Only freedom will do

AlexLK

SuperSecretSquirrel wrote: »

Maybe. More chance of making big losses too. It's more akin to gambling, which fits in with your "only invest what I'm happy to lose" mindset. When investing in funds over time it is disingenuous to think in that way. Your fund "units" will always retain some value, and will more than likely recover given time. If you pick stocks and fail to diversify enough you do run the risk of the few companies you have an interest in failing, and your portfolio ends up being worthless.

Getting burned by failed stock picks is often a quick route to dismissing the stock market as gambling, chalking it up as an expensive failed experiment, and never investing a penny more in the future.

edinburgher wrote: »

I think you're too polite SSS!

There's clear empirical evidence that the majority of stock pickers underperform their local stock market indices year after year. You know that, doubt Alex has heard it mentioned before.

You are not Warren Buffet.

Thanks for your advice.

There seems to be so much to learn as I do not even know the very basics. To be honest, I have to use an internet calculator to work out compound interest , so maybe it's not really for me. Will keep reading for a few months and see if any of it starts to become more clear, if not, I think I'll leave it.

NorthernMonkey1

Very interesting.

All of the money should be transfered in the next couple of weeks, then I'll be in a position to take stock of where I am, and what needs to be done.

SuperSecretSquirrel

AlexLK wrote: »

Will keep reading for a few months and see if any of it starts to become more clear, if not, I think I'll leave it.

Doesn't have to be an all or nothing decision. If you can afford £50pm to play with you could start with either the monevator pound stretcher or slow and steady passive portfolios. Set up, leave alone, check the results in one year's time. That's pretty close to leaving it and having a go at the same time Even simpler, pick a vanguard lifestrategy fund, setup £50pm direct debit, ignore

I was stuck in analysis paralysis for years. Stumbled across monevator, couple of days later I had opened a S&S ISA with a great low cost platform, and had £50pm invested in the pound stretcher portfolio. Later I changed to the slow and steady portfolio and increased monthly contributions to £150. Recently added a further £100pm of LS80. Plan is to ramp up total investments to £350pm from September, and £750pm in 2018 when the fixed mortgage is close to ending and cashflow is improved. I'd still be investing £0pm had I waited until I really knew what I was doing

If you can afford to lose a 10k lump sum, you can afford to lose £50pm (you won't lose it). Nothing beats getting started, and the worst that could happen by getting it "wrong" is really not that bad

Karmacat

Ed, what's a compressed mortgage? I've tried to search for it, I only get data compression stuff ... colour me confused

NorthernMonkey1

Just asking the bank to reduce the term of your mortgage.

I made my mortgage term 18 years instead of 25 years, which increased the monthly payments, but chopped 7 years off the term.

It's easier to manage than making individual overpayments

edinburgher

If you can afford to lose a 10k lump sum, you can afford to lose £50pm (you won't lose it). Nothing beats getting started, and the worst that could happen by getting it "wrong" is really not that bad

This is very good advice, please listen to the man.

edinburgher

Had an attack of common sense, £145 of yesterday's winnings paid into the S&S ISA before I have a chance to waste any more money :rotfl:

DD got £24 for her savings and Mrs E got let off with £22 owing from MB.

Hooray for the socialist state of Edinburgher Towers

turtlemoose

SuperSecretSquirrel wrote: »

If you can afford £50pm to play with you could start with either the monevator pound stretcher or slow and steady passive portfolios.

Thanks for this squirrel, you've just set off one of these: :idea::

*hopes for a quiet day at work to get this set up *

edinburgher

Probably the easiest way to set up a small S&S ISA would be getting yourself over to the Ch@rles Stanley Direct website, opening an account and setting up a monthly payment of £50 Vanguard Life Strategy 60 or 80 Acc (below 60 is too conservative for most people, 100 is probably too risky for all but the youngest of us). A single fund that could meet all of your needs :beer:

As SSS says, analysis paralysis and doing nothing can really get in the way of your future!

NorthernMonkey1

What is the difference between a Vanguard LifeStrategy 80% Equity Fund Acc and a Vanguard LifeStrategy 80% Equity Fund Inc ?