The Windfall Diary

fairleads

gadgetmind wrote: »

So what? Studies have shown the managers count for little, so backtest further.

I can't GM because i'm evaluating the portfolio not individual funds.

gadgetmind

fairleads wrote: »

I can't GM because i'm evaluating the portfolio not individual funds.

So the 4.4 years wasn't chosen just so that you were comparing performance from autumn 2007 when the FTSE 100 hit a ten year high of 6730?

Just checking.

WindfallWinnie

It's been a couple of months since the windfall. All the investments discussed with our IFA are now in place.

Just waiting for the Budget to see what the Chancellor will do re: pension contributions to see whether we will be adding any more to hubby's pension pot. Have now got online access to his account & it's interesting/awful to see the values going up & down. Fortunately I don't log on too often...

Have also opened a share-dealing account with £5k to have a 'dabble' in shares. Not committed too much to this at present but might get more into it in a few years time.

We've also enjoyed a bit of spending: I've had a bit of a blow-out on clothes, we've bought a couple of paintings by local artists & I've finally persuaded hubby to change his car. He's a very happy bunny!

See you on the other side of the Budget!

atush

Let us know how it affects you.

I bought some antiques with a windfall, and they are all worth what I paid or more and I have used them- so a win.

WindfallWinnie

Had been thinking about lending money via Zopa for some time.
Finally took the plunge today, starting off with £1000. Will post the results here.

jamesd

Some tips on Zopa:

1. Don't believe the in the zone indicator. You can lend money well above the zone shown to you at the time you are setting the rate if money becomes short in the markets.
2. Be patient, the more patient the are the more you can wait for the times when the rates offered are better for you.
3. Don't be afraid to lend more than £10 to one borrower, but do try to get well diversified. A couple of offers at slightly higher interest rates can be useful to boost your returns because bigger loans will match higher rates than smaller ones. Two offers can let you lend at the smaller size and also get a higher rate at the larger. But this means lending at least twice to the larger loan borrower.
4. Remember that you pay tax on all interest, bad debt is ignored by HMRC. So you're effectively taxed on your bad debt. Zopa tells HMRC about your interest earnings each year and so should you so HMRC can adjust your personal allowance if necessary.
5. The 60 month markets are the better deal if you can handle the term. Remember that by the end of the third year a lot of these will have had early repayment anyway, so you wont really see most going to the full 60 months.

For the first time in ages rates at Zopa reached levels that I thought were marginally worthwhile and I've just made a couple of small loans there. The last market loan I did before those was back in May 2010. This is more for diversification for me than other reasons, since I can do better elsewhere on pure money terms.

As with all markets, not just those at Zopa, market timing matters a lot for the results you get.

Don't be keen to lend at the start of a month. It's generally a time when lending conditions are worst because of the flood of repayment money. The weekend before the end of the month and last few days can be better. If you try to lend only in the last two weeks of a month you'll end up getting better returns for only a little more patience.

WindfallWinnie

It's been almost a year since I posted and the various investments are coming to fruition.

I thought I'd let you know how they've all done:

The best performer has been the Barclays Dual Index plan which returned 12.5%, followed by another structured investment from L&G which is due to return 11% in mid-March. Total gain £11,750, after CGT allowance £1,150 subject to 18% tax gives a net return of £11,543.

We put the maximum allowed into our stocks and shares ISAs and both have seen a rise of just under 10%.

My husband put the maximum allowable into his pension, taking it to £231,000. Now valued at just over £260,000.

The only 'poor' performer - as predicted by some on here - is the Standard Life investment bond. Having invested £50,000 it is now valued at £53,676.

I had a little dabble (£5000) in some stocks and shares and they have made £654 which I'm more than happy with.

Zopa has not been worthwhile; although an 'interesting' experiment. £1000 invested has only made me £42.74!

So, now it is time to reinvest for the new financial year. Once again we will be making the most of my husband's pension and putting in the maximum possible.

Similarly, both ISAs will be topped up.

We have set up another structured investment with Barclays, although the return is nowhere near as good as it was last year - 8%.

And finally, I am going to put a small amount (£5-10,000) into the new Mencap Social Investment Bond. It's an area which is close to my heart and I finally have the means to put my money where my mouth is! It has a 5-year fixed term of 4% per annum.

So, that's where we're at one year on.

geewcee

Thanks for coming back and updating us Winnie, very interesting read. Good to see you are making money and hope it continues for you.

Jegersmart

This is what I have been saying for some time, a lot of people are talking about the need for diversification and balance but at times this ensures very average returns. It is necessary to make some decisions and take some responsibility at certain times, from what I see IFA's can be useful for taxation and other similar issues but picking a portfolio.....? Not so much....

J

atush

I must remember to bookmark this link for the "all i want in invest in is cash' brigade lol.

Glad to hear things are going well, with you. Have just received a new update on one of our pensions and it did really well this last year.