sarahcount
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Post by sarahcount on Aug 21, 2019 19:36:06 GMT
I have a lump sum to invest (small by your standards) following a transfer from my P2P isa to myS&S one. My feeling is I won't need it for 10 years and like the idea of all-world index trackers. I feel UK is to be avoided with Brexit and Boris, or Jeremy, around. But of course exchange rates are not what they were. Bonds are expected to fall. USA might be overvalued. Troubles in Iran, Hong Kong
etc.
Or is there always something? I got into P2P 4 years ago because there was talk that China was overheating. Wish I'd gone 100% equities then instead of all the P2p who is suing who sleepless nights.
So what should I do? Plunge in now to avoid multiple dealing charges or wait for some sort of market correction?
thanks
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hazellend
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Post by hazellend on Aug 21, 2019 20:01:27 GMT
I have a lump sum to invest (small by your standards) following a transfer from my P2P isa to myS&S one. My feeling is I won't need it for 10 years and like the idea of all-world index trackers. I feel UK is to be avoided with Brexit and Boris, or Jeremy, around. But of course exchange rates are not what they were. Bonds are expected to fall. USA might be overvalued. Troubles in Iran, Hong Kong etc. Or is there always something? I got into P2P 4 years ago because there was talk that China was overheating. Wish I'd gone 100% equities then instead of all the P2p who is suing who sleepless nights. So what should I do? Plunge in now to avoid multiple dealing charges or wait for some sort of market correction? thanks There is always something. And there are always voices whispering in your ear that they know something that the market doesn't. Assume that nobody knows anything. Equities are volatile and you should expect that an all world tracker could drop by 50%, but should do very well over long time frames (10 years is the minimum). Not guaranteed but not much point investing if you aren't optimistic about this fact. Think about how you would fell if you saw your investments drop by 50%, if you are fine with it, then lump sum into the all world now. If you want less volatility for probably lower return, then add something like VAGP ETF (global hedged high grade bonds) around 20 - 40% Vanguard life strategy funds are a great one fund solution. Outside of P2P I'm about 90 - 100% equities in the all world but everybody's circumstances are different.
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travolta
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Post by travolta on Aug 21, 2019 20:37:18 GMT
Buy woodland , or even a field. Land is in your hand.
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sarahcount
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Post by sarahcount on Aug 21, 2019 20:54:40 GMT
Buy woodland , or even a field. Land is in your hand. Maybe - but I thought the days of Schedule B tax savings were behind us. For me it would have to be a very small wood, the legal fees would be crippling and my chain saw and axe work leave a lot to be desired.
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IFISAcava
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Post by IFISAcava on Aug 21, 2019 21:14:23 GMT
I have a lump sum to invest (small by your standards) following a transfer from my P2P isa to myS&S one. My feeling is I won't need it for 10 years and like the idea of all-world index trackers. I feel UK is to be avoided with Brexit and Boris, or Jeremy, around. But of course exchange rates are not what they were. Bonds are expected to fall. USA might be overvalued. Troubles in Iran, Hong Kong etc. Or is there always something? I got into P2P 4 years ago because there was talk that China was overheating. Wish I'd gone 100% equities then instead of all the P2p who is suing who sleepless nights. So what should I do? Plunge in now to avoid multiple dealing charges or wait for some sort of market correction? thanks There is always something. And there are always voices whispering in your ear that they know something that the market doesn't. Assume that nobody knows anything. Equities are volatile and you should expect that an all world tracker could drop by 50%, but should do very well over long time frames (10 years is the minimum). Not guaranteed but not much point investing if you aren't optimistic about this fact. Think about how you would fell if you saw your investments drop by 50%, if you are fine with it, then lump sum into the all world now. If you want less volatility for probably lower return, then add something like VAGP ETF (global hedged high grade bonds) around 20 - 40% Vanguard life strategy funds are a great one fund solution. Outside of P2P I'm about 90 - 100% equities in the all world but everybody's circumstances are different. and/or drip feed into equities over a year or so. Some ISA providers (e.g. Vanguard) don't charge for dealing, just a flat 0.15% pa (plus underlying fund charge). Quite good value for smaller amounts/frequent dealing v dealing fees per transaction. I invest weekly into Vanguard to take advantage of pound cost averaging!
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travolta
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Post by travolta on Aug 22, 2019 8:23:56 GMT
Buy woodland , or even a field. Land is in your hand. Maybe - but I thought the days of Schedule B tax savings were behind us. For me it would have to be a very small wood, the legal fees would be crippling and my chain saw and axe work leave a lot to be desired. Not so, You can do practically all the conveyancing yourself. You dont have to do anything to it,although you will find plenty of people who would like have cutting access (and pay) . Let the field for the price of the hedge cutting (a private exchange of labour ). You can even get grants for allowing limited access to ecological group visits . I kid you not, Land is the way to go ,if you have time .
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Godanubis
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Anubis is known as the god of death and is the oldest and most popular of ancient Egyptian deities.
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Post by Godanubis on Aug 22, 2019 8:42:52 GMT
Buy woodland , or even a field. Land is in your hand. Unfortunately there is now the additional 3% (England) and 4% (Scotland) land tax if you own land or home at present on property and land over £40000
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travolta
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Post by travolta on Aug 22, 2019 12:10:56 GMT
Buy small pieces.
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macq
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Post by macq on Aug 22, 2019 13:06:22 GMT
Would probably apply to all funds but using Investment trusts as an example - with some being over 150 years old that's a lot of noise in the market and major events that they have gone through and there still going strong so its possible maybe to not worry about the things going on now. While VLS or multi index funds from HSBC,Blackrock or L&G are cheap if worried about being all in equity there are also so called(by experts not me) wealth preservation IT's like Capital Gearing,Personal Assets or to a lesser degree RIT which care more about not losing rather then shooting the lights out.So far renewable trusts seem to have held their ground pretty well in the last couple of mini dips but not sure that will happen in a crash
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Post by Deleted on Aug 22, 2019 14:52:28 GMT
TRIG
Alt energy holder paying 6%, spread buys over a year. We all need energy.
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sd2
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Post by sd2 on Aug 26, 2019 10:01:20 GMT
Personally if buying now I would go for (if I felt I should invest now) City of London investment Trust. I would set it at reinvest dividends. So a fall in the market would be good long run. It is mainly 100 share index with a lot of companies receiving their profits in foreign currencies. There are other income based Investment Trusts which maybe worth a look in. City of London investment Trust normally trades at a slight premium. During the last bear market I think (don't quote me) at one point it went to 10% discount for a short time, a lot less than most IT. Not sure but I think there's a income based Asain trust paying 6% Dividend.
ISAs charge about 0.45% on your investments, DON'T take one out to save tax your not going to pay.
£12,500 income tax allowance
£2000 dividends tax allowance
£5,000 savings starter tax allowance (includes p2p & bonds)*
£1,000 savings tax allowance
£11000 (?) Capital gains tax allowance
*HMRC page says this includes IT and funds? I don't understand that, maybe they mean those that invest in bonds?
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sd2
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Post by sd2 on Aug 26, 2019 10:14:04 GMT
Note according to the previous bank of England governor we will do perfectly all right outside the EU BUT we should expect an initial shock to the system....I interpret that as recession. All the negative comments (fear mongering) would I expect lead to just that. IE self inflicted. It looks like it's going that way now.
I intend on moving most of my money out of p2p and into cash in preparation.
Most will not involve me loosing money (paying fees). So I will not lose much in interest. I have feelings that it maybe very difficult to get your money out of p2p close to Brexit. For instance will there be sufficient buyers around for you to sell your ratesetter loans?
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