Investment options
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Investment options
So basically I have been debating options with a friend of mine who owns Four buy to let houses.
As many might know I used to buy and sell shares before my divorce.
I had shares and managed funds and made a good profit.
With the wisdom of age I have been exploring going back into the market now I have crawled out of divorce debt.
What we have learnt is to look at index link funds.
Never looked at them before.
if your young what an option.
The S and P 500 has done 100%every 5 years
Low charges and almost low risk results in the long term.
As many might know I used to buy and sell shares before my divorce.
I had shares and managed funds and made a good profit.
With the wisdom of age I have been exploring going back into the market now I have crawled out of divorce debt.
What we have learnt is to look at index link funds.
Never looked at them before.
if your young what an option.
The S and P 500 has done 100%every 5 years
Low charges and almost low risk results in the long term.
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Re: Investment options
There is an article on Hargreaves Lansdown today about investment vs property.
Personally the benefits are so close I think do both.
Buy to let is just so much more hassle.
You can make the same gains without it.
Personally the benefits are so close I think do both.
Buy to let is just so much more hassle.
You can make the same gains without it.
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Re: Investment options
For the nuby.
At 20 you can put 10 k in a S & P 500 tracker and at 60 have 1 million.
Wish I knew this when I was 20.
At 20 you can put 10 k in a S & P 500 tracker and at 60 have 1 million.
Wish I knew this when I was 20.
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Re: Investment options
Ah but 10k was 1m when I was 20:
Salary £500 was 1/20th of 10k
Salary £50k is 1/20th of £1m.
Just saying
Salary £500 was 1/20th of 10k
Salary £50k is 1/20th of £1m.
Just saying
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Re: Investment options
I have an account with hargreaves lansdowne but dont use it as dont have the time, patience or knowledge to do it myself. But if you do I believe theyre great.
People have told me a few times an index tracker is great.
ISAs are **** these days. I do have them. But youre basically losing money as the interest is less than inflation.
Work share schemes are the best ones. As most of them you cant lose. I went to see an independent financial advisor based in Burnley. Seem a good outfit. Honest amd knowledgeble. And he said that nothing he could offer would be as compelling as what you can get on a good work scheme.
That said have opened up one with them so as to have eggs in multiple baskets. They are also looking at my old pensions but going to get a second and third opinion if anyone can recommend anyone.
Always considered property. But just seems like if you have ten houses you have ten headaches. Cant be arsed with the aggrevation. Especially with all the taxes and rules etc.
People have told me a few times an index tracker is great.
ISAs are **** these days. I do have them. But youre basically losing money as the interest is less than inflation.
Work share schemes are the best ones. As most of them you cant lose. I went to see an independent financial advisor based in Burnley. Seem a good outfit. Honest amd knowledgeble. And he said that nothing he could offer would be as compelling as what you can get on a good work scheme.
That said have opened up one with them so as to have eggs in multiple baskets. They are also looking at my old pensions but going to get a second and third opinion if anyone can recommend anyone.
Always considered property. But just seems like if you have ten houses you have ten headaches. Cant be arsed with the aggrevation. Especially with all the taxes and rules etc.
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Re: Investment options
Taxes and legislation are the easy part because you know what to expect.
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Re: Investment options
Like a lot of things there’s no easy options, if your going to invest your hard earned money and you want a higher return than it being on deposit then your going to have to spend time doing so. If you’re working that means giving up some of your leisure time if you’re not then you have to learn the best way to “beat the market” as is said then you have to have the right temperament to do that.cricketfieldclarets wrote:I have an account with hargreaves lansdowne but dont use it as dont have the time, patience or knowledge to do it myself. But if you do I believe theyre great.
People have told me a few times an index tracker is great.
ISAs are **** these days. I do have them. But youre basically losing money as the interest is less than inflation.
Work share schemes are the best ones. As most of them you cant lose. I went to see an independent financial advisor based in Burnley. Seem a good outfit. Honest amd knowledgeble. And he said that nothing he could offer would be as compelling as what you can get on a good work scheme.
That said have opened up one with them so as to have eggs in multiple baskets. They are also looking at my old pensions but going to get a second and third opinion if anyone can recommend anyone.
Always considered property. But just seems like if you have ten houses you have ten headaches. Cant be arsed with the aggrevation. Especially with all the taxes and rules etc.
Property again you have to be very canny at buying the right property in the right area at the right time, you can take some of the hassle of dealing with tenants by employing a reliable and good agent to manage your property for you at a price say 10-20%. This will eat into your profits then you have the maintenance of the property to consider.
Lots of ifs buts and maybes I’m afraid, you get out what you put in usually if what you put in is right. But even then it can all go tits up if a world event happens like a market crash or property crash as unlikely as that might seem with the growing population.
Good luck.
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Re: Investment options
Very sound advice.South West Claret. wrote:Like a lot of things there’s no easy options, if your going to invest your hard earned money and you want a higher return than it being on deposit then your going to have to spend time doing so. If you’re working that means giving up some of your leisure time if you’re not then you have to learn the best way to “beat the market” as is said then you have to have the right temperament to do that.
Property again you have to be very canny at buying the right property in the right area at the right time, you can take some of the hassle of dealing with tenants by employing a reliable and good agent to manage your property for you at a price say 10-20%. This will eat into your profits then you have the maintenance of the property to consider.
Lots of ifs buts and maybes I’m afraid, you get out what you put in usually if what you put in is right. But even then it can all go tits up if a world event happens like a market crash or property crash as unlikely as that might seem with the growing population.
Good luck.
I think with the property thing, people genuinely go into it thinking they can easily double their money on a renovation. Or renting a house out for 500 quid a month means theyre makuig 500 quid profit.
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Re: Investment options
Claret Toni wrote:Ah but 10k was 1m when I was 20:
Salary £500 was 1/20th of 10k
Salary £50k is 1/20th of £1m.
Just saying
You are correct, the value of money halves every twenty years.
So 1 million will have the spending power equivalent to £250,000.
You would normally be adding contributions through your working life, for instance, my pension contributions are about £7500 a year.
Adding money at that rate, would give you a very large sum of money by 60.
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Re: Investment options
There’s a good article on the Hargreaves Lansdown site comparing property ownership and investments.
My mates strategy was to put down 25% and borrow the rest. After all costs he works on 7.5% profit per year on money invested.
So for every £100,000 he makes £7,500 a year.
My mates strategy was to put down 25% and borrow the rest. After all costs he works on 7.5% profit per year on money invested.
So for every £100,000 he makes £7,500 a year.
Re: Investment options
If you want something Cautious go for Prufund Cautios in an investment bond paying 3% with a smoothed return
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Re: Investment options
Whanganui District Court
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Re: Investment options
Lowbankclaret wrote:There’s a good article on the Hargreaves Lansdown site comparing property ownership and investments.
My mates strategy was to put down 25% and borrow the rest. After all costs he works on 7.5% profit per year on money invested.
So for every £100,000 he makes £7,500 a year.
Which if you get the wrong tenant could be wiped out very easily. Vacant periods, trashed properties. The taxation for landlords is unfavourable (both from an income tax and stamp duty perspective), laws are now becoming more balanced for the tenant and the rights they have.
Would never touch property personally - too much hassle because of the reward no longer matches the risk imo.
Re: Investment options
The pru cautious fund has averaged 4.5% over the last 5 yrsSpike wrote:If you want something Cautious go for Prufund Cautios in an investment bond paying 3% with a smoothed return
Here’s a link to the fact sheet
https://www.pruadviser.co.uk/pdf/INVS11397.pdf" onclick="window.open(this.href);return false;
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Re: Investment options
I agree with your comments, however the things you have pointed out are factored into his calculations.clarethomer wrote:Which if you get the wrong tenant could be wiped out very easily. Vacant periods, trashed properties. The taxation for landlords is unfavourable (both from an income tax and stamp duty perspective), laws are now becoming more balanced for the tenant and the rights they have.
Would never touch property personally - too much hassle because of the reward no longer matches the risk imo.
He has had several different tenants and some bad ones who did damage.
I also agree it’s a load of hassle.
I started the thread to point out index trackers are capable of better returns if you select something like the S&P 500 trackers. As these are not actively managed funds the costs are a lot lower than active managed funds. A point I have not seen in our previous discusions.
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Re: Investment options
Hope this works
Re: Investment options
I'm almost certain this is wrong (by a lot). Have you got a source?Lowbankclaret wrote:For the nuby.
At 20 you can put 10 k in a S & P 500 tracker and at 60 have 1 million.
Wish I knew this when I was 20.
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Re: Investment options
See above tracker graph
Re: Investment options
In post 16? That's only 5 years and tracking a different thing.Lowbankclaret wrote:See above tracker graph
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Re: Investment options
These S & P index funds are set up to track the S & P 500.
It’s been fairly consistent over time in its growth.
Obviously it can go down as well as up, but when considering it over many years it tends to perform consistently.
I invested in some managed funds that outperformed what is shown in the graph and doubled my money in 3 years, but they were much more risky.
It’s been fairly consistent over time in its growth.
Obviously it can go down as well as up, but when considering it over many years it tends to perform consistently.
I invested in some managed funds that outperformed what is shown in the graph and doubled my money in 3 years, but they were much more risky.
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Re: Investment options
Significantly out stripping the performance of an index tracking fund.
£10k in this fund should it continue to perform at that rate would If my mental maths is correct take twenty five years to turn your money in to a very large sum.
Unfortunately I would 80 and unable to enjoy the money.