Intelligent Money - your investment questions answered

[mikeiow]

ziontrain said:

Hi Julian

Probably a very obvious question compared to some of the others here, but I'm trying to figure out whether I'd be better off overpaying my mortgage each month or chucking the equivalent amount in an ISA. Presumably, the key point is whether I'm looking to make money (higher return in the ISA v the rate on my mortgage) or reducing my debt level. I've only recently taken out the mortgage so it still has many years left to run.

Cheers

As a bystander here.....in your shoes I'd ask myself "why not do a bit of both?"
Nice to think the mortgage will end sooner, but also nice to have some long term investments, eh?

[Jasey_]

ziontrain said:

Hi Julian

Probably a very obvious question compared to some of the others here, but I'm trying to figure out whether I'd be better off overpaying my mortgage each month or chucking the equivalent amount in an ISA. Presumably, the key point is whether I'm looking to make money (higher return in the ISA v the rate on my mortgage) or reducing my debt level. I've only recently taken out the mortgage so it still has many years left to run.

Cheers

Get the bank to confirm what your interest on the mortgage is per month.

When I did this I decided to pay off as much as the mortgage as I could as soon as I could.

[ziontrain]

mikeiow said:

As a bystander here.....in your shoes I'd ask myself "why not do a bit of both?"
Nice to think the mortgage will end sooner, but also nice to have some long term investments, eh?

That does now seem blindingly obvious, but given the likely modest amount involved I feel like all-or-nothing on either approach would be better?

[JulianPH]

superlightr said:

The PH Equity..... did you have some of the allocation into companies that manufacture face masks?!

its increasing pretty well just recently...…. !!

well done wherever its in.

No, not invested in these (yet)!

PH Equity going into double digit returns](10.85% after all charges) over the last 12 weeks is is not too shabby!

I am glad you shared in part of this growth and will do all I can to continue to deliver such returns going forward (generally by sticking with good solid stocks that deliver).

Like IM Optimum Global Growth, it holds my own money and my daughter's money - as well as your money and that of our other clients, so I am pretty focused!

Thanks for commenting on this and just let me know if you want to find out more about my reasoning. I am always open to this.

Cheers

Julian

[JulianPH]

ziontrain said:

Hi Julian

Probably a very obvious question compared to some of the others here, but I'm trying to figure out whether I'd be better off overpaying my mortgage each month or chucking the equivalent amount in an ISA. Presumably, the key point is whether I'm looking to make money (higher return in the ISA v the rate on my mortgage) or reducing my debt level. I've only recently taken out the mortgage so it still has many years left to run.

Cheers

Hi Rob

This is an eternal question, with no right or wrong answer.

If the ISA returns more than the mortgage costs then the ISA wins. If the mortgage costs more than the ISA returns then the mortgage wins.

My honest opinion would be to follow mikelow's advice and hedge your bets. This covers you more fully.

If you want to go all out one way or the other I would suggest that extinguishing debt on your home has to be the most important move you can make.

Of course, if you are paying 2% on your mortgage and can get 20% on your investments, then this is terrible advice, but you know with certainty what your mortgage costs are and you don't have this certainty with your investment returns.

There really is no right or wrong here. Chat with Nik (for free) for a more detailed response (if you don't wish to put further personal information here).

Ask more here if you prefer.

Cheers

Julian

[Gallons Per Mile]

JulianPH said:

...then this is terrible advice information with which to make your own decisions...

FTFY

[JulianPH]

Gallons Per Mile said:

JulianPH said:

...then this is terrible advice information with which to make your own decisions...

FTFY

Very well spotted indeed!

It is so easy to lapse into everyday usage of a word that has been hijacked to have a specific legal definition!

Why couldn't the just have called it "Regulated Financial Advice"? This would have been do much easier for everyone!

[JulianPH]

Nik is about to email everyone regarding jacket sizes for the IM British GT Championship merchandise.

Anyone who got tickets who is not a Private Client, could you pop me a message to let me know your sizes please.

XS = 32" to 34"

S = 36" to 38"

M = 40" to 42"

L = 44" to 46"

XL = 48" to 50"

XXL = 54 to 56"

Cheers

Julian

[JonChalk]

JulianPH said:

Nik is about to email everyone regarding jacket sizes for the IM British GT Championship merchandise.

Julian, not seen anything prior (no email yet?) confirming tickets - have I missed a post / email somewhere?

Ta.

[CharlesdeGaulle]

JonChalk said:

Julian, not seen anything prior (no email yet?) confirming tickets - have I missed a post / email somewhere?

Ta.

Might you be ginger?





(Joking, for the avoidance of any doubt) .

[JonChalk]

CharlesdeGaulle said:

Might you be ginger?





(Joking, for the avoidance of any doubt) .

Oh for the days when I had enough hair to joke over what colour it is!!

[Intelligent Money]

Hi Jon,

Now we have the size guide for the Jackets I will be putting together a confirmation e-mail and asking for the info we need to get your jackets and caps sorted.

You haven't missed anything it will be out before the end of this week.

Nik

[JonChalk]

Intelligent Money said:

Hi Jon,

Now we have the size guide for the Jackets I will be putting together a confirmation e-mail and asking for the info we need to get your jackets and caps sorted.

You haven't missed anything it will be out before the end of this week.

Nik

Cheers Nik.

[Thales]

Hi All,

Some advice would be greatly appreciated. I am considering opening a Vanguard S&S ISA, I have two questions please-

1. I opened a Barclays S&S ISA last month, but haven't paid any money into it. Can I still open a Vanguard S&S ISA?

2. Could someone give me a brief overview of which LifeStrategy ISA would be best for me? I don't understand what the different percentage rates actually mean (i.e LifeStrategy® 60% Equity Fund - Accumulation).

I'd be looking to initially invest £5k, with £250 monthly payments thereafter.

Apologies for the basic questions, this is all very new to me.

Thanks in advance.

[JulianPH]

Thales said:

Hi All,

Some advice would be greatly appreciated. I am considering opening a Vanguard S&S ISA, I have two questions please-

1. I opened a Barclays S&S ISA last month, but haven't paid any money into it. Can I still open a Vanguard S&S ISA?

2. Could someone give me a brief overview of which LifeStrategy ISA would be best for me? I don't understand what the different percentage rates actually mean (i.e LifeStrategy® 60% Equity Fund - Accumulation).

I'd be looking to initially invest £5k, with £250 monthly payments thereafter.

Apologies for the basic questions, this is all very new to me.

Thanks in advance.

Hi Thales

Your first question is quite technical to answer.

You are not allowed to subscribe to more than one stocks and shares ISA in the same tax year.

However, the definition of subscription is the payment of money into the ISA, not the actual application to open one.

So if you have not subscribed (paid any money into) your Barclays S&S ISA you can close this and open one with Vanguard and the make your subscription into this account.

Do make certain you have not put any money into your Barclays ISA though, as it is very unusual for an ISA Plan Manager to go through the proses of opening an ISA for you without any subscription being made.

If you find out you have subscribed any money whatsoever, then you will need to transfer this to Vanguard (which is very easy) and then make your planned contributions (subscriptions) to that account.

Regarding your second question, the different percentage rate refer to the equity (stock market) exposure and the bond exposure.

The higher the number the greater the stock market exposure. So LifeStrategy 60 has 60% stock market exposure and 40% bond exposure.

The perceived wisdom is that bonds are less volatile than equities and so the greater the bond exposure the lower the risk of the portfolio. This is usually the case in reality as well as in theory.

However, there is additional perceived wisdom (which is also true in reality) that says the longer you have to invest for the greater your equity exposure should be, as over time stock markets outperform bonds.

A rule of thumb (though certainly no a strict guide) could be to take a zero off the LifeStrategy name (so 100 becomes 10, 80 becomes 8, and so on) and consider these numbers as your minimum investment period.

Having said that, this is not always logical, but simply meant as a descriptive analogy to help your understanding.

No question is basic when you don't know the answer!

I hope this has been of some help, but please ask anything else and I will endeavour to give you an easy to understand answer.

Cheers

Julian

[Thales]

Julian, thank you ever so much for your thorough response.

[JulianPH]

Thales said:

Julian, thank you ever so much for your thorough response.

No problem, please excuse the typos in my quick writing of a long winded response!

If my answer has thrown up any more questions then just let me know.

[XJSJohn]

Situation - most of my investments are offshore courtesy of a lengthy time overseas, happy leaving that where it is as i can collect when i go back.

I have just come into 30k that is all tax paid in the UK. Is there any way of getting something like 10 - 12% PA returns on that in any sort of realistic investment.

I don't mind some risk, but looking for "proper" investments rather than a night at the tables or at the Turf Accountants. Also looking for something to "stick it in and it looks after itself" type investment rather than buying and selling stocks (as i am generally crap at that)

Does anything like that exist in the UK.

Basically looking at some diversity.

[JulianPH]

XJSJohn said:

Situation - most of my investments are offshore courtesy of a lengthy time overseas, happy leaving that where it is as i can collect when i go back.

I have just come into 30k that is all tax paid in the UK. Is there any way of getting something like 10 - 12% PA returns on that in any sort of realistic investment.

I don't mind some risk, but looking for "proper" investments rather than a night at the tables or at the Turf Accountants. Also looking for something to "stick it in and it looks after itself" type investment rather than buying and selling stocks (as i am generally crap at that)

Does anything like that exist in the UK.

Basically looking at some diversity.

Hello mate

Thank you for thinking of us for this.

All investments are variable and carry different degrees of risk.

IM Optimum Global Growth has averaged just over 9% for the last ten years and PH Equity would have returned 26.62% as an average over the same 10 years. The future is unknown to all of us though.

PH Equity is up 11% over the last 12 weeks, let alone year.

I favour a 50/50 combination between the two, as this gives massive global exposure (including some bonds, property and gold) with one half, with a concentrated focus on 10 global brands with the other half.

This is just my preference though. It would have delivered a 19% average annual return with considerable diversification.

There is nothing that can guarantee you 10% to 12% a year though.

All of our investment portfolios are "stick it in and it looks after itself" though, that is the whole point behind what we do (together with providing you a named, qualified and experienced Private Client Manager).

Post any further questions here or get in touch directly.

Also, let me know jacket sizes for the GT!

Cheers

Julian

[XJSJohn]

JulianPH said:

XJSJohn said:

Situation - most of my investments are offshore courtesy of a lengthy time overseas, happy leaving that where it is as i can collect when i go back.

I have just come into 30k that is all tax paid in the UK. Is there any way of getting something like 10 - 12% PA returns on that in any sort of realistic investment.

I don't mind some risk, but looking for "proper" investments rather than a night at the tables or at the Turf Accountants. Also looking for something to "stick it in and it looks after itself" type investment rather than buying and selling stocks (as i am generally crap at that)

Does anything like that exist in the UK.

Basically looking at some diversity.

Hello mate

Thank you for thinking of us for this.

All investments are variable and carry different degrees of risk.

IM Optimum Global Growth has averaged just over 9% for the last ten years and PH Equity would have returned 26.62% as an average over the same 10 years. The future is unknown to all of us though.

PH Equity is up 11% over the last 12 weeks, let alone year.

I favour a 50/50 combination between the two, as this gives massive global exposure (including some bonds, property and gold) with one half, with a concentrated focus on 10 global brands with the other half.

This is just my preference though. It would have delivered a 19% average annual return with considerable diversification.

There is nothing that can guarantee you 10% to 12% a year though.

All of our investment portfolios are "stick it in and it looks after itself" though, that is the whole point behind what we do (together with providing you a named, qualified and experienced Private Client Manager).

Post any further questions here or get in touch directly.

Cheers, wasn't sure you would have investment plans with that sort of yield for the "smaller" amounts, i know often its a 100k kick-off.

Any chance you could email me some info on those two and we can have a chat, at those returns i may look at doing some top-up too, will give you a shout as soon as the dosh is in the bank!

JulianPH said:

Also, let me know jacket sizes for the GT!

Cheers

Julian

Ohh goodie bags XL for the fat B'stard and XS for SWMBO

(always seem to run higher tyre pressures on the right .... )