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ANDREW FOSTER
Posted: 23 August 2022 17:52:24(UTC)
#30

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TJL;235707 wrote:


Martin Lewis - not for investment, but good for for facts and comparison in relation to other aspects of money managment.


I recall following Martin Lewis's expert advice to pile into Icelandic Deposit Accounts.

I also recall how that went...

He really has no idea.
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4 users thanked ANDREW FOSTER for this post.
Bulldog Drummond on 23/08/2022(UTC), Jimmy Page on 23/08/2022(UTC), Raj K on 23/08/2022(UTC), Easyrider on 24/08/2022(UTC)
Apostate
Posted: 23 August 2022 18:12:40(UTC)
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Joined: 02/04/2018(UTC)
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Bulldog Drummond;235717 wrote:
Ramondo;235694 wrote:


I would put forward though that at declining periods in investment return, fixed rate bonds can be at least certain, and for some people overall investment is a little bit more serious than a fun seeking episode.

Personally, I have spare cash generating tax free income from high yield investments. Can't see why anyone would have money on deposit anywhere unless they are keen to lock in a guaranteed real loss of capital, have very short term needs for the money, or are terrified of volatility.


but leaving aside the issue of inflation - what high yield investments are guaranteed to return to you your principle?
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Bulldog Drummond
Posted: 23 August 2022 18:24:09(UTC)
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Apostate;235728 wrote:

but leaving aside the issue of inflation - what high yield investments are guaranteed to return to you your principle?

Obviously none of them. But bank deposits are guaranteed not to return your principal in real terms, so it seems a bit disingenuous to leave out inflation and taxes.
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3 users thanked Bulldog Drummond for this post.
Tim D on 23/08/2022(UTC), Sara G on 23/08/2022(UTC), Jimmy Page on 23/08/2022(UTC)
Apostate
Posted: 23 August 2022 20:18:04(UTC)
#18

Joined: 02/04/2018(UTC)
Posts: 2,287
Bulldog Drummond;235730 wrote:
Apostate;235728 wrote:

but leaving aside the issue of inflation - what high yield investments are guaranteed to return to you your principle?

Obviously none of them. But bank deposits are guaranteed not to return your principal in real terms, so it seems a bit disingenuous to leave out inflation and taxes.


what high yield investment is going to beat 10% inflation - maybe 20% next year?
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Bulldog Drummond
Posted: 23 August 2022 20:26:32(UTC)
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Apostate;235752 wrote:

what high yield investment is going to beat 10% inflation - maybe 20% next year?

What bank deposit is?
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Raj K
Posted: 23 August 2022 20:27:40(UTC)
#31

Joined: 22/04/2016(UTC)
Posts: 2,819
ANDREW FOSTER;235722 wrote:
TJL;235707 wrote:


Martin Lewis - not for investment, but good for for facts and comparison in relation to other aspects of money managment.


I recall following Martin Lewis's expert advice to pile into Icelandic Deposit Accounts.

I also recall how that went...

He really has no idea.


I had all my savings in Icelandic Bank ( was it called icesave)? at one point and when the shit hit the fan about half that amount . Not sure what would have become of me if government didn’t bail us poor souls out. cant even remember if / how much the FSCS protection was at the time.
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Fife Clive
Posted: 23 August 2022 20:43:31(UTC)
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Joined: 01/12/2021(UTC)
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Raj K;235754 wrote:
ANDREW FOSTER;235722 wrote:
TJL;235707 wrote:


Martin Lewis - not for investment, but good for for facts and comparison in relation to other aspects of money managment.


I recall following Martin Lewis's expert advice to pile into Icelandic Deposit Accounts.

I also recall how that went...

He really has no idea.


I had all my savings in Icelandic Bank ( was it called icesave)? at one point and when the shit hit the fan about half that amount . Not sure what would have become of me if government didn’t bail us poor souls out. cant even remember if / how much the FSCS protection was at the time.


The FSCS limit at the time was £50k and the government at the time decided to make that unlimited for the 2008 failures. There are interesting stats in this report, namely that just 6% of all accounts were in excess of the £50k limit https://www.fscs.org.uk/uploaded...y_08_10_13_final_pdf.pdf

Of course if the government hadn’t stepped in you wouldn’t have simply lost everything above £50k - you become an unsecured creditor in administration. The bank did have assets after all, it didn’t just take deposits and launch them into space. By 2014 the U.K. government having ‘stepped into depositors shoes’ as creditor to the failed Landsbanki had recovered 85% of the total outlay and by 2016 had recovered everything https://www.gov.uk/government/ne...ck-from-icesave-collapse https://www.gov.uk/government/ne...nal-payment-from-icesave
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4 users thanked Fife Clive for this post.
ANDREW FOSTER on 23/08/2022(UTC), Raj K on 23/08/2022(UTC), Tim D on 23/08/2022(UTC), Dexi on 24/08/2022(UTC)
Apostate
Posted: 23 August 2022 20:48:52(UTC)
#20

Joined: 02/04/2018(UTC)
Posts: 2,287
Bulldog Drummond;235753 wrote:
Apostate;235752 wrote:

what high yield investment is going to beat 10% inflation - maybe 20% next year?

What bank deposit is?


3.2% compounded over 5 years is 17.3% - that's better than the TR for any of the Global High Yield bond funds on HL over the last 5 years - and with FSCS protection
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5 users thanked Apostate for this post.
ANDREW FOSTER on 23/08/2022(UTC), Dexi on 24/08/2022(UTC), kim shillinglaw on 25/08/2022(UTC), xiang zou on 05/09/2022(UTC), Guest on 29/09/2022(UTC)
ANDREW FOSTER
Posted: 23 August 2022 20:54:14(UTC)
#37

Joined: 23/07/2019(UTC)
Posts: 8,128

Thanks: 11374 times
Was thanked: 18244 time(s) in 5985 post(s)
I was in Kaupthing rather than Icesave but the story was similar. Eventually got reimbursed with the money in a Dutch Bank.

I also had money in Bank of Baroda for a fixed term but that went OK.
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Raj K on 23/08/2022(UTC)
Raj K
Posted: 23 August 2022 20:57:14(UTC)
#35

Joined: 22/04/2016(UTC)
Posts: 2,819
Fife Clive;235755 wrote:
Raj K;235754 wrote:
ANDREW FOSTER;235722 wrote:
TJL;235707 wrote:


Martin Lewis - not for investment, but good for for facts and comparison in relation to other aspects of money managment.


I recall following Martin Lewis's expert advice to pile into Icelandic Deposit Accounts.

I also recall how that went...

He really has no idea.


I had all my savings in Icelandic Bank ( was it called icesave)? at one point and when the shit hit the fan about half that amount . Not sure what would have become of me if government didn’t bail us poor souls out. cant even remember if / how much the FSCS protection was at the time.


The FSCS limit at the time was £50k and the government at the time decided to make that unlimited for the 2008 failures. There are interesting stats in this report, namely that just 6% of all accounts were in excess of the £50k limit https://www.fscs.org.uk/uploaded...y_08_10_13_final_pdf.pdf

Of course if the government hadn’t stepped in you wouldn’t have simply lost everything above £50k - you become an unsecured creditor in administration. The bank did have assets after all, it didn’t just take deposits and launch them into space. By 2014 the U.K. government having ‘stepped into depositors shoes’ as creditor to the failed Landsbanki had recovered 85% of the total outlay and by 2016 had recovered everything https://www.gov.uk/government/ne...ck-from-icesave-collapse https://www.gov.uk/government/ne...nal-payment-from-icesave


Thankyou I did not know it was such a lengthy battle to recover the monies but am glad the government were able to do so. I was silly enough at the time to not know or observe the FSCS limits and put around 200K into that account of which 110K was there when they collapsed. Lesson learnt.
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1 user thanked Raj K for this post.
kim shillinglaw on 25/08/2022(UTC)
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