listed shares.

Details remain thin on the ground and a short consultation is underway which means no change before the April 5 deadline for this year’s investments has passed.

While we welcome the effective increase in the amount that investors can shelter from tax each year, there are many unanswered questions, such as how a UK investment will be defined. We also believe that investors will need to consider carefully how to use the new allowance without creating unhelpful, and possibly costly, ‘home bias’ in their portfolio.

We continue to believe that further simplification is needed and could be achieved by combining Stocks and Shares and Cash ISA products as well as improving the ease of transfers.  

One of the drivers behind the introduction of an allowance specifically for UK-listed companies is a desire to incentivise domestic investors to support their home-grown market. We believe there are additional ways in which the government could raise potential returns for investors and at the same time support companies that are considering listing in the UK.

For example, the government should consider removing or reducing the burden of stamp duty for equity transactions, putting us on a level footing with other markets. It might also consider reducing the tax rate for UK dividends, simplify capital gains tax or reintroduce indexation to encourage longer-term investing.

[PepeMAGA]

Just read this which covers the British ISA, looks to be in addition to the £20K however no firm details on how it will work so too late for this years allowance -

The Chancellor took no chances with the final Spring Budget before the general election. There was no risk of any of the announced measures backfiring for the simple reason that most of them were given a thorough airing in the weekend papers.

British ISA confirmed

The announced measures included a new British ISA, designed to support UK businesses, increase investment in UK-listed companies and so give a boost to our shrinking domestic stock market. As previously flagged, this will take the form of a new £5,000 allowance in addition to the existing £20,000, but restricted to UK-listed shares.

Details remain thin on the ground and a short consultation is underway which means no change before the April 5 deadline for this year’s investments has passed.

While we welcome the effective increase in the amount that investors can shelter from tax each year, there are many unanswered questions, such as how a UK investment will be defined. We also believe that investors will need to consider carefully how to use the new allowance without creating unhelpful, and possibly costly, ‘home bias’ in their portfolio.

We continue to believe that further simplification is needed and could be achieved by combining Stocks and Shares and Cash ISA products as well as improving the ease of transfers.  

One of the drivers behind the introduction of an allowance specifically for UK-listed companies is a desire to incentivise domestic investors to support their home-grown market. We believe there are additional ways in which the government could raise potential returns for investors and at the same time support companies that are considering listing in the UK.

For example, the government should consider removing or reducing the burden of stamp duty for equity transactions, putting us on a level footing with other markets. It might also consider reducing the tax rate for UK dividends, simplify capital gains tax or reintroduce indexation to encourage longer-term investing.

Yeah agree with the last paragraph and do it quickly

[Darren101]

Any recommendations for a savings account with good access and ability to withdraw funds gradually over 12 months?

I'm selling some properties over the next year, so will have funds coming in, but I'm developing some over the next year, so will have funds going out.

most Instant access savings accounts offer unlimited withdrawals. Interest varies but usually you can get 3.5-4.5% range. 


I’m using a savings app called Chip. That is giving me 4.84%. It’s not a bank but they are covered by the FSCS up to £85K.  Any other  bank you use, spread it out if over this amount so it’s all protected although I doubt any of the big banks will go bust any time soon. Any of their instant saving products will let you take out.

Starling bank also paying interest in current account. Chase bank savings pays 4.1% (not a fan of their CS but I use their accounts day to day and are fine and quick)

  Could even chuck some in Premium Bonds if you fancy your chances and don’t care about interest. Withdrawls take about 3 working days.

[RandomGuy99]

Zopa is good. You can have different pots at different interest rates ranging from 4.5 to 4.8% depending on how much withdrawal notice you are happy giving.

[wristjob]

The upturn does seem to be a bit broader across various sectors now but the real winners over the last few months and again at present is the Global Tech sector which is booming
From what i've read this sector performed badly for the 12 months prior as it's adversely affected by high and rising interest rates more than other sectors, now that inflation and interest rates appear to have peaked and are falling back then Tech valuations are on the up

Tech companies are laying off loads of people this year, and not cos profits are booming. Direct profits don't always equate to share price increases in the short term, especially in tech which is all about market share.

I do believe in the longer term share prices always follow fundamentals (profit, assets) so Covid and the Ukraine war have a massive short term impact but if they don't significantly affect medium term profits they don't have long term impact.

I guess 2024/2025 maybe bonds can do well as interest rates drop? The problem with any random punter tip is the pros will know so much more info, have so much more experience than anything we see now they saw and invested in 6 months ago.

[PilotMan]

most Instant access savings accounts offer unlimited withdrawals. Interest varies but usually you can get 3.5-4.5% range. 


I’m using a savings app called Chip. That is giving me 4.84%. It’s not a bank but they are covered by the FSCS up to £85K.  Any other  bank you use, spread it out if over this amount so it’s all protected although I doubt any of the big banks will go bust any time soon. Any of their instant saving products will let you take out.

Starling bank also paying interest in current account. Chase bank savings pays 4.1% (not a fan of their CS but I use their accounts day to day and are fine and quick)

  Could even chuck some in Premium Bonds if you fancy your chances and don’t care about interest. Withdrawls take about 3 working days.

Thanks @Darren101 good points. For simplicity of not having to split my funds, I would like to stick with one of the big banks (I agree, I doubt they'll go bust). I have a Halifax Current Account and thought I would use them, but they only allow you to make three withdrawals, then it drops down massively from 4.x% to 1.x%  Most of the big banks have similar restrictions.

[RandomGuy99]

Thanks @Darren101 good points. For simplicity of not having to split my funds, I would like to stick with one of the big banks (I agree, I doubt they'll go bust). I have a Halifax Current Account and thought I would use them, but they only allow you to make three withdrawals, then it drops down massively from 4.x% to 1.x%  Most of the big banks have similar restrictions.

Isn't there a £1M protection for funds from a property sale if its your main residence?

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[PilotMan]

Isn't there a £1M protection for funds from a property sale if its your main residence?

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You're right, but........"relating to your main residence only", I'm not selling my own house.

[Blackpool Rock]

Any recommendations for a savings account with good access and ability to withdraw funds gradually over 12 months?

I'm selling some properties over the next year, so will have funds coming in, but I'm developing some over the next year, so will have funds going out.

Always worth looking at Martin Lewis's Money Saving Expert site, most accounts have rates which are lower or drop off if you are allowed to take or start to take too many withdrawals
The other option if you can do some sort of budget on how much money you will need and when would be to split the money in a number of accounts and take for instance twice each from 3 separate accounts rather than 6 withdrawals from 1 account, that may help to stop the rate dropping drastically

External Link/Members Only

[PilotMan]

Always worth looking at Martin Lewis's Money Saving Expert site, most accounts have rates which are lower or drop off if you are allowed to take or start to take too many withdrawals
The other option if you can do some sort of budget on how much money you will need and when would be to split the money in a number of accounts and take for instance twice each from 3 separate accounts rather than 6 withdrawals from 1 account, that may help to stop the rate dropping drastically

External Link/Members Only

Thanks for that 

The close brothers account looks good at 5.12%, you can withdraw money at any time without fees or charges, interest is variable but calculated daily.

[sir wanksalot]

It's not just about being fortunate and happening to be in the right sector at the right time though, I read various daily article and e-mails that i've signed up to which provide market insights about what may happen in the next 6-12 months etc and then make decisions based on the knowledge that i now have
You are partly right that in a generally rising Bull market then even the poor stocks and funds can to an extent get dragged along and upwards however the converse is also true when the market takes a dive and good investments also fall back in the general sell off.
You need to work on averages and as already posted these investments need to be viewed as long term rather than trying to make a quick buck then pulling your money out

I tipped Global Tech in my original post and it's been doing well for 3-4 months now but wasn't doing well for 12 months or so prior to that, so why did I tip it 
I tipped it from logic which implies that the valuations were low after the sector falling for 12 months + and now there appears to be a general improvement in the markets (so logically most things should see an improvement) however the tip came more from the knowledge that i've acquired from reading market insights -
As a general rule the financial markets move up or down 6-12 months ahead of what you see in the high street and what's happening in the various world economies, sound crazy but the markets move on what they think / predict is going to happen to the economy rather than what's actually happening here and now
Currently interest rates appear to have peaked and are predicted to start going down this year, also inflation has fallen back considerably from it's high though there is still some way to go
Lower interest and inflation rates is considered to be good for business as people should start going out and buying more crap they don't need etc which get the economy moving and brings in more taxes etc

The value of Tech stock are more susceptible to high interest rates so their value was hit while interest rates were on the up however now they appear to have peaked and are predicted to come down the value of Tech is surging on this expectation plus it's still taking up the slack that it previously lost, pasted from the net -
For the most part, rising interest rates are negative for high-valued technology stocks. Higher interest rates make the present value of company future cash flows less valuable, and most technology companies are valued on the basis that a large chunk of their profits will come many years in the future.

You can stick a pin in a list of stocks and may get lucky but the more I read then the more it's clear knowledge is power when it comes to investing

The problem is there are so many "rent-a-experts" then knowing which knowledge to take action on is hard.

[Darren101]

Thanks @Darren101 good points. For simplicity of not having to split my funds, I would like to stick with one of the big banks (I agree, I doubt they'll go bust). I have a Halifax Current Account and thought I would use them, but they only allow you to make three withdrawals, then it drops down massively from 4.x% to 1.x%  Most of the big banks have similar restrictions.

Ah yes. All their Bonus Saver accounts all have restrictions on number of withdrawals before they penalise you with interest rate drops.  All the normal ones are unlimited but as you’re probably aware, offer appalling interest rates.  Guess only option is to use one from a Challenger bank if you want unlimited withdrawals and 4%+ interest.

Nationwide seem to have one at 3.25%and one 5% but max £5K balance.  Could get one of each but you would need their current account also.

 Lloyds have a 4% one if you also have their  Club lloyds current account. Free provided you pay in £1600 each month into the current account each month but I sprint that won’t be am issue. Get some free perks with the account too.

All other big banks only offer under 2% from what i can see. There are options but you do have to shop around.  I also have Halifax but just use their Reward current account mainly. 

Virgin money pay 3.5% in their savings.  No penalties but you do need to also have their M plus current account. They are a challenger bank but have a few branches. Think their back end uses Clydesdale Bank.  I don’t really like their mobile banking app but not had any issues with them.