Premium Bonds

I used to be a pension trustee in a former company. You won't believe the b0ll0cks that the fund managers came out with when their funds were underperforming the benchmark.Then again, you probably can.

Some of their 2% outperformance funds were worse performers than the trackers.Usually it was a case of "you have to invest for the long term" and in time their fund will equal or exceed the markets.  The "long term" being a flexible amount of time that they would alter as it suited.

Just checked my Premium Bonds and I won again ... 

And I don't have an expensive cat to feed ... .. I can't help it if I'm lucky

Just out of interest GF how often do you win,and how much?  All we get is 25 quid once in a blue moon and for the amount of money tied up its a freeking joke.

Mista h

Mista H,

PB's are a method of investing in probably the lowest risk going i.e. Sovereign risk, with an uncertain return per the underlying terms of the product. As others have recorded here, as a cash investment (obviously not inflation proof as such), they need to be looked at as part of a portfolio of investments. All financial investments have facets of capital risk and allied return.

The latter segues nicely in to the statements made by the advisor to you around potentially doubling your investment within c. 5Y's i.e. imputing annual compounded growth >15% p.a., when the 'risk free' market return via government debt (gilts) was probably ~4%(?). In the same way in business where there is 'no such thing as a free lunch', you cannot hope to generate out-performance of ~11% p.a. without taking heightened risk to capital and return. If so, everyone would be doing it

In my case, 'investing' in Naim kit with commensurate return of enjoyment, has turned out far better than some other financial investments I've made with reputable investment houses over the years.

Great middle paragraph HL. Reason i started this topic was because the amount of money i and SWMBO have tied up in PBs relative to our winnings is just a joke.

I have decided i am going to keep a simple book and record all our prize money for 2013,then 1st Jan 2014 if things dont improve big time i intend to cash the lot in.

Mista h

Mista H,

I'm obviously winning your share at this time , so I'm pleading with you to keep yours for the forseeable.....but I'm still only half-way to a new Powerline!

My aunt asked what I would do with the begging letters if I won the £1m prize - I said, I'd keep sending them off

On average i win about £25 a month .. So the return is just over 1%, but the big one is just around th corner. I never invest in anything risky. 

I'm in America, poor years ago when dad gave us 'kids' tax free donations. I invested in the stock market.  Motley Fools I understood, buy and hold stocks of great companies, especially ones with dividends and keep reinvesting.  My dad years ago when I took over his finances due to dementia had way too much cash, I found a financial planner.  He got them into CA municipals at that time giving a paltry 5% tax deductible, now they're considered a great value because you can only get 2.5%.  Also consider corporate bonds that should pay a higher dividend, they are taxed. Start reading some basic magazines on investing for advice, educate yourself. My folks were amazed at my knowledge and help I found. 

I have a few broad based Mutual Funds that cover US and 1/4 world, mostly index funds that are low cost.  Ever since our crash in 2007-8 they have been increasing, yes there are dips. I watch a 30 minute business show, recently focused on world/europe/US international companies. Europe and Britain are in a very tough stage, but one older man said it will turn up and now is the time, he's investing in europe for his company and holders. You can't go wrong with really solid companies and utilities.