£20K ISA allowance - Invest Now?

MonroeM

AnotherJoe wrote: »

Statistically, since over time stock markets tend to rise, then you are better off to put a lump sum in in one go as soon as you have it. Most times that will be the winning strategy. Some fewer times it will be the losing one

I agree AJ, I'm going to put a lump sum in as soon as I receive the money from a bond I have just surrendered. Missed out big time last year by dithering but we all know that frustratingly it could work out differently this year!

bigadaj

pharmice wrote: »

Twentyfour select monthly income ltd.

How much do you understand about what you above invested in?

This appears to be a closed end investment trust, generating a high level of income but with risk to capital and pretty poor figures on total return over the last few years.

It primarily invests in high yield bonds, with more than a possibility of default and the potential for large capital losses in future as interest rates rise.

Seems an odd choice unless maybe you are specifically after high income and unconcerned about growth or even retention of capital.

Audaxer

Sally57 wrote: »

Sort of person - positive, straight forward and fairly laid back. Going back to my original post, I feel that any world unrest will have to be dealt with politically mainly between Russia and US/G7.

Russia always maintains they're not bothered by sanctions but in reality it hurts them a lot and that is why I believe they eventually stopped further action in Ukraine.

There could be some world issues that cause major disturbances but as a positive type of person I am investing my 20K now.

Well done. I remember just over a week ago you were not sure about investing last year's allocation as your IFA had suggested parking it as cash meantime. So you've moved forward a lot since then.

I'm in a similar position of being uncertain as whether to invest more now, but the more I read the more I think it is probably is better to invest rather than wait.

talexuser

I always put the max in on April 6th. If you expect the market to go down, don't, or drip feed, but I invest expecting the market to go up over a l-o-n-g timescale.

If you are starting out and the amount is large compared to your pot then it becomes a bit of a worry in the event of a crash, but if you have been investing for years, and the ISA limit is smaller compared to your pot then it is not so much of a concern. The trick is to be able to ride a downturn and not need the money straight away and thus be able to wait for the recovery and further growth.

pharmice

bigadaj wrote: »

How much do you understand about what you above invested in?

This appears to be a closed end investment trust, generating a high level of income but with risk to capital and pretty poor figures on total return over the last few years.

It primarily invests in high yield bonds, with more than a possibility of default and the potential for large capital losses in future as interest rates rise.

Seems an odd choice unless maybe you are specifically after high income and unconcerned about growth or even retention of capital.

My main focus is on monthly dividend payments, not really capital growth. The fund seems to have averaged ~7%/year paid out over the past 3 years. That' much better than any bank, and it's more than enough to balance any decline in invested capital.

masonic

pharmice wrote: »

Twentyfour select monthly income ltd.

So you have £20k invested in this fringe investment trust? But a 6 figure sum invested in conventional investments right?

masonic

pharmice wrote: »

My main focus is on monthly dividend payments, not really capital growth. The fund seems to have averaged ~7%/year paid out over the past 3 years. That' much better than any bank, and it's more than enough to balance any decline in invested capital.

Ah, so you don't understand what you've invested in.

Average return over 3 years has been 4.4% per year based on total return data. You can expect much worse in a 2008-style financial crisis. I'd imagine this could move to a 20-30% discount pretty quickly and remain out of favour for quite some time.

jimjames

pharmice wrote: »

My main focus is on monthly dividend payments, not really capital growth. The fund seems to have averaged ~7%/year paid out over the past 3 years. That' much better than any bank, and it's more than enough to balance any decline in invested capital.

I'm curious why you are so keen on income not growth when you are young and have time on your side? Getting such a high income means your capital is less likely to grow, 7% income is nothing compared to a fund that grew 25% last year alone.

ColdIron

grey_gym_sock wrote: »

rumsfeld was an unlikely source for such a neat statement of epistemology. there's just 1 thing he missed: unknown knowns - things we don't realise we know

Maybe he had 3 Weetabix that day
https://en.wikipedia.org/wiki/There_are_known_knowns

Sally57

Audaxer wrote: »

Well done. I remember just over a week ago you were not sure about investing last year's allocation as your IFA had suggested parking it as cash meantime. So you've moved forward a lot since then.

I'm in a similar position of being uncertain as whether to invest more now, but the more I read the more I think it is probably is better to invest rather than wait.

Yes, I did park last year's allowance in cash but now, and after much thought, I intend to invest both allowances together so the full £35,240. Only time will tell if this is the right thing to do but I'm happy with my decision.