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

Alexland

Thrugelmir said:

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

Or much less time to recover the spending power after considering dividends and deflation.

Thrugelmir said:

The Nikkei 225 took 30 years. 

Similar crazy ramp up beforehand so the full impact of the crash would have only affected a badly timed lump sum not those of us pound cost averaging each month.

grumiofoundation

adindas said:

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 ??

£125 is 12.5% of £1000 

You are very unlikely to miss out on 12.5% of gains in the few days you are out the market due to being unable to do an in-specie transfer

older_and_no_wiser

RyanHello said:

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 

Very true! Easier said than done though. They should ban all investment platform apps and websites to stop us looking. Make the old annual paper statements the only means of investment checking. ;-)

Thrugelmir

Alexland said:

Thrugelmir said:

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

Or much less time to recover the spending power after considering dividends and deflation.

Thrugelmir said:

The Nikkei 225 took 30 years. 

Similar crazy ramp up beforehand so the full impact of the crash would have only affected a badly timed lump sum not those of us pound cost averaging each month.

That's alright then. Seems you've all the answers. 

ranciduk

older_and_no_wiser said:

RyanHello said:

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 

Very true! Easier said than done though. They should ban all investment platform apps and websites to stop us looking. Make the old annual paper statements the only means of investment checking. ;-)

Amen

everyday I tell myself I’m not going to waste my time checking how my LS fund is doing - and I can never resist 

and with it doing so crap lately it just puts me in a foul mood!

Thrugelmir

ranciduk said:

older_and_no_wiser said:

RyanHello said:

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 

Very true! Easier said than done though. They should ban all investment platform apps and websites to stop us looking. Make the old annual paper statements the only means of investment checking. ;-)

and with it doing so crap lately it just puts me in a foul mood!

You think it's performing badly.  Have you considered reviewing your risk tolerance......

ranciduk

Oh no

its a long term thing , I know that 

doesn’t stop me getting annoyed whenever all the markets are in red and my returns are minus ££!!

InvesterJones

It's part of being alive - lows help you appreciate the highs that much better

(please note, this is tongue in cheek - I'm not seriously suggesting anyone invest for a resulting emotional return)

adindas

older_and_no_wiser said:

RyanHello said:

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 

Very true! Easier said than done though. They should ban all investment platform apps and websites to stop us looking. Make the old annual paper statements the only means of investment checking. ;-)

Using similar analogy, you should also ask the authority to ban beer, wine and other alcoholic drinks just because a few people are doing binge drinking, getting drunk and doing crazy uncivilised thing.

Stop the banks / lenders lending to people, as a few people are thinking that the money they got from the lenders is a free money and do not need to be returned with interest.

Keep in mind the proliferation of this investment apps that make it possible to trade / invest in a very small amount of money and paying very little to zero fees. The main platform such as HL will charge you £11.95 per share dealing while using this investment apps will cost you very little to almost nothing.

JustAnotherSaver

eskbanker 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.

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%!

You don't say. 

Look, you're clearly more intelligent than I am so I would've thought that you wouldn't have taken my 999999 literally.

So if we're highlighting posts that are pointless than your own fits the bill too.