I've just lost £12,000

[FatBloke]

Just got my ISA statement.

I'm 12 Grand down on last year.   

That's more than I earned last year.   

I am in deficit.   

Arse!   

[Mr Larrington]

Check down the back of the sofa...

[Greenbank]

The offset account earned a grand total of £0 interest.

No surprise, but it has helped knock almost a year off the mortgage.

[mattc]

WHERE DID YOU LAST LEAVE IT, DEAR?

[FatBloke]

WHERE DID YOU LAST LEAVE IT, DEAR?

European investment trust. 

[Seineseeker]

I invested 14k 8 years ago, it's currently worth 11k! It happens.

[border-rider]

This is why we have cash ISAs but not the investment ones.  The building society is a safer bet right now.

[alchemy]

I'm 12 Grand down on last year.   

About the same here. Never mind, things will turn around eventually.

It's time in the market, not timing

[alchemy]

This is why we have cash ISAs but not the investment ones.  The building society is a safer bet right now.

But cash is only ever going to generate around 5 - 7% pa (give or take). That's only a little bit above inflation (certainly not enough above the inflation rate for me) and certainly no way to generate long-term wealth if you've got a long-term outlook (and time).

I'm assuming ISA's are a form of superannuation - is that right??

[Wowbagger]

Warning: stocks can go down as well as up, rather like your body weight.

[Polar Bear]

This is why we have cash ISAs but not the investment ones.  The building society is a safer bet right now.

But cash is only ever going to generate around 5 - 7% pa (give or take). That's only a little bit above inflation (certainly not enough above the inflation rate for me) and certainly no way to generate long-term wealth if you've got a long-term outlook (and time).

I'm assuming ISA's are a form of superannuation - is that right??

Hmmm,

I'm struggling with your logic.  5% gain or ??% £12k loss.   As one of my pensions is tied up with stocks and shares I'd rather have some cash investment as well.   I'll only ever be rich if you buy me the winning lottery ticket for the next double rollover so I'd rather run a more  Never good to have all your eggs in the same basket.

[Polar Bear]

Sorry to hear that FB.  Hope the market turns favourably again soon.   

[border-rider]

I'm assuming ISA's are a form of superannuation - is that right??

ISAs are a package for any form of investment which removes the need to pay tax on the gain.  There are limits on how much you can pay in each year.

So a cash ISA will net 5-6% tax-free each year.

An investment ISA may do better.  But at the moment, quite possibly not.  It depends whether you want to keep or gamble your money really.

[alchemy]

Warning: stocks can go down as well as up, rather like your body weight.

But the trend over time is up (also like your body weight) 

You just have to have courage to hang on for the ride during the bumpy bits (the stock market, not body weight  )

[Polar Bear]

Warning: stocks can go down as well as up, rather like your body weight.

But the trend over time is up (also like your body weight) 

You just have to have courage to hang on for the ride during the bumpy bits (the stock market, not body weight  )

In my view you can look at the very long view and the trend is inevitably up because of general world market inflationary pressures.   Trouble is, it might be down just when you need to liquidate some of your hard-earned.   

[Greenbank]

In my view you can look at the very long view and the trend is inevitably up because of general world market inflationary pressures.   Trouble is, it might be down just when you need to liquidate some of your hard-earned.   

Exactly, I don't mind the market being low now as I'm buying lots of cheap units for my pension. I'd obviously want it to be on a high just as it matures but before then periodic lows can be good.

[alchemy]

This is why we have cash ISAs but not the investment ones.  The building society is a safer bet right now.

But cash is only ever going to generate around 5 - 7% pa (give or take). That's only a little bit above inflation (certainly not enough above the inflation rate for me) and certainly no way to generate long-term wealth if you've got a long-term outlook (and time).

I'm assuming ISA's are a form of superannuation - is that right??

Hmmm,

I'm struggling with your logic.  5% gain or ??% £12k loss.   As one of my pensions is tied up with stocks and shares I'd rather have some cash investment as well.   I'll only ever be rich if you buy me the winning lottery ticket for the next double rollover so I'd rather run a more  Never good to have all your eggs in the same basket.

What I was getting at is that cash investments will be steadily upwards at, for example, 5% pa. So you have certainty of your return but the chances for out-performance are limited. Shares will be up and down but historically the trend is upwards at a higher rate. However, you will have volatility. If you have time (and a long-term outlook), then you're better off with the majority of your portfolio in growth investments (shares, property etc). Of course, that will depend on each individual persons risk profile.

Granted, you need something in cash, but personally I wouldn't have any more than 10-15% in it, but that's just me, and I've got 15 - 20 years before I retire so I have time to ride out the rough patches.

But everyone should also keep an eye on their investments and review them every year

[alchemy]

In my view you can look at the very long view and the trend is inevitably up because of general world market inflationary pressures.   Trouble is, it might be down just when you need to liquidate some of your hard-earned.   

Exactly, I don't mind the market being low now as I'm buying lots of cheap units for my pension. I'd obviously want it to be on a high just as it matures but before then periodic lows can be good.

Dollar cost averaging (or Pound cost averaging in your case) 

[bikenerd]

My Halifax ISA Investor (Stocks'n'shares type) has made about 15% over the past 3 years. 

[Polar Bear]

My Halifax ISA Investor (Stocks'n'shares type) has made about 15% over the past 3 years. 

I think the accumulative gain on my Nationwide members cash ISA over three years is greater than that.   

[Greenbank]

I think the accumulative gain on my Nationwide members cash ISA over three years is greater than that.   

What would you do with the other 3600 a year that you couldn't put in your cash ISA but could put in a full ISA?

[border-rider]

If you're a lower rate income tax payer, you'd have got about 15% cumulative from a building society account anyway.

[rae]

But the trend over time is up (also like your body weight)  Sad

You just have to have courage to hang on for the ride during the bumpy bits (the stock market, not body weight  Wink Grin ) 

Precisely.  The stuff I bought in the late 80s early 90s (when ISAs were called Peps) has appreciated a lot faster than pretty much anything else, including housing.   When you include the tax free dividends, the return is even better.  Overall, it is running at about 20% compound since then, not including dividends.   I haven't had the stomach to invest in equities in the last two years, but I've put the cash into the ISA vehicle and used it for CGT free trading.  In the current market lunacy, short term positions are fine and if you are buying stuff that you are happy to hold long term, you won't get burnt. 

[Polar Bear]

I think the accumulative gain on my Nationwide members cash ISA over three years is greater than that.   

What would you do with the other 3600 a year that you couldn't put in your cash ISA but could put in a full ISA?

Well, it wasn't stipulated that the maximum was being used.   However, I tend to keep cash in various accounts form instant access to one withdrawal a year access.   I also have a very varied investment portfolio outside of the stock market.

There are some decent rates for savings out there, especially if you're not a taxpayer at the moment.     

 

[Flying_Monkey]

There's actually no guarrantee that it will get better. Historical trends are not a necessary guide and remember, we've only had about 30 years of a truly global economy and that's hardly even enough time to know what it will do yet!