£150k to invest

lozzy1965

marlot wrote: »

WIth the switch to two £1m prizes, I've sold mine. I can't see the monthly income being worth it any more (the total prize fund is unaltered, so the number of smaller prizes must reduce)

With or without the switch, they are not a good investment, they give you a chance of a big win, but see Premium Bonds on this site to see how 'good' they aren't.

bigadaj

lozzy1965 wrote: »

With or without the switch, they are not a good investment, they give you a chance of a big win, but see Premium Bonds on this site to see how 'good' they aren't.

Depends on your view and position.

If you're a higher tax rate taxpayer and have maxed other alternatives they can provide a useful purpose. I'm currently holding them as a proxy for government bonds, little difference in projected income but less capacity for capital loss.

Depends on your views and you aims I suppose, and this site doesn't always get it right by any means.

lozzy1965

bigadaj wrote: »

Depends on your view and position.

If you're a higher tax rate taxpayer and have maxed other alternatives they can provide a useful purpose. I'm currently holding them as a proxy for government bonds, little difference in projected income but less capacity for capital loss.

Depends on your views and you aims I suppose, and this site doesn't always get it right by any means.

OK, the rate of return when compared to many other investments, is not good. I hold some, for the minuscule chance of winning a million, but I recognise they do not give me a good rate of return.

bigadaj

lozzy1965 wrote: »

OK, the rate of return when compared to many other investments, is not good. I hold some, for the minuscule chance of winning a million, but I recognise they do not give me a good rate of return.

So what do you hold as the stable part of your portfolio, or are you 100% in equities?

lozzy1965

bigadaj wrote: »

So what do you hold as the stable part of your portfolio, or are you 100% in equities?

I regard the vast majority of equities I have as stable. Large reliable companies paying 4%+ dividends, spread over different sectors.
71% Equities - I want this to be higher.
24% property - I want to get out of property all together as it is inflexible.
2.5% Premium bonds - a punt on the possibility of winning a large sum.
2.5% savings - covers the day to day running of my life and allows the income from the equities to trickle in in random amounts each month.
But I fail to see what difference my financies make to the fact that Premium Bonds are, on average, a relatively low income generator?

jimjames

bigadaj wrote: »

So what do you hold as the stable part of your portfolio, or are you 100% in equities?

I know the original question was directed at Lozzy but I'm virtually 100% equities myself. With 20+ years to retirement and no plans to access money outside of my emergency pot I can't see the point not having a very high percentage of equities.

lozzy1965

jimjames wrote: »

I know the original question was directed at Lozzy but I'm virtually 100% equities myself. With 20+ years to retirement and no plans to access money outside of my emergency pot I can't see the point not having a very high percentage of equities.

with - hopefully - 1 year to retirement, I want to get ALL my investments into equities. Investing in equities have got me to where I am now (able to consider retiring at 50) and I see no reason, while yields out perform savings rate so massively, that they will not wee me through to my death bed.
Now THAT is setting myself up for a fall

Archi_Bald

lozzy1965 wrote: »

....they will not wee me through to my death bed

That's really good investments if they don't p$$$ on you :rotfl:

lozzy1965

lozzy1965 wrote: »

...they will not wee me through to my death bed...

Archi_Bald wrote: »

That's really good investments if they don't p$$$ on you :rotfl:

I meant "see" of course, but very funny comment. Made me chuckle.

bigadaj

lozzy1965 wrote: »

I regard the vast majority of equities I have as stable. Large reliable companies paying 4%+ dividends, spread over different sectors.
71% Equities - I want this to be higher.
24% property - I want to get out of property all together as it is inflexible.
2.5% Premium bonds - a punt on the possibility of winning a large sum.
2.5% savings - covers the day to day running of my life and allows the income from the equities to trickle in in random amounts each month.
But I fail to see what difference my financies make to the fact that Premium Bonds are, on average, a relatively low income generator?

Because they can act as a proxy for bonds as I stated before. Whether you consider this worthwhile is an individual view on asset allocation, personal approach to risk and other factors. I'm probably about the same allocation as you to equities, with just a few percentage to property, excluding own property, and the balance in bonds and managed funds including bonds.

I did place half my isa allowance in option emerging market debt, though I doubt this could be considered particulalry low risk.