S&S ISAs performance over recent years - anyone in the know?

Alan_Cross

Plus wrote: »

A couple of suggestions for the OP:

As a beginner investor, it might be worth ....

I've been following this discussion as it has also struck me, like the OP just entered retirement, that some kind of s&s investment would now be a reasonable proposition.

Like him/her, I also simply wish to maximise return and have no goal for the money beyond that, i.e. I am not investing for any specific purpose and am perfectly resigned to the possibility of falling values. This money can be "played with".

Like him also, by the looks of it, I don't consider myself an "investor" as such as this seems to me to need some kind of feel for things at the very least. No, I just think of myself as a potential customer and want somebody who has got that feel/experience to manage matters. I don't want the job of having to choose particular investments. Obviously, within that picture, the fewer costs and complications for me, the better.

As I see it, all I want to do is work out how much money I can afford to allocate each month. My feeling is that this was all the OP was saying and I'm much in the same boat.

Where do I go for such a service?

jamei305

As others have said, robo-advisors might be an idea if you don't want employ a financial advisor:

Here's an intro article for newbies: http://www.boringmoney.co.uk/investments/robo-adviser/

Alan_Cross

jamei305 wrote: »

As others have said, robo-advisors might be an idea if you don't want employ a financial advisor:

Here's an intro article for newbies: http://www.boringmoney.co.uk/investments/robo-adviser/

That is a genuinely interesting article and seems aimed at just such as me. What worries me slightly is that these "robo" things seem fairly new on the UK scene, but all in all I might well take a shot at them.

Is there anyone here who's actually used/using them?

charoniv

You look like you want to have a bit of fun and to learn about how investments work.
You say you are happy to put all your money at risk but I'm guessing you want better than a gamble.
Putting it in the hands of a manager doesn't seem to fulfil that but might be what you want.

First you to decide the wrapper - will it be in an ISA/pension. I would plump for ISA as a default.
Next platform - I like iii but there are others similar.

I would split it into tranches.
Core something fairly well distributed - vanguard, world index, ... and/or managed funds mainly for automatic re-balancing . If you want an initial lump sum I would put it here.
Next something a bit more focused - country/region/sector depending on your ideas.
Next things that you can play with - very focused funds or individual shares as they take your fancy. Maybe avoid this initially and make sure you look at dealing charges.

On top of that you need to decide how to invest. Don't get into the mindset of all or nothing - think of percentages. I like this twice as much as this so I'll put twice as much into it. Most things drip feed - for the last risky section rty to get the timing right and maybe increase exposure (within limits) on downturns.

With that you should have a portfolio that has a core that will follow markets and outliers that will test your skill. It should keep you interested.
Main thing to realise is that crashes usually bounce back and bubbles burst unexpectedly and too quickly to get out. Predictions are usually proved correct eventually but that doesn't help. Avoid panic buying or selling.

Plus

Alan_Cross wrote: »

Like him also, by the looks of it, I don't consider myself an "investor" as such as this seems to me to need some kind of feel for things at the very least. No, I just think of myself as a potential customer and want somebody who has got that feel/experience to manage matters. I don't want the job of having to choose particular investments. Obviously, within that picture, the fewer costs and complications for me, the better.

As I see it, all I want to do is work out how much money I can afford to allocate each month. My feeling is that this was all the OP was saying and I'm much in the same boat.

Where do I go for such a service?

An IFA is the traditional route. However IFA fees (a few hundred pounds for a consultation) mean that it doesn't really make sense unless you have £50K or more.

Robo-advice is another way - it's newer, and not as tried and tested. The guide above is a useful introduction. Be aware that all the platforms listed are quite expensive: the raw cost of a cheap tracker fund and a platform to hold it on is about 0.3-0.5%. So you're paying for the service in a different way. (In case you're unfamiliar, imagine you earn 4% on an investment. A platform that takes 1% is taking a quarter of your returns. So the percentages seem small but do add up)

But many people DIY, and a simple portfolio isn't hard - sites like Monevator are a good place to start, and funds like Vantage Lifestrategy, BlackRock Consensus and L&G Multi Index make it simple. At least having done the reading helps avoid the newbie traps, like picking whatever the newspapers say is hot and then panicking when there's a drop.

Linton

Charlton_King wrote: »

Do you know, I could swear I put 'any or all of the money' in my last posting...

Never mind. I think I shall go elsewhere for this information. Thank you to those who actually bothered reading what I wrote.

In that case what about a few horses at 100 to 1, the lottery or a few nights in a casino? Shares are far too safe for someone who is happy to risk everything to get the very best returns.

Fatbritabroad

Alan_Cross wrote: »

I've been following this discussion as it has also struck me, like the OP just entered retirement, that some kind of s&s investment would now be a reasonable proposition.

Like him/her, I also simply wish to maximise return and have no goal for the money beyond that, i.e. I am not investing for any specific purpose and am perfectly resigned to the possibility of falling values. This money can be "played with".

Like him also, by the looks of it, I don't consider myself an "investor" as such as this seems to me to need some kind of feel for things at the very least. No, I just think of myself as a potential customer and want somebody who has got that feel/experience to manage matters. I don't want the job of having to choose particular investments. Obviously, within that picture, the fewer costs and complications for me, the better.

As I see it, all I want to do is work out how much money I can afford to allocate each month. My feeling is that this was all the OP was saying and I'm much in the same boat.

Where do I go for such a service?

There's also services like Laterlife and others that may help http://www.laterlife.com. Would this be the type of thing you are after?

Eco_Miser

Alan_Cross wrote: »

Like him/her, I also simply wish to maximise return and have no goal for the money beyond that,

An investment that could really maximise return, could also minimise return, that's the nature of investments. Much better to think in terms of achieving the same return as the whole market, which is something like 4% above inflation.

A global multi-asset fund will likely do that, and is unlikely to drop in value more than 50% in a bad year (and will almost certainly more than make up for that in following years - if you don't panic at the drop and sell).

Superscrooge

Charlton_King wrote: »

Ok, as someone with 'a complete lack of knowledge', I shall ask this again... you know, on the grounds that, just maybe, the first two and a half years of the recent five years of 'rising market' WERE a pointer to the subsequent two and a half years.

You never know, eh?

I am 'happy to risk losing' any or all of the money I put into this investment. I would have thought that 'no guarantees' means... just that. Or, are you saying that some investment firms actually DO guarantee a maximum level of loss..?? Are you deliberately quoting strange percentages to try to elicit more of my alleged 'naivety'..??

So, once again, is there anyone out there who can give me:

A. a rough guide as to how this market has performed over the last few years?

and

B. a suggestion as to a reasonable 'contender'? BLB53 proposed Vanguard Lifestrategy 60, for which I am duly grateful. Any other possibilities would be gratefully received.

Historical annual stock market returns average out at around 5% above inflation over long time periods. so you could use this figure as a guide?

BUT over shorter periods returns vary enormously.

The best five year periods will easily see you double your money. But in the worst five year periods you could lose half your money.

Hope this helps?

pjcox2005

Alan_Cross wrote: »

That is a genuinely interesting article and seems aimed at just such as me. What worries me slightly is that these "robo" things seem fairly new on the UK scene, but all in all I might well take a shot at them.

Is there anyone here who's actually used/using them?

If you take this route then cashback sites like quidco are paying for sign up to nutmeg. Think it's about £150 cashback so negates that slightly higher fees in early years.