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  • BLB53
    BLB53 Posts: 1,583 Forumite
    As you seem very unsure of what you want, I suggest you go to your Bank and listen to what they offer
    Sorry but have to disagree, banks would be the last place to get good financial advice - avoid them like the plague!

    The only asset likely to keep pace with inflation over the long term is equities - personally, I would select a few investment trusts in a stocks & shares isa and reinvest any dividends. Trustnet are a good source of info for research - ones I hold are City of London, Murray International, Aberforth Smaller, Blackrock Commodities Inc and Temple Bar.

    Also have a look at a few articles on Monevator (investing tab).
  • gadgetmind
    gadgetmind Posts: 11,130 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    BLB53 wrote: »
    City of London, Murray International, Aberforth Smaller, Blackrock Commodities Inc and Temple Bar.

    All good ITs. Aberforth is rather idiosyncratic at times, and does require investor patience. The only drawbacks to City and Murray at the premiums. Temple Bar is also good, and I'd draw to this one despite the premium.

    My main IT holdings are Personal Assets (heaps of this in most pots), RIT, Ruffer, Templeton Emerging and (lately) Jupiter European Opportunities and Henderson European Focus.

    My UK income exposure is mainly via directly held FTSE 100/250 equities.
    I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.

    Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.
  • DiggerUK
    DiggerUK Posts: 4,992 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    Forever wrote: »
    .....thanks for the heads up on gold and the warning to stay away from ******. At the very least, gold does seem to have a trend of going up with inflation....
    The argument for the link between inflation and gold is nothing to do with price inflation. Many gold bugs fail to point out that inflation is to do with the real value of your 'coin of the realm', i.e., what trust is placed in it for exchange. The more printy printy goes on, the more debased the currency gets.

    That is the argument I support, and is my explanation for why the price of gold has risen. As a lump of metal it does not change in 'value', the paper it is priced in just gets debased. Either that, or it is in a bubble.

    MSE ban silver discussion, you will need to go over to HousePriceCrash to debate. I am no fan of IFA's, but I think you are capable of deciding if they have any worth after you have met them. 'Caveat Emptor'

    ..._
  • Forever
    Forever Posts: 295 Forumite
    edited 27 July 2012 at 11:29AM
    Thank you all very much for your comments. You have all been a great help :)

    @fiesta04, I am actually planning to talk to a financial planner at my local building society. I know they will only sell me products that they do and not what is generally on the market but being new to all of this, I wouldn't mind talking to a professional who has knowledge of different ways of investing. I like your idea of afterwards, then going to see an IFA to see what is going on generally. And thanks for the warnings regarding checking all fees and charges!

    @BLB53, so do you buy and manage your equities yourself? If so, how do you go round doing this? I have taken a look at the Trustnet website and it looks really informative so thank you very much for the heads up on this website. I only wish I knew how to search their site in a more productive way and to have better knowledge of all of this overall :o

    @gagdetmind, did you find your directly held FTSE 100/250 equities
    from the Trustnet website?

    @diggeruk, thanks for all the comments on PM.

    As I see it, as confidence in the value of our currency diminishes, the more gold prices will go up as demand for it will increase. I believe this has happened with gold recently as it does seem to be in a small bubble now. However, my main concern is what happens a few years down the line when confidence in the currency returns? I can then see that demand for gold will go down and then prices will drop. And then end of current gold bubble.

    As QE is likely to continue, I guess it is possible to buy and sell at appropriate times and make money out of gold but I don't personally follow the gold market that closely.

    I am also aware that gold is worth buying if you think there is a risk of hyperinflation. At the moment, this is low but if we have too many bouts of QE, of course, this risk could increase.

    I can also see Gold being worth buying in the event of the UK going bankrupt. But I personally can't see this at the moment either.

    I haven't personally ruled out buying gold sovereigns as I still think it could be a good back-up to holding GBP.

    ---

    On a different note, another option I have now started to ponder is also buying property and then renting it out to meet running costs.

    I saw a chart on-line somewhere stating how overpriced/underpriced properties are at the moment. Apparently, Ireland is currently -2% undervalued. If Spain drops out of the Euro, I could also probably afford property there too. So I could buy properties outright but I am concerned that as I only have a small sum, I wouldn't be able to buy something in areas where much work exists and therefore it is likely to be difficult to rent out.

    Alternatively, I could take on a mortgage here in the UK and rent the apartment out. But again, as I only have a small sum of money, I am likely to end up with a very small apartment. The other problem is the UK property market is estimated to be 27% over-valued too. Therefore, more possible corrections to the market could occur.

    I am also aware of other risks too such as problem tenants, having funds for if the property is vacant etc but I still think these options are worth considering.

    ---

    So I am now looking at:

    - definitely putting in the maximum amount in an ISA S+S
    - maybe full amount in a cash ISA
    - maybe invest in equities - should I go managed or do this myself?
    - maybe invest a small amount in gold sovereigns
    or
    - buy a property outright in Ireland or if it drops out of the Euro, Spain and then rent it out to cover running costs
    - obtain a mortgage on a UK property and rent it out.

    Again, thank you very much everyone :)
  • gadgetmind
    gadgetmind Posts: 11,130 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    Forever wrote: »
    @gagdetmind, did you find your directly held FTSE 100/250 equities
    from the Trustnet website?

    Partly via screening tools in Digital Look and partly from lists produced by other people, mainly on the Motley Fool HYP boards.

    Note that these holdings represent only 5% of my total investments. The bulk is in low cost trackers and bonds inside pensions and ISAs, but unwrapped holdings are in ITs and (hopefully!) solid dividend paying equities.
    I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.

    Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.
  • grey_gym_sock
    grey_gym_sock Posts: 4,508 Forumite
    i've nothing against property investment in general, but i'd be cautious about buying in property in areas which have just fallen sharply (e.g. ireland, spain).

    estimates of under/over-value of property markets shouldn't be relied on too heavily. they may tell you something - markets tend to oscillate, and it may be reasonably clear that a market is currently under- or over-shooting its normal value. however, if the economy is in serious trouble, the normal value itself may fall significantly.

    rental demand for a property is important, and this depends on the economy in the area. a vacant property will have lower returns, and if it's difficult to rent, its capital value may also be affected.

    there is also a lot of hassle involved in letting property, especially in another country.
  • Forever
    Forever Posts: 295 Forumite
    Thanks again everyone!

    @gadgetmind, thank you ever so much of your breakdown. It really gives me more of an idea of how to spread investments. Unfortunately, I still don't feel I know enough about all of this! :o

    I'm currently in the process of trying to get my head around all the different terms and how it all works.

    In this aspect, is it worth investing in doing the financial planning exams (approx 2k) so that I understand how everything works? I hope if I did this, I could then look after my own investments and have more 'chance' of making more sensible choices?

    @grey gym sock, I can see your point about property abroad. If prices are currently undervalued, I still think they are worth considering. Although I have decided that I will only consider certain parts of Spain if they drop out of the Euro as I could use the property as either a holiday home or to rent out to holiday makers.

    I have, again, ruled out buying property in the UK. Despite the shortage of housing and the current capital flights for housing in London, I still can't see our house prices staying so high over the long term with globalisation, the Euro crises and our own (foreseeable long) recession combined.
  • Good morning Forever.

    Thank you for your post.

    I would recommend the following:-
    definitely putting in the maximum amount in an ISA S+S - good
    maybe full amount in a cash ISA - Just do it (no questions)
    maybe invest in equities - should I go managed or do this myself? - go managed for about 1-2 years (start with a small amount ask lots of questions like you are now) then if you understand it DIY next time.
    maybe invest a small amount in gold sovereigns - ok (only a small amount as storage security may be an issue).

    buy a property outright in Ireland - buy in Ireland (you will know the market and rules there better).
    obtain a mortgage on a UK property and rent it out - Borrowing rate is due to drop so this is a good choice. To start off you will need good agents.
  • gadgetmind
    gadgetmind Posts: 11,130 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    Forever wrote: »
    In this aspect, is it worth investing in doing the financial planning exams (approx 2k) so that I understand how everything works? I hope if I did this, I could then look after my own investments and have more 'chance' of making more sensible choices?

    What books on investing have you read so far and do you have any other on your reading list?
    I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.

    Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.
  • BLB53
    BLB53 Posts: 1,583 Forumite
    @BLB53, so do you buy and manage your equities yourself? If so, how do you go round doing this? I have taken a look at the Trustnet website and it looks really informative so thank you very much for the heads up on this website. I only wish I knew how to search their site in a more productive way and to have better knowledge of all of this overall
    Well, yes - I have an account with my online broker sippdeal and hold a portfolio of shares, investment trusts and fixed interest securities.

    As to practical advice, as with several other posts, I strongly recommend you get hold of 'Slow & Steady Steps' ebook http://www.amazon.co.uk/Slow-Steady-Steps-Wealth-ebook/dp/B007EBLN3G/ref=sr_1_1?s=digital-text&ie=UTF8&qid=1343488003&sr=1-1
    and have a read of some articles on www.monevator.com (investing tab)
    Between these two, you should get a basic introduction into various aspects to investing.
    Good luck!
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