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Investing or waiting
Comments
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Should of made it clear, I'm talking world markets as a whole; risk of crashes similar to 08-09 etc. I'm invested in a wide range (Vanguard's etc) but only in a tiny proportion of my wealth at the moment.Why would I wait?
You also say "the market" is high? Which one is that? I hope you're not planning on putting all your money in the FTSE100?
I've edited your post to point out what I perceive a contradiction which is ultimately why I posed this question. You've said you wouldn't yet, but at the same time question any investment in FTSE, assuming you feel it is in for a turbulent time over the next few years. Is that what you meant? Genuinely interested.Bravepants wrote: »At the moment if my ISA tanks tomorrow by say 20% I will have lost my gains over the last 7 years.
Similar to above, this is one of my points; you've been invested for 7 years, but if you hadn't, and were looking to invest at that level fresh today, would you? I wonder if it is harder to invest fresh or invest more knowing it will bring your average up.drip feeding 10/15 years - assuming you dont have all the cash upfront but receive it as salary monthly for example. if i had a lump sum to invest by drip feeding i would never spread it over 10 years. probably 1 year max.
Similar I guess, I couldn't stretch it out that long! My general question should have been, "if you were investing for the first time, would you jump in now with it all, drip feed, or wait"0 -
It sort of depends on the size and frequency of the drip. I've been drip-feeding an ISA allowance-worth a year, more or less. Some would call that a series of lump sums.Bravepants wrote: »Some people say that lump sum investing is better because you will get higher dividends earlier. Drip feeding takes advantage of pound cost averaging. I usually drip feed, but last year I dropped £15k straight in without fear. This year I'm back to drip feeding.Eco Miser
Saving money for well over half a century0 -
I've edited your post to point out what I perceive a contradiction which is ultimately why I posed this question. You've said you wouldn't yet, but at the same time question any investment in FTSE, assuming you feel it is in for a turbulent time over the next few years. Is that what you meant? Genuinely interested.
No, I was pointing out your lack of the plural of market and that just investing in the FTSE100 would be bad investing. I don't see it being any more turbulent than at other times and am not suggesting timing it.
The fact you said the market was at an all time high implied FTSE as many other markets are not near peaks.Remember the saying: if it looks too good to be true it almost certainly is.0 -
Should of made it clear, I'm talking world markets as a whole; risk of crashes similar to 08-09 etc. I'm invested in a wide range (Vanguard's etc) but only in a tiny proportion of my wealth at the moment.
I've edited your post to point out what I perceive a contradiction which is ultimately why I posed this question. You've said you wouldn't yet, but at the same time question any investment in FTSE, assuming you feel it is in for a turbulent time over the next few years. Is that what you meant? Genuinely interested.
Similar to above, this is one of my points; you've been invested for 7 years, but if you hadn't, and were looking to invest at that level fresh today, would you? I wonder if it is harder to invest fresh or invest more knowing it will bring your average up.
Similar I guess, I couldn't stretch it out that long! My general question should have been, "if you were investing for the first time, would you jump in now with it all, drip feed, or wait"
I really think it's way too easy to overthink things. At least you are putting cash away for your future, whenever you invest. Some (most?) people don't bother thinking about their futures at all.If you want to be rich, live like you're poor; if you want to be poor, live like you're rich.0 -
It sort of depends on the size and frequency of the drip. I've been drip-feeding an ISA allowance-worth a year, more or less. Some would call that a series of lump sums.
Indeed it is. I've often thought that myself, BUT the terms are used to distinguish higher frequency contributions from lower frequency ones I guess.If you want to be rich, live like you're poor; if you want to be poor, live like you're rich.0 -
What do you call getting 1.5% on £50k? Fixed for three years.
Just got £750 interest.
£75k in a S&S ISA went from £75k to £93k, now down to £87k, in a similar time scale. Dividend in two weeks should bring it to £88k.
I buy lottery tickets and bet on the Grand National, too.
I suspect it's like dating. A salesmen once told me he dates a lot of models. When the make up comes off, they could be real hags. Much like investments, you put your money down, then they turn out to be dogs. You live in hope to strike it lucky.
You have to be in it to win.0 -
I suspect it's like dating. A salesmen once told me he dates a lot of models. When the make up comes off, they could be real hags. Much like investments, you put your money down, then they turn out to be dogs. You live in hope to strike it lucky.
What would be really bad if you starting dating a nice thai lady who you fall in love with, then when things get intimate, she is in fact a he :rotfl:.
There has defiantly been investing equivalents of this through history!"Be Fearful when's others are Greedy and Greedy only when others are Fearful"0 -
Really brief question, are you guys/gals currently investing in shares, funds, bonds etc, or are you waiting to see where the market goes? I know the saying "don't time the market" is very apt, but history would tell us that the markets are currently very high and due a substantial dip. If you had a large sum to invest right now, would you throw it all in safe in the knowledge it should be worth more in 20 years; throw in a little bit now and ride the average, or wait.
I have an investment portfolio that currently throws off around 3.5% in dividends / interest (so excluding any capital gains) or in absolutes about 50k per year. I have no need to touch that money. If the market suddenly dips, all that happens is my average interest rate goes up temporarily. If there were a major recession then my interest rate may go down but I will have had the benefit of all those years high interest accumulating in my pot. At 1% (i.e. what I can earn in a bank) my investments would generate less than 15k per year so effectively I can afford to "lose" 35k per year.
The key is to not have money invested that you need in a short time frame because you will never sleep!Money won't buy you happiness....but I have never been in a situation where more money made things worse!0 -
Marine_life wrote: »I have an investment portfolio that currently throws off around 3.5% in dividends / interest (so excluding any capital gains) or in absolutes about 50k per year. I have no need to touch that money. If the market suddenly dips, all that happens is my average interest rate goes up temporarily. If there were a major recession then my interest rate may go down but I will have had the benefit of all those years high interest accumulating in my pot. At 1% (i.e. what I can earn in a bank) my investments would generate less than 15k per year so effectively I can afford to "lose" 35k per year.
But this is sort of my point, you've been invested for years, so benefit from the dividends etc over that time. If starting fresh now, I wonder if the mindset would be different?0 -
But this is sort of my point, you've been invested for years, so benefit from the dividends etc over that time. If starting fresh now, I wonder if the mindset would be different?
The alternative is that you wait for that perceived ideal entry point when all moons align and the perfect storm strikes the market (and hope that it happens soon.) Good luck with that..
Evidence suggests you'd have to be very, very lucky to a) get the opportunity at all and b) time it just right.
The sensible option imho is to simply bite the bullet and get on with it. It will be what it will be. Focus on what you're investing in and for how long, as opposed to when the right time to start doing that is.
It's all down to individual attitude to investment volatility, if you fear the red numbers then feed in your capital over time, it will probably reduce losses but will also probably reduce gains (since the amount invested is smaller for longer)
The thing to be clear about is your investment horizon and what you can reasonably expect to get back from your chosen investment.
I've done a six figure lump sum in the past in one portfolio and I'm also currently feeding cash monthly into an ISA income portfolio. If I could lump the income portfolio with a six figure sum now I would, given the horizon is for as long as I'm around.
Since I can't do that I've instead set up a plan to apply monthly top ups from new cash going in and internally generated dividends.
Often it's the practicalities that dictate.'We don't need to be smarter than the rest; we need to be more disciplined than the rest.' - WB0
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