Investment & Investing

So does the hive mind think higher interest rates are likely to be passed on to Banks savers accounts?

I imagine it's entirely at the Banks discretion.

If you are with the High Street, no (they are swimming in excess deposits). If you want to shop around, yes.

https://www.moneysavingexpert.com/savings/

My 'pots' seem to have recovered since the hammering they took earlier this year.

Is there any particular reason for this do we think? I wondered if it was simply devaluation of the Pound.

I'm feeling quite pessimistic about things, so I'm considering pulling a chunk out and paying off some mortgage debt as I won't be banking a loss (more like a fair gain for the limited time it's been in the market) - we have to remortgage early next year, and the rates are going to be a very different story to last time and our energy bills will be crushing at the same time.

If I keep this chunk in the market (because we think it's going to continue to do well) then it would have to do very well because it would mean

• getting tied in to 3-4% interest rates
  
• having very little cash left at the end of the month
  
• little bandwidth to soak up changes to existing costs
  
• if one of us got sick long term, we'd be a bit fucked
  
  

Obvs. I'm angling for more pay at work but that's not a done deal.

Would welcome any thoughts

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Similar, I saw a 20% gain turn into a -20% deficit now recovered to 12%. Gonna take 50% out and reassess.

what you are saying is perfectly logical and sounds extremely sensible. obviously the only downside is potentially missing an upswing in the market before you re-enter... guess you will also lose the full potential of a larger ISA wrapper when/if you do re-enter. might not be an issue though

Sounds like you need the money more than the potential gains - I’d take it out and use it to save current headaches and simply not worry about what might be

Is there any particular reason for this do we think? I wondered if it was simply devaluation of the Pound.

The S&P500 is up 13% since the end of Q3, which will help!

As others have said, taking your gains and putting it into a 6-12 month fixed rate account (https://www.moneysavingexpert.com/savings/savings-accounts-best-interest/#1yrfixtable) seems pretty sensible. Would want to figure out whether that crystallises any CGT liability though.

However, one thing to bear in mind is that paying down your mortgage is a pretty inefficient way to reduce monthly expenditure, because you obviously can't re-borrow what you have paid. On a £200k mortgage it "costs" £20k to reduce your monthly payment by £100.

Maybe get an offset at refinance time and fund it with a bit of surplus cash on day-1?

However, one thing to bear in mind is that paying down your mortgage is a pretty inefficient way to reduce monthly expenditure

That may be so, but just using the Google mortgage calculator on its stock settings, putting £20k in and reducing the term until the monthly repayable is the same reduces the total repayable by around £55k. Usual caveats: YMMV / depends what your priorities are / depends how much risk you like / depends on your mortgage deal etc etc.

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just using the Google mortgage calculator on its stock settings, putting £20k in and reducing the term until the monthly repayable is the same reduces the total repayable by around £55k.

Time value of money though innit. If your problem is feeling a couple of hundred quid skint every month, the promise of compound interest in 30 years' time is hard to focus on ;-)

Luckily the offset gives you (mostly) the best of both words, albeit with a slightly higher interest rate to pay for the optionality.

Probably nothing.....
https://markets.businessinsider.com/news/stocks/big-short-michael-burry-scion-q2-stock-portfolio-market-crash-2022-8

To me, there looks like a lot more downside than upside in the medium term. As I've previously mentioned, I don't believe in attempting to time the market, but if I needed money I'd be cashing out.

As it is, I don't have any investments right now but recently opened a Vanguard isa to start dripping in a little money.

Michael Burry is one of those guys that has predicted 10 out of the last 2 stock market crashes...

Yeah but he has put options on Apple so I'm not buying this one. Apple have robbed the mob bank with their ATT and are now gonna roll out more and more ads and eat all of that revenue

Wonder what will happen with the meme stock holders now that Cassandra has dreamt of their doom.

Thanks for the thoughts people, really appreciate it. Will mull it over and report back when I've done something.

bbby halted at 75% up today
gme halted, +12% in 3 mins

seems like meme stock holders aren't worried about doom they are just buying and holding as always

I’m trying to buy shares in Innerscope Hearing Technologies (innd) it’s not listed on Freetrade. Can anyone see it on any of the other platforms they might use?

Did you take the advice of the internet stranger?

I guess it's a bit limited as it's OTC.
Interactive Brokers list it, but I've never used them.

Yeah I’ve not been able to buy. Oh well just have to hope it doesn’t go to the moon

How do you actually save long term if you are only protected up to £85000. If you would split it
up to different companies you wouldn't benefit from compound growth and you can't just find
a huge number of companies that offer the same investment types.

I was now looking into how money is protected with Vanguard but can't find anything on the FSCS website, only a similarly named company that went out of business in 2017. The entry on the
FCA site is very vague and only just confirmes that they are registered.

https://register.fca.org.uk/s/firm?id=001b000000NMI0mAAH

Not all investments are protected.

FSCS Investment protection checker

That is kind of my point, how can you invest long term?

Most stuff you buy on Vanguard is custody - if Vanguard goes tits up, it's still in trust. Although access to it might be a pain.

Any cash with Vanguard (or other Vanguard issued funds I guess) would likely be covered to 85k.

If the shares / funds you invested in go tits up, that's a different story.

Thanks for the explanation, will have to check what I actually bought.