Finally, I have done it. (S&S ISA)

[SpokeyDokey]

Resurrecting the thread with some questions!

I know a S&S ISA should be for a minimum of 5 years, but, with the abysmal savings rates, is it worth starting a S&S ISA for around £10,000 when there is a possibility that the cash will be needed in 12 months?

Otherwise what is the best interest rate you know of that is fixed for a 12 months or less?

There have been interesting replies previously, so I’m hoping for lots of different options.

Yes.

A J Bell has just returned 9.44% for the year (suggested fund that can be self-amended).

Vanguard Life Strategy 80 has just returned 9.78%.

Started both a year ago.

My expectation (I am not an IFA btw) is that the funds will continue to climb in 2022 as the planet gets to grips with Covid although the increase will not be as much this year but that they will easily out perform any fixed rate ISA's or Bonds.

 

[SpokeyDokey]

I’m resurrecting this thread as there are some very interesting posts. I have two questions.

I view of the abysmal interest rates, is it worth investing in a S&S ISA when you might need to cash in within 12 to 18 months?

What is the best savings rate, up to 12 months fixed, that you know of?

You've double posted.

 

[CharlesF]

You've double posted.

Just noticed that, thought the first one hadn’t gone through, now corrected

 

[CharlesF]

Thanks @SpokeyDokey , that’s reassuring.

 

[SpokeyDokey]

Thanks @SpokeyDokey , that’s reassuring.

I think the only thing to remember is that these types of investments do bounce around a lot and typically plummet when a major financial calamity occurs either globally or within the sector in which the funds are invested. Over a 5 years+ period these swings tend not to matter.

However, with an investment timeframe of 1 year you could find that some unforseen event causes a dip at eg 11 months and the fund has no time to recover.

If in doubt stick with the best fixed rate return that you can get.

 

[DCLane]

This is one of the things I'll be doing shortly ...

 

[SkipdiverJohn]

I think the only thing to remember is that these types of investments do bounce around a lot and typically plummet when a major financial calamity occurs either globally or within the sector in which the funds are invested. Over a 5 years+ period these swings tend not to matter.

However, with an investment timeframe of 1 year you could find that some unforseen event causes a dip at eg 11 months and the fund has no time to recover.

If in doubt stick with the best fixed rate return that you can get.

This is something to be taken seriously. I have invested in S & S ISA's for years, but on a long timeframe. I'm not bothered if the market plummetted in 11 months, and maybe then flatlined for another year. in fact, i would view it as an opportunity to buy more shares at a cheaper price and potentially make a bigger profit down the line.
However, if I needed to cash out my investment in month 12, because I needed funds for something like a property purchase or other large expenditure, I would be loathe to do so at a loss. Peersonally I would not invest in the stock market over a rigidly fixed 12 month period, because of the volatility risk of being forced to liquidate the investment underwater. Different matter if the financial event I want the funds for is not set in stone and could be delayed if need be, but if the date is not flexible then I would keep the cash on deposit at the best rate I could find with the accessibility I needed.

 

[iluvmybike]

Very sensible advice from Skipdiver there. S&S ISA for the long-term approach for sure. Been at this for 30+ years now - you have to hold yuor nerve during the down turn times!

 

[Dave7]

I am by nature a very cautious person so when I/we had a lump to invest I got advice and decided on a low risk one split between Aviva and another. Stuck it in for 5 years and didn't check it again (apart from an annual letter.
5 years later I was well impressed.
High interest/high risk was of no interest as I wanted a comfy sleep every night.

 

[SpokeyDokey]

I am by nature a very cautious person so when I/we had a lump to invest I got advice and decided on a low risk one split between Aviva and another. Stuck it in for 5 years and didn't check it again (apart from an annual letter.
5 years later I was well impressed.
High interest/high risk was of no interest as I wanted a comfy sleep every night.

Mrs SD has an Aviva SIPPS which was formerly a Friends Life policy which is based on a commercial property portfolio.

She invested in it 2000-2003 and it is currently worth a tad over 7 times more than its 2003 price.

 

[SpokeyDokey]

Time to hold tight and hang on - rocky ride ahead.

 

[All uphill]

Time to hold tight and hang on - rocky ride ahead.

I see it as an opportunity to buy when prices drop.

 

[SpokeyDokey]

I see it as an opportunity to buy when prices drop.

It is - but it is against the backdrop of such an awful crisis. 😢

I have very conflicted feelings about this.

 

[Milkfloat]

I will be buying today, but will hold some cash back to buy more in case he who must not be named keeps heading west and takes out the whole country, in which case I can buy again at a lower price, or use the money to stock up on boiled water and an Anderson shelter.

Edit - I may seem very callous, but my thoughts on the horror of the situation are not posted here, they are on NACA.

 

[All uphill]

It is - but it is against the backdrop of such an awful crisis. 😢

I have very conflicted feelings about this.

I understand that and have thought a lot about it.

My thinking over recent years is not to put money into companies, countries and industries that I don't want to support , but I will buy the shares of ethical quality companies when everyone else is selling.

Doing that in March 2020 gave me a very nice boost to my savings, and I hurt no one.