What to invest in next?

eskbanker

PJD said:

My understanding of the pension is that I would make a decision about whether to withdraw DB or DC when it comes to retirement?

A pension scheme will generally be either DB or DC, rather than this being something you choose at the point of accessing it:

https://www.moneyhelper.org.uk/en/pensions-and-retirement/pensions-basics/the-different-pensions-you-can-get-if-you-live-and-work-in-the-uk#Types-of-pension-scheme

Cus

Imo if you want diversification away from equities, then other investible assets such as bonds or commodities or infrastructure are viable, in moderation. Gold may not pay interest or a dividend, but then that's the same a Tesla shares.

Eyeful

Comments on Gold:
1. They dig it out of the ground only to put most of it back into another hole in the ground.
2. It has limited use in industry, medicine & jewellery.
3. If you store it or have someone else store it for you, there are more costs on top.
4. It does not pay you any interest or dividends.
5. It is a commodity, so at most should be only a small percentage of your portfolio.
6. Warren Buffett does not invest in gold & he has made about $89 billion without it. 

Buffett's advice to the average investor to to buy a passive major index fund.
Do you know something about investing that Buffett does not know?

ColdIron

Cus said:

Gold may not pay interest or a dividend, but then that's the same a Tesla shares.

But then Tesla has real employees in real factories making real cars to sell to real people for real money. These are assets with a definable value that, as long as it creates more of those assets in extra factories by more employees that people want to buy, will increase the company's value

The fact that it chooses to reinvest its (real) profits in making more cars, rather than distribute them to its shareholders, only increases the company value further

Gold does none of the above, it's not the same, it couldn't be more different

I say this as as someone who has a positive view of gold but I don't make the mistake of viewing gold and equities as equivalent

Cus

ColdIron said:

Cus said:

Gold may not pay interest or a dividend, but then that's the same a Tesla shares.

But then Tesla has real employees in real factories making real cars to sell to real people for real money. These are assets with a definable value that, as long as it creates more of those assets in extra factories by more employees that people want to buy, will increase the company's value

The fact that it chooses to reinvest its (real) profits in making more cars, rather than distribute them to its shareholders, only increases the company value further

Gold does none of the above, it's not the same, it couldn't be more different

I say this as as someone who has a positive view of gold but I don't delude myself that gold and equities are equivalent

All valid and fair points.  My point was that I wouldn't discount an investment type because it doesn't provide interest or dividend. I understand the market drivers behind gold prices, and also Tesla prices.

Bostonerimus1

OP, please understand your pensions in full. If you have a DB then that frees you up to invest heavily in equities with the rest of your money as a DB pension can replace the fixed income in your portfolio.

I would avoid gold because of its volatility and there's no need to invest in anything different from what you are doing right now, just keep investing as much as you can and try to increase the amount. Make sure you have at
least 6 months cash as an emergency fund.

LHW99

OP Fill your ISA's / pensions, and if you want some gold, buy yourself something nice and sparkly and enjoy it - it may go up or down in value and it won't bring any income, but you will get pleasure from it.

Eyeful

OP

DB:  This used to be common, the company took on the risk of providing payments during your retirement.
        The companies did not like this and it was expensive for the companies that offered it. 
        The police, civil service and teachers have this type of pension.
        Our Members of Parliament of course made sure they got the best DB version for themselves. 

DC:
The companies shifted away from DB to DC because it was safer and much cheaper for them.
You now take on the risk of building up the pot of money which will generate the payments during your retirement.
 

Aretnap

PJD said:

No comment on the gold!?

Invest in a fishing rod and next year you will own a fishing rod, and all the fish you can eat.

Invest in an acre of farmland and next year you will own an acre of farmland, and a harvest of wheat.

Invest in a car factory and next year you will own a car factory, and a good number of cars.

But invest in an ounce of gold and next year you will own... an ounce of gold.

Fundamental problem with gold as an investment is that it has no capacity to grow, or to create more wealth. The only way you will get a return is if someone in the future desires it more than you desire it today. Maybe they will, maybe they won't - there's certainly no iron law of nature that says that they have to.