Discussion
index tracker in ISA wrapper to lock onto the long term growth of the stock market.
M & G Acc tracker and the Abbey FTSE 100 one are among the best with a TER of 0.35%
Use your 3k ISA mini for shares for this and then put anything else you may have into a cash ISA search www.fool.co.uk for the top deals.
Over and above 6k a year i havent explored as im not loaded but for over that id consider NS & I investments and maybe look into a speculative active fund for the long term.
Thats what you call a diversified portfolio! Everyone is different though depends on your attitude to risk and how if you want growth or income etc and your timescale for investing. Remember equity investments need like 15 year timespans to do well.
The stock market averages 11% not taking into account inflation which would be 7% and has outperformed cash and property for like 98% of the years from 1918 onwards. A hundred quid invested in the 1920s would be like a few thousand if it was in a bank account but like 70k if it was in equities and 20 odd in bonds.
Quite a bit of waffle but its a start to the discussion.
mike
M & G Acc tracker and the Abbey FTSE 100 one are among the best with a TER of 0.35%
Use your 3k ISA mini for shares for this and then put anything else you may have into a cash ISA search www.fool.co.uk for the top deals.
Over and above 6k a year i havent explored as im not loaded but for over that id consider NS & I investments and maybe look into a speculative active fund for the long term.
Thats what you call a diversified portfolio! Everyone is different though depends on your attitude to risk and how if you want growth or income etc and your timescale for investing. Remember equity investments need like 15 year timespans to do well.
The stock market averages 11% not taking into account inflation which would be 7% and has outperformed cash and property for like 98% of the years from 1918 onwards. A hundred quid invested in the 1920s would be like a few thousand if it was in a bank account but like 70k if it was in equities and 20 odd in bonds.
Quite a bit of waffle but its a start to the discussion.
mike
As with evrything as soon as you generalise a sector or type product as a good investment. People jump on a bandwagon, and completely forgetto choose the BEST from that sector or type of product...
as example
Commercial property yes - good retail premises, owned outright, in a good area, growing city, have local knowledge, good tenant lined up, huge nonrefundable deposit,to secure, etc, etc,etc.
Commercial property no - bought as a hands off investment, from a investor club, in florida, huge managemnt fees, poor area for type of premises, built on spec, with dozens of other identical type units hitting the market, just prior to hurricane that destroyed the area/economy for a few years, big mortgage, no cash to cover.
Too extremes above - but any investment type will have good and bad choice. 2 above are REAL, 1st was pretty luccky owned for years (good but boring return)then area gets regenerated and v good coroprate comes along. secon was a freind of my parents good advice from FSA son-in-law (who also invested) oh dear.
B
as example
Commercial property yes - good retail premises, owned outright, in a good area, growing city, have local knowledge, good tenant lined up, huge nonrefundable deposit,to secure, etc, etc,etc.
Commercial property no - bought as a hands off investment, from a investor club, in florida, huge managemnt fees, poor area for type of premises, built on spec, with dozens of other identical type units hitting the market, just prior to hurricane that destroyed the area/economy for a few years, big mortgage, no cash to cover.
Too extremes above - but any investment type will have good and bad choice. 2 above are REAL, 1st was pretty luccky owned for years (good but boring return)then area gets regenerated and v good coroprate comes along. secon was a freind of my parents good advice from FSA son-in-law (who also invested) oh dear.
B
Added to add.
IF you have a mortgage on your house (Not talking a bout property investment here - ie you allready have this)
Overpay the mortgage, depends on the rate, BUT THIS IS As A GUARANTEED RETURN you can get , in my case 5.5% NET of tax, 8 ish plus GROSS return. WITH NO RISK (Relatively to any other investment- Couple of provisos don't have 100% mortgage not moving for a year or so)
IT is very BORING to do this, but it is a REAL guaranteed rate of return, AND I would challenge ANY financial adviser to offer a better place for your money, whilst anyone has a mortgage.
B
>> Edited by bjwoods on Monday 21st March 13:00
IF you have a mortgage on your house (Not talking a bout property investment here - ie you allready have this)
Overpay the mortgage, depends on the rate, BUT THIS IS As A GUARANTEED RETURN you can get , in my case 5.5% NET of tax, 8 ish plus GROSS return. WITH NO RISK (Relatively to any other investment- Couple of provisos don't have 100% mortgage not moving for a year or so)
IT is very BORING to do this, but it is a REAL guaranteed rate of return, AND I would challenge ANY financial adviser to offer a better place for your money, whilst anyone has a mortgage.
B
>> Edited by bjwoods on Monday 21st March 13:00
neilcharlton said:
Invest in house prices going down , using covered warrents for Goldman Sachs or SG .
Can you do that? thought you could only short on the stock market? care to explain this to me? I can see how to make a bucket of cash in a rising market, but not in a falling property market.
This is really interesting
As you say you can short stocks in the hope of buying them back later, cheaper. You can take a short contract out on UK (or even specific London boroughs), so ysay the average price of a semi in Ken& Chelsea is £600,000, the spread might be 598-601 - you sell at 598 and every thousand the av. price as published by Halifax etc falls, you make whatever you bet per point.
Put a stop loss on by the way!
Put a stop loss on by the way!
john75 said:
Just wondered what people throught were good investments.
Been reading a few books on the subject of late and one about Warren Buffett inspired this posting.
It depends how much you're talking about?
Personally, I invest in failing business - that have potential. I turn them round then sell them. It's very Tax efficient, and you can sell them for considerably more than you paid for them. However, there's a degree of "high risk / high return". I also tend to invest in commercial premises. Generally, you can get an 8%-10% return plus you've got an asset that is unlikely to lose value.
bjwoods said:
Added to add.
IF you have a mortgage on your house (Not talking a bout property investment here - ie you allready have this)
Overpay the mortgage, depends on the rate, BUT THIS IS As A GUARANTEED RETURN you can get , in my case 5.5% NET of tax, 8 ish plus GROSS return. WITH NO RISK (Relatively to any other investment- Couple of provisos don't have 100% mortgage not moving for a year or so)
IT is very BORING to do this, but it is a REAL guaranteed rate of return, AND I would challenge ANY financial adviser to offer a better place for your money, whilst anyone has a mortgage.
B
>> Edited by bjwoods on Monday 21st March 13:00
And if you have a bank account style mortgage you can also have instant access to any overpayments, without penalty. Its a complete no-brainer, 8% odd with instant access to your money at any time.
The only reason it is not recommended by financial advisors is the lack of commission for them.
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