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Marcus/Goldman Sachs taking the p*ss..

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Dear Warlord,

We contacted you recently to let you know that from 30 May 2020 we'd be lowering the underlying interest on your Marcus account ending xxxx from 1.20% AER* to 1.05% AER*.

OK so what should I do with cash savings? Sit here and accept a measly 1%?

If anyone has any recommendations let me know. 

What are you going to do @longgone

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Or, put differently, 0.25% above current RPI. That is consistent or better than in recent years.

I agree though, savings rates are collapsing. For well over a decade now I have been taking a cut on my savings interest to give mortgage payers a discount.

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6 minutes ago, rantnrave said:

Or, put differently, 0.25% above current RPI. That is consistent or better than in recent years.

I agree though, savings rates are collapsing. For well over a decade now I have been taking a cut on my savings interest to give mortgage payers a discount.

I'm probably going to invest in shares and use the ISA allowance. Not sure what else to do . 

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59 minutes ago, Warlord said:

Marcus/Goldman Sachs taking the p*ss..

OK so what should I do with cash savings? Sit here and accept a measly 1%?

If anyone has any recommendations let me know. 

What are you going to do @longgone

1 per cent instant access is pretty good to be fair.

Nice caring sharing aren’t we a wonderful mutual who doesn’t have any shareholders and look after our members Nationwide is now paying 0.01% on its instant access ISAs. That means if you Invest £50,000 for a year you earn a grand total of £5 interest. Why wouldn’t you just take out a buy to let mortgage with them and buy a few flats up north instead?!!

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5 minutes ago, MARTINX9 said:

1 per cent instant access is pretty good to be fair.

Nice caring sharing aren’t we a wonderful mutual who doesn’t have any shareholders and look after our members Nationwide is now paying 0.01% on its instant access ISAs. That means if you Invest £50,000 for a year you earn a grand total of £5 interest. Why wouldn’t you just take out a buy to let mortgage with them and buy a few flats up north instead?!!

It's the Banksters of England's fault cutting the base rate that's why my rate is diminishing. I'm going to be forced into the stock market again. Maybe i'll look for some mutual funds. If anyone has any advice then please PM me .

 

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44 minutes ago, Warlord said:

I'm probably going to invest in shares and use the ISA allowance. Not sure what else to do . 

Bearing in mind previous comments we exchanged and not being funny to you, did you see that in the last couple of days(?) Crispin Odey has raised concerns that governments could well confiscate or at least sanction holdings of gold? I think he was saying that NIRP won't work if they leave lots of loopholes lying about, tbh haven't yet read much of what he said.

It doesn't say to me that he's right and you're wrong, nor indeed the other way around. What interests me is the very fact of him raising it.  Maybe he has some ulterior motive such as a position he may have in gold or wish to take. He is someone that many people might listen to.

That bankers and their governments seek to deter the holding of cash makes me instinctively question their motives, from where I go on to consider whether to move in the opposite direction. 

The weak spot of cash, to save you pointing it out to me, is that they are the very people who have the most control over cash and whose malfeasance or incompetence can do you and it the most damage.

As you are - presumably - well positioned in gold you might as well go for shares ISAs.  Remember that rich people own lots of shares, therefore the show is largely run for their benefit. 

It will therefore also be being run for yours provided you manage to avoid the worst dog stocks. This is not advice, etc etc.

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Just now, Bluestone59 said:

Bearing in mind previous comments we exchanged and not being funny to you, did you see that in the last couple of days(?) Crispin Odey has raised concerns that governments could well confiscate or at least sanction holdings of gold? I think he was saying that NIRP won't work if they leave lots of loopholes lying about, tbh haven't yet read much of what he said.

It doesn't say to me that he's right and you're wrong, nor indeed the other way around. What interests me is the very fact of him raising it.  Maybe he has some ulterior motive such as a position he may have in gold or wish to take. He is someone that many people might listen to.

That bankers and their governments seek to deter the holding of cash makes me instinctively question their motives, from where I go on to consider whether to move in the opposite direction. 

The weak spot of cash, to save you pointing it out to me, is that they are the very people who have the most control over cash and whose malfeasance or incompetence can do you and it the most damage.

As you are - presumably - well positioned in gold you might as well go for shares ISAs.  Remember that rich people own lots of shares, therefore the show is largely run for their benefit. 

It will therefore also be being run for yours provided you manage to avoid the worst dog stocks. This is not advice, etc etc.

I want to stay diversified. The only option is the casino of the stock market  Mutual funds probably the best idea if I can find a good fund that is. It's a learning curve for me.

 

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4 hours ago, Warlord said:

Marcus/Goldman Sachs taking the p*ss..

OK so what should I do with cash savings? Sit here and accept a measly 1%?

If anyone has any recommendations let me know. 

What are you going to do @longgone

Bend over and take it like a man same as i always have done ;) 

The name of the game now is keeping hold of your cash, rather than return.  

i really don`t worry about it honestly, my money has been sat in banks for the last 10+ years  if i had doubled it to 400-500k i would still be a poor pleb so i don`t worry about it. i don`t need a return from it its just there if i need it i don`t live from it or use it. 

i use credit cards to buy stock which gets sold and pays off the cards the same month and i keep the rest. i don`t really need any thing else.  i do have 50k in Pbonds though the biggest holders do seem to win the biggest prizes.  a prize of 2000% would be nice can buy a basic house with that at least. 

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52 minutes ago, longgone said:

Bend over and take it like a man same as i always have done ;) 

The name of the game now is keeping hold of your cash, rather than return.  

i really don`t worry about it honestly, my money has been sat in banks for the last 10+ years  if i had doubled it to 400-500k i would still be a poor pleb so i don`t worry about it. i don`t need a return from it its just there if i need it i don`t live from it or use it. 

i use credit cards to buy stock which gets sold and pays off the cards the same month and i keep the rest. i don`t really need any thing else.  i do have 50k in Pbonds though the biggest holders do seem to win the biggest prizes.  a prize of 2000% would be nice can buy a basic house with that at least. 

Thanks for the reply.. Inflation is a concern of mine if I just let it sit. Looking at funds like I've said but there are fee's and i'm wondering if i can make a profit or not. ?

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22 minutes ago, Warlord said:

Thanks for the reply.. Inflation is a concern of mine if I just let it sit. Looking at funds like I've said but there are fee's and i'm wondering if i can make a profit or not. ?

Well that depends What your intended usage of the money is for in regards to inflation. Mine was always for a house but things went out of whack for me the last few years and buying anything was put on hold, I did try to buy when HTB was announced As it was set In stone what these kunts are all about. 

Your guess is as good as mine, I really don't trust much In the financial World it's all rigged for the rich that control everything.

They remind me of road workers blocking your usual routes digging up the road and making a mess while they leave diversionary Signs for the lemmings To follow as the usual route is blocked.

 

 

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31 minutes ago, Warlord said:

Thanks for the reply.. Inflation is a concern of mine if I just let it sit. Looking at funds like I've said but there are fee's and i'm wondering if i can make a profit or not. ?

Its all a bit weird. 

Here we are worried about inflation, cash is nonsense, looking to put it into something, anything asset based, ideally leveraged so inflation takes it away...

And also say houses will crash 30/40/50/60% etc.

Cant all be right.

 

Full disclosure - i own a flat purchased in 2012, ideally would like prices to fall 40% to allow a decent trade up just cant see it happening.

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4 minutes ago, captainb said:

Its all a bit weird. 

Here we are worried about inflation, cash is nonsense, looking to put it into something, anything asset based, ideally leveraged so inflation takes it away...

And also say houses will crash 30/40/50/60% etc.

Cant all be right.

 

Full disclosure - i own a flat purchased in 2012, ideally would like prices to fall 40% to allow a decent trade up just cant see it happening.

 

The problem is if the best you can get for your cash savings  is 1% then you're FORCED into the stock market really. There's very few good options ..

I wouldn't leverage that's far too risky for me.

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28 minutes ago, Warlord said:

 

The problem is if the best you can get for your cash savings  is 1% then you're FORCED into the stock market really. There's very few good options ..

I wouldn't leverage that's far too risky for me.

Your mined Bitcoin is waiting for you my friend. 

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Posted (edited)
36 minutes ago, captainb said:

And also say houses will crash 30/40/50/60% etc.

Cant all be right.

House prices will fall in real terms. Check the chart on http://www.housepricecrash.co.uk

They''re already falling and under the moving average and this was before coronavirus. 

You have to be mental to buy property at this point and i'm not interested thanks.  

 

Edited by Warlord
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50 minutes ago, Warlord said:

 

The problem is if the best you can get for your cash savings  is 1% then you're FORCED into the stock market really. There's very few good options ..

I wouldn't leverage that's far too risky for me.

Depends how much you have. You can get 2% on 15k with an additional 900 pcm into regular savers at 2-2.5%

 

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17 minutes ago, Warlord said:

House prices will fall in real terms. Check the chart on http://www.housepricecrash.co.uk

They''re already falling and under the moving average and this was before coronavirus. 

You have to be mental to buy property at this point and i'm not interested thanks.  

 

Sure but if as per this post you had it the deposit held in cash, that has been falling in real terms since 2007.

This BTW is not a rush out and buy a flat in nine elms today.. madness.

Just pointing out cash is useless (agree) therefore push into assets is not indicative of a crash in asset values

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1 minute ago, captainb said:

Sure but if as per this post you had it the deposit held in cash, that has been falling in real terms since 2007.

This BTW is not a rush out and buy a flat in nine elms today.. madness.

Just pointing out cash is useless (agree) therefore push into assets is not indicative of a crash in asset values

I haven't had it since '07.  Not much else i can do with it.  I may buy property in the future if prices come down to 'sane' levels which may or may not happen...

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1 minute ago, Warlord said:

I haven't had it since '07.  Not much else i can do with it.  I may buy property in the future if prices come down to 'sane' levels which may or may not happen...

I get it. Only thing i struggle with is if its an inflationary environment with low borrowing rates, sane nominal price levels for any leveraged asset are incredibly high as your debt gets eaten away.

Holding cash is insane in that environment.

Again this is not a rush out an buy a new build flat now which would be madness. But i would challenge those waiting for historically large price falls on how likely they are to occur given the availability of credit.

 

40% fall would be ideal for me, but if we get to 10% i will take it and make my move.

 

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Posted (edited)
6 minutes ago, captainb said:

I get it. Only thing i struggle with is if its an inflationary environment with low borrowing rates, sane nominal price levels for any leveraged asset are incredibly high as your debt gets eaten away.

Holding cash is insane in that environment.

Again this is not a rush out an buy a new build flat now which would be madness. But i would challenge those waiting for historically large price falls on how likely they are to occur given the availability of credit.

 

40% fall would be ideal for me, but if we get to 10% i will take it and make my move.

 

I think it's insane buying, you think it's insane parking. We'll just have to see...

 

 

 

Edited by Warlord
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Cash 'aint trash!

If you had no cash then you wouldn't have found it easy to exploit the recent stock market crash. Cash is your friend in these circumstances.

I hold cash in a variety of ways including physical (GBP, USD, EUR, CHF) and savings accounts for day to day use like saving for and paying for insurance. But the bulk of our cash is in Premium Bonds. We achieved around 1.3% over the last 2 years.

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8 hours ago, Warlord said:

 

The problem is if the best you can get for your cash savings  is 1% then you're FORCED into the stock market really. There's very few good options ..

I wouldn't leverage that's far too risky for me.

My liquid funds are earning about 2.5%, but even if it were 1% it would be doing better than the cash I have tied up in an illiquid, depreciating asset (House). As for the stock market, no thanks, I have sufficient to see me out but if I lost half of it in a stock market crash I'd have to tighten my belt.

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3 minutes ago, Bruce Banner said:

My liquid funds are earning about 2.5%, but even if it were 1% it would be doing better than the cash I have tied up in an illiquid, depreciating asset (House). As for the stock market, no thanks, I have sufficient to see me out but if I lost half of it in a stock market crash I'd have to tighten my belt.

Yes....the short-term gamble of the stock exchange is not something generally the older generation would embrace, higher risk, might not get back what put in at a time they may need it.......for younger people drip drip over long period of time a much better proposition, evens out the ebbs and flows.......build it up, draw it down both spending and gifts.....a home has no value when living in it, only costs money to keep, pay for and maintain. the value is a figment of imagination until sold.;)

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2 hours ago, winkie said:

..a home has no value when living in it, only costs money to keep, pay for and maintain. the value is a figment of imagination until sold.;)

Accept of course not having to pay to live in someone else's asset has value. 

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  • 415 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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