Golden Rules for Investment Blog

GazzaBloom

DoneWorking said:

bostonerimus said:

One of the best Golden Rules is "time in the market beats timing the market". Don't use a single snapshot of the market to dictate your investing strategy that should have a timescale of decades. I've been regularly investing for over 30 years through several crashes and booms and I've come out at the end financially independent because with all the short term ups and downs the general trend of the markets over those 30 years has been upwards. If it had been generally downwards I would have lost money. So when investing today you need to know what will happen over the long term...and frankly that takes faith.

As a novice potential investor who has not yet found an IFA at a cost I like and an investment strategy that will reward me sufficiently for the risks taken on I was merely asking people's thoughts on when to enter today's nose diving market

Straight away

After a fall to a certain level

After what looks like the bottom

After what looks like a climb back

Never

If you are nervous and unsure about investing right now you may not have educated yourself enough on how the stock market, bond market, index and managed mutual funds work and may not have the stomach to ride out market crashes. Read some blogs, books and watch some Youtube videos, the basics are easy enough to understand which will give you a bit more confidence and insight.

If you want my personal opinion on whether now is a good time to invest or not, I will share it, but there are some on here that won't agree with my approach as investing can be a mix of reason and personal judgement and risk appetite.

if it were me, I wouldn't hesitate to invest right now in a low cost index fund. In fact, putting my money where my mouth is, I recently transferred a £40K lump sum into a new Vanguard SIPP with 100% invested in the S&P500 UCITS ETF (VUSA). This money started trading a couple of weeks ago on 18th May and and lost £2K in the first week. It's back in the green after this weeks market rally but I neither fear the short term declines or get excited about the short term gains. I am investing in the belief that capitalism will prevail for at least the next 50-100 years and that the 500 best American businesses, on aggregate, will continue to successfully deliver products and services that the world wants to buy. The stock markets evaluation of those companies worth will swing wildly up and down in the short term, which I ignore.

There will be some on here that will say the US market is over priced, tech heavy, poor value, stock picking from UK market is better than US index funds, we are at the start of a market collapse, especially in the US, of a magnitude we have never seen before etc..etc..

The truth is, nobody knows what the future holds, and investing is a degree of speculation on the future whichever way you look at it, so make your own assessment and investing decisions and stick with it, ignoring all doomsters and soothsayers who manifest their own fear, uncertainly and doubt as advice or warnings to others.

masonic

The fund currently being eyed by the OP has about a 70% USA weighting, so not too dissimilar from the above.

bostonerimus

DoneWorking said:

bostonerimus said:

One of the best Golden Rules is "time in the market beats timing the market". Don't use a single snapshot of the market to dictate your investing strategy that should have a timescale of decades. I've been regularly investing for over 30 years through several crashes and booms and I've come out at the end financially independent because with all the short term ups and downs the general trend of the markets over those 30 years has been upwards. If it had been generally downwards I would have lost money. So when investing today you need to know what will happen over the long term...and frankly that takes faith.

As a novice potential investor who has not yet found an IFA at a cost I like and an investment strategy that will reward me sufficiently for the risks taken on I was merely asking people's thoughts on when to enter today's nose diving market

Straight away

After a fall to a certain level

After what looks like the bottom

After what looks like a climb back

Never

Straight away if you have faith that the stock and bond markets will produce generally positive returns over your investing time scale. I would also do the following after you have done a detailed budget and identified where you can save. Being frugal will give you more to save and invest.

1) pay off any hight interest debt, like credit cards.
2) make sure you have at least 6 months cash spending in the bank.
3) educate yourself so you can implement a simple investing strategy and avoid the extra costs of an IFA.
4) invest as much as you can in your workplace pension as that's a guaranteed tax saving. Invest in low cost multi asset funds.
5) use ISAs and also invest in low cost multi-asset funds.
6) buy a house and make extra mortgage payments.

GazzaBloom

bostonerimus said:

DoneWorking said:

bostonerimus said:

One of the best Golden Rules is "time in the market beats timing the market". Don't use a single snapshot of the market to dictate your investing strategy that should have a timescale of decades. I've been regularly investing for over 30 years through several crashes and booms and I've come out at the end financially independent because with all the short term ups and downs the general trend of the markets over those 30 years has been upwards. If it had been generally downwards I would have lost money. So when investing today you need to know what will happen over the long term...and frankly that takes faith.

As a novice potential investor who has not yet found an IFA at a cost I like and an investment strategy that will reward me sufficiently for the risks taken on I was merely asking people's thoughts on when to enter today's nose diving market

Straight away

After a fall to a certain level

After what looks like the bottom

After what looks like a climb back

Never

Straight away if you have faith that the stock and bond markets will produce generally positive returns over your investing time scale. I would also do the following after you have done a detailed budget and identified where you can save. Being frugal will give you more to save and invest.

1) pay off any hight interest debt, like credit cards.
2) make sure you have at least 6 months cash spending in the bank.
3) educate yourself so you can implement a simple investing strategy and avoid the extra costs of an IFA.
4) invest as much as you can in your workplace pension as that's a guaranteed tax saving. Invest in low cost multi asset funds.
5) use ISAs and also invest in low cost multi-asset funds.
6) buy a house and make extra mortgage payments.

Very sensible view in my opinion and pretty much the path I have followed, principles based on Dave Ramsey's Baby Steps. 

bostonerimus

GazzaBloom said:

bostonerimus said:

DoneWorking said:

bostonerimus said:

One of the best Golden Rules is "time in the market beats timing the market". Don't use a single snapshot of the market to dictate your investing strategy that should have a timescale of decades. I've been regularly investing for over 30 years through several crashes and booms and I've come out at the end financially independent because with all the short term ups and downs the general trend of the markets over those 30 years has been upwards. If it had been generally downwards I would have lost money. So when investing today you need to know what will happen over the long term...and frankly that takes faith.

As a novice potential investor who has not yet found an IFA at a cost I like and an investment strategy that will reward me sufficiently for the risks taken on I was merely asking people's thoughts on when to enter today's nose diving market

Straight away

After a fall to a certain level

After what looks like the bottom

After what looks like a climb back

Never

Straight away if you have faith that the stock and bond markets will produce generally positive returns over your investing time scale. I would also do the following after you have done a detailed budget and identified where you can save. Being frugal will give you more to save and invest.

1) pay off any hight interest debt, like credit cards.
2) make sure you have at least 6 months cash spending in the bank.
3) educate yourself so you can implement a simple investing strategy and avoid the extra costs of an IFA.
4) invest as much as you can in your workplace pension as that's a guaranteed tax saving. Invest in low cost multi asset funds.
5) use ISAs and also invest in low cost multi-asset funds.
6) buy a house and make extra mortgage payments.

Very sensible view in my opinion and pretty much the path I have followed, principles based on Dave Ramsey's Baby Steps. 

Dave Ramsey might give similar advice, but it's all "public domain" common sense. The budget bit and having no debt (other than a mortgage) is from my Mum. The low cost investing is from Bogle.

GazzaBloom

bostonerimus said:

GazzaBloom said:

bostonerimus said:

DoneWorking said:

bostonerimus said:

One of the best Golden Rules is "time in the market beats timing the market". Don't use a single snapshot of the market to dictate your investing strategy that should have a timescale of decades. I've been regularly investing for over 30 years through several crashes and booms and I've come out at the end financially independent because with all the short term ups and downs the general trend of the markets over those 30 years has been upwards. If it had been generally downwards I would have lost money. So when investing today you need to know what will happen over the long term...and frankly that takes faith.

As a novice potential investor who has not yet found an IFA at a cost I like and an investment strategy that will reward me sufficiently for the risks taken on I was merely asking people's thoughts on when to enter today's nose diving market

Straight away

After a fall to a certain level

After what looks like the bottom

After what looks like a climb back

Never

Straight away if you have faith that the stock and bond markets will produce generally positive returns over your investing time scale. I would also do the following after you have done a detailed budget and identified where you can save. Being frugal will give you more to save and invest.

1) pay off any hight interest debt, like credit cards.
2) make sure you have at least 6 months cash spending in the bank.
3) educate yourself so you can implement a simple investing strategy and avoid the extra costs of an IFA.
4) invest as much as you can in your workplace pension as that's a guaranteed tax saving. Invest in low cost multi asset funds.
5) use ISAs and also invest in low cost multi-asset funds.
6) buy a house and make extra mortgage payments.

Very sensible view in my opinion and pretty much the path I have followed, principles based on Dave Ramsey's Baby Steps. 

Dave Ramsey might give similar advice, but it's all "public domain" common sense. The budget bit and having no debt (other than a mortgage) is from my Mum. The low cost investing is from Bogle.

Not common sense to many Americans it would seem though or Dave wouldn't be heading up his multi-million dollar business

DoneWorking

GazzaBloom said:

bostonerimus said:

DoneWorking said:

bostonerimus said:

One of the best Golden Rules is "time in the market beats timing the market". Don't use a single snapshot of the market to dictate your investing strategy that should have a timescale of decades. I've been regularly investing for over 30 years through several crashes and booms and I've come out at the end financially independent because with all the short term ups and downs the general trend of the markets over those 30 years has been upwards. If it had been generally downwards I would have lost money. So when investing today you need to know what will happen over the long term...and frankly that takes faith.

As a novice potential investor who has not yet found an IFA at a cost I like and an investment strategy that will reward me sufficiently for the risks taken on I was merely asking people's thoughts on when to enter today's nose diving market

Straight away

After a fall to a certain level

After what looks like the bottom

After what looks like a climb back

Never

Straight away if you have faith that the stock and bond markets will produce generally positive returns over your investing time scale. I would also do the following after you have done a detailed budget and identified where you can save. Being frugal will give you more to save and invest.

1) pay off any hight interest debt, like credit cards.
2) make sure you have at least 6 months cash spending in the bank.
3) educate yourself so you can implement a simple investing strategy and avoid the extra costs of an IFA.
4) invest as much as you can in your workplace pension as that's a guaranteed tax saving. Invest in low cost multi asset funds.
5) use ISAs and also invest in low cost multi-asset funds.
6) buy a house and make extra mortgage payments.

Very sensible view in my opinion and pretty much the path I have followed, principles based on Dave Ramsey's Baby Steps. 

Thanks

I am keen to begin investing but waiting to finalise my options

As for your points

1) pay off any hight interest debt, like credit cards.

*I don't have any debts*

2) make sure you have at least 6 months cash spending in the bank.

*I have more than this in cash based easy  savings accounts*

3) educate yourself so you can implement a simple investing strategy and avoid the extra costs of an IFA.
*I'm currently working on this *
4) invest as much as you can in your workplace pension as that's a guaranteed tax saving.
*I've finalised my pension a few years ago*
Invest in low cost multi asset funds.
*Do you mean Vanguard passive index Global funds*
5) use ISAs and also invest in low cost multi-asset funds.
*Just about to sort out a s&s ISA*
6) buy a house and make extra mortgage payments.
We own our own house and paid off mortgage*

bostonerimus

GazzaBloom said:

bostonerimus said:

GazzaBloom said:

bostonerimus said:

DoneWorking said:

bostonerimus said:

One of the best Golden Rules is "time in the market beats timing the market". Don't use a single snapshot of the market to dictate your investing strategy that should have a timescale of decades. I've been regularly investing for over 30 years through several crashes and booms and I've come out at the end financially independent because with all the short term ups and downs the general trend of the markets over those 30 years has been upwards. If it had been generally downwards I would have lost money. So when investing today you need to know what will happen over the long term...and frankly that takes faith.

As a novice potential investor who has not yet found an IFA at a cost I like and an investment strategy that will reward me sufficiently for the risks taken on I was merely asking people's thoughts on when to enter today's nose diving market

Straight away

After a fall to a certain level

After what looks like the bottom

After what looks like a climb back

Never

Straight away if you have faith that the stock and bond markets will produce generally positive returns over your investing time scale. I would also do the following after you have done a detailed budget and identified where you can save. Being frugal will give you more to save and invest.

1) pay off any hight interest debt, like credit cards.
2) make sure you have at least 6 months cash spending in the bank.
3) educate yourself so you can implement a simple investing strategy and avoid the extra costs of an IFA.
4) invest as much as you can in your workplace pension as that's a guaranteed tax saving. Invest in low cost multi asset funds.
5) use ISAs and also invest in low cost multi-asset funds.
6) buy a house and make extra mortgage payments.

Very sensible view in my opinion and pretty much the path I have followed, principles based on Dave Ramsey's Baby Steps. 

Dave Ramsey might give similar advice, but it's all "public domain" common sense. The budget bit and having no debt (other than a mortgage) is from my Mum. The low cost investing is from Bogle.

Not common sense to many Americans it would seem though or Dave wouldn't be heading up his multi-million dollar business

Unfortunately common sense isn’t very common anymore. Ramsey is just one of many financial gurus who make money dispensing advice. Ramsey’s rules aren’t bad IMO, but he annoys me. The lack of basic financial knowledge or the ability to manage a budget isn’t unique to the US or the UK.

bostonerimus

DoneWorking said:

GazzaBloom said:

bostonerimus said:

DoneWorking said:

bostonerimus said:

One of the best Golden Rules is "time in the market beats timing the market". Don't use a single snapshot of the market to dictate your investing strategy that should have a timescale of decades. I've been regularly investing for over 30 years through several crashes and booms and I've come out at the end financially independent because with all the short term ups and downs the general trend of the markets over those 30 years has been upwards. If it had been generally downwards I would have lost money. So when investing today you need to know what will happen over the long term...and frankly that takes faith.

As a novice potential investor who has not yet found an IFA at a cost I like and an investment strategy that will reward me sufficiently for the risks taken on I was merely asking people's thoughts on when to enter today's nose diving market

Straight away

After a fall to a certain level

After what looks like the bottom

After what looks like a climb back

Never

Straight away if you have faith that the stock and bond markets will produce generally positive returns over your investing time scale. I would also do the following after you have done a detailed budget and identified where you can save. Being frugal will give you more to save and invest.

1) pay off any hight interest debt, like credit cards.
2) make sure you have at least 6 months cash spending in the bank.
3) educate yourself so you can implement a simple investing strategy and avoid the extra costs of an IFA.
4) invest as much as you can in your workplace pension as that's a guaranteed tax saving. Invest in low cost multi asset funds.
5) use ISAs and also invest in low cost multi-asset funds.
6) buy a house and make extra mortgage payments.

Very sensible view in my opinion and pretty much the path I have followed, principles based on Dave Ramsey's Baby Steps. 

Thanks

I am keen to begin investing but waiting to finalise my options

As for your points

1) pay off any hight interest debt, like credit cards.

*I don't have any debts*

2) make sure you have at least 6 months cash spending in the bank.

*I have more than this in cash based easy  savings accounts*

3) educate yourself so you can implement a simple investing strategy and avoid the extra costs of an IFA.
*I'm currently working on this *
4) invest as much as you can in your workplace pension as that's a guaranteed tax saving.
*I've finalised my pension a few years ago*
Invest in low cost multi asset funds.
*Do you mean Vanguard passive index Global funds*
5) use ISAs and also invest in low cost multi-asset funds.
*Just about to sort out a s&s ISA*
6) buy a house and make extra mortgage payments.
We own our own house and paid off mortgage*

You have things well covered then. 

By “multi-asset” funds I mean funds that contain a mix of other funds which are often passive index tracking equity and bond funds. These give you an easy way to own a diverse portfolio all in one place. Examples are the Vanguard Life Strategy series, but there are many others.

jimjames

DoneWorking said:

R_P_W said:

Surely you have answered your own question?!

Out of interest what would you be waiting for exactly?

I don't really think too many returning investors would want to begin investing while markets are still nose diving.
And obviously it's difficuilt to know when they may bottom out

It's impossible to know. So investing regularly avoids that problem. Put money into investments every month, if the price has dropped you get a bargain. People worry about prices going up and love a bargain in the sales but don't apply the same logic to investing.