Leave funds invested and watch it drop or take out and put into bank…??

diystarter7

I've not traded in shares for almost ten years. Even then it was becoming a pure gamble and now it is IMO.
Any so-called expert predicting a crash, dead cat bounce and or where the markets will be in 6 months time are kidding themselves and you.

If you have the money you can afford to lose, not worry about it, sure go for it but if you will feel injured if you lose 5% - 20 or 50% or over, it is not for you.

Money in a bank/building society savers account often means you go to bed with 50K in the bank and wake up the next day with 50k and a bit and if you wanted you money at at 4pm you will get 50k and a bit. If your 50k is in shares, you go to bed with 50k, wake up its 30k, you sell at 4pm its 25k potentially.

Not for me.

Prism

diystarter7 said:

I've not traded in shares for almost ten years. Even then it was becoming a pure gamble and now it is IMO.
Any so-called expert predicting a crash, dead cat bounce and or where the markets will be in 6 months time are kidding themselves and you.

If you have the money you can afford to lose, not worry about it, sure go for it but if you will feel injured if you lose 5% - 20 or 50% or over, it is not for you.

Money in a bank/building society savers account often means you go to bed with 50K in the bank and wake up the next day with 50k and a bit and if you wanted you money at at 4pm you will get 50k and a bit. If your 50k is in shares, you go to bed with 50k, wake up its 30k, you sell at 4pm its 25k potentially.

Not for me.

Most of us can't really avoid it though. Anyone with a pension, which means most people with a job, has something invested in shares through their workplace pension.

The main thing is not to worry about what happens this year, next year, in five years or even in ten years. Think longer term.

Only in retirement when there is no other source of income do these falls become a bit more concerning, but even that can be dealt with by diversifying - and that includes cash in the bank.

diystarter7

Prism said:

diystarter7 said:

I've not traded in shares for almost ten years. Even then it was becoming a pure gamble and now it is IMO.
Any so-called expert predicting a crash, dead cat bounce and or where the markets will be in 6 months time are kidding themselves and you.

If you have the money you can afford to lose, not worry about it, sure go for it but if you will feel injured if you lose 5% - 20 or 50% or over, it is not for you.

Money in a bank/building society savers account often means you go to bed with 50K in the bank and wake up the next day with 50k and a bit and if you wanted you money at at 4pm you will get 50k and a bit. If your 50k is in shares, you go to bed with 50k, wake up its 30k, you sell at 4pm its 25k potentially.

Not for me.

Most of us can't really avoid it though. Anyone with a pension, which means most people with a job, has something invested in shares through their workplace pension.

The main thing is not to worry about what happens this year, next year, in five years or even in ten years. Think longer term.

Only in retirement when there is no other source of income do these falls become a bit more concerning, but even that can be dealt with by diversifying - and that includes cash in the bank.

My fault if I did not make it clear that the "50k's" I was referring to was in direct shares/funds.

With shares, even massive companies may not be worth what they were "10 years" ago.

As I said, shares/investing is not what it was 10 years ago when i was last in direct shares.

IMO, its pure gambles and rightly so MM's making money of the backs of smaller investors as millions more dabble in shares since the net took off then mobile apps.

Anyay, good luck.

Btw, I'm aspiring to buy another property to rent but aTM I have other things on my mind and re bTL, possible new laws massively favouring T's has put me off. Bricks and mortar in a nice location are almost guaranteed to appreciate over an approx ten year period plus income from BTL.

dunstonh

I've not traded in shares for almost ten years. Even then it was becoming a pure gamble and now it is IMO.

Trading is nearly always a gamble.  However, most people here do not get involved in trading. They are investing.

Linton

diystarter7 said:

Prism said:

diystarter7 said:

I've not traded in shares for almost ten years. Even then it was becoming a pure gamble and now it is IMO.
Any so-called expert predicting a crash, dead cat bounce and or where the markets will be in 6 months time are kidding themselves and you.

If you have the money you can afford to lose, not worry about it, sure go for it but if you will feel injured if you lose 5% - 20 or 50% or over, it is not for you.

(4)Money in a bank/building society savers account often means you go to bed with 50K in the bank and wake up the next day with 50k and a bit and if you wanted you money at at 4pm you will get 50k and a bit. If your 50k is in shares, you go to bed with 50k, wake up its 30k, you sell at 4pm its 25k potentially.

Not for me.

Most of us can't really avoid it though. Anyone with a pension, which means most people with a job, has something invested in shares through their workplace pension.

The main thing is not to worry about what happens this year, next year, in five years or even in ten years. Think longer term.

Only in retirement when there is no other source of income do these falls become a bit more concerning, but even that can be dealt with by diversifying - and that includes cash in the bank.

(1) My fault if I did not make it clear that the "50k's" I was referring to was in direct shares/funds.

(2) With shares, even massive companies may not be worth what they were "10 years" ago.

(3) As I said, shares/investing is not what it was 10 years ago when i was last in direct shares.

IMO, its pure gambles and rightly so MM's making money of the backs of smaller investors as millions more dabble in shares since the net took off then mobile apps.

Anyay, good luck.

5) Btw, I'm aspiring to buy another property to rent but aTM I have other things on my mind and re bTL, possible new laws massively favouring T's has put me off. Bricks and mortar in a nice location are almost guaranteed to appreciate over an approx ten year period plus income from BTL.

1) Pensions are significantly invested in funds of shares.

2) It is true that some individual large companies may not be worth what they were 10 years ago.  However no-one here is suggesting that you should invest in that way.  If you invest in globally diversified funds of share you become a part owner of most of the main companies thoughout the world.    As an owner you gain from the profits those companies make either directly though dividends of by the increase in size and value of those companies by reinvestment.

Over time some companies may fold, others may be very successful, it doesnt matter because you are invested in all of them. This is a gamble that overall, over the long term, global business will be profitable.  If it is not, the state of the world economy is likely to be such that the value of your investments will be the least of your problems.

3) Investing in individual shares is not what it was 10 years ago, something we must all be thankful for.  Then the object was to find the 10-bagger or whatever and probably lose money when you failed.  Now it is clearer that slow and steady wins the race.

4) If the timeframe for your money is 4pm one day to wake-up time the next then you should not be investing.  It would be a pure gamble.  However with a time frame is say 15 years the situation is very different.  The chances are that inflation will have ensured that your cash savings will be worth substantially less in real terms than when you started.  Well diversified Investments however would have benefitted from the underlying trends overtaking the short term fluctuations in valuations and would be likely to have gained in value significicantly in real terms.

5) Do you really believe that house prices will outstrip inflation over the long term in the face of a collapse in global industry and the resultant impoverishment of the population?

diystarter7

@Linton

point 4. The 50k could have been invested/gambled the day before, week, year or years before my point is clear. You go to bed with xxxxx and wake up in the morning needing the  xxxxxx but when you go to access it, there may have been a market implosion as they do happen and you are left with x. Unlike a bank, most likely all of your money and bit more will be there.

point 5.  No but it is a safer gamble plus income.

masonic

diystarter7 said:
point 4. The 50k could have been invested/gambled the day before, week, year or years before my point is clear. You go to bed with xxxxx and wake up in the morning needing the  xxxxxx but when you go to access it, there may have been a market implosion as they do happen and you are left with x. Unlike a bank, most likely all of your money and bit more will be there.

Depending on what you've invested in, you could suffer a significant loss over a period as short as a year or even a few years. This is why you should not invest any money you intend to spend in the next few years, and should move money previously invested into safer assets well ahead of needing it. What it doesn't mean is that long term investing is a gamble, provided you diversify and avoid investing beyond your risk tolerance.

Adyinvestment

diystarter7 said:

Money in a bank/building society savers account often means you go to bed with 50K in the bank and wake up the next day with 50k and a bit and if you wanted you money at at 4pm you will get 50k and a bit.

The problem with this is that in today's high inflation, instead of waking up with 50k and a bit, you are actually waking up with 50k and a bit less.

Rinse and repeat every night for a few years and all of a sudden you are waking up with the comparative purchasing power of 25k.

Linton

diystarter7 said:

@Linton

point 4. The 50k could have been invested/gambled the day before, week, year or years before my point is clear. You go to bed with xxxxx and wake up in the morning needing the  xxxxxx but when you go to access it, there may have been a market implosion as they do happen and you are left with x. Unlike a bank, most likely all of your money and bit more will be there.

point 5.  No but it is a safer gamble plus income.

You arrange your finances so any money you could reasonably need in the short term is covered by cash savings. Dont invest until you have say 6 months living expenses in cash if you are working or substantially more if you are retired and dependent on your savings/investments.

diystarter7

Adyinvestment said:

diystarter7 said:

Money in a bank/building society savers account often means you go to bed with 50K in the bank and wake up the next day with 50k and a bit and if you wanted you money at at 4pm you will get 50k and a bit.

The problem with this is that in today's high inflation, instead of waking up with 50k and a bit, you are actually waking up with 50k and a bit less.

Rinse and repeat every night for a few years and all of a sudden you are waking up with the comparative purchasing power of 25k.

Thanks

I worry about our money/cash in excess of ?? but not prepared to gamble in shares but I totally agree with you.