Re: Vince Cable suggesting savers should invest in stocks.Is he right?

"tim....." <tims_new_home@xxxxxxxxxxx> wrote in message news:6smj0pF72249U2@xxxxxxxxxxxxxxxxxxxxx

"John E" <JCE@xxxxxxxxxxxxxxx> wrote in message news:6zo9l.17088$Sp5.3240@xxxxxxxxxxxxxxxxxxxxxxxxxxxx
"mick" <michael@xxxxxxxxxxxxxxxxxxxxxxx> wrote in message news:b0a0c62a-7187-484e-b05f-3b433eb4dab1@xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
Seems a bit risky to me, you may get only 3% or so in savings,but you
can get it once a month.
Far too much fear in the market at present.


It depends on whether you are prepared to risk what you pay in, and whether you are prepared to invest for at least five years. If the answer to those two questions is 'yes', then it is worth a punt, in my opinion. You could get 8-9% or more if you buy low and the stock market goes up.

I have a stocks and shares ISA, into which I pay £333 per month. In December 2007 I withdrew most of what was in there when the FTSE 100 was at 6500. As far as I can see, most of what I have paid in since is buying shares at a (relatively) low value, so in five years time, I should see a good profit.

The FTSE could go down to 3000 or even lower, however, I can afford to lose that money, if the worst came to the worst.

The average saver can't.

Only "investors" are prepared to lose money.

Advising "savers" to put their money into stocks, in the current market, is dumb, IMHO

tim
I would say that I'm fairly average, but just older than most. I couldn't afford to save in shares until the last 15 years of my career; that paid off with more than 8% gains (mostly tax free - thanks to the ISA). Now living on a pension which is quite a bit less than the 'median income of £25000'. I'm prepared to take the risk over the next 5-10 years. Maybe it helps business too.

John

.

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