If you are wearing my shoes. (Redux)

eskbanker

Thumbs_Up said:
Lloylds will be ok with dividends this year.

Depends what your benchmark is, but the 1.24p per share in (calendar) 2021 is only just above 2% of the current price, so not a particularly generous yield, although obviously better than the 0% paid during most years since the 2008 price collapse....

Thumbs_Up

Interest rates up this year, share price up this year ?

eskbanker

Thumbs_Up said:

Interest rates up this year, share price up this year ?

Possibly, but that does come across as the gambler trying to convince himself that 'this year is going to be the one that changes everything and it all comes good (despite the previous 5/10/15....)'

Thumbs_Up

I’m not dreaming for the Porsche on the drive, just slow steady growth. I will be out of the game when I 65, so I have 10 years...

eskbanker

Thumbs_Up said:

I’m not dreaming for the Porsche on the drive, just slow steady growth. I will be out of the game when I 65, so I have 10 years...

If you're looking for slow steady growth over ten years, then there are many collective investments that will achieve this objective way more successfully than punting on individual shares!

Thumbs_Up

You are not wrong, it all depends on risk and appetite. You may want a world cruise, i don't. You my want a new car, i don't. I have some leeway, you probably don’t. But i say again you are not wrong.  

QrizB

Thumbs_Up said:

QrizB said:

Thumbs_Up said:

I am a single man with no children, currently not in a relationship, unemployed and living with a relation. Claiming no state benefits soon to be 55 years of age and frugal.... will be looking for a home to purchase some time in the future.

Your assets & pensions could (if invested carefully) yield you something like £24k pa indefinitely, but if you spend £200k on a home that number is going to be more like £15k. Which might still be OK for a frugal single man.

Please tell me you overlooked the state pension in your £15k calculation? Regarding the home i'm open to anywhere in this country, where the homes are cheap, the people are nice (that rules out the southeast) and the weather is mild in the winter.

No, I did not overlook the state pension, although I was somewhat pessimistic with £24k/15k. It's £26k/£20k.

You have £500k of assets plus pensions and are 55 years old.

• 55 to 60 - 5 years @ £26k from assets - £130k
• 60 to 67 - 7 years @ £23k from assets - £161k plus (£3k pension pa)

So at 67 you'll have spent £291k from your £500k and have £209k left, plus £98k from your DC pension. That's £307k. Safe drawdown rates are much discussed but if we go with 4%, £307k will yield £12k pa. Plus state & £3k pensions makes £25k pa for the rest of your life.

If you spend £200k on a home, you're only starting with £300k.

• 55 to 60 - 5 years @ £20k from assets - £100k
• 60 to 67 - 7 years @ £17k from assets - £119k plus (£3k pension pa)

At 67 you'll have spent £219k and have £81k left, plus £98k DC - total £179k. 4% drawdown will yield £7k, Plus state & £3k pensions makes £20k pa for the rest of your life.

My model isn't very complicated but you can see how I got those numbers.

atush

If you are unemployed, why are you not claiming Job seekers allowance, and looking for work?

Are you paying rent to the relative you live with?

eskbanker

eskbanker said:

Thumbs_Up said:

I’m not dreaming for the Porsche on the drive, just slow steady growth. I will be out of the game when I 65, so I have 10 years...

If you're looking for slow steady growth over ten years, then there are many collective investments that will achieve this objective way more successfully than punting on individual shares!

Thumbs_Up said:

You are not wrong, it all depends on risk and appetite. You may want a world cruise, i don't. You my want a new car, i don't. I have some leeway, you probably don’t. But i say again you are not wrong.

That's not really the point though - you're talking there about investment objectives, which are of course personal.

My post was referring to the fact that (sufficiently diversified) collective investments are inherently less volatile than individual shares, and are therefore intrinsically more suited to a stated objective of steady growth (although neither can really guarantee this).

RickyB2000

Thumbs_Up said:

You are not wrong, it all depends on risk and appetite. You may want a world cruise, i don't. You my want a new car, i don't. I have some leeway, you probably don’t. But i say again you are not wrong.  

This doesn’t make much sense imho. People take high risk for the chance of high reward. Investing in individual companies is high risk. Yet you say you are not looking for high reward. So why are you taking a high risk approach vs the more balanced approach of investing in say a broad index fund?

Maybe I am wrong but it sounds like getting your fingers burnt on these individual shares by taking a very high risk approach has now made you super wary of investing at all and wanting to take the super low risk but at the moment negative reward of sitting in cash. You need to reset your risk / reward attitude and look for the right investments that will deliver the steady growth for manageable risk (or as above volatility).