Financial Planning
Discussion
OP,
ETFs:
If you are going to invest in ETF funds then be sure that you are protected by the various financial body guarantees.
ETF funds aren't as simple as they are made out to be and the underlying investment doesn't have to be what you would imagine. For instance, gold ETFs rarely hold physical gold. Likewise equity investments index trackers might use derivatives rather than the quality index constituents that you imagine.
Your risk is greater for the same return.
Index trackers:
I do have some index trackers because, like you, I took the advice that few managed fund beat the index in the long term. The trackers have had an appalling 7 years. The managed funds that I invest in have been much, much better (Fundsmith, Woodford). I selected them for low management costs.
One final thought .. is buying UK based funds making best use of your non-dom tax status. Wont any dividends that are paid into the fund be taxed? Of course, you're getting the financial protection of the regulators which probably makes up for the loss.
ETFs:
If you are going to invest in ETF funds then be sure that you are protected by the various financial body guarantees.
ETF funds aren't as simple as they are made out to be and the underlying investment doesn't have to be what you would imagine. For instance, gold ETFs rarely hold physical gold. Likewise equity investments index trackers might use derivatives rather than the quality index constituents that you imagine.
Your risk is greater for the same return.
Index trackers:
I do have some index trackers because, like you, I took the advice that few managed fund beat the index in the long term. The trackers have had an appalling 7 years. The managed funds that I invest in have been much, much better (Fundsmith, Woodford). I selected them for low management costs.
One final thought .. is buying UK based funds making best use of your non-dom tax status. Wont any dividends that are paid into the fund be taxed? Of course, you're getting the financial protection of the regulators which probably makes up for the loss.
^^^
Just to add I've never been convinced by the argument for Tracking and prefer to use decent active funds with established managers and low charges. One of the problems for index funds is they can't get on the bandwagon early if they see a rising company outside their index - they can only buy that company once it's market capital rises high enough to put it into the index. Similarly they can't sell a rapidly falling company unless and until it actually exits the index.
If you do decide to Index, there are a number of index tracking funds from L&G with low charges.
Don't forget that after charges all index funds will inevitably lag behind the index they are tracking.
Just to add I've never been convinced by the argument for Tracking and prefer to use decent active funds with established managers and low charges. One of the problems for index funds is they can't get on the bandwagon early if they see a rising company outside their index - they can only buy that company once it's market capital rises high enough to put it into the index. Similarly they can't sell a rapidly falling company unless and until it actually exits the index.
If you do decide to Index, there are a number of index tracking funds from L&G with low charges.
Don't forget that after charges all index funds will inevitably lag behind the index they are tracking.
Dave3166 said:
Very nice car.
Would like a 996 Turbo.
Used to own a 993 carrera, one of the best cars i have ever owned.
funds permitting, would love a 993 Turbo 4.
Sorry for hijacking this thread chaps
No worries, you could almost class Air Cooled Pork as an investment class these days! ;-) Would like a 996 Turbo.
Used to own a 993 carrera, one of the best cars i have ever owned.
funds permitting, would love a 993 Turbo 4.
Sorry for hijacking this thread chaps
Ginge R said:
Merger,
Can I make an observation? The anticipated spread of investments that you mention is quite wide and still appears uncertain. You're going to experience a huge variety of volatility there (not nessesarily the same as risk) so bear these three points in mind when you address investment risk.
Risk required is the risk associated with the return required to achieve your goals from the financial resources you have available.
Risk capacity is the level of financial risk you can afford to take, and..
Risk tolerance is the level of risk you are comfortable with.
Well done for reading up and for avoiding the sharks.
Absolutely, given your vocation you're more than qualified, my whole reason for posting was to get a good cross section of opinions, something which PH never fails to deliver! :-) Can I make an observation? The anticipated spread of investments that you mention is quite wide and still appears uncertain. You're going to experience a huge variety of volatility there (not nessesarily the same as risk) so bear these three points in mind when you address investment risk.
Risk required is the risk associated with the return required to achieve your goals from the financial resources you have available.
Risk capacity is the level of financial risk you can afford to take, and..
Risk tolerance is the level of risk you are comfortable with.
Well done for reading up and for avoiding the sharks.
The trackers I was looking at are;
i-Share UK Gilts 0-5yrs - IGLS 20% allocation
Vanguard UK FTSE 100 index - VUKE 40% allocation
Vanguard All World - VWRD - 40% allocation
OR
the below which I believe are fundamental indexes (not cap weighted)
i-Share UK Gilts 0-5yrs - IGLS 20% allocation (same as above)
PowerShares FTSE RAFI UK - PSRU 40% allocation
PowerShares FTSE RAFI All-World 3000 UCITS - PSRW 40% allocation
Still doing some final due diligence.
Mezger said:
No worries, you could almost class Air Cooled Pork as an investment class these days! ;-)
Thanks, Have you ever thought of dabbling in the used car market, the money you are talking about would see you in the top end of motors.Buy one, store it for a year, see how much it is worth then, even if its for a bit of fun.
Mezger said:
Absolutely, given your vocation you're more than qualified, my whole reason for posting was to get a good cross section of opinions, something which PH never fails to deliver! :-)
The trackers I was looking at are;
i-Share UK Gilts 0-5yrs - IGLS 20% allocation
Vanguard UK FTSE 100 index - VUKE 40% allocation
Vanguard All World - VWRD - 40% allocation
OR
the below which I believe are fundamental indexes (not cap weighted)
i-Share UK Gilts 0-5yrs - IGLS 20% allocation (same as above)
PowerShares FTSE RAFI UK - PSRU 40% allocation
PowerShares FTSE RAFI All-World 3000 UCITS - PSRW 40% allocation
Still doing some final due diligence.
Are your investments below the £75k guaranteed by the UK govt? I see that you have two vanguards or two PowerShares, why not mix & match to be doubly sure of staying under that limit?The trackers I was looking at are;
i-Share UK Gilts 0-5yrs - IGLS 20% allocation
Vanguard UK FTSE 100 index - VUKE 40% allocation
Vanguard All World - VWRD - 40% allocation
OR
the below which I believe are fundamental indexes (not cap weighted)
i-Share UK Gilts 0-5yrs - IGLS 20% allocation (same as above)
PowerShares FTSE RAFI UK - PSRU 40% allocation
PowerShares FTSE RAFI All-World 3000 UCITS - PSRW 40% allocation
Still doing some final due diligence.
Dave3166 said:
Thanks, Have you ever thought of dabbling in the used car market, the money you are talking about would see you in the top end of motors.
Buy one, store it for a year, see how much it is worth then, even if its for a bit of fun.
I'm two years too late for that one, I was aspiring to a 997 GT3 when I left the UK 3 yrs back, but can't bring myself to pay the prices their at today! Buy one, store it for a year, see how much it is worth then, even if its for a bit of fun.
I've never perceived the words "car" and "investment" as sitting comfortably in the same sentence, but note,
- Nick Mason (Pink Floyd)
- Chris Evans (Radio & TV)
- Mark Knopfler (Dire Straits)
- Rowan Atkinson (Mr Bean)
- Adrian Newey (F1 Red Bull designer)
- ... of Brunei (the Sultan)
Ozzie Osmond said:
I've never perceived the words "car" and "investment" as sitting comfortably in the same sentence, but note,
Yes, seems there is definitely an asset bubble when it comes to cars and current values, it will burst, as to when who knows, in a low interest, QE environment it may take a while longer but the music will stop..- Nick Mason (Pink Floyd)
- Chris Evans (Radio & TV)
- Mark Knopfler (Dire Straits)
- Rowan Atkinson (Mr Bean)
- Adrian Newey (F1 Red Bull designer)
- ... of Brunei (the Sultan)
What is the general consensus on strength of the good ol pound once Brexit really starts (ie formal talks) post the new Govermment being formed in Germany next Sept?
We are looking to buy a family home in UK later next year so trying to decide whether to convert some foreign currency now to £ or wait to see if # drops further?
We are looking to buy a family home in UK later next year so trying to decide whether to convert some foreign currency now to £ or wait to see if # drops further?
Mezger said:
What is the general consensus on strength of the good ol pound once Brexit really starts (ie formal talks) post the new Govermment being formed in Germany next Sept?
We are looking to buy a family home in UK later next year so trying to decide whether to convert some foreign currency now to £ or wait to see if # drops further?
buy the house this year......We are looking to buy a family home in UK later next year so trying to decide whether to convert some foreign currency now to £ or wait to see if # drops further?
superlightr said:
buy the house this year......
still working abroad, so not entirely feasible but not impossible... Why do you suggest this year?
Given Brexit has not formally started I was anticipating a drop in £ and also the housing market to at least slow if not decline slightly...
Mezger said:
superlightr said:
buy the house this year......
still working abroad, so not entirely feasible but not impossible... Why do you suggest this year?
Given Brexit has not formally started I was anticipating a drop in £ and also the housing market to at least slow if not decline slightly...
Collectingbrass said:
Mezger said:
superlightr said:
buy the house this year......
still working abroad, so not entirely feasible but not impossible... Why do you suggest this year?
Given Brexit has not formally started I was anticipating a drop in £ and also the housing market to at least slow if not decline slightly...
superlightr said:
Yes was part of the thinking but also if you are buying in a generally good area (certainly in my local bubble in the SE house) prices are very strong and I don't believe will decline or slow. Hence a property this year will be cheaper to buy then next year.
Thanks, that logic holds, good properties in good areas will retain value well. Therein lies the conundrum, we need to decide where to live, ranging from Leicestershire (great bang for our buck) to Hampshire or Surrey (less bang for buck).. Decisions, Decisions. superlightr said:
buy the house this year......
Hindsight being 20:20 vision, rather glad we didn't. Though truth be told, despite looking we hadn't got our final deposit together so it was not as a result of any master strategy on our part. Now we will buy in the next 6 months most likely. Fortuitously, it appears asking prices are being reduced on 90% of the properties we were looking at, in both Leicestershire and Hampshire.
Does anyone give credence to the possibility that Theresa May (assuming they win, very possible) will allows houseprices to deflate, can always "blame Brexit" and gamble they can "fix" things in the next 5 years?
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