MattJimF Posted November 4, 2014 Report Share Posted November 4, 2014 Quote Link to comment Share on other sites More sharing options...
Spoonie Posted November 6, 2014 Report Share Posted November 6, 2014 5 Quote Link to comment Share on other sites More sharing options...
Lemonade Posted November 6, 2014 Report Share Posted November 6, 2014 Anyone ever claimed a mobile phone on insurance? How difficult is it? I've heard stories of people's claims being rejected for spurious reasons. Quote Link to comment Share on other sites More sharing options...
Soda Jerk Posted November 6, 2014 Report Share Posted November 6, 2014 Sterling advice Spoonie. Much appreciated. I'll give those options a good going over before settling on a savings account. Anyone ever claimed a mobile phone on insurance? How difficult is it? I've heard stories of people's claims being rejected for spurious reasons. My missus cracked her Galaxy screen. Went into Carphone Warehouse, coughed up the excess, and had a brand new handset ready to go in 48 hours. 1 Quote Link to comment Share on other sites More sharing options...
ca_gere Posted November 6, 2014 Report Share Posted November 6, 2014 May be an obvious one, but get debt free or as close to debt free as possible before even thinking about saving. If you're paying off a credit card or car loan at a higher percentage interest rate than you're getting back with your savings account, you're not saving anything. A surprising amount of people don't understand this concept. Quote Link to comment Share on other sites More sharing options...
scottyboy Posted November 6, 2014 Report Share Posted November 6, 2014 (edited) An account into which you will put bits of money here and there sounds like instant access savings account, and I'd imagine the rates on these will be so poor that it will not make much difference either way. If you're saving 2.5k a year apiece, and aiming to cash it in 4 years time specifically, I'd probably say stick it in fixed-rated ISAs; 2.5k (or however much each of you saves a year) at a time. With savings accounts rates what they are, as someone pointed out, a combination of ISAs (i.e. no tax on the savings, helping to mitigate the crappy rates) and a fixed-rate will probably be needed to make it worthwhile (people have mentioned interest on debt, but inflation is another thing which eats into ones gains, in real terms). Bonds, as Spooney pointed out, are probably another better option; but I have no experience of these. Otherwise index-trackers, on the FTSE500, tend to be safe (if nominally risky), although I'm not certain of this... but something like this is probably necessary to make any real investment profits. Pre-2008 I had all my money in fixed-rate savings accounts, but this is no longer worthwhile IMO/E (last time I checked, something like 4-years to get any real gains; then again, if you are sure you will not touch the money for 4 years...). After this I used something called a "kickout" or some such... basically an index-tracker, but the rate is fixed and the capital safe, the question is just when the investment matures (i.e. when the FTSE as a whole grows by a certain amount... again, probably one can find one with a 4-year limit). I have also invested in and profited from mutual funds, but the gains were much lower than the safer/"automatic" vehicles described above... from the little I've since learned about stock markets, IMO mutuals and indeed hedge funds (supposedly gravy trains for the 1%) are bad investments: either one goes for something "automatic" (index-trackers or similar... relatively predictable, and little to no management fees to eat one's profits) or one actually has some expertise in some industry/sector and invests in specific, winning stock (not easy, duh) rather than paying somone to pointlessly diversify and probably only make enough for you to pay his fees... To clarify, I have no financial expertise, just a basic understanding of what I've described above. I've made all my investments just based on a financial advisor's recommendation; that said, I have always profited. That's probably the best advice: get together a 4-figure sum (whether that's from a current or instant access savings account, over a year or less, probably hardly matters) and get some recommendations, if you can get them independent and for free. I would stay away from high street banks' advice, which has been shown to be terrible for the individual shitmuncher; mine made his money via a fee when I bought a product and a commission on any gains I made (both paid by the financial services company, not me). Thus his interest was at least that I made some money... Just have a time frame for however long you want to put away the money (4 years; 3 years for anything you save after this, and so on, no?) and an "appetite for risk". Hint: for you, and any non-professional with a brain, it's "low". Something like that. Edited November 6, 2014 by scottyboy 1 Quote Link to comment Share on other sites More sharing options...
James Broonbreed Posted November 6, 2014 Report Share Posted November 6, 2014 The important thing is to not forget to have fun. 2 Quote Link to comment Share on other sites More sharing options...
Soda Jerk Posted November 6, 2014 Report Share Posted November 6, 2014 1 Quote Link to comment Share on other sites More sharing options...
Spoonie Posted November 7, 2014 Report Share Posted November 7, 2014 Quote Link to comment Share on other sites More sharing options...
Adam Easy Wishes Posted November 7, 2014 Report Share Posted November 7, 2014 Financial education should 100% be taught in schools at age 16 or thereabouts. Sack off sex education or something, or move that to primary school - kids are shagging way younger nowadays and we all know the best place to learn about vaginas is the playground. Quote Link to comment Share on other sites More sharing options...
Spoonie Posted November 7, 2014 Report Share Posted November 7, 2014 Agreed - it's a real blind spot for a lot of people and it can get you in trouble very quickly Quote Link to comment Share on other sites More sharing options...
Eupraxia Posted November 7, 2014 Report Share Posted November 7, 2014 (edited) Financial education in schools would be marvellous. The thing is, educating people about financial matters could gravely affect the finance industry and its ability to maximise revenues by preying on uneducated, clueless, wreckless, or down right profligate individuals. The finance sector in the UK is pretty prominent and aligned closely with political dynasties, so I doubt very much that we'll see "Great" Britain's educational curriculum incorporate sound financial advice. Does anyone else remember being visited by a representative from a bank during primary school? I remember RBS visiting my school, handing out all sorts of goodies and trinkets, inviting us to open up a savings account with them. Proactive selling to primary fours. In hindsight, that is fucking awful. Edited November 7, 2014 by Eupraxia 1 Quote Link to comment Share on other sites More sharing options...
Soda Jerk Posted November 7, 2014 Report Share Posted November 7, 2014 (edited) Financial education should 100% be taught in schools at age 16 or thereabouts. Sack off sex education or something, or move that to primary school - kids are shagging way younger nowadays and we all know the best place to learn about vaginas is the playground. I was speaking about this at work theother day, and I agree. The core curriculum in general is mostly needless really. School should be setting you up for the real world, but it doesn't come close to doing that. You leave school knowing more about the Spanish Armada and Pythagoras Theory than you do about mortgages or even how to write a CV. The information you're given is just too broad and unimportant. A huge bulk of it should be optional for further education, IMO. Edited November 7, 2014 by Soda van Jerk Quote Link to comment Share on other sites More sharing options...
Paranoid Android Posted November 7, 2014 Report Share Posted November 7, 2014 1 Quote Link to comment Share on other sites More sharing options...
Adam Easy Wishes Posted November 7, 2014 Report Share Posted November 7, 2014 Another TOP TIP is balance transfers to a card that has 0% interest for a bit, if you qualify etc etc. MoneySavingExpert.com has a great guide on this. I did this with a small-ish credit card bill; transferred to a Virgin Money card that was 0% for eighteen months, giving me a bunch of time to pay it off. Quote Link to comment Share on other sites More sharing options...
James Broonbreed Posted November 7, 2014 Report Share Posted November 7, 2014 Agreed - it's a real blind spot for a lot of people and it can get you in trouble very quicklyWith vaginas? Quote Link to comment Share on other sites More sharing options...
scottyboy Posted November 7, 2014 Report Share Posted November 7, 2014 I think there's a bit of research which suggests teaching kids to manage everyday financial affairs is ineffective because they don't have to manage everyday affairs; they can't relate it to anything or put it into practice. For 16-year olds, maybe (how many people leave school at 16?) but it's unlikely they would be managing mortgages, investments, credit cards etc. Also, I actually do remember doing basic terminology and concepts in 1st year business studies - balancing one's income and assets (pocket and paper money, contents of one's bedroom) versus expenses and liabilities and so on. And things like APR on loans in standard grade maths. In one ear and out the other however; wonder why? I also disagree that school should just be about preparing for the job market in the first place; but while most people ditch the maths and science they learn in school it's probably impossible (or much harder) to train professional scientists and engineers without that childhood groundwork. Learning about the Spanish Armada was probably about gaining sourcing, researching and critical skills, while the topic is incidental. In theory. Also, RBS helped put me through university, as it happens. /cool story. Quote Link to comment Share on other sites More sharing options...
Soda Jerk Posted November 7, 2014 Report Share Posted November 7, 2014 I'm sure my opinions are totally idealistic and are completely without any research or grounding. I'm just realising now that I'm 28 years old and I don't know shit, so I'm blaming everyone but myself. Quote Link to comment Share on other sites More sharing options...
James Broonbreed Posted November 7, 2014 Report Share Posted November 7, 2014 Mortgage etc. advice is completely free at banks and estate agents, mostly.... Albeit sometimes biased so double check with that money saving expert cunt once in a while. Quote Link to comment Share on other sites More sharing options...
scottyboy Posted November 8, 2014 Report Share Posted November 8, 2014 Mortgage etc. advice is completely free at banks and estate agents, mostly.... Albeit sometimes biased so double check with that money saving expert cunt once in a while. What is etc.? Again I think (research has shown) advice from banks has an agenda and is counterproductive. Quote Link to comment Share on other sites More sharing options...
James Broonbreed Posted November 8, 2014 Report Share Posted November 8, 2014 Savings.... investment.... banking etc. Quote Link to comment Share on other sites More sharing options...
scottyboy Posted November 8, 2014 Report Share Posted November 8, 2014 Yeah I definitely wouldn't take investment advice from a bank. Quote Link to comment Share on other sites More sharing options...
James Broonbreed Posted November 8, 2014 Report Share Posted November 8, 2014 OK bad example, although I did say banks were biased, but the info is there to be had to make up your own opinion. Quote Link to comment Share on other sites More sharing options...
Alkaline Posted November 8, 2014 Report Share Posted November 8, 2014 It's a moot point surely as pretty much all financial advice is driven by a cut or an agenda. Quote Link to comment Share on other sites More sharing options...
scottyboy Posted November 9, 2014 Report Share Posted November 9, 2014 Not really, because, as noted, someone who will be taking a percentage of the personal profits (not necessarily a "cut", from the investor's point of view) has an interest in those personal profits actually being made. Or the guy might have already made his money from charging for the advice in the first place. Whereas a bank has an interest in getting a customer to tie up the money for as long as possible, and/or to invest it in vehicles for which the bank can charge management fees, and so on. Quote Link to comment Share on other sites More sharing options...
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