Resolved Question
What are my best options for longterm saving?
I mean of at least 5-10 years but preferably over 20-25 years with me putting away at least £1,200 every month. I recently spoke with a financial planner and he says should I invest in one of these http://www.rbs.co.uk/personal/investment…
I don't know which one to go for. I'm pretty cautious and I'm prepared to accept lower returns as long as I know my money is completely safe as I'm in it for the long term and will have longer to build up my funds. He said that by investing my money will grow considerably more than if I was just putting cash away into a savings account every month, is that true? I asked him what interest rates I'd get and he couldn't give me an answer so I'm not sure now.
I don't know which one to go for. I'm pretty cautious and I'm prepared to accept lower returns as long as I know my money is completely safe as I'm in it for the long term and will have longer to build up my funds. He said that by investing my money will grow considerably more than if I was just putting cash away into a savings account every month, is that true? I asked him what interest rates I'd get and he couldn't give me an answer so I'm not sure now.
Best Answer - Chosen by Asker
Here, in the USA, I am a Chartered Financial Consultant.
In my country, under the ethics of my credentials, I would not be allowed to offer a suggestion regarding those investments, at least not initially.
You state you want your money to be 'completely safe', yet you want the money to grow. In the USA this is impossible.
Inflation takes away the purchasing value of your capital. There is no investment, even US bonds, that is totally safe. If the inflation rate is five percent in the UK, you must earn five percent from a UK government bond just to break even.
Someone is going to have to take a good bit of time with you. You are going to have to accept more risk, however slight, That, or design something that no person has yet designed: A method to invest with total safety and receive a growth greater than the inflation rate.
Take some time. You are absolutely on the right track.
Your local advisor is correct about money into a savings account. The bank will invest the money earning as high as twelve percent or more. The bank will then pay you three percent or less, often. Inflation can obliterate that three percent or less. The bank wins. You lose.
If you would like a plan that I recommend here in the USA, please contact me through Yahoo Answers. I will send it to you on this condition: The advice is totally free, you must consult with a licensed professional in your jurisdiction, and you totally comprehend that this advice is not an attempt to solicit a client in a nation wherein I am not licensed.
Fair enough?
In my country, under the ethics of my credentials, I would not be allowed to offer a suggestion regarding those investments, at least not initially.
You state you want your money to be 'completely safe', yet you want the money to grow. In the USA this is impossible.
Inflation takes away the purchasing value of your capital. There is no investment, even US bonds, that is totally safe. If the inflation rate is five percent in the UK, you must earn five percent from a UK government bond just to break even.
Someone is going to have to take a good bit of time with you. You are going to have to accept more risk, however slight, That, or design something that no person has yet designed: A method to invest with total safety and receive a growth greater than the inflation rate.
Take some time. You are absolutely on the right track.
Your local advisor is correct about money into a savings account. The bank will invest the money earning as high as twelve percent or more. The bank will then pay you three percent or less, often. Inflation can obliterate that three percent or less. The bank wins. You lose.
If you would like a plan that I recommend here in the USA, please contact me through Yahoo Answers. I will send it to you on this condition: The advice is totally free, you must consult with a licensed professional in your jurisdiction, and you totally comprehend that this advice is not an attempt to solicit a client in a nation wherein I am not licensed.
Fair enough?
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Other Answers (1)
- give up that idea of wanting a safe/low return; in 10-25 years, you don't have to worry about things like if a stock dips, all you really have to worry about is if it goes bankrupt.
Obviously you should never invest all your money in the same stock (Enron haha) but stocks WILL give you a better rate of return in the long run and you are a fool to keep your money in cash or put it in low-risk investments if you have that much time on your hands to let the money grow.
With stocks, you can probably expect a 5-8% APR on average, but you will also have quarters you are down. In the end you will be glad you chose to invest in stocks rather than cash.
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