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Been saving for a few years now and have bit saved up. It's time for my annual planning session so was wondering, Where are you guys going to put it this year?

I have cash and some stocks but wondering what to do with the additional savings this year. All suggestions welcome.

I thought the interest rate on cash was bad but stocks last year have been even worse and I keep hearing bonds are knackered too.

If no one has any money just now I must be the richest poor person going.

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Been saving for a few years now and have bit saved up. It's time for my annual planning session so was wondering, Where are you guys going to put it this year?

I'm buying a house.

...as soon as asking prices collapse 50%

Edited by TheCountOfNowhere

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Probably not the sort of response you're looking for, but I am moving mine from Aldermore given the BTL risks and moving it to either HSBC or Santander. No bank is safe, and the £75k "protection" seems a lot of hot air, so there are probably better options like the stock market.

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Probably not the sort of response you're looking for, but I am moving mine from Aldermore given the BTL risks and moving it to either HSBC or Santander. No bank is safe, and the £75k "protection" seems a lot of hot air, so there are probably better options like the stock market.

With 0% inflation, might as well bank with "Sealy"

Money-under-mattress-006.jpg?w=620&q=85&

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Been saving for a few years now and have bit saved up. It's time for my annual planning session so was wondering, Where are you guys going to put it this year?

I have cash and some stocks but wondering what to do with the additional savings this year. All suggestions welcome.

I thought the interest rate on cash was bad but stocks last year have been even worse and I keep hearing bonds are knackered too.

If no one has any money just now I must be the richest poor person going.

Buy good quality agri land,and if you can afford more than 12,5 acres buy the book field to farm.and try to push it as far as poss on the planning front.

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Buy good quality agri land,and if you can afford more than 12,5 acres buy the book field to farm.and try to push it as far as poss on the planning front.

Where are we meant to buy the good quality agri-land ?

Are there any current and potentially future recurring costs ?

Is it easily sell-able ?

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All savings done by salary sacrifice into pension, otherwise just an emergency cash buffer. At an effective marginal tax rate of 65%, it would be silly not to. In a few years (<10), I will pull out the tax-free sum and clear the mortgage.

Effectively, I'm doing my own pension mortgage. These were looked down upon many years ago but the dramatic upside possibilities outweigh the risks in my opinion.

e.g. Each £100K of mortgage costs me £35K in sacrified net income. Very efficient.

I moved into a SIPP recently charging £200/year (HL £500 cash back offer covers that for a while). After selling my Japan stocks and UK gilts, I've been 100% cash for the last 6 months. I'm now building a dividend-oriented portfolio, buying £10K blocks at a time then will just keep forever after that. When prices drop, I buy another block of something else. When prices go up, I just wait.

Buying shares and holding for a long-time rather than funds dramatically reduces long-term costs. You pay the 0.5% once rather than x% every year. You also avoid a lot of the SIPP platform cost. After the initial hit of stamp duty and trading charges, my average annual costs will be ~0.05%.

I'll review the above when I see the new pension tax relief rules in the next budget.

I don't even bother looking for good savings rates any more, just instant access. I'd rather give any extra money to the kids so they can have the 3.25% tax-free.

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I am staying committed to gold and silver until personal or econonomic circumstances will change.

Edited by Silverfinger

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Been saving for a few years now and have bit saved up. It's time for my annual planning session so was wondering, Where are you guys going to put it this year?

I have cash and some stocks but wondering what to do with the additional savings this year. All suggestions welcome.

I thought the interest rate on cash was bad but stocks last year have been even worse and I keep hearing bonds are knackered too.

If no one has any money just now I must be the richest poor person going.

I'm a bit boring .... have maxed out 3 santander 123 current accounts, earning 3% interest. Have also maxed a TSB current account. The rest is drip fed into First Direct reg saver, and two HTB ISA with Halifax for my wife and I.

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Where are we meant to buy the good quality agri-land ?

Are there any current and potentially future recurring costs ?

Is it easily sell-able ?

Yep. It's the next bubble. Lots of rich landowners have no intention of ever selling. What does change hands has been inflated a whole lot more than houses by bankers' bonuses. Propped up by public money (agricultural subsidies, etc) and by lots of speculator sentiment.

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Buying shares and holding for a long-time rather than funds dramatically reduces long-term costs. You pay the 0.5% once rather than x% every year. You also avoid a lot of the SIPP platform cost. After the initial hit of stamp duty and trading charges, my average annual costs will be ~0.05

Do you automatically reinvest the dividend or take the cash and add it to the next tranche you a going to buy?

I have been auto reinvesting but it can actually add up to a Wee bit of cash with quarterly dividends over a number of stocks

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Buy Euros before the Sterling crisis. RBS and other UK high street banks offer Euro accounts

Thankfully the Euro is the one safe currency.

The "Bank of Sealy" looking better by the day

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Buy Euros before the Sterling crisis. RBS and other UK high street banks offer Euro accounts

I don't see any reasons why Sterling should not be in a permanent crisis. But what would you see as a short term trigger?

Edited by Silverfinger

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Yep. It's the next bubble. Lots of rich landowners have no intention of ever selling. What does change hands has been inflated a whole lot more than houses by bankers' bonuses. Propped up by public money (agricultural subsidies, etc) and by lots of speculator sentiment.

Agreed, but even when the bubble does burst, you will still have the land,and any enhanced value you have obtained getting round planning,plus rent from land and single farm payment.Better than fiat money,but i am a peasant at hart.

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Do you automatically reinvest the dividend or take the cash and add it to the next tranche you a going to buy?

I have been auto reinvesting but it can actually add up to a Wee bit of cash with quarterly dividends over a number of stocks

To be honest, not decided yet.

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Silverfinger - agree.

As for the trigger I don't know - maybe Brexit. The current generation of FX "experts" are thick. I went back to Uni to do economics at the age of 44 (did engineering in 1982) 10 years back and was shocked at the poor level of work ethic, ability (e.g. in maths). Came top in macroecon without even having a A level or GCSE (I quit after year - was just a laugh), and these people are now in the City. Clueless. £ way overvalued by any measure and trade balance in the past would have people running for the exit re Sterling.

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Agreed, but even when the bubble does burst, you will still have the land,and any enhanced value you have obtained getting round planning,plus rent from land and single farm payment.Better than fiat money,but i am a peasant at hart.

My neighbour was offered £400K for 17 acres and turned it down, prices are very high for good land in an area that could get services connected easily. I have another neighbour looking for £200K for a large agricultural shed with an acre around it. Not cheap but a long-term fight with planners could be worth it. I've noticed the local planners are getting way behind in their workload, missing key deadlines which are resulting in default-approvals.

Playing the planning game is earning people £100K's around here. Using a relative or friends land covertly seems to work best. Any newcomers taking the piss get into the most trouble.

There is a lot of work involved in getting farm payments, rent is pathetic, fences are expensive, hedges need maintenance and don't underestimate the cost of removing unwelcome visitors with caravans.

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£ way overvalued by any measure and trade balance in the past would have people running for the exit re Sterling.

One reason why I like the look of FTSE100 now. Lots of foreign earnings and a way to get rid of my £.

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I'll review the above when I see the new pension tax relief rules in the next budget.

There's a lot of noise about this, and I'm not sure what the outcome on markets may be, if they really cut back on it.

However, it's worth bearing in mind that pensions tax relief costs the Government about as much as the national defence budget, and the new workplace pension scheme will be increasing this bill every year.

http://www.telegraph.co.uk/finance/personalfinance/pensions/12061932/What-will-happen-to-pensions-in-2016.html

HTB ISA for me. I want to add more Lloyds Bank shares (HPC followed by fresh lending profits galore), but think there may be better value to come (maybe not in 2016 though), in a wider market liquidity squeeze.

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All savings done by salary sacrifice into pension, otherwise just an emergency cash buffer. At an effective marginal tax rate of 65%, it would be silly not to. In a few years (<10), I will pull out the tax-free sum and clear the mortgage.

Effectively, I'm doing my own pension mortgage. These were looked down upon many years ago but the dramatic upside possibilities outweigh the risks in my opinion.

e.g. Each £100K of mortgage costs me £35K in sacrified net income. Very efficient.

I moved into a SIPP recently charging £200/year (HL £500 cash back offer covers that for a while). After selling my Japan stocks and UK gilts, I've been 100% cash for the last 6 months. I'm now building a dividend-oriented portfolio, buying £10K blocks at a time then will just keep forever after that. When prices drop, I buy another block of something else. When prices go up, I just wait.

Buying shares and holding for a long-time rather than funds dramatically reduces long-term costs. You pay the 0.5% once rather than x% every year. You also avoid a lot of the SIPP platform cost. After the initial hit of stamp duty and trading charges, my average annual costs will be ~0.05%.

I'll review the above when I see the new pension tax relief rules in the next budget.

I don't even bother looking for good savings rates any more, just instant access. I'd rather give any extra money to the kids so they can have the 3.25% tax-free.

I do the same. I pay 65% of salary, which ends up being 85% of my salary (10% contrib from employer + NI contribs get added also) into the pension.

This brings me under the child benefit limit, which means I get child benefit also. I make additional contributions to another pension, which get relief, so this year I plan to pay zero income tax. Can't pull this trick every year as there are pension input limits.

This is not advice.

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