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inflation since mid eighties has been 100% I think so I would just write the dividends off against that. The cash deposit might be 0% if we count the average interest against inflation0
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I know I should have been watching more closely but what happened to Intimas Shares? The only articles I can find say they were taken over by Linwood fabrics but does that mean the shares no longer exist? Sorry to be dim
If you think you are too small to make a difference, try getting in bed with a mosquito!0 -
OP here. A very interesting debate above. I won't say it hasn't helped choose between lump sum and averaging because many useful points have been raised on the way, which I've noted.
Discussion of dividends leads to ask about the choice of interest bearing vs. growth stocks - in my situation (60 yrs age).
As a saver I have looked only for interest of course. As a new investor in stocks, I won't presume initial skills to benefit from active trading on share prices, so my main investments would be medium-long term, based on my market assessments, with a watching brief. Inevitably I will look mainly at funds rather than individual stocks.
At this precise moment no-one knows where markets are heading, but suggestions are that with growth expectations limited one should defensively look for reliable divided-bearing stocks. But perhaps that's just a short-term view? I'm considering my funds ultimately in terms of a pension.0 -
He there, yowza,.As a first-time investor, I'd like to ask for opinions about the value of cumulative investing - pound cost averaging - in my circumstances.
I'm 60 years old. Looking at possible retirement in 7 years. Living off savings at present but trying to get re-employed.
My savings are £60k. I'm currently considering investing £15k of this in the markets, with a (sensibly!) diversified portfolio, mainly using funds but also maybe some individual trades.
As I understand it, the advantage of building a portfolio from regular selected monthly investments is that some pitfalls of poor decision-making can be avoided as new market information can guide new investment decisions each month.
No, the point of pound cost averaging is that no-one has a clue when the best time to buy has arrived, so you stick to the investment decisions you made at the start. Xyy made a very important point -
That's also the point of diversifying your portfolio - bear in mind that diversification means that you don't just buy equities, you go for bonds, property ( in funds ), commodities and so on ( have a Google for " asset allocation " ).There's always a 'crisis' and a reason not to invest. You will rarely see a point when everyone will agree its a great time to get invested (and actually turn out to be a good time to have invested). The reason is, if everyone agrees with that, they've already bought, which means there's less people to buy and less room for prices to go up.
In my opinion, given the time you have until retirement, a year at most.— Over what time frame should I consider investing my £15k?
Same monthly amount. IMHO, again.— Should I invest more per month at first, or less, or always stick to the same monthly amount?
I think that it's a great idea to make regular investments from income. I'm not so sure about drip feeding an existing lump sum.— Is cumulative investing a good idea, or will I just lose out from not being fully invested from the start?
A compromise of sorts would be to put the whole sum into a balanced selection of funds/investment trusts which produce an income and then invest that income on a regular basis, either back into the funds which produced it or into more growth-oriented funds.
This is a " sticky " thread, which always appears at the top of the list. If you want to post a new thread ( perhaps with a link to your post here ), go to the main Savings and Investments board, where the option to post a new thread should be available.(P.S. Hope I'm in right place as there's no New Thread button on this sub-Forum.)0 -
Its generally thought markets will go sideways which usually means tradational secure stocks become more highly rated by the market.
I would recommend looking at good dividend stocks anyway as investigating how able a company is to pay that dividend is a good summary of their prospects. Plus a company can grow on top of that anyway
Plus xyy is correct, a large proportion of long term gains have always been via dividends. This is especially true of LSE but was previously true even in america
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Plenty of info on their website http://www.intimas.co.uk/.I know I should have been watching more closely but what happened to Intimas Shares? The only articles I can find say they were taken over by Linwood fabrics but does that mean the shares no longer exist? Sorry to be dim
It looks as though their shares were suspended last year due to their failure to publish their accounts on time, but there seems no reference to being taken over.0 -
While you're in advisory mood, there's another point I wanted to raise while I wait for the FT Guide to arrive from Amazon...
The minimum amount to place in an individual fund.
I've seen a suggestion that £750 is a minimum to make an investment worthwhile - that may have been for a stock not a fund. And maybe that advice is to take advantage of a bullish decision rather than a defensive one.
I'm not talking of putting the same amount in every fund just a minimum level for least-favoured or riskier funds.P.S. Very interesting BBC R4 'File on Four' prog last night on UK commercial property debts. With property values down to -50% insane pre-crash purchase prices, banks are desperate to keep their 90% + property loans somehow performing rather than admit defeat and take the losses onto their books. I.e. the potential losses are BIG and still not being revealed. (Podcast at R4)0 -
Plenty of info on their website http://www.intimas.co.uk/.
It looks as though their shares were suspended last year due to their failure to publish their accounts on time, but there seems no reference to being taken over.
Thanks for your reply No - you have to Google to find information about a takeover -but very little info. I have e-mailed them to ask what's going on. It was only £300 at the last count but hey - better in my pocket than the receivers
If you think you are too small to make a difference, try getting in bed with a mosquito!0 -
As far as I can tell, the same principle for the minimum in funds is the same for direct equity - costs. I generally aim to keep brokerage as low as possible (>1% for buying AND selling), so for for a £10 trade (£20 total) - the minimum I buy for is £2000.The minimum amount to place in an individual fund.
I've seen a suggestion that £750 is a minimum to make an investment worthwhile - that may have been for a stock not a fund. And maybe that advice is to take advantage of a bullish decision rather than a defensive one.
I'm not talking of putting the same amount in every fund just a minimum level for least-favoured or riskier funds.
With funds you have to take into account the bid/offer spread/initial cost (if there is one) and the brokerage (if there is any).
If you only have a few thousand pounds to invest, I imagine you'd be better off with one or two broad based funds (if you like funds, I don't) such as a UK Growth/Income or Global Growth/Income, rather than several more specialist funds of Smaller Co's, Special Situations, European, Emerging Mkts etc as you'll end up paying more through brokerage and/or initial charges. Keep costs as low as possible, preferably below 1% and you shouldn't go too far wrong.0 -
A takeover of a listed company would have to be mentioned in a news item. And the word 'takeover' in itself would usually imply a payment of some kind to existing shareholders. But none seems to have taken place here.Thanks for your reply No - you have to Google to find information about a takeover -but very little info. I have e-mailed them to ask what's going on. It was only £300 at the last count but hey - better in my pocket than the receivers
But it looks as though their listing was eventually cancelled due to other failures to comply with the market's requirements and Linwood then picked up a few useful bits of the business from the administrators.
It's not looking as though existing shareholders will receive anything, but it's obviously worth asking.0
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