Golden Rules for Investment Blog

DoneWorking

bostonerimus said:

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.

I've looked into this in a previous post and failed to find up to date information

My knowledge is therefore not enough to help me chose such funds

To date I have not been able to find anyone to help me select such funds

I am interested in sustainable or ESG type funds

Passive preferably but prepared to consider actively managed funds

I would also need help in deciding the make up of the fund portfolio

As stated previously I had considered the Developed World ESG Passive Fund provided by Vanguard

There are two versions domiciled in Uk and Ireland
I'm concerned at the lower protection for the Ireland version 
But the UK fund is newer and has less capitilisation

masonic

This thread seems to be going over the same ground as previous ones, so in the interests of not clogging it up with a lot of repeat discussion...

There was quite a lengthy discussion of specific DIY options starting about halfway through this thread from April: https://forums.moneysavingexpert.com/discussion/6347677/investing-in-global-trackers-and-other-similar-investments/p17

This thread from March briefly discussed market timing and the danger of waiting for there not to be any issues in the world: https://forums.moneysavingexpert.com/discussion/6340487/cash-or-investment

There was discussion about reasonable expectations for returns in relation to Vanguard covered in an earlier thread from last December, from the middle of page 4 onward: https://forums.moneysavingexpert.com/discussion/6318154/best-option-for-cash-lump-sum/p4

DoneWorking said:

I would also need help in deciding the make up of the fund portfolio

I would just like to point out that while we can discuss specific funds in general terms, which some of us have already done in some of your earlier threads above, we cannot advise you what to invest in. Only a regulated financial adviser can do that. The main feature of DIY investing is that it is your decision, and your decision alone. The good news is that over the past 6 months or so, you've accumulated lots of helpful starting points from several posters regarding how to do your own research. Hopefully this will be put to good use. It might be helpful if you look back and see if there is anything that hasn't been covered in one of your previous threads that you feel is important to your education in self-managing your investments.

DoneWorking said:

As stated previously I had considered the Developed World ESG Passive Fund provided by Vanguard

There are two versions domiciled in Uk and Ireland
I'm concerned at the lower protection for the Ireland version 
But the UK fund is newer and has less capitilisation

I think this has been covered in one of your earlier threads, but I can't readily find it, so will reproduce:

The protection offered should the custodian of your assets go bust or defraud you is exactly the same (£85k FSCS), assuming you use a UK-based investment platform or broker. However, there is no protection for losses due to the failure of an ETF or fraud therein. It is treated as a company share and the losses are therefore investment losses. A UK domiciled OEIC would have £85k FSCS protection in the same situation. However, we're talking about Vanguard here, so this really is a non-issue.

DoneWorking

masonic said:

This thread seems to be going over the same ground as previous ones, so in the interests of not clogging it up with a lot of repeat discussion...

There was quite a lengthy discussion of specific DIY options starting about halfway through this thread from April: https://forums.moneysavingexpert.com/discussion/6347677/investing-in-global-trackers-and-other-similar-investments/p17

This thread from March briefly discussed market timing and the danger of waiting for there not to be any issues in the world: https://forums.moneysavingexpert.com/discussion/6340487/cash-or-investment

There was discussion about reasonable expectations for returns in relation to Vanguard covered in an earlier thread from last December, from the middle of page 4 onward: https://forums.moneysavingexpert.com/discussion/6318154/best-option-for-cash-lump-sum/p4

DoneWorking said:

I would also need help in deciding the make up of the fund portfolio

I would just like to point out that while we can discuss specific funds in general terms, which some of us have already done in some of your earlier threads above, we cannot advise you what to invest in. Only a regulated financial adviser can do that. The main feature of DIY investing is that it is your decision, and your decision alone. The good news is that over the past 6 months or so, you've accumulated lots of helpful starting points from several posters regarding how to do your own research. Hopefully this will be put to good use. It might be helpful if you look back and see if there is anything that hasn't been covered in one of your previous threads that you feel is important to your education in self-managing your investments.

DoneWorking said:

As stated previously I had considered the Developed World ESG Passive Fund provided by Vanguard

There are two versions domiciled in Uk and Ireland
I'm concerned at the lower protection for the Ireland version 
But the UK fund is newer and has less capitilisation

I think this has been covered in one of your earlier threads, but I can't readily find it, so will reproduce:

The protection offered should the custodian of your assets go bust or defraud you is exactly the same (£85k FSCS), assuming you use a UK-based investment platform or broker. However, there is no protection for losses due to the failure of an ETF or fraud therein. It is treated as a company share and the losses are therefore investment losses. A UK domiciled OEIC would have £85k FSCS protection in the same situation. However, we're talking about Vanguard here, so this really is a non-issue.

Thanks Masonic

Great summing up

Sorry for items which have been repeated

I am doing my best to get up to speed taking into account other issues in my life

Thanks to everyone who has contributed

bostonerimus

DoneWorking said:

bostonerimus said:

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.

I've looked into this in a previous post and failed to find up to date information

My knowledge is therefore not enough to help me chose such funds

To date I have not been able to find anyone to help me select such funds

I am interested in sustainable or ESG type funds

Passive preferably but prepared to consider actively managed funds

I would also need help in deciding the make up of the fund portfolio

As stated previously I had considered the Developed World ESG Passive Fund provided by Vanguard

There are two versions domiciled in Uk and Ireland
I'm concerned at the lower protection for the Ireland version 
But the UK fund is newer and has less capitilisation

Don't over think things and don't put all your eggs in one basket...that's where multi-asset funds are great for the novice investor.

Prism

DoneWorking said:

bostonerimus said:

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.

I've looked into this in a previous post and failed to find up to date information

My knowledge is therefore not enough to help me chose such funds

To date I have not been able to find anyone to help me select such funds

I am interested in sustainable or ESG type funds

Passive preferably but prepared to consider actively managed funds

I would also need help in deciding the make up of the fund portfolio

As stated previously I had considered the Developed World ESG Passive Fund provided by Vanguard

There are two versions domiciled in Uk and Ireland
I'm concerned at the lower protection for the Ireland version 
But the UK fund is newer and has less capitilisation

Maybe have a look at one of these

Sustainable Investing | ESG Investment Portfolios - HSBC