Investment & Investing

Tough life

The main problem with this, is that the reason you need to help with a deposit is because people have done this in the first place. Perpetuating a shitty system isn't the answer.

Stressful week ahead for market makers. Hopefully US Govt can contain panic from SIVB, since it isn’t clear that the rest of the banking sector is very exposed to SIB, unlike 2008. The Fed might raise rates, ECB might give a nasty surprise… at least it seems depositors at SIB will get their money.

Unsure how badly the UK SIB arm will stir UK market :/

Hopefully US Govt can contain panic from SIVB

The US Gov has guaranteed the deposits of the US arm (plus another bank in NY - Signature Bank).

https://home.treasury.gov/news/press-releases/jy1337

Unsure how badly the UK SIB arm will stir UK market

And HSBC has just bought the UK arm of SVB.

Guarantees like that should help minimise things, but I'm sure many companies (and other banks) will be reviewing their exposure.

We're getting close to peak interest rates and inflation still forecast to come down... fast.

Inflation question......since the recent food shortage was once you get past the headline 'bad weather' seems to be have been caused by UK Supermarkets being on fixed contracts whereas European are on weekly prices......surely once these fixed contracts run out we're going to see further jumps in the price of food. Ie there is a lag in the inflation that we are experiencing, compared to Europe and we've already got super high inflation. Thoughts/knowledge anyone?

a point well made in this: https://www.bbc.co.uk/programmes/m001k0cr

Does anyone have any recommendations/referrals for a bank account? My main one is with Natwest and due to FCA cover limits, I would like to open a second bank account. Need something fairly accessible, as we are looking to buy a house at some point this year.

Marcus? All online, instant access and pays 3.25% now. Think they have an isa as well.
I've had no problems so far...

and made in a slightly denser way here:
https://www.lighthousereports.com/investigation/pension-funds-gambling-with-savings-and-fuelling-hunger/

Just got a LISA, low yearly limit but since going PT at work my pension is not as attractive as it was, makes me feel slightly weird having a 20 year plan…

3.25 in this market is shite. Buy 3 month US government t notes and earn 4.5% every 3 months risk free

who with?

Nutmeg. Every £4 is matched with £1 from Gov. Then hopefully a few % from the account.
There appears to be something similar for pensions for Self employed.

trying to work out is it ON TOP of £20k ISA or part of the same allowance i.e. is it £16+£4 or £20+£4 ..

Same allowance, just a different (and a bit bat-shit) flavour

@GoatandTricycle is it in your name or your child's? I thought the LISA Gov top up was only honoured if you use the money for a 1st time house purchase.
Do young children have their own ISA allowance?

My name, first time buy with stipulations or withdraw at 60, needs to be opened by 40 and only pay in till 50.
Children do have their own allowance up to £9k I think as stated above.

ah .. rules me out unless I withdraw etc, is it essentially a 25% guaranteed interest, tax free, capped £4k? Seems great if so!

Yeah, that’s why I opened it, I guess it could go below original investment so lower than 25% return but figured it was worth opening and keeping it in play at least.

You're better off paying into a pension unless you have unusual circumstances. You're contributing post-tax income to the LISA whereas a pension is pre-tax. The 25% bonus is less than what you've paid in tax

(You are taxed on withdrawal from the pension though, LISA can be accessed before 60, etc.)

yeah, read the MSE link, not right for me, interesting product though, never came across

Can you withdraw your money quickly though? They said they want to buy a house so may need their money at short notice.

On the one hand yes. On the other you don’t know what the tax rules will be in the future when you withdraw from your pension.

Same could be said for the bat shit element