The Long Term Investor

So, will we get a TRICK or TREAT on our Halloween market day to end the week??

An early Happy Halloween to all of you.

 

Pensions are huge here in England, W. Everyone has a workplace pension. In fact, it’s the law in this country that every employer must automatically enrol their staff into a workplace pension scheme — and they’re required to contribute to it as well.

On top of that, private pensions are also very popular, and many people have both. I have my workplace pension but no private one. I’ve considered starting one, but I feel I’m better off contributing more to my workplace pension and my stock investments.

 

I think this must be one of the best months I have ever experienced in the markets - good times!

Looking like another good day here with Amazon and Apple leading the race.

 

Bit by bit a minds are changing. But just a small fraction of population reserve a part of their savings to "risk investments".
Portugal allways has been a poor country with a good chunk of their population moving abroad for better life conditions. You find portuguese a bit everywhere. And a cultural habit common to other poor nations is to save for a stormy day. Considering emigrants other habit has been to send back part of savings to homeland.
This part is the good part. The bad part is that the remaining needed finance culture is absent. Simple principles such as spliting your savings in several accounts (the eggs and nests principle) are not followed. The notion of inflation and their erosion effect on accounts are not easily understood. And due to some regrettable banking bailouts that made people loose money, good chunks of it, made risk investment "a demon thing"...
So what most people do?
They put ther money in what we call "term deposits" available on retail banking, 6 months/12 months etc with lowsy interest rates; frequently equal or inferior to inflation.
They also use some "savings certificate" issued by portuguese government, that pay a little better than banking sector.
Both products are risk free....litle reward but risk free, the magic words for many...
There are also what we call PPR, "retirement savings plan", that give some fiscal beneficts that make them atractive and are run by retail banks. Banks use fiscal beneficts to charge those products with fees and with a few exceptions are poorly run....deliberately, obviously.

 

Great for you Lori!! Where do you live in UK? You said you live in rural England right?

 

That is a great benefit to have. A lifetime benefit long after you retire. Also, with your own investment portfolio, you should be set when all is said and done. It is great that you are also doing your investments in addition to the other safety net.

It is much more rare here in the US, but some workers still get them. I think the last figure I read was around 15-20% here. Luckily, I am in that percentage and it is a very nice one on top of that. I still have my personal investments, but the pension is also an added benefit and I will also receive SS when the time comes. That all together should make for a nice retirement package. I will likely make more in retirement than working...I will take that all day long.

 

Some good and interesting take on the environment over there rg.

The "banking" deal can change some minds after an ordeal like that. It was the same here in 2007-2008 deal. I knew one or two that never returned to the market.

 

Hey, rg.

Yes, I live on a small island off the south coast of England called the Isle of Wight. It's just a 20 minute boat trip away from mainland U.K. It's a beautiful island and I feel very lucky to live here - especially with all the madness going on in this country right now.

You're Portugal, right? I did travel to Albufeira a few years ago. A lovely place.

 

Thanks, Smokie! That is my plan. Let's hope it works out. Like I have said, people think I'm crazy investing in the markets - especially in individual stocks.

 

Speaking of investing, retirement, and saving. I have seen a few articles here (US) where some of the speculative, leverage, and a few other risky investment themes have increased quite significantly. Although, I think a lot of this has been around awhile. There will come a time, as there always is, when the market environment will change. There are going to be some folks that get burned badly.

They will be spooked out of investing, not realizing that their own behavior contributed to the issue in the first place. And will likely come back around and do the same thing again and again.

 

I think you will be fine. Just be reasonable and rational. Always take time to "think about" your plan and your own circumstances. You are doing very well it sounds like.

 

I also want to add....it is so nice to hear from Lori and rg about other places and how investment is in other parts of the world. They also have some other good commentary as well. Strathmore as well....I think maybe he was from somewhere else. If not, I apologize Strathmore.