investing for beginner

[Deleted User]

csgohan4 said:

Deleted_User said:

csgohan4 said:

Deleted_User said:

If I had 8k, I'd put £500 into crypto (not yet but in the next crash), £500 mixed into two or three companies. The rest of the money I'd use on my mortgage or put it in premium bonds. Perhaps 1k into the pension. Alternatively you could put 2k into gold (but GOLD tends to hover)

I have about 2k invested in shares and crypto. I never see it as a reliable thing. Could be gone when I wake up in the morning. Incidentally my pension is a big chunk of shares as well, but that has 35/40 years left.

your risk appetite must be quite high. 

Some people would rather not gamble their pension away

Share are volatile and alot more risk is carried in them compared to funds of funds ergo index trackers

A big chunk of the pension is also in funds. 10 years prior to retirement the pension is adjusted to become far safer. Over 40 years I think it is an acceptable risk. Hardly call it gambling my pension away. If it was 90% in shares perhaps.

I'd always make the point that a pension should be one of many options for old age. Even when I own a property I will still being doing other things to keep some money on the side as well as my pension. 

Incidentally my pension is a big chunk of shares as well

Those are your words. Individual shares I assume?

Of which you neither clarified and made that statement without clarifying for the OP it is in funds in your Post

To simply go for crypto and individual shares YOLO, without looking at the bigger picture, the OP is new to investing and is unable to understand jargon, given from their own reading of the NHS pensions website, is counter productive. 

What are the chances of the OP understanding the length of research going into buying individual shares? DO you think they will understand what a P/E ratio is much less a NAV. 

I think your suggestions are risky and not suitable for a beginner investor imo.

You are jumping about a bit with your response. It is common for pensions to be chunks of different options. There is nothing unusual in that. Nor was I suggesting the OP do anything with their pension, apart from pay more into it. That seems like decent advice to me. 

I did not advise the OP to simply go for Crypto, I advised them to put a small amount of their savings £500 into crypto, at the next crash. You are speaking as if I told them to put everything in at once, that didn't happen so not sure why you are using this YOLO. Talk about jargon. 

Again I only advised the OP to invest £500 into shares, and stated clearly that I did not see shares invested in this way as being reliable. I also stated that about crypto, again voiding the YOLO remark by yourself.

My suggestions are only mine, as stated many times, ultimately it is their choice and their responsibility. I am just telling them what I would do.

csgohan4

Deleted_User said:

csgohan4 said:

Deleted_User said:

csgohan4 said:

Deleted_User said:

If I had 8k, I'd put £500 into crypto (not yet but in the next crash), £500 mixed into two or three companies. The rest of the money I'd use on my mortgage or put it in premium bonds. Perhaps 1k into the pension. Alternatively you could put 2k into gold (but GOLD tends to hover)

I have about 2k invested in shares and crypto. I never see it as a reliable thing. Could be gone when I wake up in the morning. Incidentally my pension is a big chunk of shares as well, but that has 35/40 years left.

your risk appetite must be quite high. 

Some people would rather not gamble their pension away

Share are volatile and alot more risk is carried in them compared to funds of funds ergo index trackers

A big chunk of the pension is also in funds. 10 years prior to retirement the pension is adjusted to become far safer. Over 40 years I think it is an acceptable risk. Hardly call it gambling my pension away. If it was 90% in shares perhaps.

I'd always make the point that a pension should be one of many options for old age. Even when I own a property I will still being doing other things to keep some money on the side as well as my pension. 

Incidentally my pension is a big chunk of shares as well

Those are your words. Individual shares I assume?

Of which you neither clarified and made that statement without clarifying for the OP it is in funds in your Post

To simply go for crypto and individual shares YOLO, without looking at the bigger picture, the OP is new to investing and is unable to understand jargon, given from their own reading of the NHS pensions website, is counter productive. 

What are the chances of the OP understanding the length of research going into buying individual shares? DO you think they will understand what a P/E ratio is much less a NAV. 

I think your suggestions are risky and not suitable for a beginner investor imo.

You are jumping about a bit with your response. It is common for pensions to be chunks of different options. There is nothing unusual in that. Nor was I suggesting the OP do anything with their pension, apart from pay more into it. That seems like decent advice to me. 

I did not advise the OP to simply go for Crypto, I advised them to put a small amount of their savings £500 into crypto, at the next crash. You are speaking as if I told them to put everything in at once, that didn't happen so not sure why you are using this YOLO. Talk about jargon. 

Again I only advised the OP to invest £500 into shares, and stated clearly that I did not see shares invested in this way as being reliable. I also stated that about crypto, again voiding the YOLO remark by yourself.

My suggestions are only mine, as stated many times, ultimately it is their choice and their responsibility. I am just telling them what I would do.

You OP:
If I had 8k, I'd put £500 into crypto (not yet but in the next crash), £500 mixed into two or three companies. The rest of the money I'd use on my mortgage or put it in premium bonds. Perhaps 1k into the pension. Alternatively you could put 2k into gold (but GOLD tends to hover)

I have about 2k invested in shares and crypto. I never see it as a reliable thing. Could be gone when I wake up in the morning. Incidentally my pension is a big chunk of shares as well, but that has 35/40 years left.

Your point about pension seems to be left till last in your advice. Of which you never mentioned what your pension shares comprised of and the nomenclature of funds and Shares are fundamentally different is it not? You seem to use it interchangeable which is incorrect, or can you clarify?. You mentioned you have a big chunk of Shares AND Funds. 

Did you read the OP's post, they have a DB NHS pension, they cannot control what the pension invests in either, be it shares or otherwise. 

Again I make the point you are reply to an OP with absolutely no idea on investing and to start with Crypto and shares in 2-3 companies is madness. You also mentioned Gold without a reason for your investment strategy. 1K in volatile high risk investments for some people is alot

OP needs researching for ISA and passive investing

Passive investing Archives - Monevator

Unless you are well researched and understand your own risk profile, going straight into crypto and shares is a recipe for disaster. Those shares could drop 30+% are you going to be comfortable with that. 

OP have you considered LISA as well if your <40 yrs, you put 4k in, you get 1k extra free from the government

YOLO is not investment jargon and commonly used by Crypto vtubers. Quick google is quite self explanatory

I think our discussion has run it's course and the OP will certainly have food for thought and I hope they consider all avenues and choose what's best for them. Investing is not 0 risk and it is up to them to gauge their risk appetite. 

Shares and Crypto are generally not suitable for new investors and are akin to gambling, unless they have full researched both options and aware of the risks of total capital loss. 

[Deleted User]

Did you read the OP's post, they have a DB NHS pension, they cannot control what the pension invests in either, be it shares or otherwise. 

For the third time, I did not advise the OP to change their pension, only invest more in it. 

The rest of your post, too long to read really seems to go on about how mad it is to invest funds in Crypto and gold, I only ever suggested the OP invest a small amount to these, and stated they are not reliable, so your statements are void.

You are just looking for an argument and it won't happen old chap. Bye. MSE is full of wannabes I am sure who live in dreamland. I suspect many are not real and have nothing to invest or put into a pension and try to toy with others who do. Sad.

Hansplace

SIPP is your best option as the government tops up 20-25%
Every year I put £20k into my SIPP and the government top up £5k. Immediate 25% gain.
Just have to be careful as you cannot withdraw until you are 58 (10 years below government pension age which will be 68 for you)

Thrugelmir

Until you can afford to lose money and not have sleepless nights. Keep it simple. Build brick by brick. 

tebbins

[Deleted User] said:

Did you read the OP's post, they have a DB NHS pension, they cannot control what the pension invests in either, be it shares or otherwise. 

For the third time, I did not advise the OP to change their pension, only invest more in it. 

The rest of your post, too long to read really seems to go on about how mad it is to invest funds in Crypto and gold, I only ever suggested the OP invest a small amount to these, and stated they are not reliable, so your statements are void.

You are just looking for an argument and it won't happen old chap. Bye. MSE is full of wannabes I am sure who live in dreamland. I suspect many are not real and have nothing to invest or put into a pension and try to toy with others who do. Sad.

Everything @csgo@csgohan4 said is correct, factually and unarguably.
You suggested random, vague, useless and extremely risky, totally unhelpful points to a clearly newbie investor.

csgohan4

Hansplace said:

SIPP is your best option as the government tops up 20-25%
Every year I put £20k into my SIPP and the government top up £5k. Immediate 25% gain.
Just have to be careful as you cannot withdraw until you are 58 (10 years below government pension age which will be 68 for you)

if OP did not have a DB pension this would be reasonable.

However muddying the waters with both DB and DC could get messy. NHS pension statements are current 12-18months behind, eventually you will come a point where you may breach annual allowance unknowingly. Add a DC pension into the mix and it becomes overly complicated and also forms part of your AA. 

My own IFA for just my NHS pension advised against this option, but then I am a higher tax payer and I have already breached my AA last year, but your choice. I would keep it simple as a beginner