What caught my eye this week.<\/em><\/p>\n I<\/span> don\u2019t know about you, but I really miss that six-month spell last year when we all fretted about what was going to happen to pension allowances, inheritance tax, AIM shares, and all the rest of it.<\/p>\n Everyone knows financial planning is dull as dishwater. So why not living things up by throwing all the rules up into the air<\/a> every few years?<\/p>\n That way we won\u2019t get too complacent.<\/p>\n Instead: all the fun of the power-ups and banana skins in Mario Kart. <\/em>Anyone might win \u2013 or lose!<\/p>\n Well rejoice because according to the Financial Times<\/a>\u00a0<\/em>and This Is Money<\/a><\/em>, financial firms have been lobbying the government to do away with \u2013 or at least severely do-in \u2013 the humble cash ISA.<\/p>\n The Financial Times<\/em> reports that:<\/p>\n During a meeting last month, City firms lobbied chancellor Rachel Reeves to scale back incentives for cash Isas, arguing that the money would be put to better use if it were invested in the stock market.<\/p>\n<\/blockquote>\n Le sigh.<\/em><\/p>\n Happily \u2013 though not exactly surprisingly, given it should be blindingly obvious to anyone \u2013 both articles found experts to defend the virtues of cash ISAs.<\/p>\n After all, here\u2019s a rare popular financial product that anyone can understand.<\/p>\n Rates are now reasonable again. And the ISA shielding means there\u2019s no returns lost to tax or time lost to paperwork.<\/p>\n This is what success looks like, and you can see why it turns the City green with envy:<\/p>\n Source: HMRC<\/a><\/p>\n Of course I know returns from equities and even bonds will very likely trounce<\/a> cash over longer timeframes.<\/p>\n And ever since 2007 Monevator<\/em> has been trying to help people understand how to invest<\/a> more productively.<\/p>\n I also agree that boosting the flow of capital going into the London Stock Exchange would be helpful for Great Britain PLC.<\/p>\n But getting rid of one of the very few financial products that the average person is comfortable with \u2013 and upsetting the applecart yet again \u2013 is not a good way to encourage more investment.<\/p>\n How about instead educating people from school age about regular saving and compound interest<\/a>, and what it might mean for their futures?<\/p>\n Or how about just not changing the rules on the whim of every other Chancellor, and instead letting us properly plan for the long-term?<\/p>\n Heck, how about politicians not inflict years of political chaos and ultimately economically damaging<\/a> policies on the British public?<\/p>\n That way instead of flirting with recession every few quarters (see the links below) maybe we\u2019d have enjoyed years of proper GDP growth and even some of the full-throated animal spirits that the Americans have seen.<\/p>\n And by the same token, maybe don\u2019t bang on about \u2018going for growth\u2019 and then immediately inflict an employment-penalising kick in the arse for business as soon as your first budget comes around?<\/p>\n (Okay, and it\u2019d be nice if we could re-roll the cosmic dice so we don\u2019t have a pandemic and a war in quick succession next time.)<\/p>\n Honestly, for the average financially-confused person out there, just hoarding cash in the face of all this uncertainty seems very understandable to me.<\/p>\n If something must be done about this \u2018unproductive\u2019 cash \u2013 and to re-iterate, I\u2019d prefer they just left well alone for a few decades \u2013 then I\u2019d vote for carrots rather than sticks.<\/p>\n Let\u2019s get rid of the ridiculous stamp duty on UK traded shares for starters. And scrap that pernickety \u00a31.50 PTM levy on trades over \u00a310,000 while we\u2019re at it.<\/p>\n But something as fundamental as the cash ISA shouldn\u2019t be up for debate.<\/p>\n Politicians who look forward to generous defined benefit retirement schemes need to understand that normal people in the brave new-ish world of defined contribution pensions face what\u2019s notoriously the hardest problem in finance<\/a>.<\/p>\n Given that is already a lot to cope with, some lasting stability might go a long way to encourage more learning about investing \u2013 and eventually coax more money out of cash and into other assets.<\/p>\n To be fair to her, Rachel Reeves doesn\u2019t appear to be the instigator of any of this cash ISA dissing \u2013 though This Is Money<\/em> does note ominously that:<\/p>\n The Chancellor did not dismiss the idea, according to a senior banker.<\/p>\n<\/blockquote>\n Really? Okay, then I\u2019ll make the decision for her.<\/p>\n Dismiss it: we don\u2019t need any more unforced errors.<\/p>\n Get on with sorting out planning or transport or a proper energy policy or anything big and bold that could actually improve our future writ large, rather than more fiddling with how we move this or that pile of the dwindling coins we\u2019ve already got.<\/p>\n Cash ISAs are a solution to a problem \u2013 not the other way around.<\/p>\n On a totally unrelated note, ten years after I first sketched out a couple of ideas for \u2018quirky\u2019 investing-related T-shirts, we\u2019ve finally got some Monevator<\/em> merch coming your way!<\/p>\n Yes, you\u2019ll soon be able to wear your love affair with investing on your sleeve \u2013 and in any colour too, so long as it\u2019s Monevator<\/em>-style black and white.<\/p>\n Got too much cash hoarded in your ISA? Then why not live large and spend a few tenners from it before Rachel comes a-calling\u2026<\/p>\n This Shopify \u2013 um \u2013 shop of ours will also feature pointers to our favourite investing books on Amazon. Because you\u2019ve got to eat your greens too, you know.<\/p>\n Anyway I\u2019m going to rollout access to the shop in stages, so we don\u2019t get overwhelmed* like in those Black Friday stampede videos that used to go viral a few years ago.<\/p>\n (What happened to those? I guess it\u2019s all just standard behaviour nowadays?)<\/p>\n Moguls<\/a><\/em> first \u2013 please watch your inboxes over the next few days for your teaser discount code!<\/p>\n And have a great weekend.<\/p>\n * I wish!<\/em><\/p>\n InvestEngine LifePlan portfolio review \u2013 Monevator<\/a><\/p>\n The benefits of living mortgage free \u2013 Monevator<\/a><\/p>\n From the archive-ator: Portfolio (basket) case study \u2013 Monevator<\/a><\/p>\n Note: Some links are Google search results \u2013 in PC\/desktop view click through to read the article. Try privacy\/incognito mode to avoid cookies. Consider subscribing to sites you visit a lot.<\/em><\/p>\n Bank of England cuts rates to 4.5%, halves economic growth forecast \u2013 Sky<\/a><\/p>\n House prices hit record high in January ahead of stamp duty hike \u2013 BBC<\/a><\/p>\n ONS chief \u2018very confident\u2019 about rising health-related inactivity data \u2013 CityAM<\/a><\/p>\n Urgent action needed to ensure UK food security, report warns \u2013 Guardian<\/a><\/p>\n Musk effect? Tesla sales slump in five European countries \u2013 Reuters via Y.F.<\/a><\/p>\n New Zealand has launched a new long-term digital nomad visa \u2013 Forbes<\/a><\/p>\n \u2018Magical\u2019 efficient market theory rebuked in passive era \u2013 Bloomberg via Y.F.<\/a><\/p>\n Man claims it was cheaper to fly 1,400 miles to Spain to buy olive oil \u2013 M.E.N.<\/a><\/p>\n Five years on, and Brexit is more unpopular than ever \u2013 Semafor<\/a><\/p>\n What is the energy price cap and how is it changing? \u2013 BBC<\/a><\/p>\n How to save at the cinema every day of the week \u2013 Be Clever With Your Cash<\/a><\/p>\n You can get up to \u00a33,000 cashback when you transfer your pension to Interactive Investor<\/a>. Terms and fees apply. \u2013 Interactive Investor<\/a><\/p>\n Mortgage rates came down ahead of Bank Rate cut \u2013 This Is Money<\/a><\/p>\n Vanguard US just did its biggest-ever round of fund fee cuts \u2013 Vanguard<\/a><\/p>\n Open an account with low-cost platform InvestEngine via our link<\/a> and get up to \u00a3100 when you invest at least \u00a3100 (T&Cs apply. Capital at risk) \u2013 InvestEngine<\/a><\/p>\n What\u2019s happening to car insurance prices? \u2013 Which<\/a><\/p>\n Two leading lenders cut buy-to-let mortgage rates\u2026 \u2013 Property 118<\/a><\/p>\n \u2026but should landlords fix or risk a tracker mortgage? \u2013 This Is Money<\/a><\/p>\n Homes for sale for first-time buyers, in pictures \u2013 Guardian<\/a><\/p>\n Embrace boredom \u2013 A Teachable Moment<\/a><\/p>\n Tilting the odds in your favour \u2013 Novel Investor<\/a><\/p>\n Paying off your landlord\u2019s mortgage can\u2019t be right \u2013 The Big Issue<\/a><\/p>\n Meet the woman who lives without money \u2013 Guardian<\/a><\/p>\n Put in the hard work \u2013 Financial Samurai<\/a><\/p>\n The mortgage payment trick that can clear debts five years early \u2013 T.I.M.<\/a><\/p>\n The perfect level of wealth \u2013 A Wealth of Common Sense<\/a><\/p>\n On my own time \u2013 Humble Dollar<\/a><\/p>\n How to retire and not run out of money [Search result]<\/em> \u2013 FT<\/a><\/p>\n Make decisions like an options trader \u2013 MoonTower<\/a><\/p>\n Buying things is usually stupid [Podcast]<\/em> \u2013 50 Fires via Apple<\/a><\/p>\n Investment trusts could return 13% p.a. for five years [Says trade body]<\/em> \u2013 Trustnet<\/a><\/p>\n How investors can harness Trump-induced volatility \u2013 FT<\/a><\/p>\n Portfolio exits: a post-mortem \u2013 FIRE v London<\/a><\/p>\n Tonight we\u2019re gong to stonk-punt like it\u2019s 2021 [Search result]<\/em> \u2013 FT<\/a><\/p>\n Trading our dark triad overlords \u2013 Paul Podolsky<\/a><\/p>\n Has Michael Saylor\u2019s \u2018infinite money glitch\u2019 run into a hitch? [Search result]<\/em> \u2013 FT<\/a><\/p>\n Going beyond Buffett \u2013 The Leading Edge<\/a><\/p>\n Fooled by Randomness<\/em> by Nassim Taleb \u2013 \u00a30.99 on Kindle<\/a><\/p>\n The Price of Time<\/em> by Edward Chancellor \u2013 \u00a30.99 on Kindle<\/a><\/p>\n Edible Economics<\/em> by Ha-Joon Chang \u2013 \u00a30.99 on Kindle<\/a><\/p>\n Taxtopia<\/em> by The Rebel Accountant \u2013 \u00a30.99 on Kindle<\/a><\/p>\n How climate change could upend the case for home ownership \u2013 ProPublica<\/a><\/p>\n Record January warmth puzzles climate scientists \u2013 BBC<\/a><\/p>\n In pristine parts of the Amazon, birds are still dying \u2013 Guardian<\/a><\/p>\n Scenic loch becomes magnet for Scotland\u2019s plastic waste \u2013 BBC<\/a><\/p>\n What are small modular nuclear reactors and why do we want them? \u2013 Guardian<\/a><\/p>\n No long hiring junior or mid-level coders [Tweet]<\/em> \u2013 Savil Navingia via X<\/a><\/p>\n Why employees are smuggling AI into work \u2013 BBC<\/a><\/p>\n How to invest for a post-AGI world \u2013 Of Dollars and Data<\/a><\/p>\n Companion<\/em> asks interesting questions about our relationship with AI \u2013 The Conversation<\/a><\/p>\n DeepSeek might not be so competitive; reports finds $1.6bn spend \u2013 Tom\u2019s Hardware<\/a><\/p>\n ChatGPT\u2019s Deep Research creates reports from hundreds of sources \u2013 Engadget<\/a><\/p>\n We\u2019re already at risk of ceding our humanity to AI \u2013 Lit Hub<\/a><\/p>\n Leading AI company warns applicants not to use AI \u2013 FT<\/a><\/p>\n Explaining to a child why tariffs hurt everyone \u2013 Roger Lowenstein<\/a><\/p>\n Garbage information is killing democracy \u2013 Garden of Forking Paths<\/a><\/p>\n How chaos became American\u2019s economic strategy \u2013 Kyla Scanlon<\/a><\/p>\n What happened the last time a president purged the bureaucracy \u2013 Politico<\/a><\/p>\n Can anyone stop President Musk? \u2013 The Verge<\/a><\/p>\n Who owns London? \u2013 The Standard<\/a><\/p>\n The books that ruin your life \u2013 The New Republic<\/a><\/p>\n Drone-on-drone warfare in Ukraine \u2013 Ars Technica<\/a><\/p>\n What we can learn from a dog\u2019s way of looking at the world \u2013 Lit Hub<\/a><\/p>\n The mystery of why Covid-19 seems to be becoming milder \u2013 BBC<\/a><\/p>\n What if you never come down? Postcards from 1990s nightlife\u00a0[Photos]<\/em> \u2013 Guardian<\/a><\/p>\n Scientists crack the perfect way to boil an egg \u2013 Guardian<\/a><\/p>\n \u201cTo my relief, most of the attending senators seemed to appreciate that promoting global financial stability was in the interest of the United States.\u201d Like these links? Subscribe<\/a> to get them every Friday. Note this article includes affiliate links, such as from Amazon<\/a> and Interactive Investor<\/a>.<\/em><\/p>\n\n
Cash cachet<\/h3>\n
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<\/a><\/p>\nCash is not trash<\/h3>\n
Get a real job<\/h3>\n
\n
Lord make my readers frugal, but not yet<\/h3>\n
From Monevator<\/h3>\n
News<\/h3>\n
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<\/a><\/p>\nProducts and services<\/h3>\n
Comment and opinion<\/h3>\n
Naughty corner: Active antics<\/h3>\n
Kindle book bargains<\/h3>\n
Environmental factors<\/h3>\n
Robot overlord roundup<\/h3>\n
US off-the-deep-end mini-special<\/h3>\n
Off our beat<\/h3>\n
And finally\u2026<\/h3>\n
\u2013 Ben Bernanke, The Courage to Act<\/em><\/a><\/p>\n