Finance options for 13 year old banger

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  • Car_54
    Car_54 Posts: 8,211 Forumite
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    jimjames wrote: »
    If you'd picked this last year your £500 would now be over £700
    http://www.hl.co.uk/shares/shares-search-results/s/scottish-mortgage-it-ordinary-shares-5p

    Yes, and if I'd known what was going to win the Grand National I'd have got £7,500 for my £500.
  • qwert_yuiop
    qwert_yuiop Posts: 3,615 Forumite
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    Car_54 wrote: »
    Yes, and if I'd known what was going to win the Grand National I'd have got £7,500 for my £500.

    You’d probably be a lot better gambling on some political event where the outcome is more obvious. For instance, Hillary Clinton was never going to lose and there was no way brexit was going to win.

    There’s where I went wrong in life - I failed to put everything on a trump/brexit double. Damn. The regret.
    “What means that trump?” Timon of Athens by William Shakespeare
  • System
    System Posts: 178,093 Community Admin
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    Car54 -
    . Yes, and if I'd known what was going to win the Grand National I'd have got £7,500 for my £500.

    Choosing a fund isn't gambling though, because the odds are in your favour, mathematically you expect a profit and have good reason to, it's risky of course, and some do better than others, but most equities generally have done very well over history - if you're diversified and long term then you're relying more on probability than luck
  • Lucky_Duck_2
    Lucky_Duck_2 Posts: 271 Forumite
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    Or, indeed, Leicester to win the Premiership!
  • qwert_yuiop
    qwert_yuiop Posts: 3,615 Forumite
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    MatthewAinsworth wrote: »
    Car54 -

    Choosing a fund isn't gambling though, because the odds are in your favour, mathematically you expect a profit and have good reason to, it's risky of course, and some do better than others, but most equities generally have done very well over history - if you're diversified and long term then you're relying more on probability than luck

    Not really. A lot never make anything. Also we haven’t had a crash in a while and there’s been a steady rise for quite some time. There will be a reversal some time.
    In a gamble, you could occasionally do well with a structured bet. In a Wimbledon tennis final, someone is going to win. It’s often possible to bet on Serena with one company and Venus at another ( for example), leaving you in a position where you either break even or lift a smaller profit. Apparently.
    “What means that trump?” Timon of Athens by William Shakespeare
  • System
    System Posts: 178,093 Community Admin
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    Don't bother. You've got a £500 car at best. You could just put £100 into VLS a month and hit that £500 in no time and have no interest to pay.
  • System
    System Posts: 178,093 Community Admin
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    Qwertyuiop - the ones that never make anything usually have concentrated their risk in individual companies and time the market, something nobody can do well
  • Mercdriver
    Mercdriver Posts: 3,898 Forumite
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    MatthewAinsworth wrote: »
    Qwertyuiop - the ones that never make anything usually have concentrated their risk in individual companies and time the market, something nobody can do well

    Do you actually have any knowledge in this area? Or are you naïvely believing what certain agents are telling you. If you could make a fortune from a small investment, why would you not avoid the hassle of a short term expensive loan (and there's nothing else when it comes to logbook loans) and either borrow from a mainstream lender and pay it off once you've made your fortune or from a friend who you pay back with interest or partner with a friend and split the proceeds.

    I see a over reliance on the ups and a dismissal of the downs of the financial markets.

    I can see tears on the horizon if you sink money into this above your head. In short if you need to borrow to make this investment, can you actually afford to take the risk?

    It's no good saying that you won't lose money, and the risk doesn't apply to you. To make a large fortune, you have to be less cautious and NOT spread your risks. There is no such thing as a risk free investment.
  • jimjames
    jimjames Posts: 17,607 Forumite
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    qwert_yuiop wrote: »
    Not really. A lot never make anything. Also we haven’t had a crash in a while and there’s been a steady rise for quite some time.
    .

    Both parts are just not true. We're straying away from cars here but there have been drops over the last few years but recovered again very quickly. It's also untrue that a lot of funds never make anything. Can you provide any evidence or links for your claim?
    qwert_yuiop wrote: »
    There will be a reversal some time.
    .
    Of course there will be, that's the nature of investing. That doesn't mean you'll lose money - just that the value might be lower at certain points. Even with a massive crash like 2008/9 the markets had recovered within 2 years
    Remember the saying: if it looks too good to be true it almost certainly is.
  • System
    System Posts: 178,093 Community Admin
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    Mercdriver - I made about 18% since I started, learning from the Monevator blog
    I didn't realise how expensive logbook loans were and I was only looking into my options for pushing this further, like I said I would never borrow at a higher rate than I expect to get, I won't even take out a margin loan at 8% because I don't want the investment marked to market (they would sell it if your deposit drops too low for the loan- aka a margin call) - I have successfully used 0% credit cards to do it and made about £200 but it hasn't done any favours for my credit rating so I'm winding that down.

    A margin loan doesn't go on your credit record and I didn't know if car finance would

    I fully expect a crash at some point soon but don't believe in market timing, I have emergency funds as well as income and can wait out the next crash for however long it takes to recover. I wouldn't take out credit I couldn't afford - although like anyone with a mortgage I can't go without a job forever if I lost it, however I expect to find a job that pays just enough quite quickly if I needed to, I'd use agencies to get started quickly if that happened

    I reckon that equities dividends is more secure than jobs income because it's spread over many more companies, so by increasing my investment in reducing my overall risk, especially long term
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