Save or Invest your Money in 2023? Don’t Miss This

Is saving better than investing in 2023 with all of the new higher interest rates available to us, or should we stick with investing? I take a look at the data and let you know why you might want to one over the other and when I think is best to invest, or save in the first place. Let me know what you're doing too!

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[PeacockRhino]

There’s a third option as well which is to pay down debt which also guarantees your return in saved interest payments.

[liam]

Tobes - the elephant - I love it! great bants

[seanek]

Quick note on banks. They don’t offer a good interest rate so they can lend it out for mortgages. A bank/building society doesn’t lend out depositors money for mortgages. The moment you sign your mortgage agreement the money is generated (or as the bank England actually described it “like magic”) on a ledger and given to you. A lender requires no capital to back your mortgage, you back your mortgage. Your debt IS the money.

[quokkapirquish]

My Barclays and Lloyds stocks are, after 6 months, back to the price I paid for them - hurrah
I’ll receive my 5% dividend next month from them so I’m not in a loss situation any longer!
My S and P holding however……
A 7% bank rate would absolutely deter me from any further stock investments, that’s a really solid return

[normancoutts]

Very well argued and helpful. Thanks.

[mattsennett]

A great video Toby and having some sort of fixed income is always a good thing.
Risk free doesn't exist as I remember having much of my cash tied up with Icelandic banks back in the day which caused many sleepless nights until the UK government stepped in!!
Risk on / risk off is a part of investing and getting that balance right is ever changing, especially in a high inflation environment.

[TechFusions]

Loving your content Toby! 👏 Clear, professional and unbiased content which brings me so much knowledge and drive to learn more about the investing world 🌎

I look forward to watching your videos! You are smashing it 😁

[cathycooper]

I really like your videos, so thank you! I am retired and aged 50… I think I am diversified, but have always been a cautious investor. Having said that, the stronger my finances have become, the more risk seeking I have become with my investments, which as I look back now is completely backwards!! I wish I had a greater risk appetite when I was younger, but I couldn’t bare the thought of loosing everything on the stock market… Now I feel that the best thing I can do is buy stocks & shares whilst the market is low… I have a small, but acceptable income for life with shares to back me up in difficult times, and I would like my portfolio to be strong for the rainy days…. Even as a cautious investor i am “laughing” at people selling up now when things are tough… Anyway.. Thank you again. Great content|!

[johnclose]

Another great video thanks Toby. The missus watches you as well - she loves the way you crinkle up your nose.

[hitenpokar]

It's worthwhile looking at this from a risk perspective. If you have time on your side, invest a proportion of your money based on your risk appetite.

[davidguy]

Great video again I have watched many of them and feel you give a great balanced view of things in the financial world. It would be really good to hear your thoughts on investing funds that are in a ltd company as the savings rates for business accounts are really poor for some odd reason, I am unsure why the money is different from personal savings.

[stuartdonald]

I have solved the ISA CGT problem, for me this year!

AJ Bell have been fantastic. I set up a dealing account for my Mrs transfer to her account she sells some this financial year and bed and ISA in the new.

I am making a modest loss on a property (planning aint going to happen) I use that loss this financial year to sell some shares and use the smaller new CGT allowance next financial year and I am fully ISA'd in the new tax year without any CGT RESULT. (I just have to check I can still offset a capital gain with a capital loss)

[charlieboyvespa]

New to the channel, really enjoyed the video. Fixed rate bonds and cash isas are my choice at present

[andyh]

Realistically most of the best savings rates are 3.5% to 4.5% as the 6% to 7% ones are very limiting. That is for example you can only put say £4000 in over the year at so much per month so month one you only getting interest on say £350 first month, month 2 £700 etc

At least say with a fixed rate bond for 1 year you could have say 10k earning 4% from day 1.

Myself I’ll keep investing in the market and for cash I just like a bit of fun so keep it in premium bonds ie lottery without losing your stake. No doubt a financial advisor would go🙄 to that with the premium bonds 😊

[Clarky]

I think it’s fair to say trying to time the market is a fools game unless you are inside trading 😂 DCA and keep cash on the sidelines in a bear market.

Basically play the long game and cover your liabilities with your income only, don’t take on leverage at all if possible.

[MegaBankjob]

Great stuff toby, both for me, Invest with pot of cash for rainy days as I've been very lucky and paid of mortgages, one thing i will never stop is dcaing into mine & kids stock and shares isa

[meinages]

Wish I taught myself about investment 15years ago when I started work. I didn't waste money just saved and bought a house. But feel I could've made my money work better in that time. Atleast I started a year ago. Got probably another 30 years until retirement so going to investment consistently from now on.

[chris]

"Don't show them your crypto account" 🤣 love it Toby.

Please never stop doing these videos. You're keeping me grounded every week.

[MoonTone]

Doing both definitely seems like a good option until the market becomes less of a shit show.
There is some very attractive stocks at low prices right now, like all the big tech companies.
But with how uncertain the future is and with a recession on the table, dumping everything in seems too risky.
So right now I am just DCA on stocks with spare cash until things look up

[davidclark]

Good video. It’s worth pointing out that inflation affects share and bond prices every bit as much as savings. So a fund whose price has reduced by 16% over the past year has, with inflation included, really reduced in value by more that 25%. If you’d not invested the money at all it would have reduced in value by 10% due to inflation and if you’d had it in a 4% savings account, it would have reduced by 6%.

On the other hand, you’ve not made an actual loss on a share or fund until it’s been sold, whereas you have in the other two instances. Which is why investing for the long term in shares and funds may make sense even in the past year’s difficult times.