passive investing

Crashy_Time

Tarambor wrote: »

For simplicity,

Go to vanguard.co.uk, open up a Stocks & Shares ISA, pick one of the Vanguard Lifestrategy Funds with a mix of equity (shares) and bonds suitable to your risk tolerance, set up direct debit to fund monthly and then leave it to do its thing. VLS80 might be a good start, migrating to VLS60 as you get towards your 50's.

At the moment the market is taking a bit of a hit so you need to be prepared for some of your money to lose value over the coming year as its a bit up and down at the moment but as the last recession showed, it'll regain it again even if it tanks 50%.

Unless there are as yet unknown factors that present themselves in the future, we can`t know for sure if the market will regain value as it has done in the past.

Fruganomics

Hello . . My fund research has been tedious & confusing, but I am plodding on, DETERMINED to find best performing global tracker that suits me . . WHICH GLOBAL TRACKER FUND ? A passive global tracker - global 100% equity, but not concentrated or global multi asset / fund of funds with returns-focused strategy / good for drip feed, total return strategy / fairly aggressive, I LIKE compounding, HOLD for 15 years, drip feed is important, keep aggressive approach while drawing down . . What are TAX IMPLICATIONS of draw down in the FUTURE ? . . Given inflation & age (50) I need to buy a fund soon . . I will only have full state pension . . Not working or paying tax at moment . . ANNUAL CREEPING COSTS / FEES causing erosion of fund is critical factor . . LOSS TOLERANCE & VOLATILITY - take advantage of current low stock prices, ideally no losses over 5%, long term hold BUT I don't see problem in selling /changing fund if I see 15% downturn coming in order to keep gains . . Examples - (Japan/ hideo Shiozumi / 3 yr accum rtn 88.16%) - (Fundsmith global equity/3 yr accum rtn 77%) - (global equity/ michael linsell/ growth & rtn /3 yr accum rtn 79%) - (global equity/ kristian heugh 3 yr accum rtn 70 %) - (classic global equity fund / 10 yr accum performance 471% / 1.3% AMC) - (SME / Mcinroy & Wood smaller companies personal / 1%AMC ) - ( goldman sachs glo sm cp core eq pf base USD snap / 1.25% OCF ) - (fidelity world index p / 0.13% OCF) - ( john baron portfolios) (Vanguard global value factor EFT WAL ocf / 0.22% AMC) - ( L & G int'l index trust / 0.13% OCF) - (L & G multi index funds ) - HSBC global) - (amundi ETF global equity smart alloc scientific beta / 0.4% OCF) - (blackrock consensus ) . . Many funds I put in my FE TRUSTNET BASKET to consider have HUUUGE 10 year cumulative performances, "AXA Framlington Global Technology Z Acc / 547% " - "Baillie Gifford Global Discovery B Acc / 508%" . . . . . . . P2P - I've done a spreadsheet of P2P companies and, taking into consideration cautious / short term / sell down approach sentiment of p2p investors on MSE & Lemonfool, I've spread £4,000 between Ratesetter and Zopa, into 1 year and short term / rolling, and, I want to put £1,000 more into another P2P - BUT WHICH ONE ? - In 2 years I'll decide whether to tip into global fund . . FIRST DIRECT 5% a/c - £300 p/month into this 1 yr fixed account, matures NOV 2019, tip into global fund . . After First Direct finishes drip feed £150 per month into global fund . . . . AVERAGE PRICING - feeding £16,000 (immediate lump sum) + £5,000 (p2p) + £4,600 (First direct) + ongoing drip feed into a fund at different periods is good for price averaging ? . . . I'M SUSPICIOUS OF ISA's - future governments may say if you have lots of money in ISA then you don't get state pension . . How on earth do I choose the highest performing global tracker that suits me ?

dunstonh

I'M SUSPICIOUS OF ISA's - future governments may say if you have lots of money in ISA then you don't get state pension

In the unlikely event of the state pension becoming means-tested, the tax wrapper you hold your money in is not going to dictate whether you are affected by the means test or not (apart from onshore/offshore bonds which are exempt from means tests and to some extent pension capital).

Linton

Crashy_Time wrote: »

Unless there are as yet unknown factors that present themselves in the future, we can`t know for sure if the market will regain value as it has done in the past.

We don’t know for sure that at least some of the worlds markets will regain value eventually, the sun will rise tomorrow, or iwe wont die in the meantime. However if they fail to happen the consequences would be far more serious than the value of our investments. The best response ISTM is to optimise our situation if the world carries on in the same way as previously with only relatively minor setbacks.. If it does not we are doomed anyway.

Crashy_Time

Linton wrote: »

We don’t know for sure that at least some of the worlds markets will regain value eventually, the sun will rise tomorrow, or iwe wont die in the meantime. However if they fail to happen the consequences would be far more serious than the value of our investments. The best response ISTM is to optimise our situation if the world carries on in the same way as previously with only relatively minor setbacks.. If it does not we are doomed anyway.

I`m not talking about the end of the world though, just maybe the end of QE, or another situation, maybe QE etc. ceasing to have the desired effect or whatever. The Dow taking what was it, 23 years to recover from the `29 crash and the Japanese market collapse should focus people`s minds on the fact that you can lose a ton of money and the sun will still shine (even if you can`t enjoy it )? IMO the OP should think very carefully about how much money they want to risk in stocks.

Alexland

Crashy_Time wrote: »

The Dow taking what was it, 23 years to recover from the `29 crash.

There is an argument that an investor in the overall stock market would have recovered their spending power within 4.5 years if considering deflation and the very high dividend yield.

https://www.nytimes.com/2009/04/26/your-money/stocks-and-bonds/26stra.html

Alex

A_T

Alexland wrote: »

There is an argument that an investor in the overall stock market would have recovered their spending power within 4.5 years if considering deflation and the very high dividend yield.

https://www.nytimes.com/2009/04/26/your-money/stocks-and-bonds/26stra.html

Alex

yes it's similar to how the FTSE100 is only where it was 20 years ago but with dividends reinvested it's a different story.



Save, invest, accumulate, compound

Crashy_Time

A_T wrote: »

yes it's similar to how the FTSE100 is only where it was 20 years ago but with dividends reinvested it's a different story.



Save, invest, accumulate, compound

There has been ten years of unprecedented intervention from CB`s during that period though, and how many investors predicted the level and scale of intervention, and can we assume that it will happen in future?


https://www.telegraph.co.uk/investing/news/how-qe-affected-the-value-of-everything---in-one-snapshot/

Crashy_Time

Alexland wrote: »

There is an argument that an investor in the overall stock market would have recovered their spending power within 4.5 years if considering deflation and the very high dividend yield.

https://www.nytimes.com/2009/04/26/your-money/stocks-and-bonds/26stra.html

Alex

How many ordinary (or even highly experienced) investors had the luxury of staying fully invested though, during one of the greatest depressions/deflations of the modern age? Another good reason IMO to consider very carefully the % of money you allocate to the markets, and to have a good think about what else could potentially be going on in the wider economy during a market downturn.

Malthusian

Crashy_Time wrote: »

How many ordinary (or even highly experienced) investors had the luxury of staying fully invested though, during one of the greatest depressions/deflations of the modern age?

Millions upon millions of them, many of whom had no awareness of how the crash affected their investments, as they didn't bother to open their annual pension statement.