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Ns&i Index Linked Certificates Withdrawn

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:( Just as I was about to dive in as well.

Where do you reckon is the best place to put <£30k now?

NSI may be back next year with cpi, we will see.

Difficult isnt it, no real safe return anywhere,the markets and metals are ready to blow.

Looking at things out of the box perhaps using a bit of cash to reduce your outgoing costs?

That was my thinking have installed condensing boiler which has cut my gas bill 15% new car next week (no vat 0% finance) will do the same for my petrol and maintaince costs.

Have also rcently cut car/ home insurance costs 30% by shopping about and paying upfront.

Was thinking of setting up a small business to get a trade card and bulk buy food, run it as a loss.

Dont get me wrong the above would all be less than 10% of my stored savings in nsi and other places, but the equation has two sides.

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NSI may be back next year with cpi, we will see.

Difficult isn't it, no real safe return anywhere,the markets and metals are ready to blow.

Forgive my ignorance, but iShares Barclays Capital £ Index-Linked Gilts (INXG) last traded at £11.51 on a NAV of £11.518581 ... which I assume means at the fair price given the value of the underlying assets? Aren't they as good as NS&I ILSCs, or if not then what am I missing?

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Forgive my ignorance, but iShares Barclays Capital £ Index-Linked Gilts (INXG) last traded at £11.51 on a NAV of £11.518581 ... which I assume means at the fair price given the value of the underlying assets? Aren't they as good as NS&I ILSCs, or if not then what am I missing?

NSI are tax free. Do the Barclays ones come with an income stream taht you're taxed on?

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NSI are tax free. Do the Barclays ones come with an income stream taht you're taxed on?

Yeah, 0.95% flat yield supposedly - but true, that'd be income and taxed accordingly if not held within an ISA - similarly any capital gain when sold.

But apart from that - as straight wealth preservation / inflation protection wouldn't they (or the dbx-tracker equivalent) be ok?

(Apologies again for ignorance).

Edited by DepletedUser

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Yeah, 0.95% flat yield supposedly - but true, that'd be income and taxed accordingly if not held within an ISA - similarly any capital gain when sold.

But apart from that - as straight wealth preservation / inflation protection wouldn't they (or the dbx-tracker equivalent) be ok?

(Apologies again for ignorance).

The loss of the ns&i product is forcing people to take risks.

Money week a couple of months back felt these i share gilts might be expensive I am also unsure if these represent good value just now.

http://www.moneyweek.com/investments/funds-index-linked-gilts-look-too-expensive-49229.aspx

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The loss of the ns&i product is forcing people to take risks.

Money week a couple of months back felt these iShare gilts might be expensive I am also unsure if these represent good value just now.

http://www.moneyweek.com/investments/funds-index-linked-gilts-look-too-expensive-49229.aspx

Thanks for the link - interesting.

NS&I ducking out was a right p*sser - but I believe they'd had a *massive* amount of money put into ILSCs this year.

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I'm unclear of the tax status of the iShares INXG fund. Presumably, the income stream is taxable. But I'm unclear as to whether it is captial-gains taxable - I would presume that it is.

It may in fact be better just to buy the underlying IL gilts - these are easily traded through any online broker, and are more liquid than INXG. Not only that, but there is no annual management fee (which at 0.25% is a substantial wedge of the INXG income). The IL gilts also have a well defined tax status: The income is taxable as income - but they are exempt from CGT - so you do get genuine index-linked wealth preservation (at least as genuine as the RPI).

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The first rule of saving and investing is pay down your debt.

Also:

http://www.guardian.co.uk/money/2010/may/02/student-loan-interest-rates-inflation

Not only does that not answer my question, that article actually highlights my point:

He adds: "I would be very careful about paying off student loans in a hurry. If down the line your finances are squeezed, it is better to have a student loan than even the cheapest loans or credit cards, especially as banks can be so choosy with their offers."

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Not only does that not answer my question, that article actually highlights my point:

Yes sorry your right, debt is the new wealth well at least for the under 30s

But it will catch up with you one day.

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Yes sorry your right, debt is the new wealth well at least for the under 30s

But it will catch up with you one day.

I understand your sentiment on this one Petro and normally I'd agree on debt being bad, but (for now) the government are sticking to the contract with regard to the rates being less than a commercial loan:

From http://www.slc.co.uk/media%20centre/news_views.html#item1

‘Income contingent’ loans (taken out after 1998)

The interest rate on income contingent loans will be 1.5% from 1 September 2010 across the UK.

Between 1 September 2010 and 31 August 2011, the interest rate may change because it is linked to the rates charged by high street banks. The rate will be the lower of the Retail Price Index in March 2010, or 1% above the highest base rate of a nominated group of banks. As March’s RPI was 4.4%, the maximum rate of interest you may be charged between 1 September 2010 and 31 August 2011 is 4.4%.

Although slightly less good news if you took out your student loan before 1998:

‘Mortgage style’ loans (taken out before 1998)

The interest rate on ‘mortgage style’ loans will be 4.4% from 1 September 2010 to 31 August 2011 as interest is linked solely to the RPI.

Although as those dudes got grants and didn't have to worry about tuition fees I've slightly less sympathy :P

Anyway, the point is it doesn't make sense to pay these things off early. Not while it's possible to earn more on deposit. They do not negatively impact credit-worthiness in any way and have a negligible effect on the amount you can borrow. That said a mate did pay his off early, but he conceded it was just for peace of mind rather than any kind of financial benefit.

Edited by christhpc

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Yes sorry your right, debt is the new wealth well at least for the under 30s

But it will catch up with you one day.

Sure, just patronise me and a whole generation rather than provide a proper answer.

Thanks for contributing.

P.s. your != you're

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  • 146 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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