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Stocks & shares isa - help
Comments
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What makes you believe this is less risky done by an amateur reading magazines and trawling the internet, than professionals with many years of collective experience.I can see with the funds approach is that everything is ok until something happens but when that happens no-one knows what to do. Ie, how could you protect the gains of the last 5 years if there's another crisis in 2018?
I agree it's risky, but don't agree it's less risky when done by amateurs, in fact I believe the opposite is true.
Then you should be promoting learning about this first :-)to start investing without fully knowing how to protect ourselves.
The bottom line is that there is a risk/reward trade-off and any protection will cost.0 -
What makes you believe this is less risky done by an amateur reading magazines and trawling the internet, than professionals with many years of collective experience.
That you'd look after your best interest (even if you're wrong whilst you're learning) whereas professionals might or might not be interested in that. Reading and trawling is all part of the learning process...I agree it's risky, but don't agree it's less risky when done by amateurs, in fact I believe the opposite is true.
I see that it's less risky because you have more flexibility (you can short-sell, you can use stop losses), liquidity (you could sell whenever you want, even with real-time priced ETFs - if you go through a lot of fund platforms they'll just allow you to buy them with one single price per day), etc.
But... there are amateurs that like to learn and there are other than don't, so both of them have a space in the investment world and both of them are doing the right decision from their own way of life.
Not necessarily, you cannot invest on funds going down (other than tracking them through some ETF), but people delegating that task on financial professionals don't do that. They're told to keep holding their investments whilst they keep going down 50% and even more, just keep adding on them (as they're cheaper now). All that makes sense to them, as they keep charging for their services but I'm not totally convinced that that's a good approach for us.The bottom line is that there is a risk/reward trade-off and any protection will cost.
Protection could cost or protection could give you a return rather than a loss if you do it correctly
Learning about Investing & Trading.0 -
That you'd look after your best interest (even if you're wrong whilst you're learning) whereas professionals might or might not be interested in that. Reading and trawling is all part of the learning process...
When people DIY, some do a good job. Others make a pigs ear of it. Some start out with best intentions but let it lapse over time as they lose interest.I see that it's less risky because you have more flexibility (you can short-sell, you can use stop losses), liquidity (you could sell whenever you want, even with real-time priced ETFs - if you go through a lot of fund platforms they'll just allow you to buy them with one single price per day), etc.
A number of those things can actually increase risk.but people delegating that task on financial professionals don't do that. They're told to keep holding their investments whilst they keep going down 50% and even more, just keep adding on them (as they're cheaper now).
FAs have a restricted remit but IFAs can recommend what they like as long as it is justifiable. However, trying to time the market typically results in worse returns than better. So, staying put is frequently the best option.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
I can see that and I agree.you have more flexibility
But it's a long way to go from knowing nothing to trading daily.
I'm not saying it can't be done, just that to be proficient in all the financial instruments you are talking about requires more than just a passing interest.
I'm not saying it's unsuitable for everyone and I think a discussion of the options is good, but for a lot of relatively unsophisticated or busy family people I don't think it's going to catch on as a widespread thing (same as car servicing).0 -
>> ISA provider - 0.35%
* This sounds expensive to me as well, ie, there are providers out there that offer free ISA platforms, so I think you could save that fee all together.
I suspect you have misunderstood the charge on this one. This is the platform charge and is charged explicitly as opposed to bundled within the annual management charge.
Any platforms that offer "free" ISAs bundle up their platform charge. With the platform review this will all change and each part will be charged explicitly.0
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