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    • RG2015
    • By RG2015 26th Nov 17, 12:28 PM
    • 1,215Posts
    • 710Thanks
    Why do people invest?
    • #1
    • 26th Nov 17, 12:28 PM
    Why do people invest? 26th Nov 17 at 12:28 PM
    Following on from my earlier post on why people save, I am now asking why do people invest?

    I have some spare cash and I have this in a series of bank accounts. Until recently I was ahead of inflation but now I am not even keeping up with inflation. Therefore, I am asking myself should I invest some of my cash to make up the shortfall. Alternatively, should my incentive to invest be making a profit?

    As I am retired and mortgage free with an adequate pension, my goals are quite different to many others on MSE. In truth, I am not specifically looking for advice but perhaps inspiration.

    To this end, I am looking to see what motivates people to invest.
Page 2
    • BananaRepublic
    • By BananaRepublic 28th Nov 17, 7:38 AM
    • 1,191 Posts
    • 871 Thanks
    At least the beer stays cold, but isn't it difficult not to spill any?
    Originally posted by TheShape
    Practice my son, practice.
    • RG2015
    • By RG2015 28th Nov 17, 8:14 AM
    • 1,215 Posts
    • 710 Thanks
    I invest because I like the idea of free money, i.e. interest, dividends and capital gains. The end goal is a passive income.
    Originally posted by Flobberchops
    Free money is a very interesting viewpoint especially from someone in the banking profession. Interest, dividends and capital gains are as much earned as is a salary.

    However, some may venture to suggest that a banker's salary is also passive income.
    Last edited by RG2015; 28-11-2017 at 11:15 AM.
    • KNJ
    • By KNJ 28th Nov 17, 8:46 AM
    • 42 Posts
    • 13 Thanks
    Because I like fly fishing, and the two have a lot in common
    • chucknorris
    • By chucknorris 7th Dec 17, 8:18 AM
    • 9,548 Posts
    • 14,336 Thanks

    interesting. If memory serves me right, You've moved from 'bonds are not for me' to 15% (which is about where I am, excluding my future DB/SP). Can I ask what changed your mind. Only asking as I am not totally at ease with my allocation to bonds, but struggle with what else to do. Equities at 55%, balance in cash, property, p2p and absolute return funds.
    Originally posted by ams25
    I have only just noticed your post, hence the delay in replying, to answer your question, I am approaching the time when I possibly no longer have the longevity left to remain heavily invested in equities and wait for a recovery. Also if what I would have invested already is massively disproportionate to what I could invest after a correction to take advantage of the lower prices, there isn't much point in having most of my investments in equities, if I only have a comparatively insignificant amount to invest afterwards (or the time to wait for recovery).

    Up until now I have been focused on growth, but I have now reached a stage in my life where I need to protect what I have, so I can now see the advantages of having significant amounts in bonds and cash (to a lesser extent), even though the net gain after tax is less than inflation (so in fact, a small loss annually). My perception has changed lot in the last few months, as I now realise what I should be aiming for with a retirement portfolio.
    Chuck Norris can kill two stones with one bird
    The only time Chuck Norris was wrong was when he thought he had made a mistake
    Chuck Norris puts the "laughter" in "manslaughter".
    After running injuries I now mostly hike, gym classes and weight training (also a bit of cycling and swimming), less impact on my joints.
    • trailingspouse
    • By trailingspouse 7th Dec 17, 8:26 AM
    • 2,680 Posts
    • 4,342 Thanks
    Why do people invest? Because they can.

    Investing (other than pension schemes) is something you only think about doing when you know that you have enough money coming in to cover immediate needs and enough to cover future expected needs and enough to cover unexpected crises and enough over and above all of that to make it worth your while investing in something in the certain knowledge that investments can go down as well as up.
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