SOD IT!!! I'm giving up and having a damn good holiday instead!!!

keeperbear

Jim_B wrote: »

You can get a six figure debt for the rest of your working life any time you like, and lots of people are more or less forced to get them for family reasons. If you have the opportunity to do things you've always wanted, then I say do it. It's not throwing away your money, it's doing what matters to you.

So what? I have gone on holidays etc even with mortgage debt. A six figure debt could be turned into substantial equity in 25 years.

What also matters is to plan for your future once your working life is OVER. A pension alone is insufficient. I took on a mortgage to avoid paying rental payments in my retirement years. I am now mortgage free, and will continue doing what I always wanted both now and in retirement. Meanwhile, a retired renter (in a property similar to my own) would have to continue finding at least £850 per month in rent. Try doing that when your income in retirement dips by 50%. I could also sell my property and move abroad on the proceeds. A renter wouldn't have this luxury.

So what is your predicted income in retirement then? Do you know? Will it give you sufficient money to pay your rent in your 60s? Have you thought about these things before criticising people with only 25 years of mortgage debt?

keeperbear

Jim_B wrote: »

I've got very little time to spend inside the rented flat.

I hope you enjoy paying someone else's mortgage when you are away on holiday. The owners must love thinking about the equity you are building up for them. Good on you for being so generous.

brasso

Jim_B wrote: »

Back to the original post, I grew sick of the idea of taking on a six figure debt and started doing all the things I really want. I've got my motorcycle licence (and my shiny bike), my skydiving licence, a handful of yacht skipper qualifications and, interestingly enough, very little time to spend inside the rented flat. I also feel very fulfilled and happy with my life.
You can get a six figure debt for the rest of your working life any time you like, and lots of people are more or less forced to get them for family reasons. If you have the opportunity to do things you've always wanted (diving in the red sea - excellent idea - I thoroughly recommend you also learn to skydive, the similarities and the juxtapositions are awesome), then I say do it. It's not throwing away your money, it's doing what matters to you.

I tend to agree with keeperbear's view. I fully appreciate that there is more to life than paying a mortgage, but my opinion is that you can use a windfall to have both financial security AND to do the things you want to do.

No one is saying that we shouldn't use the money to do interesting and exciting things, whether that's sky-diving or going to Glyndebourne or building an extension or taking time out to write a novel. Whatever turns you on. But it's madness to indulge ourselves without having a plan for the future. If we can just learn a little patience, and think things through properly, we can still have great holidays AND secure our future. For reasons mentioned earlier in the thread, this may not be the best time to take out a big mortgage, with HPI on the wane at last, but I would certainly think long and hard about what to do with the money so that I could have that secure financial future and have fun too. In fact, have even more fun because it's done safe in the knowledge that I still have security at the end of it.

nelly_2

keeperbear wrote: »

I hope you enjoy paying someone else's mortgage when you are away on holiday. The owners must love thinking about the equity you are building up for them. Good on you for being so generous.

Thats just a stoopid coment!

Why not say - I hope you enjoy paying the pilots wages while flying, or the sky diving instructors mortgage while he trains you?

Or I hope you enjoy paying the bank managers mortgage whilst paying your mortgage payments.

Life is very short.

[Deleted User]

The high yield strategy is dangerous if you buy at the wrong time also several high cap stocks with high yields have low divi cover. Don`t for goodness sake follow the sheep (and there are quite a few sheep on the fool high yield thread)

You appear to have a high risk/reward profile, judging by the fact that you wanted to blow all the money but you can also easily `blow` it all away by buying stocks at the wrong time

Drip feeding is the best way at the moment because the stock market is in a very high state of uncertainty. Start by doing some research and use your own brain at all times. There are zillions of rampers out there, ignore them

Remember to spread any stock buying among the various sectors so that you build in some stability and I suggest 6 sectors. I actually have 10 sectors at the moment. eg oil and gas, electricity, banks, retailers, pharmaceuticals, support services

Thats all I`m going to say and certainly no stock recommendations.

fimonkey

Thanks all. I SHALL look into it because I enjoy a challenge, but I am slow to learn new tricks, AND in terms of something I don't know well I'd say I'm very cautious... fine if I blow the lot on a holiday cos that gives me memories and experiences that no-one can ever take away from me (barring a head injury and amnesia). and I know from experience I LOVE holidays, parties and clothes...... However loosing the lot on the stock market would gut me! Where's the fun in that?

On a more serious note... I clearly need to start at the bottom and will read the links provided (thanks again).. but how much should I gamble/invest? (both still mean the same to me at the moment, and I don't gamble unless it's a dead cert)... I'm thinking about 10K over 5 years, but is that worth it once fee's etc are paid?

In terms of odds, what are the chances of me being conservative with the shares I buy, but still beating 6% net return per year? (Or am I being too enthusiastic)?

Finally, what are the differences between stocks and shares please? (yes my current knowledge really is that basic)

Cheers again!

brasso

fimonkey wrote: »

Thanks all. I SHALL look into it because I enjoy a challenge, but I am slow to learn new tricks, AND in terms of something I don't know well I'd say I'm very cautious... fine if I blow the lot on a holiday cos that gives me memories and experiences that no-one can ever take away from me (barring a head injury and amnesia). and I know from experience I LOVE holidays, parties and clothes...... However loosing the lot on the stock market would gut me! Where's the fun in that?

We all love holidays and parties, fimonkey. That's not the argument. What you should aim to do is use the cash to help secure your financial future AND have some fun. It's not a choice between spending £30K on a holiday and blowing it all on dodgy investments!

fimonkey wrote: »

On a more serious note... I clearly need to start at the bottom and will read the links provided (thanks again).. but how much should I gamble/invest? (both still mean the same to me at the moment, and I don't gamble unless it's a dead cert)... I'm thinking about 10K over 5 years, but is that worth it once fee's etc are paid?

Fees needn't be high if you self-invest. If you use one of the internet dealers you can buy shares for as little as £10 per deal. So if you're buying 5 different stocks at £2k each, it needn't cost more than £50 or say £100 max. If you buy 100 stocks at £100 each investment, you'll end up paying 100x£10 in fees alone, which would be way too expensive.

If you invest £10K for 5 years and can keep your hands off it, you are likely to do very well, but of course there is no guarantee.

If it's a dead cert, I guess it's not a gamble, but that's an academic point! The point I've tried to make is that you shouldn't think of it as gambling at all. If you're thinking medium to long term, or let's say 5 years +, then it shouldn't be a gamble because the stock market runs in cycles like most markets, and solid businesses tend to always recover given a bit of time. If you want a short term gain, then there's far more risk involved, and this certainly can be a gamble.

fimonkey wrote: »

In terms of odds, what are the chances of me being conservative with the shares I buy, but still beating 6% net return per year? (Or am I being too enthusiastic)?

If you base actions on history, the odds are high. Investing in well-chosen high yield stocks in recent years could easily have seen returns of 20%+. But past performance doesn't guarantee anything about the future, sadly. I don't think a 6% target is being in the least bit enthusiastic, to be honest. If you were going for 6% you could get that in a high-interest cash account with no realistic risk whatsoever. I'm hoping for a 25% increase this year, and am well ahead of target so far. But it all might collapse tomorrow, of course!

fimonkey wrote: »

Finally, what are the differences between stocks and shares please? (yes my current knowledge really is that basic)

Don't worry, it's a perfectly good question. To be honest, the difference isn't really worth worrying about as they are used almost interchangeably, but essentially stock refers to the notion of ownership in general while shares are particular investments. I have shares in Glaxo, so I own Glaxo stock. I wouldn't say "I own stocks in Glaxo". If that isn't clear, don't worry about it!

brasso

kittie wrote: »

The high yield strategy is dangerous if you buy at the wrong time also several high cap stocks with high yields have low divi cover. Don`t for goodness sake follow the sheep (and there are quite a few sheep on the fool high yield thread)

You appear to have a high risk/reward profile, judging by the fact that you wanted to blow all the money but you can also easily `blow` it all away by buying stocks at the wrong time

Drip feeding is the best way at the moment because the stock market is in a very high state of uncertainty. Start by doing some research and use your own brain at all times. There are zillions of rampers out there, ignore them

Remember to spread any stock buying among the various sectors so that you build in some stability and I suggest 6 sectors. I actually have 10 sectors at the moment. eg oil and gas, electricity, banks, retailers, pharmaceuticals, support services

Well I guess any investment is dangerous if made at the wrong time.

You're right about low dividend cover which is why companies with low dividend cover tend not to be recommended for HYP picks.

I'm just very faintly offended by your remark about the "sheep" on the HYP forum. People join and read the forum because they like the security:reward ratio of the high yield strategy, but within that framework there are many flavours of opinion.

I agree that drip-feeding can be a good way of investing though of course this has its risks too. If the market continues to rise then you'll be buying ever-pricier shares. That said, you're right that there's a lot of uncertainty about, so there's a decent chance that a drip-feed approach is a good idea. I sold most of my investments earlier in the year, and have been getting back into the market but at a slower pace. I stil have 75% of my SIPP in cash. I'm going to turn it all into high yield, but am taking my time for the reasons you point out.

Jim_B_3

keeperbear wrote: »

I hope you enjoy paying someone else's mortgage when you are away on holiday. The owners must love thinking about the equity you are building up for them. Good on you for being so generous.

Why does everyone seem to care so much what other people do with their money? I do enjoy spending it, thank you. Very much so. I hope people with mortgages enjoy paying three times the label price over the term of the mortgage; see, the knife cuts both ways and it's just about personal preference. Why is there so much negativity directed at people like me who don't want to own a house?

It's very hard to dress it up as concern for my future wellbeing, since I'm just another stranger on the internet. How many people here spouting this negativity have spent as long working for homeless charities as you have posting negative comments on here? There's an inconsistency there that seems very odd. With my current earnings and savings I could buy a "starter" two bed in my area, but I'm just not interested.

The long and the short of it is that some people, like myself and to a degree like the original poster, want to do other things with our money. You don't see us snidely wishing you a good time sitting in your house whilst we're out scuba-diving, so why do you people speak to us in this manner?

keeperbear wrote: »

Have you thought about these things before criticising people with only 25 years of mortgage debt?

I didn't criticise people who chose to do that. All I said was that I chose something else, and I'm enjoying it. What's right for one person is not necessarily what's right for someone else; if I don't have the same tastes as you, it's not a criticism of your tastes, it's just being different.

Jim_B_3

nelly wrote: »

Thats just a stoopid coment!

Why not say - I hope you enjoy paying ... the sky diving instructors mortgage while he trains you?

I think I put his first-born child through school as well! It's certainly not cheap to learn.