FTSE100 tracker
Discussion
Ellb123 said:
First of all, I'd just like to thank Ari and everyone else for sharing their experience and knowledge throughout this thread, it’s not often a thread doesn’t descend into petty arguments these days but I’m glad this has stayed on topic and has provided some great information for people like me.
A couple of questions if you don’t mind Ari;
Would you have still invested the same way if you knew now what you did at the beginning (obviously not including what has happened to the increase/decrease in value), would you of put that £5k in the world tracker instead?
How long do you plan to stick this out for? I’m guessing this is a retirement fund or something similar?
And I guess a general question to the PH experts;
I’ve read Millionaire Teacher which echo’s a lot of the thought in here about investing in an index fund rather than an actively managed fund or trying to do it yourself by picking and choosing. I’m looking to start the same kind of journey as Ari here, although my circumstances seem slightly different, I’m 24, currently saving for a house (almost there) and earn around £20k PA. I was planning to start off with a £100 deposit and drip feeding in £50 per month, until I can afford a little more to put in and grow some confidence with the investment, treating this as a long-term thing and possibly an early retirement fund. I’m telling myself that it’s better to be in and started with a smaller amount than waiting say 5 years and investing more then, I’d be interested to hear your thoughts.
Hi Ellb. I'm glad it's helped someone, that was very much the intention, to give a real world journey into this, good or bad. A couple of questions if you don’t mind Ari;
Would you have still invested the same way if you knew now what you did at the beginning (obviously not including what has happened to the increase/decrease in value), would you of put that £5k in the world tracker instead?
How long do you plan to stick this out for? I’m guessing this is a retirement fund or something similar?
And I guess a general question to the PH experts;
I’ve read Millionaire Teacher which echo’s a lot of the thought in here about investing in an index fund rather than an actively managed fund or trying to do it yourself by picking and choosing. I’m looking to start the same kind of journey as Ari here, although my circumstances seem slightly different, I’m 24, currently saving for a house (almost there) and earn around £20k PA. I was planning to start off with a £100 deposit and drip feeding in £50 per month, until I can afford a little more to put in and grow some confidence with the investment, treating this as a long-term thing and possibly an early retirement fund. I’m telling myself that it’s better to be in and started with a smaller amount than waiting say 5 years and investing more then, I’d be interested to hear your thoughts.
To give some background, my view was always that there is no point saving (beyond a small emergency fund) or investing while still owing money (in my case a house mortgage). I appreciate other people may have different views, but this was mine. My view was very much, would I remortgage for (say) £10K in order to have £10K of savings? Of course not - so why would I have £10K in the bank when it could come off the mortgage (same situation). Same with investments, would I borrow £10K to invest it? No, so why start investing while I still owe.
So, my priority was to pour everything into the mortgage, partly because (to me) it made the most sense and partly because it offered the most security. The less I owe, the better position I'm in if earnings drop or cease. Once the mortgage was paid off, then I saved. Once I had a reasonable buffer (a year plus of survival) I figured I needed to do something more creative, and this is it.
In your situation, would I invest while saving for a house? Probably not, because it's too short term. If you've put £10K in over 2 years and at the point you want to use it as a house deposit it's turned into £8K you're going to be pretty upset. Whereas I'm able to take a much longer term view - if £10K has become £8K then I'll just leave it there till it comes back, even if it's years.
And to answer this: Would you have still invested the same way if you knew now what you did at the beginning (obviously not including what has happened to the increase/decrease in value), would you of put that £5k in the world tracker instead?
No, if I was able to know the answers before I invested, I'd have put it into winning lottery tickets. My point being, it's not really worth thinking about what you would have done if you knew what was going to happen because you never ever do. So all you can do is use your best judgement, be prepared to accept the 'worst case', hope for the best case and sally forth.
Good luck!
Little update on this for anyone still interested.
FTSE100 Index Unit Trust Accumulation has £11,910 paid in and is worth £12,443
FTSE All World has £1,639 paid in and is worth £1,747
A return of 7%.
Very pleasing (and planning to add a bit more over the usual regular payments shortly).
FTSE100 Index Unit Trust Accumulation has £11,910 paid in and is worth £12,443
FTSE All World has £1,639 paid in and is worth £1,747
A return of 7%.
Very pleasing (and planning to add a bit more over the usual regular payments shortly).
Mopey said:
Ari said:
Another little update.
FTSE100 Tracker, paid in £13,029, current value £14,094
FTSE All World paid in £3,575, current value £3,856
So £1,345 up, rate of return is 13.54%
All rather pleasing really.
Over what period is that Ari and forgive my ignorance but how do I get started?! FTSE100 Tracker, paid in £13,029, current value £14,094
FTSE All World paid in £3,575, current value £3,856
So £1,345 up, rate of return is 13.54%
All rather pleasing really.
daddy cool said:
Nice one. I like hearing your updates, and your ups and down tend to match what happens on mine. Its almost 2 years since I started a S&S ISA with Fidelity, and have maxed out my allowance both years. Unlike you (and because im an absolute noob at this) I ended up with 12 funds, all spread across different geographies and whatnot. After an initial rise (where I felt like I was the next Warren Buffet) ive spent most of the last year seeing almost all of them decline... but I kept my nerve, kept drip feeding, and consequently buying cheap stock, and pretty much since the general election result they have all gone up like a rocket!
As of today, my stats are £40k invested, current value £44,448 - a return of 11.12%, which isn't bad I guess.
My single best is a Legal & General Pharmaceutical trust - £4.3K invested, current value £5.3K - a return of 20.1%
Im not expecting to retire early or anything, but it seems to be doing better than just keeping it in a savings account, and its fun to keep an eye on every couple of days.
Very similar to me. It's quite hard when it goes negative to not only not panic about losing more and leave it in, but accept that you're actually getting more for your money and keep buying! As of today, my stats are £40k invested, current value £44,448 - a return of 11.12%, which isn't bad I guess.
My single best is a Legal & General Pharmaceutical trust - £4.3K invested, current value £5.3K - a return of 20.1%
Im not expecting to retire early or anything, but it seems to be doing better than just keeping it in a savings account, and its fun to keep an eye on every couple of days.
BobToc said:
Ari said:
Another little update.
FTSE100 Tracker, paid in £13,029, current value £14,094
FTSE All World paid in £3,575, current value £3,856
So £1,345 up, rate of return is 13.54%
All rather pleasing really.
Does that include dividends as well?FTSE100 Tracker, paid in £13,029, current value £14,094
FTSE All World paid in £3,575, current value £3,856
So £1,345 up, rate of return is 13.54%
All rather pleasing really.
Ari said:
Another little update.
FTSE100 Tracker, paid in £13,029, current value £14,094
FTSE All World paid in £3,575, current value £3,856
So £1,345 up, rate of return is 13.54%
All rather pleasing really.
Two weeks later, £673.41 up, rate of return is 6.56%.FTSE100 Tracker, paid in £13,029, current value £14,094
FTSE All World paid in £3,575, current value £3,856
So £1,345 up, rate of return is 13.54%
All rather pleasing really.
So much for the 'Brexit bounce'!
Case in point, it's on its way back up today - but for how long? And what will it do tomorrow? There's no way of knowing whether we've hit bottom and are climbing, or whether this is a small blip before another downward plunge.
Meanwhile, my buy order hasn't yet gone through, which is a little annoying, presumably therefore it will be based on end of business today's figure (which currently will be higher than yesterday).
As to the account itself, its bleeding red ink. Total rate of return -21.25%, £2,316.30 down on total investment.
This is when you need to remember the long term approach. (And cross your fingers).
And why these sorts of accounts don't work as savings accounts. If I needed that money now it would have been a very painful exercise!
Meanwhile, my buy order hasn't yet gone through, which is a little annoying, presumably therefore it will be based on end of business today's figure (which currently will be higher than yesterday).
As to the account itself, its bleeding red ink. Total rate of return -21.25%, £2,316.30 down on total investment.
This is when you need to remember the long term approach. (And cross your fingers).
And why these sorts of accounts don't work as savings accounts. If I needed that money now it would have been a very painful exercise!
daddy cool said:
Ari said:
Your rate of return is -42.05%
Your investments returned you ?£4,795.08
Hows it looking today? Mine has picked up (slightly... very slightly)Your investments returned you ?£4,795.08
Your rate of return is -23.21%
Your investments returned you −£2,580.38
I'm looking at this over a 10 year timeframe (ie it's about 10 years before I'll want to start taking money out of it) and I'm also thinking that if house prices drop (entirely likely) it might be a good time to think about an upgrade.
So on the one hand this feels like a good time to drop a little extra into this tracker, on the other I need to save as much cash as possible toward a possible house move.
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