DH wants to do this. Advice please!

[MrsTerryPratchett]

DH wants to take our savings out of the fairly conservative, bank-administrated fund we currently use for retirement savings and put it in the money markets for a while. He says he watched a few videos on YouTube (save me please) and this is to avoid hyperinflation and a crash of the markets. He says money markets are flat and we will keep the money safe while the crash goes on, to move back afterwards.

He is normally sensible but has form for gambling a little and overestimating his own money management knowledge.

Please help, I'm completely out of my depth. Ironically I'm great at knowing the behavioural issues but the actual financial ones are a mystery.

We have decent pensions and are ten years away from retirement.

Hes a gambler. Just because its not horses or cards doent mean its not gambling. Tell him no. Are the savings in joint accounts or his only? If joint move your share to one controlled only by you. If his...get him to give you half immediately.

What exactly does he want to invest in? Money markets... its not Crypto is it??

What about using some of the money for this and leaving a good chunk in the existing fund?

Hyperinflation is not 10% 🙄

Absolutely not. No no no

He's a gambler. This is just gambling but with much higher stakes.

Please make sure that any investments you currently have are protected snd that he can't get at them without yiour approval.

If necessary inform the current investment managers/holders that you expressly do not agree to any transfer out. Or better still get yours ring fenced in your name alone.

You (he) could lose the lot in a matter of days/weeks.

He's an idiot.

Not crypto. He's in IT and is vehemently opposed to crypto.

Hyperinflation is not 10%

The phrase I used was, "it isn't postwar Germany!".

“Money markets” and “bank administered pension savings” are really vague…what exactly do you have your money invested in and what exactly is he proposing?

It really depends on the specifics, ie a cash ISA with a bank is a shit idea for pension savings and inflation will erode its value considerably. Too, there are rules about withdrawals and roll overs from one pension type of savings to another…

What is the money in now, and what specifically does he want to move it to?

I'd insist on independent financial advice (if possible). I really would not make financial decisions based on a few YouTube videos alone.

I'm sure there are many good ones, but you're talking about your retirement savings. YouTube is all well and good for funny pets and clips of Judge Judy but not for financial guidance that could have future ramifications (and by that I don't mean funny YouTube clips about male sheep 😉) .

Best wishes to you. x

What does he actually mean?
we have money in shares, it goes up and down but the general trajectory is up. We don’t use money we might need in a hurry though and keep some emergency money more accessible.
The fact that he is a gambler would concern me though

I agree with REP22.
Suggest as a first step go and see a reputable independent financial adviser/wealth manager (or two/three) and find out how they would manage your savings to build your pension pot. You can define the level of risk you are happy with. (Do not risk you old age security on You Tube)

I think that's the best idea. Decent financial advice.

Let him explain it to them!

I think it’s too risky, how about suggesting a stocks and shares ISA instead?

Noooooo. Just no.

Yes to proper financial advice. And can you tie him up until he's listened to it? (Though I hate to suggest doing this to the wonderful Sir Terry GNU)

I suspect I wouldn't be worrying if he was the actual Sir Terry!

And yes, he won't do anything if I say 'no'. I just want ammo.

What does he mean, exactly, by the money markets being flat?

I don't know much about investments, but having worked in banking and finance for some decades, I wouldn't take that at face value.

He is right that cash savings are losing money at the moment but stock markets have fallen considerably in the past year. With ten years before retirement you do have time to risk the ups and downs of the stock market. Have a listen to the Meaningful Money podcast, it is created by a financial advisor and has lots of information.

You might, for example, want to open a SIPP (private pension) with a company like Vanguard and invest globally. With a SIPP the government will top up your tax, I have invested my entire earnings this year and wont end up paying a penny in income tax.
or even better, max out company pension schemes if you aren’t getting the full benefits.

What does money market mean to him?

When I worked in the markets (admitedly a long time ago) the "money markets" were just cash deposits. Daily interest rate fluctuations according to the market, but no risk to the capital (except from inflation).

If that's what he plans, he's right, it would avoid losses if he/you are expecting stock markets to fall. Of course you won't benefit from any gains either, but all stock market investments are risky, even those managed by "safe" banks. If the market crashes, everything crashes

I don't see why you need ammo. It's his proposal so the onus is entirely on him to explain to you exactly where he's suggesting to invest your money and why he considers it a good idea. If he can't explain it to you so that you fully understand it then he doesn't understand it himself. It's not for you to prove him wrong, it's up to him to convince you to your satisfaction that he's right.

We got a bit too cute with cash & investments just before the 2008 crash. It was a car crash & we lost a lot...thoroughly advocate a conservative, diversified, easily liquidatable portfolio over many market sectors, geographically spread, etc, etc.

Best to see a certified planner.

Whilst I agree that what he seems to be wanting to do is risky and he doesn't have enough knowledge people do need to realise that 'money in the bank' or even conservatively invested is currently losing around 10% a year in purchasing power, it isn't 'safe' at all.

It's for your retirement, is that a long time away? If it is eg 20+ years it would be better to invest at least some of it in something a little more risky hoping for better growth.

So he's kind of right and moving sone of your pot to a more risky investment is probably a good idea but it needs to be well researched not based on a few YouTube videos!

There is utter shite on YouTube, but it’s also a good place to learn from great free content.

I think it’s unfair to criticise his knowledge without increasing your own. One way to get “ammo” is to ask him to explain his reasoning back to you in layman’s terms. If he can’t, he hasn’t understood it well enough to make a decision. If he can, it may expose the holes for you both.

You are not clear on what he’s actually proposing. If it’s to move risk profile of investment from high to low ahead of a presumed crash, that’s not necessarily a bad thing. There are no easy answers - it’s also valid to hold your nerve and keep investing and “buy cheap”. My pension has lost a scary amount in 6 months. I understand my attitude to risk, but I’m still questioning myself daily. Every penny I’ve paid in this year has just maintained my balance in a falling market.

Don’t waste your time talking to an IFA until you know the basics, what you’re invested in now, what your retirement plans are, and how you feel about risk.

“He is normally sensible but has form for gambling a little”

People are leaping on this, and I do see why, but what do you actually mean?

You already have good pensions, and these separate retirement savings. That’s not the actions of someone who gambles it all away on the dogs 🤷🏻‍♀️

I am gambling a little now, in that I’m putting my spare money into my pension instead of over paying my mortgage. So far this year, that’s not paying off! But the word “gamble” is a bit loose. Do you actually mean that he gamble, or that he takes a punt of higher risk investments than you personally would? Having a higher risk profile isn’t the same as gambling, and I can’t work out from your OP in which way you mean it.

People are leaping on this, and I do see why, but what do you actually mean?

Good point! What I mean is he likes to think he understands the stock market and has lost money in the past. Amounts I wouldn't be happy losing but not family money we couldn't afford.

He's a maths nerd so has inflated ideas about his skills. I reminded him about that (the lost money) but he says it's evened out over time. Ironically exactly what I'd say about investments.

If he lost a chunk of our savings it would be bad but not penury.

Your DH saying he wants to invest in the 'money markets' , whatever he means by this, is very concerning. It could be in forex, government bonds, equities, gold, financial futures or just about anything but there will be costs involved in dealing in any of them. (Both buying and selling.)
This will need to be taken into account when estimating any profits which might or might not accrue. Some financial instruments are risky, others like government bonds - gilts/gilt-edged stocks - are less so.
However, any profits over a certain amount per year will be subject to 40 per cent capital gains tax, apart from gilts.
In addition, consulting a financial adviser is also not without cost: moreover some are affiliated to financial institutions and thus are not independent. I'd rather educate myself than pay someone else for advice which will vary widely in both quality and fees. I used to work for several stockbroking firms and would not touch their 'tips' with a bargepole.
First of all make your DH lay out his investment plans in forensic detail and clarify what the hell he means by the 'money markets.' You could also start reading the financial pages of the daily newspapers, if you can stand it! (But for general info, not stock tips. I am cynical, I know. )

“What I mean is he likes to think he understands the stock market and has lost money in the past. Amounts I wouldn't be happy losing but not family money we couldn't afford.

He's a maths nerd so has inflated ideas about his skills. I reminded him about that (the lost money) but he says it's evened out over time”

See that’s not what I would consider gambling, in the sense of someone who is pulled towards it compulsively and genuinely always thinks they’re one investment away from the big time.

Nobody understands the stock market! (well, by understand I mean - can consistently predict!) Any IFA you see will have their % annual fee whether their suggested investments rise or fall.

If he researched something and was wrong, but it wasn’t obviously ridiculous (he’s avoiding crypto well after the bubble burst, for example!) and didn’t lose more than he couldn’t afford to - that’s not the same to me as gambling.

As I said above - and see I wasn’t the first - get him to explain his plan and thinking.

How