investing/saving

Thrugelmir

Deleted_User said:

Really? 10 - 15 gives the best returns? I think I'd be looking at 5. Do you think its worth it , based on that time?

Not the best returns. Merely the certainty of a positive return. Investment values will fluctuate for a myriad of reasons. All of which are beyond your direct control. Only risk what you can afford too lose, if you've a short term horizon. . 

grumiofoundation

Deleted_User said:

Thank you so much, Eskbanker

"Only invest if you're happy to commit for at least 5-7 years and preferably 10-15 or more."

Really? 10 - 15 gives the best returns? I think I'd be looking at 5. Do you think its worth it , based on that time?

The longer you invest for you lower the chances to losing money.

Over 10-15 years the idea is that all the 'good' years will outweigh the bad years. Over say 5 years this is less likely to be the case, as you have had less good years. 

After 5 years are you planning to convert all the money to cash in one fell swoop? Or it is in 5 years you would want to access some of it - if so your timescale isn't really 5 years. 

An example of where a 5 year timescale may be risky is if you say wanted to buy a house in 5 years and the month before you need access the markets plummet, you may end up with less than you put in.

Edit - the chance of you losing money over 5 years is not ‘high’, but is more likely than over 10+ 

cloud_dog

Deleted_User said:

Thank you so much, Eskbanker

"Only invest if you're happy to commit for at least 5-7 years and preferably 10-15 or more."

Really? 10 - 15 gives the best returns? I think I'd be looking at 5. Do you think its worth it , based on that time?

Whilst you might be planing on retiring in 5 (or so) years, you are likely (hopefully) to be drawing on the money for many more years after then so, the retirement point / age is not really an end (as such), just the start of a new beginning.

eskbanker

Deleted_User said:

Thank you so much, Eskbanker

"Only invest if you're happy to commit for at least 5-7 years and preferably 10-15 or more."

Really? 10 - 15 gives the best returns? I think I'd be looking at 5. Do you think its worth it , based on that time?

It's a rule of thumb rather than hard and fast fact but is all about probability of loss rather than performance as such - there was a piece published at https://www.nutmeg.com/nutmegonomics/increasing-your-chances-of-positive-portfolio-returns-the-facts-about-long-term-investing/ that measured this based on the last fifty-odd years worth of history, the caveat of course being that the past isn't necessarily indicative of the future!


Source: Macrobond; MSCI World Equity Mid and MSCI Large Cap Total Return in GBP, 1 January 1971-20 May 2020

raycali

I'm in my mid thirties and would strongly advise investing over saving at nearly any age. Unless you are less than 3 years from retirement, you have everything to gain from making good investment choices and little to lose. Even if you're closing in to retirement age you can still make some good income that will supplement a superior and healthier lifestyle.

Considering how poor returns are for savings and pensions, investing is a far better choice for the short term and long term. It's not about chasing the "big bucks", it's about getting your money to work for YOU, not a bank or the government. Nor is it about wild risk-taking - there is plenty of good material out there that can help you make good choices. If you're scared as hell, the most secure mutual funds provide better rates than the best ISAs, which themselves can hardly keep up with inflation.

I currently earn £200 a month from investments, or "passive income". Compared to all you big shots, that is not a lot of money at all. But my plan is to turn that into £1k a month by 40, and 10k per month by 50. I'm still relatively young but wise enough to know that saving alone is NOT the key to wealth - investing is.

Aceace

raycali said:

I'm in my mid thirties and would strongly advise investing over saving at nearly any age. Unless you are less than 3 years from retirement, you have everything to gain from making good investment choices and little to lose. Even if you're closing in to retirement age you can still make some good income that will supplement a superior and healthier lifestyle.

Considering how poor returns are for savings and pensions, investing is a far better choice for the short term and long term. It's not about chasing the "big bucks", it's about getting your money to work for YOU, not a bank or the government. Nor is it about wild risk-taking - there is plenty of good material out there that can help you make good choices. If you're scared as hell, the most secure mutual funds provide better rates than the best ISAs, which themselves can hardly keep up with inflation.

I currently earn £200 a month from investments, or "passive income". Compared to all you big shots, that is not a lot of money at all. But my plan is to turn that into £1k a month by 40, and 10k per month by 50. I'm still relatively young but wise enough to know that saving alone is NOT the key to wealth - investing is.

A tenfold increase in ten years sounds a tad ambitious! 

csgohan4

raycali said:

I'm in my mid thirties and would strongly advise investing over saving at nearly any age. Unless you are less than 3 years from retirement, you have everything to gain from making good investment choices and little to lose. Even if you're closing in to retirement age you can still make some good income that will supplement a superior and healthier lifestyle.

Considering how poor returns are for savings and pensions, investing is a far better choice for the short term and long term. It's not about chasing the "big bucks", it's about getting your money to work for YOU, not a bank or the government. Nor is it about wild risk-taking - there is plenty of good material out there that can help you make good choices. If you're scared as hell, the most secure mutual funds provide better rates than the best ISAs, which themselves can hardly keep up with inflation.

I currently earn £200 a month from investments, or "passive income". Compared to all you big shots, that is not a lot of money at all. But my plan is to turn that into £1k a month by 40, and 10k per month by 50. I'm still relatively young but wise enough to know that saving alone is NOT the key to wealth - investing is.

Are you  a day trader? That is bit high your expectations. A good passive fund you expect around 20% ish down to around 10% a year.  

What funds are you investing in?

Thrugelmir

raycali said:

 Compared to all you big shots, that is not a lot of money at all. 

From acorns grow oak trees. While a few have exceptional luck. For the remainder it's a question of grinding out returns year in year out. Minimising losses in the process, 

[Deleted User]

I can’t tell you how useful your advice and suggestions are. Thank you all 

george4064

Aceace said:

raycali said:

I'm in my mid thirties and would strongly advise investing over saving at nearly any age. Unless you are less than 3 years from retirement, you have everything to gain from making good investment choices and little to lose. Even if you're closing in to retirement age you can still make some good income that will supplement a superior and healthier lifestyle.

Considering how poor returns are for savings and pensions, investing is a far better choice for the short term and long term. It's not about chasing the "big bucks", it's about getting your money to work for YOU, not a bank or the government. Nor is it about wild risk-taking - there is plenty of good material out there that can help you make good choices. If you're scared as hell, the most secure mutual funds provide better rates than the best ISAs, which themselves can hardly keep up with inflation.

I currently earn £200 a month from investments, or "passive income". Compared to all you big shots, that is not a lot of money at all. But my plan is to turn that into £1k a month by 40, and 10k per month by 50. I'm still relatively young but wise enough to know that saving alone is NOT the key to wealth - investing is.

A tenfold increase in ten years sounds a tad ambitious! 

Don’t crush his/her ambitions!