£1,000 in Vanguard LifeStrategy 100% Equity just to see if I can take the risk over 6-12 months

RyanHello

To be honest OP. You are best investing that £1000 and forgetting you've got it.
Pretend you have lost that money.

That's the only real way to build any kind of wealth from £1000

Constantly looking at the markets every week checking if it's gone down or up 2% is not only bad for your investments. It's bad for your mental health 

Some of my investments I haven't checked on in over a year.

Investments are meant to grow over time while you live your life . 

adindas

Thrugelmir said:

adindas said:

JustAnotherSaver said:

I know very little about the investing game it seems when I read posts from people here.

However I think I know enough to not take something like this on.

At the end of 12 months you make a profit of 1000%. Great stuff, let's chuck all our money in - i might be able to retire after 5 years saving at this rate.

Then year 2 the whole thing drops 999999999999%. Oops.

exaggerated numbers but you get the idea.

In the long run investing in the stock market will always beat saving by reasonably large percentage. That is statistical evidence that could be traced back since few hundred years ago.

Few investors have the benefit of a few hundred years as an investment time horizon. 

US markets took 25 years to recover from the crash of 1929. 

The Nikkei 225 took 30 years. 

You do not need a few hundred years to see that evidence. The Japanese stock market take long to recover but you forgot to mention that at that time interest rate is also "negative" in Japan.

eskbanker

JustAnotherSaver said:

I know very little about the investing game it seems when I read posts from people here.

However I think I know enough to not take something like this on.

At the end of 12 months you make a profit of 1000%. Great stuff, let's chuck all our money in - i might be able to retire after 5 years saving at this rate.

Then year 2 the whole thing drops 999999999999%. Oops.

exaggerated numbers but you get the idea.

Seems a rather pointless post: 'I don't know anything about this subject but will dismiss it anyway, based on some misconceptions'....

Anyone who is considering investing rather than saving has to get to grips with (a) the concept of volatility, (b) the consequences on timescales, i.e. that it's inherently a long term activity, and (c) sequence of returns risk for your scenario.  A grounding in basic maths doesn't do any harm either, e.g. understanding that (unleveraged) investments can't drop by more than 100%!

adindas

RyanHello said:

To be honest OP. You are best investing that £1000 and forgetting you've got it.
Pretend you have lost that money.

That's the only real way to build any kind of wealth from £1000

Constantly looking at the markets every week checking if it's gone down or up 2% is not only bad for your investments. It's bad for your mental health 

Some of my investments I haven't checked on in over a year.

Investments are meant to grow over time while you live your life . 

It will depend on the type of investments. If it is a well diversified index fund than it might be yes.
But if it was an individual stock or a fund containing a large percentage of high growth stocks, Commodities, Cryptos than it is important to keep your eyes on the catalysts, news and other things that could move the price significantly in either direction. Typically a good high growth stock is riskier but it also presents a higher reward.

Thrugelmir

adindas said:

Thrugelmir said:

adindas said:

JustAnotherSaver said:

I know very little about the investing game it seems when I read posts from people here.

However I think I know enough to not take something like this on.

At the end of 12 months you make a profit of 1000%. Great stuff, let's chuck all our money in - i might be able to retire after 5 years saving at this rate.

Then year 2 the whole thing drops 999999999999%. Oops.

exaggerated numbers but you get the idea.

In the long run investing in the stock market will always beat saving by reasonably large percentage. That is statistical evidence that could be traced back since few hundred years ago.

Few investors have the benefit of a few hundred years as an investment time horizon. 

US markets took 25 years to recover from the crash of 1929. 

The Nikkei 225 took 30 years. 

You do not need a few hundred years to see that evidence. The Japanese stock market take long to recover but you forgot to mention that at that time interest rate is also "negative" in Japan.

Was a result of a huge financial bubble when asset prices became over inflated. Japan created QE in 2001. Well before the GFC. 

GeoffTF

adindas said:

JustAnotherSaver said:

I know very little about the investing game it seems when I read posts from people here.

However I think I know enough to not take something like this on.

At the end of 12 months you make a profit of 1000%. Great stuff, let's chuck all our money in - i might be able to retire after 5 years saving at this rate.

Then year 2 the whole thing drops 999999999999%. Oops.

exaggerated numbers but you get the idea.

In the long run investing in the stock market, a well diversified index fund will always beat saving by reasonably large percentage. 

That is statistical evidence that could be traced back, tested since few hundred years ago.

There is no stock market that has lasted 200+ years. Russia before the revolution and Germany before the war were complete wipe outs.

DireEmblem

Is it worth adding that if they are starting to invest, putting 1k into a global equity fund is not the worst idea, but not necessarily the best either.

with the £1000 they could:

1) Wealthengine Growth 10 - Deposit £100 for at least a year and start off with a £25 bonus.
2) Wealthify Adventurous - Deposit £400 for at least 6 months and get a £40 bonus.
3) Nutmeg - £60 Quidco cashback for depositing £500 and £100 DD a month for a year.

Ok they will need an extra £500, so £1500 outlay, but would start at least with a £125 bonus or 8.3% effective head start.

Similarly LISA etc and other options out there.

https://www.morningstar.co.uk/uk/funds/snapshot/snapshot.aspx?id=F00000MLUS&tab=13

Either way, based on past performance, the worst this fund has dropped at any one time is about 25-30%.



Looking at the graph, hopefully the OP is aware that time in market not timing the market(12 months) is key.

grumiofoundation

DireEmblem said:

Is it worth adding that if they are starting to invest, putting 1k into a global equity fund is not the worst idea, but not necessarily the best either.

with the £1000 they could:

1) Wealthengine Growth 10 - Deposit £100 for at least a year and start off with a £25 bonus.
2) Wealthify Adventurous - Deposit £400 for at least 6 months and get a £40 bonus.
3) Nutmeg - £60 Quidco cashback for depositing £500 and £100 DD a month for a year.

Ok they will need an extra £500, so £1500 outlay, but would start at least with a £125 bonus or 8.3% effective head start.

Similarly LISA etc and other options out there.

https://www.morningstar.co.uk/uk/funds/snapshot/snapshot.aspx?id=F00000MLUS&tab=13

Either way, based on past performance, the worst this fund has dropped at any one time is about 25-30%.



Looking at the graph, hopefully the OP is aware that time in market not timing the market(12 months) is key.

Investengine? 

adindas

GeoffTF said:

adindas said:

JustAnotherSaver said:

I know very little about the investing game it seems when I read posts from people here.

However I think I know enough to not take something like this on.

At the end of 12 months you make a profit of 1000%. Great stuff, let's chuck all our money in - i might be able to retire after 5 years saving at this rate.

Then year 2 the whole thing drops 999999999999%. Oops.

exaggerated numbers but you get the idea.

In the long run investing in the stock market, a well diversified index fund will always beat saving by reasonably large percentage. 

That is statistical evidence that could be traced back, tested since few hundred years ago.

There is no stock market that has lasted 200+ years. Russia before the revolution and Germany before the war were complete wipe outs.

Well, NYSE was founded in  17 May 1792

In the history the First Stock Exchange - Sans in Belgium dating back as far as 1531 in Antwerp.

As I understand, the Stock Exchange is a subset of the Stock market.

adindas

DireEmblem said:

Is it worth adding that if they are starting to invest, putting 1k into a global equity fund is not the worst idea, but not necessarily the best either.

with the £1000 they could:

1) Wealthengine Growth 10 - Deposit £100 for at least a year and start off with a £25 bonus.
2) Wealthify Adventurous - Deposit £400 for at least 6 months and get a £40 bonus.
3) Nutmeg - £60 Quidco cashback for depositing £500 and £100 DD a month for a year.

Ok they will need an extra £500, so £1500 outlay, but would start at least with a £125 bonus or 8.3% effective head start.

Similarly LISA etc and other options out there.

https://www.morningstar.co.uk/uk/funds/snapshot/snapshot.aspx?id=F00000MLUS&tab=13

Either way, based on past performance, the worst this fund has dropped at any one time is about 25-30%.



Looking at the graph, hopefully the OP is aware that time in market not timing the market(12 months) is key.

How easy it is to close your account as soon as you bag the cashback/incentive. Do any of them allow in specie transfer ??

If not it might not be worthy to invest your time and spread your investment by opening three separate accounts for the sake of £125 if you want to consolidate them ??