Passive investing
- Thread starter taylost3
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I
Icarebecauseyoudo
Guest
I'm generally suspicious of all small businesses that are up for sale
Can you add the same value or more than the current owners?
Why don't they have family interested if it's decent?
Too many businesses are valued without taking into account the hours you have to shove in
Can you add the same value or more than the current owners?
Why don't they have family interested if it's decent?
Too many businesses are valued without taking into account the hours you have to shove in
nyron4england
Striker
this. icare got there first
L
Leicester Fan
Guest
I pretty much agree with everything @Icarebecauseyoudo said on this thread, he seems to have his head screwed on.
I would avoid paying fees to someone to invest your money in shares, they're basically guessers who will charge you a premium if they guess right.
Property has performed brilliantly over the last few decades but it can't keep outperforming everything else. There is a good graph out there that historically once average property prices reach seven times average income then the bubble bursts and once it's four times average income it surges.
If you want something safe that beats inflation then I would recommend Zopa. It's a very well established peer to peer lending site that pays up to 7% with hardly any risk at all.
I would avoid paying fees to someone to invest your money in shares, they're basically guessers who will charge you a premium if they guess right.
Property has performed brilliantly over the last few decades but it can't keep outperforming everything else. There is a good graph out there that historically once average property prices reach seven times average income then the bubble bursts and once it's four times average income it surges.
If you want something safe that beats inflation then I would recommend Zopa. It's a very well established peer to peer lending site that pays up to 7% with hardly any risk at all.
I
Icarebecauseyoudo
Guest
It would surely be risky if another recession hit
Zopa another way of making hay while the sun shines
kevinarnott
Central Defender
Sister Ray
Midfield
I'm planning on chucking loads in when my Excite shares start to pay off
Not long now I reckon.....
Not long now I reckon.....
nyron4england
Striker
Pop
Striker
IFA's/investment consultants are basically guessers, that is one way of describing decades of training and qualifications.
nyron4england
Striker
Sister Ray
Midfield
A couple of months of work , manager in and reap a nice income whilst capital grows.
Can be risky but done correct it's a great way to invest.
Thats the thing I
This is what I was looking at
Sounds good but I don't unfortunately most of my money is tied up long term this will be a regular sum every month.
Boris Bear
Striker
If only it was so easy
Shack
Midfield
Passive investing generally is talking about tracker funds. You obviously need to diversify across different asset classes/regions etc. depending on your risk attitude etc. I used to be in various tracker funds for a split I'd come up with myself. The problem is you need to balance this allocation yourself. I recenlty moved the Vanguard Lifestrategy products - they have slightly higher fees (0.24%) but auto-balance and are simple to select based on your risk profile. I went in 100% equities purely because I don't plan to cash out for 10+ years, so would expect an crash to recover in that time.
Those knocking Monevator site - it doesn't recommend products but is biased towards passive investing. This in itself is nothing new and indeed a lot of company pension schemes these days use a PI model as evidence points to very few investors beating the market over longer timeframes.
With 20 years investment most would advise you put it into 100% equities as it can survive many probable dips but still recover and grow. Remember also that you will earn dividends which you should choose to accumulate and re-invest to add tpo the compounding effect.
Those knocking Monevator site - it doesn't recommend products but is biased towards passive investing. This in itself is nothing new and indeed a lot of company pension schemes these days use a PI model as evidence points to very few investors beating the market over longer timeframes.
With 20 years investment most would advise you put it into 100% equities as it can survive many probable dips but still recover and grow. Remember also that you will earn dividends which you should choose to accumulate and re-invest to add tpo the compounding effect.
Great advice thanks mate, everything I read is pointing towards the vanguard lifestyle products which seem very reasonable. How much are you likely to make in dividends per 10K for example?
SuperGerryHarrison
Winger
Higher risk but consider saving some decent amounts and then investing in some seed enterprises.
The SEIS is a really good incentive from the govt that offers you a tax shield on 50% of your investment as well a CGT relief on your earnings when you sell
The SEIS is a really good incentive from the govt that offers you a tax shield on 50% of your investment as well a CGT relief on your earnings when you sell
Shack
Midfield
At current cost of funds and last years dividend I think it would be around £150 per year. Of course on it's own that is nowt special but add it to growth and re-investment etc. and it all mounts up over time. Remember there are no guarantees on any of this but most evidence now points to reducing your costs (fees), passive funds and giving it time. Vanguard is good because you can kind of forget about it - if you know the reasoning behind what you're doing there is no need to sit watching the market go up and down. Check back in 6 months or a year and see how it's doing. You're in it for the long haul - the regular monthly payments also spreads your risk so you are investments are spread over the up's and down's.
I read a book that was recommended:
DIY Pensions: A Simple Guide to Pensions, SIPPs & Retirement Planning.
This was because I moved money into a personal pension arranged by myself - same reason as the S&S ISA - to save fees and follow the passive investment concept.
There's loads of websites out there dedicated to passive investing etc. As I said, it's nothing new - Monevator was just set up by some bloke who advocated it also - his site's been around for a while. It's no rip off / scam!
Try reading the Pensions / Investing forums on Money Saving Expert. A couple of blogs are worth a read (Mr. Money Mustache, The Escape Artist, etc.) - not so much passive investing but good advice on planning an early retirement / prioritising etc.
D
Deleted member 30053
Guest
Give me a PM if you want mate. I can help you out if you like. I advise on active, passive and discretionary fund management investments.
I strongly believe that advanced diversification from a reputable DFM (who makes no extra charge for the service) is now the way to invest using a combination of active and passive diversified globally.
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