ISA / bonds / fix rate saver etc

Thought this title needed reviving as cash ISA allowances are possibly being reduced to £4k from £20k. Apparently, the government want people to put their savings in S&S ISAs. S&S ISAs have taken a real hammering over the last few years with the pandemic then Ukraine and latest Trumpenomics. Mine still hasn't recovered to pre pandemic level.

Incidentally, don't these cash ISA institutions invest your money anyway to enable interest to be paid? Looks like a cash grab on the interest you get. We are easy meat as we can't afford accountants to weasel our way out of paying fair share of tax.
 
Where the hell is your ISA invested where you’re below where it was in 2019?

FTSE100:

IMG_1549.jpeg

S&P500:

IMG_1550.jpeg


Investments certainly haven’t taken a hammering over the last few years or five years or ten years or twenty years, even just investing in an index as above.

There’s never been a ten year period where cash out performed equities and for me, it’s a great move to encourage people to save more efficiently over the long term.
 
Fred_Quimby said:
Thought this title needed reviving as cash ISA allowances are possibly being reduced to £4k from £20k. Apparently, the government want people to put their savings in S&S ISAs. S&S ISAs have taken a real hammering over the last few years with the pandemic then Ukraine and latest Trumpenomics. Mine still hasn't recovered to pre pandemic level.

Incidentally, don't these cash ISA institutions invest your money anyway to enable interest to be paid? Looks like a cash grab on the interest you get. We are easy meat as we can't afford accountants to weasel our way out of paying fair share of tax.
Click to expand...

You’ve made some bad investment decisions then if you haven’t recovered from pre pandemic levels.

Most of my savings are in an S&P500 tracker which is up about 90% since 2019.
 
Fred_Quimby said:
Thought this title needed reviving as cash ISA allowances are possibly being reduced to £4k from £20k. Apparently, the government want people to put their savings in S&S ISAs. S&S ISAs have taken a real hammering over the last few years with the pandemic then Ukraine and latest Trumpenomics. Mine still hasn't recovered to pre pandemic level.

Incidentally, don't these cash ISA institutions invest your money anyway to enable interest to be paid? Looks like a cash grab on the interest you get. We are easy meat as we can't afford accountants to weasel our way out of paying fair share of tax.
Click to expand...
You've not done well there.
I opened my stocks and shares isa about a week before the first lock down and it's well above what I've invested.
 
SWP's back said:
Where the hell is your ISA invested where you’re below where it was in 2019?

FTSE100:

View attachment 161769

S&P500:

View attachment 161770


Investments certainly haven’t taken a hammering over the last few years or five years or ten years or twenty years, even just investing in an index as above.

There’s never been a ten year period where cash out performed equities and for me, it’s a great move to encourage people to save more efficiently over the long term.
Click to expand...
Apologies, must open my eyes when I wake up. Been reading the wrong lines. Pillock.
 
The figure isn't known yet, but as the Lifetime ISA is £4k PA the assumption is that the can't cash ISA limit can't go below that.

Not sure about a cash grab unless you put it in the bank instead, and anyone working surely put more in their pension rather instead avoiding 40%+ tax. In the pension if you don't want the risk of investing there are minimal risk cash funds with similar returns to Cash ISAs, but there are fees to look out for, and mainly used by those approaching retirement age to mitigate sudden drops in stocks and bonds.

I think it is all academic as if the limit is reduced to £10-£15k it won't affect most people who have a balanced approach or don't have the cash spare. The 4k limit is the worst possible outcome.
 
It would be scandalous if it was to be slashed from £20000 to £4000 in one foul blow.
 
All money is a gamble. If the banks go bust anything you have in deposit over 85k is lost. (It keeps me awake at night worrying about that.)

It is perfectly possible to buy low-risk funds that have a wide spread of shares and other investments to minimise risk. If all those low risk companies go bust, the world is truly screwed. Or you can buy gilts. Again, short of the country going the way of the Confederacy, they are safe. If the country ever collapses the loss of a few bob tucked away will be the least of your worries.

You can always buy gold sovereigns, but I wouldn't advise hiding them under the bed.
 
I'm rather puzzled with performance (or lack thereof) of my Vanguard S&P 500 Tracker ETF over the last 6 months or so...

Jan 2025 the S&P 500 was at around 5800 and VUAG was at 94.

Today the S&P 500 is around 6200 yet VUAG is at 86.

By my calculations that suggests its underperforming the index by around 14%!

I realise tracking error always accounts for some minor short term differential and also the weak $v£ will account for some as well, but both of them combined should be no more than 1-2% at the very most, quite why it's lagging by -14% over 6 months is a puzzle to me.
 
Unless it's for a short term, I dont understand why someone would opt for a cash isa over a stocks and shares isa where they would nearly certainly get a much better return.
 
BrianW said:
All money is a gamble. If the banks go bust anything you have in deposit over 85k is lost. (It keeps me awake at night worrying about that.)

It is perfectly possible to buy low-risk funds that have a wide spread of shares and other investments to minimise risk. If all those low risk companies go bust, the world is truly screwed. Or you can buy gilts. Again, short of the country going the way of the Confederacy, they are safe. If the country ever collapses the loss of a few bob tucked away will be the least of your worries.

You can always buy gold sovereigns, but I wouldn't advise hiding them under the bed.
Click to expand...
Looked at buying gold sovereigns about 5 years ago. They were about £250 each but thought better of it.
Just looked now and they're over £600.

Just remember that past performance doesn't indicate future performance, we've had enough players that prove that.
 
Ashton Moss Messi said:
Looked at buying gold sovereigns about 5 years ago. They were about £250 each but thought better of it.
Just looked now and they're over £600.

Just remember that past performance doesn't indicate future performance, we've had enough players that prove that.
Click to expand...

It’s getting at the right time global markets have been choppy and Trumps tariffs have made investors nervous, gold is always a safe haven where you get your money back bare minimum.
 
BrianW said:
If the banks go bust anything you have in deposit over 85k is lost. (It keeps me awake at night worrying about that.)
Click to expand...
There’s more than one bank out there. Spread the wealth, diversify the risk, sleep better at night!

Put 60K in each bank until you’re covered, then you’ve got 25K upside before you need to find another bank or two!
 
Beware of linked institutions though.
For instance First Direct and HSBC are part of the same institution so if you had £60K in First Direct and £60K in HSBC only £85K of it is protected.
 
Gray said:
I think 7 years is the limit if you want to avoid your children getting stung for tax, start giving them their inheritance now. You can gift £3k per annum anyway.
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Correct however it is a sliding scale so start soon and every year the tax liability falls. So you don't have to hang on in your death bed.

£3K is allowed as are regular payments out if surplus income. It's all quite hard to keep ow exactly what will happen but starting asap is better than doing nothing.
SWP's back said:
No that’s inheritance tax, not care fees avoidance.
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Care fees can be a 7 year look back and reverse any gifts. But this only applies if the state starts taking on the cost. If your oldies have assets they will most likely have to pay anyway.
 
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