[dd]

When I was made redundant 18yrs ago I was advised not to put into a private pension (the frozen one I had wouldn't even let me), they were performing so badly. I was told to put money aside into an isa,which I've done ever since. I don't trust "advisors" whatsoever, they're all in it for themselves so have carried on down this line. Fairly sure I could have done better but going back to the op, the important thing is to at least set aside some money (and at 40,as much as you can afford each month). Everything investment wise comes with a risk, at least my savings are relatively safe and I have full control over them and 100‰ of it will be passed onto to family in the event of my demise.of course the bad side is that although isa rates are improving, they're way behind inflation. I'm not advocating what I've done is the right way to go, but definitely a good start even if it's temporary and you use the money later on in a different way. I've come across so many people who have been massively dissapointed with their pensions and wish they'd gone down a different route. It's a minefield really, but whatever you do, don't do nothing.

Makes no sense.

You can hold the same investments in an ISA as you can in a pension. It is not the ISA or pension that performs but the investments held in them.

One thing with holding cash at the moment, you are guaranteed to lose money when you compare the interest you earn with inflation. This has been the case for the last 10 years or more.

[deeege]

Back to pensions... personally I don't trust them.the amount of money you need to put away to get even a modest,small income is eye watering...no thanks!

I'd rather semi retire now at 50 and enjoy more leisure time NOW,go on the fancy holidays,etc NOW and work part time for longer (health permitting of course)....

By the time I retire fully I'll be knackered and ready to die anyway!😄

Life doesn't work like that, Daz.

My life does mate....I'm living it every single day....

The truth is most people will not live beyond 75..

You might not get to choose when you retire or die.
Are you aiming for 75 to retire and die soon after then?
I'll hold you to that and if I'm still here, can I have the drum kit?

What I'm saying is by the time I retire my state pension will be enough to live on plus my savings.i won't be jetting off to the Maldives on holiday will I?it'll be a trip to Llandudno or Blackpool 

If inflation stays around 5-10% Daz, and you are getting less than 1% interest on your savings, in 20 years time your savings will have eroded to the point that they are next to worthless.

Wise up and learn the very basics of investing if even to just beat inflation.

[CleanClear]

Invest in Crypto, thats where the big money is !! 

[dazmond]

Back to pensions... personally I don't trust them.the amount of money you need to put away to get even a modest,small income is eye watering...no thanks!

I'd rather semi retire now at 50 and enjoy more leisure time NOW,go on the fancy holidays,etc NOW and work part time for longer (health permitting of course)....

By the time I retire fully I'll be knackered and ready to die anyway!😄

Life doesn't work like that, Daz.

My life does mate....I'm living it every single day....

The truth is most people will not live beyond 75..

You might not get to choose when you retire or die.
Are you aiming for 75 to retire and die soon after then?
I'll hold you to that and if I'm still here, can I have the drum kit?

What I'm saying is by the time I retire my state pension will be enough to live on plus my savings.i won't be jetting off to the Maldives on holiday will I?it'll be a trip to Llandudno or Blackpool 

If inflation stays around 5-10% Daz, and you are getting less than 1% interest on your savings, in 20 years time your savings will have eroded to the point that they are next to worthless.

Wise up and learn the very basics of investing if even to just beat inflation.

I very much doubt £300,000+ will be worthless in 20 years time mate.inflation will not stay at 5-10% either.just as interest rates will not stay the same either.

I also add to my monthly savings every time I put my prices up

[DJW]

You’re going to work into your late seventies you said then likely die at seventy five. How will you spend your £300,00 out of interest?

[dazmond]

You’re going to work into your late seventies you said then likely die at seventy five. How will you spend your £300,00 out of interest?

Funeral costs.....I want it to rival James Brown's funeral!🤣🤣🤣

[NBwcs]

When I was made redundant 18yrs ago I was advised not to put into a private pension (the frozen one I had wouldn't even let me), they were performing so badly. I was told to put money aside into an isa,which I've done ever since. I don't trust "advisors" whatsoever, they're all in it for themselves so have carried on down this line. Fairly sure I could have done better but going back to the op, the important thing is to at least set aside some money (and at 40,as much as you can afford each month). Everything investment wise comes with a risk, at least my savings are relatively safe and I have full control over them and 100‰ of it will be passed onto to family in the event of my demise.of course the bad side is that although isa rates are improving, they're way behind inflation. I'm not advocating what I've done is the right way to go, but definitely a good start even if it's temporary and you use the money later on in a different way. I've come across so many people who have been massively dissapointed with their pensions and wish they'd gone down a different route. It's a minefield really, but whatever you do, don't do nothing.

Makes no sense.

You can hold the same investments in an ISA as you can in a pension. It is not the ISA or pension that performs but the investments held in them.

One thing with holding cash at the moment, you are guaranteed to lose money when you compare the interest you earn with inflation. This has been the case for the last 10 years or more.

A fixed rate cash isa is fixed for whatever term you choose so doesn't have the risk attached, (also the rewards are modest). I don't disagree at all that with high inflation I'm losing out but who's to say I wouldn't lose out even more if I go down the stocks and shares route, one of my family lost near on 100k when covid kicked in. There's no simple answer, there's risk with most avenues of investment. I must say, the higher inflation gets though, the more I'm leaning towards going down that route.

[dd]

If you had put money into a Vanguard etf that tracks the worldwide market, it would have doubled in value over the last 10 years and you also would have dividend payments.

[CleanClear]

I very much doubt £300,000+ will be worthless in 20 years time mate.

Its unlikeley to be able to buy a house with it in 20 years time though.

[Steven Biggs]

I blow all my cash . Just waiting for the wife’s parents to shake a 7 . Then I’m set for life .

[deeege]

Back to pensions... personally I don't trust them.the amount of money you need to put away to get even a modest,small income is eye watering...no thanks!

I'd rather semi retire now at 50 and enjoy more leisure time NOW,go on the fancy holidays,etc NOW and work part time for longer (health permitting of course)....

By the time I retire fully I'll be knackered and ready to die anyway!😄

Life doesn't work like that, Daz.

My life does mate....I'm living it every single day....

The truth is most people will not live beyond 75..

You might not get to choose when you retire or die.
Are you aiming for 75 to retire and die soon after then?
I'll hold you to that and if I'm still here, can I have the drum kit?

What I'm saying is by the time I retire my state pension will be enough to live on plus my savings.i won't be jetting off to the Maldives on holiday will I?it'll be a trip to Llandudno or Blackpool 

If inflation stays around 5-10% Daz, and you are getting less than 1% interest on your savings, in 20 years time your savings will have eroded to the point that they are next to worthless.

Wise up and learn the very basics of investing if even to just beat inflation.

I very much doubt £300,000+ will be worthless in 20 years time mate.inflation will not stay at 5-10% either.just as interest rates will not stay the same either.

I also add to my monthly savings every time I put my prices up

Worthless was probably the wrong word, however it will be worth a huge amount less than if it was invested properly to beat inflation.

You refer to the inflation calculator Daz to show the importance of putting prices up. The same applies for your savings and compound interest.

Here, have a play with this calculator and educate yourself:-

https://www.thecalculatorsite.com/finance/calculators/compoundinterestcalculator.php

[Granny]

I took out a Stakeholder pension years ago to take advantage of the 20% tax relief but I'm not impressed with it.
According to predicted payout I will have to live until I'm about 120 yrs old to get back what I've paid in!

[dazmond]

I took out a Stakeholder pension years ago to take advantage of the 20% tax relief but I'm not impressed with it.
According to predicted payout I will have to live until I'm about 120 yrs old to get back what I've paid in!

Exactly!I don't trust them with my money at all.....

[dazmond]

I understand compound interest substantially grows your savings over a long period of time but who do you trust with your money?most banks don't offer compound interest.

Who do you take advice from?a bunch of window cleaners?or financial advisors?(I don't trust them!)

[Simon Trapani]

Of course you get compound interest in your bank. Once you get your interest after say year one, the next year’s interest is calculated from your new amount. That’s compound interest.

[Jonny 87]

I understand compound interest substantially grows your savings over a long period of time but who do you trust with your money?most banks don't offer compound interest.

Who do you take advice from?a bunch of window cleaners?or financial advisors?(I don't trust them!)

Neither mate. Do it yourself and research where to invest. Vanguard and trading accounts etc. you have control of your money, but you need to do your own research.

That 250k would turn into 500k in 10 years, and then interest in that would mean you would gain on average 50k per year purely from interest.

So 50k a year without ever touching the big pot.

[Jonny 87]

Of course you get compound interest in your bank. Once you get your interest after say year one, the next year’s interest is calculated from your new amount. That’s compound interest.

Problem is that banks giving 0.01 % is basically the same as a kick in the pants.

[NBwcs]

I understand compound interest substantially grows your savings over a long period of time but who do you trust with your money?most banks don't offer compound interest.

Who do you take advice from?a bunch of window cleaners?or financial advisors?(I don't trust them!)

Neither mate. Do it yourself and research where to invest. Vanguard and trading accounts etc. you have control of your money, but you need to do your own research.

That 250k would turn into 500k in 10 years, and then interest in that would mean you would gain on average 50k per year purely from interest.

So 50k a year without ever touching the big pot.

Sounds wonderful, if it was  that reliable and easy, the whole world would be doing it at those sort of returns but their not, because it can go tits up just as easily. Like I said earlier, a family member lost 100k very quickly, it was a very stressful experience for them as you can imagine, especially as both retired  so no working income coming in. Things have come back for them but it's an eye opener.

[deeege]

I understand compound interest substantially grows your savings over a long period of time but who do you trust with your money?most banks don't offer compound interest.

Who do you take advice from?a bunch of window cleaners?or financial advisors?(I don't trust them!)

Neither mate. Do it yourself and research where to invest. Vanguard and trading accounts etc. you have control of your money, but you need to do your own research.

That 250k would turn into 500k in 10 years, and then interest in that would mean you would gain on average 50k per year purely from interest.

So 50k a year without ever touching the big pot.

Sounds wonderful, if it was  that reliable and easy, the whole world would be doing it at those sort of returns but their not, because it can go tits up just as easily. Like I said earlier, a family member lost 100k very quickly, it was a very stressful experience for them as you can imagine, especially as both retired  so no working income coming in. Things have come back for them but it's an eye opener.

I’m guessing your family member withdrew his investment straight after the pandemic slump? Very silly. The markets bounced right back within weeks to record levels.

We’re talking here about investing over many years, trying to make a quick buck is not a good idea at all.

Look at the S&P lifetime chart and if you would have invested for a 10 year minimum period you would never have lost money.

[NBwcs]

I understand compound interest substantially grows your savings over a long period of time but who do you trust with your money?most banks don't offer compound interest.

Who do you take advice from?a bunch of window cleaners?or financial advisors?(I don't trust them!)

Neither mate. Do it yourself and research where to invest. Vanguard and trading accounts etc. you have control of your money, but you need to do your own research.

That 250k would turn into 500k in 10 years, and then interest in that would mean you would gain on average 50k per year purely from interest.

So 50k a year without ever touching the big pot.

Sounds wonderful, if it was  that reliable and easy, the whole world would be doing it at those sort of returns but their not, because it can go tits up just as easily. Like I said earlier, a family member lost 100k very quickly, it was a very stressful experience for them as you can imagine, especially as both retired  so no working income coming in. Things have come back for them but it's an eye opener.

I’m guessing your family member withdrew his investment straight after the pandemic slump? Very silly. The markets bounced right back within weeks to record levels.

We’re talking here about investing over many years, trying to make a quick buck is not a good idea at all.

Look at the S&P lifetime chart and if you would have invested for a 10 year minimum period you would never have lost money.

I believe they didn't withdraw, and whilst I don't know their present situation as of today, they had recouped alot of their losses but it took months not weeks.
Looking at historical performances of these things over the last 10 years does nothing to lessen the risk going forward over the next 10 years. It's a gamble.