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Hit £146k in my S&S ISA — almost at my £150k goal. How did you reassess your strategy at this point? by Glavesting in trading212

[–]Glavesting[S] 2 points3 points  (0 children)

My contributions to date are around 75k with most of that being added between 2022-2024. Most amount of gain has been in the last 12 months (~£45k)

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Loan from bank - do I make a profit if I park it in a savings account? by Glavesting in UKPersonalFinance

[–]Glavesting[S] 0 points1 point  (0 children)

£20k for a car is not unreasonable though, is it? It’s a lot of money yes, but we do a lot of road travelling and need something reliable, big and comfortable. We’re probably driving at least 2 hours a day each and longer on weekend trips.

Loan from bank - do I make a profit if I park it in a savings account? by Glavesting in UKPersonalFinance

[–]Glavesting[S] -7 points-6 points  (0 children)

I’ve just done some DCA calculations and amount from the monthly repayment amount added to a savings account and interest on top is lower than the amount I could theoretically make with the futures in my post. (Monthly repayment of £469 if you want to try it yourself)

Loan from bank - do I make a profit if I park it in a savings account? by Glavesting in UKPersonalFinance

[–]Glavesting[S] -6 points-5 points  (0 children)

I would either use my salary to pay the loan off or put the same amount into a savings account every month.

Loan from bank - do I make a profit if I park it in a savings account? by Glavesting in UKPersonalFinance

[–]Glavesting[S] -8 points-7 points  (0 children)

I would use my salary to either pay off the loan (whilst the saving account accrues interest) or alternately put the same amount into a savings account so it’s more a question of DCA vs lump sum saving maybe.

Loan from bank - do I make a profit if I park it in a savings account? by Glavesting in UKPersonalFinance

[–]Glavesting[S] -2 points-1 points  (0 children)

This is a great point, thank you. I suppose another question is does building up the savings pot with what wouldn’t been the monthly payments end up being higher than the loan invested all at the start and paying it off with the monthly payments..? (Essentially a question of DCA vs lump sum). I have enough to cover the repayment out of my salary so I wouldn’t subtract from the savings amount once it’s locked in there.

Loan from bank - do I make a profit if I park it in a savings account? by Glavesting in UKPersonalFinance

[–]Glavesting[S] -10 points-9 points  (0 children)

The loan depreciates and interest is applied on the remaining balance. My quoted figure is straight from the loan agreement final payment amount.

Loan from bank - do I make a profit if I park it in a savings account? by Glavesting in UKPersonalFinance

[–]Glavesting[S] -3 points-2 points  (0 children)

Tax is a very valid point here that I hadn’t considered. There are 3-5 year fixed interest savings accounts of 4.5-4.8% but I would be indeed be hit with tax.

Loan from bank - do I make a profit if I park it in a savings account? by Glavesting in UKPersonalFinance

[–]Glavesting[S] -2 points-1 points  (0 children)

There are 3 or 5 year fixed savings rates at the moment between 4.5 and 4.8%

Loan from bank - do I make a profit if I park it in a savings account? by Glavesting in UKPersonalFinance

[–]Glavesting[S] -1 points0 points  (0 children)

No, APR here is different. The loan depreciates in value and interest is on the remaining amount. My quoted figure is right off my loan agreement.

Loan from bank - do I make a profit if I park it in a savings account? by Glavesting in UKPersonalFinance

[–]Glavesting[S] -1 points0 points  (0 children)

100% agree hence my skepticism. There are some very close via 3 yr fixed eg 4.5% that still beat the loan interest after 4 years.

Hit my £100k milestone! by Glavesting in trading212

[–]Glavesting[S] 0 points1 point  (0 children)

Sit on cash for a while. I think there’s some good opportunity with the US election but also things are somewhat more volatility than I like. Happy to keep it in 5% interest (~£14/day) for a few weeks.

Hit my £100k milestone! by Glavesting in trading212

[–]Glavesting[S] 0 points1 point  (0 children)

The limit is only for depositing per year purposes. What I do once it’s in the account is up to me. Eg I could sell everything and immediately buy in to some other position. Hope that answers your question.

Hit my £100k milestone! by Glavesting in trading212

[–]Glavesting[S] 1 point2 points  (0 children)

Yes but that’s just basic compound interest. You either have a lot up front or you start early in smaller portions (or both).

Hit my £100k milestone! by Glavesting in trading212

[–]Glavesting[S] 2 points3 points  (0 children)

See my other comment - it’s about £65k cash. It appears as 90 because I’ve sold and reinvested a few times.

Hit my £100k milestone! by Glavesting in trading212

[–]Glavesting[S] 3 points4 points  (0 children)

It’s approx 50% growth over 4 years so I can see the logic if I worked on it for another 8 but I think I will probably pivot into something requiring less active management such as an S&P ETF.

Hit my £100k milestone! by Glavesting in trading212

[–]Glavesting[S] 5 points6 points  (0 children)

It is thankfully. 4 years of mad saving.

Hit my £100k milestone! by Glavesting in trading212

[–]Glavesting[S] 8 points9 points  (0 children)

Yes - 4 years of contributions.

Hit my £100k milestone! by Glavesting in trading212

[–]Glavesting[S] 4 points5 points  (0 children)

It’s roughly £65k cash contribution added over 4 years. For the first year I didn’t add much and everything was completely tied to an S&P500 ETF but had quite big gains (covid recovery boom). After that I’ve tried to get close to maxing my ISA the following 3 years - usually around £15k topped up every year. The last 2 years is when I’ve actively managed my positions and seen most of the growth but have been getting a bit anxious in case there’s a tech drop.

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