Intelligent Money - your investment questions answered
Discussion
anonymous said:
[redacted]
Derek is actually one of the good IFAs, hence his dismal of financial advisers that focus on getting you better investment returns (he knows this is virtually impossible for any IFA to remotely achieve (consistently).To answer your question,with your ISA maxed out, there is the option of investment bonds (not to be confused with any other type of 'bonds') whereby you can take up to 5% a year (for 20 years) and it is treated as a return of capital (gains are "top sliced" in the year of encashment - socxould also be tax free).
There is also your annual CGT allowance, don't forget this Over £11k of capital gins each tax year with no tax.
After this you have EIS and VCT allowances. These are high risk though.
I hope this gives you more information, let me know if I can add more.
Derek Chevalier said:
You could argue that a hedge fund isn't sharing much of the risk with their x and y model with the x being paid no matter how they do, and it can lead them to take extra risk in an effort to increase y.
It’s apples to oranges, of course. An IFA isn’t (or shouldn’t be) trying to play the market. But regardless, they get their X and Y irrespective of performance. anonymous said:
[redacted]
Yes, and especially as the 'hedge fund' concept has expanded so massively in recent years, especially in the movement away from the managers investing their own capital alongside external investors and trying to focus more on AUM fees over performance fees for income. Which is why I used the term 'traditional'. Whether there are many 'traditional' funds out there these days, I don't know.DonkeyApple said:
Yes, and especially as the 'hedge fund' concept has expanded so massively in recent years, especially in the movement away from the managers investing their own capital alongside external investors and trying to focus more on AUM fees over performance fees for income. Which is why I used the term 'traditional'. Whether there are many 'traditional' funds out there these days, I don't know.
Out of interest, how did hedge funds get their name? I understand them to be portfolios where the manager can invest in pretty much anything. As you said, traditionally with their own cash alongside others - with different flavours and specialities, but where does the hedging term fit in?
It does derive from the concept of limiting risk. Generally where that risk management was through diversifying away. That could be diversification into other investment classes or originally I think it generally meant using short and or contrarian positions to hedge the risks you were taking elsewhere. Ie a chap who owned a large firm that tied up the bulk of their wealth in a single market and direction may seek to invest a proportion of their free wealth into a fund that is supposed to gain in value should the industry the client is mostly exposed to declines etc.
Today the term seems much more generic and seems liberally applied to almost any type of fund that is non vanilla or frankly even just plain vanilla. Probably the overriding aspect of this widening that retains commonality is the regulatory aspect. They are typically much less regulated and much less restricted in what they can and can’t do.
Today the term seems much more generic and seems liberally applied to almost any type of fund that is non vanilla or frankly even just plain vanilla. Probably the overriding aspect of this widening that retains commonality is the regulatory aspect. They are typically much less regulated and much less restricted in what they can and can’t do.
Edited by DonkeyApple on Thursday 14th March 10:48
Apologies if this has been asked before but I note your pop ups advertise Isa investments, I couldn't glean information from the website.
Next month Mrs Tresco and myself will obviously have both allowances available to us, is that amount too small for IM?
She's surprisingly not overly impressed with my "I overheard this bloke talking about renewables, dunno what it means but gotta be a worth a punt" approach to stock picking.
Next month Mrs Tresco and myself will obviously have both allowances available to us, is that amount too small for IM?
She's surprisingly not overly impressed with my "I overheard this bloke talking about renewables, dunno what it means but gotta be a worth a punt" approach to stock picking.
Tresco said:
Apologies if this has been asked before but I note your pop ups advertise Isa investments, I couldn't glean information from the website.
Next month Mrs Tresco and myself will obviously have both allowances available to us, is that amount too small for IM?
She's surprisingly not overly impressed with my "I overheard this bloke talking about renewables, dunno what it means but gotta be a worth a punt" approach to stock picking.
Next month Mrs Tresco and myself will obviously have both allowances available to us, is that amount too small for IM?
She's surprisingly not overly impressed with my "I overheard this bloke talking about renewables, dunno what it means but gotta be a worth a punt" approach to stock picking.
I'm not surprised she is not impressed!
Yes, we are an ISA Plan Manager. Please do let me know (here, or through a PM if you prefer) how you couldn't get any information on this through our website. We may be assuming some things are obvious, when they are not.
Whilst our minimum is usually £100k I have taken on board years of my wife telling me size is not important! There is no minimum for fellow PHer's and no initial charge either. Make sure you enter the code PH2607 in the notes box.
Any questions or queries then just shout (here, or through a PM or via the office). We are happy to help and guide you in the right direction (even if that is away from us).
We have c. 25,000 clients and c. £2bn of asset, so our average is actually just below £100k. This is because our core clients have 6 or 7 figure investments with us, but equally have family members (and friends) that we view as being an extension of the primary client. They usually have 4 or 5 figure investments with us. You only need a few thousand small accounts to hugely distort the average balance!
For PH, everyone is simply viewed as being an extension of my account, so the minimum limits vanish (and on top of this the initial transaction charge disappears altogether).
Cheers
Julian
JulianPH said:
Tresco said:
Apologies if this has been asked before but I note your pop ups advertise Isa investments, I couldn't glean information from the website.
Next month Mrs Tresco and myself will obviously have both allowances available to us, is that amount too small for IM?
She's surprisingly not overly impressed with my "I overheard this bloke talking about renewables, dunno what it means but gotta be a worth a punt" approach to stock picking.
Next month Mrs Tresco and myself will obviously have both allowances available to us, is that amount too small for IM?
She's surprisingly not overly impressed with my "I overheard this bloke talking about renewables, dunno what it means but gotta be a worth a punt" approach to stock picking.
I'm not surprised she is not impressed!
Yes, we are an ISA Plan Manager. Please do let me know (here, or through a PM if you prefer) how you couldn't get any information on this through our website. We may be assuming some things are obvious, when they are not.
Whilst our minimum is usually £100k I have taken on board years of my wife telling me size is not important! There is no minimum for fellow PHer's and no initial charge either. Make sure you enter the code PH2607 in the notes box.
Any questions or queries then just shout (here, or through a PM or via the office). We are happy to help and guide you in the right direction (even if that is away from us).
We have c. 25,000 clients and c. £2bn of asset, so our average is actually just below £100k. This is because our core clients have 6 or 7 figure investments with us, but equally have family members (and friends) that we view as being an extension of the primary client. They usually have 4 or 5 figure investments with us. You only need a few thousand small accounts to hugely distort the average balance!
For PH, everyone is simply viewed as being an extension of my account, so the minimum limits vanish (and on top of this the initial transaction charge disappears altogether).
Cheers
Julian
I'll either DM you or call the office but one further question here if you don't mind - I appreciate market timing is difficult and with ISA's that will be held for some while it's probably not hugely relevant but is it prudent to let the ISA buying frenzy in early April pass and then invest May/June time?
Tresco said:
Thanks Julian, it's probably as plain as the nose on my face but as my contribution on the 'Shell Shares' thread testifies seeing what's writ large, (or small), clearly not my strong suit.
I'll either DM you or call the office but one further question here if you don't mind - I appreciate market timing is difficult and with ISA's that will be held for some while it's probably not hugely relevant but is it prudent to let the ISA buying frenzy in early April pass and then invest May/June time?
No problem!I'll either DM you or call the office but one further question here if you don't mind - I appreciate market timing is difficult and with ISA's that will be held for some while it's probably not hugely relevant but is it prudent to let the ISA buying frenzy in early April pass and then invest May/June time?
A very difficult question and no one really know the answer. There are historic statistics that show investing at the end of September/beginning of October to be a good time to invest for the short term, but when investing for the long term I am not sure how relevant this is:
https://www.investopedia.com/day-trading/best-time...
If you are not sure you could always drip feed money into the markets on a monthly basis. This is referred to as pound cost averaging. In falling markets this works for you buy buying more stocks for the same cost, so when markets rise again you benefit from greater ownership.
In rising markets this works against you though.
I like the adage "time in the markets is more important than timing the markets" though.
Give me a shout if there is anything else.
Market timing for longer term investments really is a tough call. I do feel that averaging in normally scores better as it does smooth out those medium term market events while also being less fretful to the investor. The way I see it is that if the market falls or rallies shortly after an investor enters the market, if they did so all in one go then it’s pure luck as to whether they are then very happy or very sad. The outcomes are very binary and very extreme. Whereas, if they were only partially invested at that point then they either have a little bit of joy at having got some returns or a little bit of joy at having avoided big running losses.
Everyone’s situation is always slightly different and that is what defines the fact that there is no specifically right or wrong way but I tend to think that an element of averaging in, whether it’s small amounts each month to big lumps each quarter etc is generally the more comfortable approach.
Of course a ‘grass is greener’ naturally miserable bugger will still struggle to find that joy but if they’ve reached the age where they have excess wealth to invest then they should be very used to their own misery.
Everyone’s situation is always slightly different and that is what defines the fact that there is no specifically right or wrong way but I tend to think that an element of averaging in, whether it’s small amounts each month to big lumps each quarter etc is generally the more comfortable approach.
Of course a ‘grass is greener’ naturally miserable bugger will still struggle to find that joy but if they’ve reached the age where they have excess wealth to invest then they should be very used to their own misery.
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