I'm forever blowing bubbles

Cleaver

Not a thread about Michael Jackson I'm afraid.

Me and Mrs C recently decided to use our ISA allowance so around a month ago we bought some investment funds in a stocks and shares ISA. We invested around £14,000 in a range of funds that I think we'll be happy to leave in place and drip feed for a good 10 or so years at least. Nothing fancy - some corporate bonds, uk and gloabl equities, emerging market funds, that type of thing. We'd be happy with a bit of slow growth and, as we're keeping money in cash too, it's a bit of fun.

We've had our money invested for a total 30 days and I've just worked out if we just left our £14,000 untouched, and the rate of growth we've seen over those past 30 days of our funds stays the same, we will become millionaires on the 3rd May 2011. Excellent.

Basically, the message of this post is that it's good to see we've ended all of these awful bubbles and we're not all getting carried away again.

JonnyBravo

Easy innit?

:rolleyes:

I too started playing with some cash. Started buying shares in April with a £20k pot. I've already increased this to over £30k.

:j

I think I'll be a millionaire slightly after you but I'm cautious by nature

PasturesNew

I just don't understand ISAs. Got a couple of cash ones now, I can just about cope with that, but when I went to ask etc, I was baffled with science and smarmy talk at Barclays... so never bothered.

Cleaver

Think I made a wrong calculation. The planned millionaire date is sometime at the back end of 2012. Sorry about that. The yellow Ferrari for me and the boob job for the missus will have to wait a while longer.

As I say though, there's no way this is a bubble. Sustainable, long term, gradual growth. Lovely stuff.

Afriend_2

PasturesNew wrote: »

I just don't understand ISAs. Got a couple of cash ones now, I can just about cope with that, but when I went to ask etc, I was baffled with science and smarmy talk at Barclays... so never bothered.

An ISA is simply a tax efficient wrapper.
It might be the underlying assets you don't understad.

Spiv_2

Cleaver

PasturesNew wrote: »

I just don't understand ISAs. Got a couple of cash ones now, I can just about cope with that, but when I went to ask etc, I was baffled with science and smarmy talk at Barclays... so never bothered.

An ISA is just a wrapper where you can buy stuff and this stuff is tax free. Currently £7,200 a year for each person tax free, but going up to £10k next year.

Dead simple Patures. You can just go and buy shares for an ISA if you want. £3k of M&S shares and £4k of Tesco shares. Bish, bash, bosh, ISA is done. All gains are tax free.

Another option is to buy funds. This is basically buing units of a fund which invests money along a theme (basically). This theme could be property, the UK stock market, companies in Argentina, company loans, US stock market, gold and metals... you name the economic area and there will be a fund for it. So you can lob your money to these instead, again inside the wrapper of an ISA so gains will be tax free.

You do computer programming and stuff and you must have learned that somewhere. I guarantee that just one evening of reading will give you a basic knowledge of how a S&S ISA works.

Cleaver

JonnyBravo wrote: »

I too started playing with some cash. Started buying shares in April with a £20k pot. I've already increased this to over £30k.

Doesn't matter, we'll both be millionaires at some point Rodney. I don't even have one tiny doubt in my mind about these shares ever going any way but up. You could say that I'm as convinced that these shares will go up as Hamish is about a house in Scotland rising in value. 100% sure. Etc.

There is no bubble.

Afriend_2

Cleaver wrote: »

Doesn't matter, we'll both be millionaires at some point Rodney. I don't even have one tiny doubt in my mind about these shares ever going any way but up. You could say that I'm as convinced that these shares will go up as Hamish is about a house in Scotland rising in value. 100% sure. Etc.

There is no bubble.

The only bubble around here is the size of your head.

Graham_Devon

Cleaver, are you thinking of taking it out of the ISA after a period of time, i.e. to protect you from the falls we will obviously have to experience?

Just wondering what your plans are.

Cleaver

Graham_Devon wrote: »

Cleaver, are you thinking of taking it out of the ISA after a period of time, i.e. to protect you from the falls we will obviously have to experience?

Just wondering what your plans are.

No. We'll leave it in for a long term period of 10 to 15 years at the very minimum. We have other investments that are more secure and won't go down. This is the riskier part of our portfolio so happy for this money to be in something volitile with the possibility of making high returns. Pretty standard plan with money basically.

Just in case my dripping sarcasm wasn't clear, my posts are in no way to boast or anything like that. I am making the comment that growth at this rate is completely stupid and in no way sustainable.