Sorry.......I came on here to say that the FTSE100 closed today at its highest level for 6 months. Just shy of 6500. Not sure it will reach my guess of 6666 by Dec 31st, but hoping it can close above 6500 by then.
Sorry.......I came on here to say that the FTSE100 closed today at its highest level for 6 months. Just shy of 6500. Not sure it will reach my guess of 6666 by Dec 31st, but hoping it can close above 6500 by then.
Astonished at how high it is given the remaining uncertainty. Maybe it's just the sectors that failing businesses are in?
Interesting to see where it sits by June next year - Brexit transition and escaping from pandemnic. Interesting times for sure.
I'd say it says a great deal about Baillie Gifford but the vast majority of the far too many active funds out there do not deliver such returns and fail to beat passives like Vanguard. That's well documented (see e.g Bestinvest's annual Spot the Dog)
Also.,, are those gains after deduction of respective management fees, because that's the other issue with active vs passive?
I believe it's performance of the fund so not including fees. Fee's between the two are 0.5% and 0.1% so yes a difference but not huge when you look at performance.
It will include all fees, otherwise how else would they be deducted. The price / value of your funds once invested will then include all fees when you get any valuations.
Which is why the difference between the 2 funds values over the longer term is testament to us advisers who recommend active funds over passive. Imagine you've invested in the Vanguard fund because you didn't want to pay BG 1% pa. Bonkers. I understand what @PragueAddick is saying that there are lots & lots of poorly performing funds......but that is why people should take advice. I do get a bit peeved at times when people can't see the value I provide.
I get why you get peeved, but I think people fall into broadly two camps;
1. Think they know it all/or know enough, so do it themselves as 'cheaper'. 2. Know they don't know enough so take default options with the likes of Vanguard, but again on the basis of 'saving money' compared to a financial advisor.
The difficulty you have in particular with 1. is persuading them you know more/better to warrant the cost. Same applies to 2. but I think you could persuade them much much easier.
If I was in your shoes i'd take say 6/7 (or however many you think appropriate) of the top/most popular passive funds and again how ever many you feel is appropriate active funds. Take a timestamped picture of both and then in 6/9/12 months time show the variance like the graphs above. if that shows a considerably greater return you should be able to win over most of 2. and some of the 1.'s
You could even do a quarterly 'these are the funds i'd recommend' as of course things change over time.
Of course getting in front of people is probably the hardest part.
Whether you go to an advisor or not, i'd certainly recommend people review their pensions regularly. As we've indicated the last couple of days, leaving pensions to their own devices/default funds can make a huge, somewhat retirement changing, difference on your life.
PS, The FTSE is going to end at 6420 as i've been saying for months!?!
Nonsense, its going to end at ..err..6450, as I've been saying for months! :-)
Good game, lorra fun :-)
and @golfaddick if it's any consolation, I've been impressed by the way in which you eventually embraced this thread and have been willing to share some of your knowledge here for free. If I thought I needed a re-structure of investments, I'd probably ask you. Re @Rob7Lee 's camps, I think there is a third one, older gits who gradually become more confident in what they are doing and *have more time to do it* as their careers wind down. I'm in that group.
Nonsense, its going to end at ..err..6450, as I've been saying for months! :-)
Good game, lorra fun :-)
and @golfaddick if it's any consolation, I've been impressed by the way in which you eventually embraced this thread and have been willing to share some of your knowledge here for free. If I thought I needed a re-structure of investments, I'd probably ask you. Re @Rob7Lee 's camps, I think there is a third one, older gits who gradually become more confident in what they are doing and *have more time to do it* as their careers wind down. I'm in that group.
Been lurking in this thread for a while, trying to learn more about how best to invest and pick up a few things from the conversations here.
My gf and I are in fairly similar circumstances and was hoping for a bit of advice on where best to invest some money which we both want to put somewhere, we're both late 20s, looking to buy a house in the next few years, earning enough to save a few hundred monthly (my gf a bit more than me, especially if she stopped online shopping), brief summary of our position:
GF: Have a Help to Buy ISA already, about 1000 in a Credit Union, 1000 in a savings account, and she has about 3k in her current account which just sits there doing nothing other than look pretty. Myself: Help to Buy ISA, a small stack of Premium Bonds, and a savings account which has 5.8k in it.
We've probably both got 5k worth of savings that we could put somewhere, would it be best to pick up an ISA with what we have available? @Rob7Lee post with the performance of his BG funds seemed impressive to me and I've noticed they've been favourites of nearly everyone on here - is this something we could get involved in through a Stocks + Shares ISA? Does this need much management on a personal behalf or can you just let it do its thing?
Lifetime ISA - Is this a better alternative to the Help to Buy ISA we both have? I understand you can have both, but only use the gov top up from one on a new house, would it be worth switching? Would we incur any fees if we did?
Apologies if this is a bit much to be asking, would really appreciate any feedback.
Been lurking in this thread for a while, trying to learn more about how best to invest and pick up a few things from the conversations here.
My gf and I are in fairly similar circumstances and was hoping for a bit of advice on where best to invest some money which we both want to put somewhere, we're both late 20s, looking to buy a house in the next few years, earning enough to save a few hundred monthly (my gf a bit more than me, especially if she stopped online shopping), brief summary of our position:
GF: Have a Help to Buy ISA already, about 1000 in a Credit Union, 1000 in a savings account, and she has about 3k in her current account which just sits there doing nothing other than look pretty. Myself: Help to Buy ISA, a small stack of Premium Bonds, and a savings account which has 5.8k in it.
We've probably both got 5k worth of savings that we could put somewhere, would it be best to pick up an ISA with what we have available? @Rob7Lee post with the performance of his BG funds seemed impressive to me and I've noticed they've been favourites of nearly everyone on here - is this something we could get involved in through a Stocks + Shares ISA? Does this need much management on a personal behalf or can you just let it do its thing?
Lifetime ISA - Is this a better alternative to the Help to Buy ISA we both have? I understand you can have both, but only use the gov top up from one on a new house, would it be worth switching? Would we incur any fees if we did?
Apologies if this is a bit much to be asking, would really appreciate any feedback.
Literally in the exact same boat as you mate, so interested in the answers. Possible difference is I run my own Ltd company and have about 10k in that that i could take out in dividends. Wondering what the best route forward for myself is. I also have a LISA - i think it works out slightly more lucrative than the help to buy isa, but youre capped at £450,000 to buy a first home - which is very limiting inside the m25, even with help to buy loan.
With a Help To Buy and LISA you can only use the bonus from 1 to buy your first home as you say.
You can transfer a HTB to a LISA although it will use up that element of your years LISA allowance. But sounds like it's sub £4k anyway. So on the basis you will definitely use it to buy your first home i'd transfer it to a LISA. Fee's will depend on your provider.
Your only issue is probably timescale. 'A few years' is not really long enough in the market, you could lose, but on balance getting the 25% bonus should negate that unless the market drops by more than that.
If you can do the transfer and then pay a monthly amount into the LISA and try and use up your full £4k allowance each. In a few years you'll have £30k+ between you and hopefully some growth as a deposit. i've been getting my eldest to do that, she's 3 years in so £12k and with the bonus and growth is up to nearly £18k.
Kent, assume you take out £2k a year in dividends each year already?
With a Help To Buy and LISA you can only use the bonus from 1 to buy your first home as you say.
You can transfer a HTB to a LISA although it will use up that element of your years LISA allowance. But sounds like it's sub £4k anyway. So on the basis you will definitely use it to buy your first home i'd transfer it to a LISA. Fee's will depend on your provider.
Your only issue is probably timescale. 'A few years' is not really long enough in the market, you could lose, but on balance getting the 25% bonus should negate that unless the market drops by more than that.
If you can do the transfer and then pay a monthly amount into the LISA and try and use up your full £4k allowance each. In a few years you'll have £30k+ between you and hopefully some growth as a deposit. i've been getting my eldest to do that, she's 3 years in so £12k and with the bonus and growth is up to nearly £18k.
Kent, assume you take out £2k a year in dividends each year already?
oh yeah, more than that, i have a low directors wage and take dividends, so i know and already pay dividends tax... I just take approx 2k out a month for living rent etc but some months the company makes 4-5k in profit so its accrued. I'm aware putting into a pension is pretty tax efficient way of keeping hold of the money and not having to pay dividends tax on it... but then i'm not going to be able to access it for another 25 years or so!
Pension is very tax efficient but by it's very nature is long term. Just don't fall into the trap of 'i'll sort my pension out later' as later comes around pretty quick! And you miss all those early years of compounding growth.
Pension is very tax efficient but by it's very nature is long term. Just don't fall into the trap of 'i'll sort my pension out later' as later comes around pretty quick! And you miss all those early years of compounding growth.
you've been chatting to my missus havent you? nag..
With a Help To Buy and LISA you can only use the bonus from 1 to buy your first home as you say.
You can transfer a HTB to a LISA although it will use up that element of your years LISA allowance. But sounds like it's sub £4k anyway. So on the basis you will definitely use it to buy your first home i'd transfer it to a LISA. Fee's will depend on your provider.
Your only issue is probably timescale. 'A few years' is not really long enough in the market, you could lose, but on balance getting the 25% bonus should negate that unless the market drops by more than that.
If you can do the transfer and then pay a monthly amount into the LISA and try and use up your full £4k allowance each. In a few years you'll have £30k+ between you and hopefully some growth as a deposit. i've been getting my eldest to do that, she's 3 years in so £12k and with the bonus and growth is up to nearly £18k.
Kent, assume you take out £2k a year in dividends each year already?
On the highlighted point - I presume you're referring to that you can only get the 25% top up on up to 4k a year with the LISA? My HTB is at £3,253 so if I moved this into a LISA, I'd get the 25% top up on that (Plus whatever I put in in the next few months) when it came to getting the house? Other side of this is my girlfriend has move than 4k in hers, so she would be missing out on whatever value is above that when she moved it across?
Been lurking in this thread for a while, trying to learn more about how best to invest and pick up a few things from the conversations here.
My gf and I are in fairly similar circumstances and was hoping for a bit of advice on where best to invest some money which we both want to put somewhere, we're both late 20s, looking to buy a house in the next few years, earning enough to save a few hundred monthly (my gf a bit more than me, especially if she stopped online shopping), brief summary of our position:
GF: Have a Help to Buy ISA already, about 1000 in a Credit Union, 1000 in a savings account, and she has about 3k in her current account which just sits there doing nothing other than look pretty. Myself: Help to Buy ISA, a small stack of Premium Bonds, and a savings account which has 5.8k in it.
We've probably both got 5k worth of savings that we could put somewhere, would it be best to pick up an ISA with what we have available? @Rob7Lee post with the performance of his BG funds seemed impressive to me and I've noticed they've been favourites of nearly everyone on here - is this something we could get involved in through a Stocks + Shares ISA? Does this need much management on a personal behalf or can you just let it do its thing?
Lifetime ISA - Is this a better alternative to the Help to Buy ISA we both have? I understand you can have both, but only use the gov top up from one on a new house, would it be worth switching? Would we incur any fees if we did?
Apologies if this is a bit much to be asking, would really appreciate any feedback.
Literally in the exact same boat as you mate, so interested in the answers. Possible difference is I run my own Ltd company and have about 10k in that that i could take out in dividends. Wondering what the best route forward for myself is. I also have a LISA - i think it works out slightly more lucrative than the help to buy isa, but youre capped at £450,000 to buy a first home - which is very limiting inside the m25, even with help to buy loan.
Where I am for the next year or two (Northern Ireland) you can buy a castle for that! But when we come to buying it will be somewhere in the North west probably.
Been lurking in this thread for a while, trying to learn more about how best to invest and pick up a few things from the conversations here.
My gf and I are in fairly similar circumstances and was hoping for a bit of advice on where best to invest some money which we both want to put somewhere, we're both late 20s, looking to buy a house in the next few years, earning enough to save a few hundred monthly (my gf a bit more than me, especially if she stopped online shopping), brief summary of our position:
GF: Have a Help to Buy ISA already, about 1000 in a Credit Union, 1000 in a savings account, and she has about 3k in her current account which just sits there doing nothing other than look pretty. Myself: Help to Buy ISA, a small stack of Premium Bonds, and a savings account which has 5.8k in it.
We've probably both got 5k worth of savings that we could put somewhere, would it be best to pick up an ISA with what we have available? @Rob7Lee post with the performance of his BG funds seemed impressive to me and I've noticed they've been favourites of nearly everyone on here - is this something we could get involved in through a Stocks + Shares ISA? Does this need much management on a personal behalf or can you just let it do its thing?
Lifetime ISA - Is this a better alternative to the Help to Buy ISA we both have? I understand you can have both, but only use the gov top up from one on a new house, would it be worth switching? Would we incur any fees if we did?
Apologies if this is a bit much to be asking, would really appreciate any feedback.
Literally in the exact same boat as you mate, so interested in the answers. Possible difference is I run my own Ltd company and have about 10k in that that i could take out in dividends. Wondering what the best route forward for myself is. I also have a LISA - i think it works out slightly more lucrative than the help to buy isa, but youre capped at £450,000 to buy a first home - which is very limiting inside the m25, even with help to buy loan.
Where I am for the next year or two (Northern Ireland) you can buy a castle for that! But when we come to buying it will be somewhere in the North west probably.
They should do for the LISA what they do for the help to buy loan - increase the cap if you’re buying in London. Shared ownership looks like a nightmare waiting to happen - would rather own the whole thing. But you can only buy studio new builds for 450k really (and so be eligible for help to buy equity loan).
With a Help To Buy and LISA you can only use the bonus from 1 to buy your first home as you say.
You can transfer a HTB to a LISA although it will use up that element of your years LISA allowance. But sounds like it's sub £4k anyway. So on the basis you will definitely use it to buy your first home i'd transfer it to a LISA. Fee's will depend on your provider.
Your only issue is probably timescale. 'A few years' is not really long enough in the market, you could lose, but on balance getting the 25% bonus should negate that unless the market drops by more than that.
If you can do the transfer and then pay a monthly amount into the LISA and try and use up your full £4k allowance each. In a few years you'll have £30k+ between you and hopefully some growth as a deposit. i've been getting my eldest to do that, she's 3 years in so £12k and with the bonus and growth is up to nearly £18k.
Kent, assume you take out £2k a year in dividends each year already?
On the highlighted point - I presume you're referring to that you can only get the 25% top up on up to 4k a year with the LISA? My HTB is at £3,253 so if I moved this into a LISA, I'd get the 25% top up on that (Plus whatever I put in in the next few months) when it came to getting the house? Other side of this is my girlfriend has move than 4k in hers, so she would be missing out on whatever value is above that when she moved it across?
If you transfer a HTB into a LISA it uses that proportion of that years LISA allowance (being £4k per year). I believe therefore the maximum you can transfer from a HTB is £4k in any one tax year. They did for the first year of LISA's allow a transfer and it not count but thats long passed.
So Ok for you with £3,253 and you can pay in £747 more for the remainder of this tax year, assuming you do you'd get the full £1k top up, but your Mrs would have to do over 2 tax years, £4k in one and the remainder in another (assuming under £8k) but would still get the 25% top up.
If you do yours before April you can add another 4k from April 2021.
With a Help To Buy and LISA you can only use the bonus from 1 to buy your first home as you say.
You can transfer a HTB to a LISA although it will use up that element of your years LISA allowance. But sounds like it's sub £4k anyway. So on the basis you will definitely use it to buy your first home i'd transfer it to a LISA. Fee's will depend on your provider.
Your only issue is probably timescale. 'A few years' is not really long enough in the market, you could lose, but on balance getting the 25% bonus should negate that unless the market drops by more than that.
If you can do the transfer and then pay a monthly amount into the LISA and try and use up your full £4k allowance each. In a few years you'll have £30k+ between you and hopefully some growth as a deposit. i've been getting my eldest to do that, she's 3 years in so £12k and with the bonus and growth is up to nearly £18k.
Kent, assume you take out £2k a year in dividends each year already?
On the highlighted point - I presume you're referring to that you can only get the 25% top up on up to 4k a year with the LISA? My HTB is at £3,253 so if I moved this into a LISA, I'd get the 25% top up on that (Plus whatever I put in in the next few months) when it came to getting the house? Other side of this is my girlfriend has move than 4k in hers, so she would be missing out on whatever value is above that when she moved it across?
If you transfer a HTB into a LISA it uses that proportion of that years LISA allowance (being £4k per year). I believe therefore the maximum you can transfer from a HTB is £4k in any one tax year. They did for the first year of LISA's allow a transfer and it not count but thats long passed.
So Ok for you with £3,253 and you can pay in £747 more for the remainder of this tax year, assuming you do you'd get the full £1k top up, but your Mrs would have to do over 2 tax years, £4k in one and the remainder in another (assuming under £8k) but would still get the 25% top up.
If you do yours before April you can add another 4k from April 2021.
Class, that's what I thought, thanks for the info.
With a Help To Buy and LISA you can only use the bonus from 1 to buy your first home as you say.
You can transfer a HTB to a LISA although it will use up that element of your years LISA allowance. But sounds like it's sub £4k anyway. So on the basis you will definitely use it to buy your first home i'd transfer it to a LISA. Fee's will depend on your provider.
Your only issue is probably timescale. 'A few years' is not really long enough in the market, you could lose, but on balance getting the 25% bonus should negate that unless the market drops by more than that.
If you can do the transfer and then pay a monthly amount into the LISA and try and use up your full £4k allowance each. In a few years you'll have £30k+ between you and hopefully some growth as a deposit. i've been getting my eldest to do that, she's 3 years in so £12k and with the bonus and growth is up to nearly £18k.
Kent, assume you take out £2k a year in dividends each year already?
On the highlighted point - I presume you're referring to that you can only get the 25% top up on up to 4k a year with the LISA? My HTB is at £3,253 so if I moved this into a LISA, I'd get the 25% top up on that (Plus whatever I put in in the next few months) when it came to getting the house? Other side of this is my girlfriend has move than 4k in hers, so she would be missing out on whatever value is above that when she moved it across?
If you transfer a HTB into a LISA it uses that proportion of that years LISA allowance (being £4k per year). I believe therefore the maximum you can transfer from a HTB is £4k in any one tax year. They did for the first year of LISA's allow a transfer and it not count but thats long passed.
So Ok for you with £3,253 and you can pay in £747 more for the remainder of this tax year, assuming you do you'd get the full £1k top up, but your Mrs would have to do over 2 tax years, £4k in one and the remainder in another (assuming under £8k) but would still get the 25% top up.
If you do yours before April you can add another 4k from April 2021.
Class, that's what I thought, thanks for the info.
Only one other point, which sounds like you'll be fine, but you have to have had a LISA for 12 months before you can use it on a house.
my SIPP is now back to above pre-Covid value, happy dayz.
Mine's been climbing quite nicely recently. A couple of funds I'm not happy about atm - one being the Augonaut Absolute Return Fund which did its stuff all this year when markets were falling (which is its remit I suppose) but has lost around 10% since September. Wanting to switch out but it was principally there as a Brexit hedge if we left with no deal (this time last year) so loathe to switch out now as it might come in handy if the French continue playing their silly buggers games.
Wealth tax, can't see it myself but never say never..........
this would be a sensible and fair way to recoup some of this year's spending
More tax will need to be recouped for sure, but not sure a wealth tax would perform that well, especially if as indicated it includes peoples primary homes, how do you value every home in the country? They were last banded in the early 90's for the poll tax/council tax. And there's many pensioners who are asset rich but cash poor. It also penalises those (again likely pensioners) who have been prudent v's someone who hasn't.
I think it's more likely other taxes (or removal of tax benefits, such as relief on pension contributions) will come, maybe corp tax although I think thats a way off, capital gain, dividend etc.
It would however stimulate spending I suspect for those on or around the cliff edge figure but probably not huge sums. It would also likely lead to money leaving the country.
Wealth tax, can't see it myself but never say never..........
this would be a sensible and fair way to recoup some of this year's spending
More tax will need to be recouped for sure, but not sure a wealth tax would perform that well, especially if as indicated it includes peoples primary homes, how do you value every home in the country? They were last banded in the early 90's for the poll tax/council tax. And there's many pensioners who are asset rich but cash poor. It also penalises those (again likely pensioners) who have been prudent v's someone who hasn't.
I think it's more likely other taxes (or removal of tax benefits, such as relief on pension contributions) will come, maybe corp tax although I think thats a way off, capital gain, dividend etc.
It would however stimulate spending I suspect for those on or around the cliff edge figure but probably not huge sums. It would also likely lead to money leaving the country.
Paying for this crisis? It's going to be money printing. Mark my words. Probably with a bit of austerity/tax rises around the edges, but primarily money printing, globally.
Paying for this crisis? It's going to be money printing. Mark my words. Probably with a bit of austerity/tax rises around the edges, but primarily money printing, globally.
I reckon you're right, if most big economies take this approach then plus ca change .... except we seem to have handled things worse than most, and thus be financially hit significantly more than most by this crisis, so without enough tax rises then the pound will presumably lose a fair bit of value
Comments
Interesting to see where it sits by June next year - Brexit transition and escaping from pandemnic. Interesting times for sure.
1. Think they know it all/or know enough, so do it themselves as 'cheaper'.
2. Know they don't know enough so take default options with the likes of Vanguard, but again on the basis of 'saving money' compared to a financial advisor.
The difficulty you have in particular with 1. is persuading them you know more/better to warrant the cost. Same applies to 2. but I think you could persuade them much much easier.
If I was in your shoes i'd take say 6/7 (or however many you think appropriate) of the top/most popular passive funds and again how ever many you feel is appropriate active funds. Take a timestamped picture of both and then in 6/9/12 months time show the variance like the graphs above. if that shows a considerably greater return you should be able to win over most of 2. and some of the 1.'s
You could even do a quarterly 'these are the funds i'd recommend' as of course things change over time.
Of course getting in front of people is probably the hardest part.
Whether you go to an advisor or not, i'd certainly recommend people review their pensions regularly. As we've indicated the last couple of days, leaving pensions to their own devices/default funds can make a huge, somewhat retirement changing, difference on your life.
PS, The FTSE is going to end at 6420 as i've been saying for months!?!
Good game, lorra fun :-)
and @golfaddick if it's any consolation, I've been impressed by the way in which you eventually embraced this thread and have been willing to share some of your knowledge here for free. If I thought I needed a re-structure of investments, I'd probably ask you. Re @Rob7Lee 's camps, I think there is a third one, older gits who gradually become more confident in what they are doing and *have more time to do it* as their careers wind down. I'm in that group.
My gf and I are in fairly similar circumstances and was hoping for a bit of advice on where best to invest some money which we both want to put somewhere, we're both late 20s, looking to buy a house in the next few years, earning enough to save a few hundred monthly (my gf a bit more than me, especially if she stopped online shopping), brief summary of our position:
GF: Have a Help to Buy ISA already, about 1000 in a Credit Union, 1000 in a savings account, and she has about 3k in her current account which just sits there doing nothing other than look pretty.
Myself: Help to Buy ISA, a small stack of Premium Bonds, and a savings account which has 5.8k in it.
We've probably both got 5k worth of savings that we could put somewhere, would it be best to pick up an ISA with what we have available? @Rob7Lee post with the performance of his BG funds seemed impressive to me and I've noticed they've been favourites of nearly everyone on here - is this something we could get involved in through a Stocks + Shares ISA? Does this need much management on a personal behalf or can you just let it do its thing?
Lifetime ISA - Is this a better alternative to the Help to Buy ISA we both have? I understand you can have both, but only use the gov top up from one on a new house, would it be worth switching? Would we incur any fees if we did?
Apologies if this is a bit much to be asking, would really appreciate any feedback.
You can transfer a HTB to a LISA although it will use up that element of your years LISA allowance. But sounds like it's sub £4k anyway. So on the basis you will definitely use it to buy your first home i'd transfer it to a LISA. Fee's will depend on your provider.
Your only issue is probably timescale. 'A few years' is not really long enough in the market, you could lose, but on balance getting the 25% bonus should negate that unless the market drops by more than that.
If you can do the transfer and then pay a monthly amount into the LISA and try and use up your full £4k allowance each. In a few years you'll have £30k+ between you and hopefully some growth as a deposit. i've been getting my eldest to do that, she's 3 years in so £12k and with the bonus and growth is up to nearly £18k.
Kent, assume you take out £2k a year in dividends each year already?
So Ok for you with £3,253 and you can pay in £747 more for the remainder of this tax year, assuming you do you'd get the full £1k top up, but your Mrs would have to do over 2 tax years, £4k in one and the remainder in another (assuming under £8k) but would still get the 25% top up.
If you do yours before April you can add another 4k from April 2021.
Wealth tax, can't see it myself but never say never..........
I think it's more likely other taxes (or removal of tax benefits, such as relief on pension contributions) will come, maybe corp tax although I think thats a way off, capital gain, dividend etc.
It would however stimulate spending I suspect for those on or around the cliff edge figure but probably not huge sums. It would also likely lead to money leaving the country.