I'm 28, so still got a few years to go, but anyway...

The good news: I'm part of a fairly generous final salary pension scheme.

The bad news: Despite working for the govt. for the first 3 years after leaving uni, they didn't see fit to provide me with a pension, so I only started paying into my current scheme when I was 27.

I have no house, & not interested at buying just now, for obvious reasons.

So what do you all suggest?

I don't want to make AVCs into the final salary scheme, eggs & baskets & all that.

Become a 'Fireman'

I'm sure that others can give plenty of advise, but to me it looks like most things are peaking at momment, I'd wait and save, until a good position opens to invest in.
This site is really good for learning all sorts of stuff, but never accept what your told as gospel, make your own mind up.

I'm same age as you and have no pension yet, I doubt very much that state will provide one as current Baby boomers will destroy the system.

Far too cynical to take anything anyone here says as gospel.

I also agree that the state pension will be worthless when my turn comes - I've heard at least one MP saying "Pensions crisis, there is no pensions crisis, there may be some problems in 20 or 30 years, but that's hardly a crisis".

All I'm looking for is a low risk way of saving money in a cost effective way.

Nothing wrong with pensions. 22- 40% tax relief and from age 55 25% of the pot will be tax free in lump sum form

practically tax free growth
No IHT

get it in there

Just watch what the investemnt funds are. My own view is absolute growth rather than trackers are normally more likely more effective going forward

good for you for thinking about the inevitable retirement

HTH

FP

If anyone recommends managed funds for the basis of your portfolio ask them how many perform better than the market over 10 years, think the figures are less than 15% - and thats the ones that survive 10 years - most fund managers seem to follow the herd despite what they say.

index trackers are a good base then learn about investing in other areas such as gold, property and individual shares.

Financial Advisers don't seem to like index trackers as they don't pay much commission.

Had my fingers burned with managed funds - money for old rope as far as I can see. They get their money no matter how badly they do. Bastards.

Invested in a shares ISA in 2001 some 6 months before the planes hit the twin towers etc. Dropped in value by half, now over the next 4 years it's crept up to 70% of what I originally invested. Supposed to be world wide too - didn't invest in China or India did you you stupid ****s.

Anyway rant over - from now on I'll manage my own shares. On that subject there's a couple of small firms I'm interested in investing in. What's the best way to do this - I'm only thinking a few hundred quid in each - is it worth it?

Hmmm

Warren Buffet, said

"Most investors, both institutional and individual, will find that the best way to own common stocks is through an index fund that charges minimal fees. Those following this path are sure to beat the net results (after fees and expenses) delivered by the great majority of investment professionals."


don't now if the ****s is aimed at me - can't understand why if it is

Re my previous post:
99% of funds are either trackers or quasitrackers - even they they say they're actively managed - if that was the case why are they so close to the benchmarks they're up against.

If you don't know how to invest in shares you don;t know how to invest in shares!
You're just like an amateur BTLer - thinking you know better than the professionals. The problem is for you and most people you don't know who the true winners are.

If you don't then ask someone who should. If they don't know then they're not professionals themselves. If you don't trust anyone then I do wish you all the best on your own.

It ain't easy I know.

I'm currently using Halifax Bank's Sharebuilder to learn about buying/selling shares. It's £1.50 to buy (~£11 to sell). They don't buy in real time but instead buy all the shares on specific days to minimise costs. I'm not making a fortune but it's a good way for me to see if I can make money in shares.

http://www.halifax.co.uk/sharedealing/sharebuilder.shtml

Harsh - I never said I knew better than the professionals, it's just I happen to know of a couple of uni spin offs that have recently floated. Will they do well? - I don't know - wouldn't it be good if I did, however, I think they are bringing something to their business world that is useful & not available elsewhere (& I'm not the only one or they wouldn't have got the venture capital in the first place).

As for describing me as being like the average amature BTLer - I am not borrowing heavily to invest in something I don't know anything about - I am planning to invest something like half a month's salery. I intend to invest a small amount in the hope that either they will be bought up in due course or in the course of a few years they will increase in value as they & their technologies establish themselves. I work in a similar area to the companies I am interested in, so I understand the technologies they use & their value to their clients. I also am aware that they have the potential to go belly up, as much because they are managed by former academics who are bright but often lack management skills as any other reason.