bobo
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Post by bobo on Jul 7, 2019 12:05:43 GMT
Some interesting food for thought, thanks. Just as your point 5. chimes with something else I read recently (and if we can divert to casinos then we can certainly divert to this  ) then there's an excellent blog called Early Retirement Now, which ran a very comprehensive study of safe withdrawal rates for early retirees. I've linked to part 19 below just as it touches on the same, but it really covers every aspect. earlyretirementnow.com/2017/09/13/the-ultimate-guide-to-safe-withdrawal-rates-part-19-equity-glidepaths/This made me feel much better about my 50% equity allocation, as I can now pretend all along that I'm following a reverse equity glidepath instead of being hideously underweight in equities for my age! Whenever I have had a bond investment during the 25 years since retiring I have found the average return to be poor and with current continuing low interest rates I believe this will continue or get worse.
Other than P2P where the funds came from unspent income, all my investments are in equities, mainly ETFs and Investment trusts and at 81 years old I am not planning to change this now. This has given a good increase in income over the years and I don't worry about market fluctuations. If we should find ourselves with a Corbyn government I will try to align my final exit with a market crash to save my children from the massive inheritance grab which will probably occur, hopefully this will not be anytime soon.
I'm like James, only younger. Most of my Funds outperform their natural index after fees. I have a lot of money in Trusts which do very well and some shares. I struggle with Bonds and only buy during a financial crisis when they become under valued. Certainly 90% invested. The Corbyn crash and his avowed aim to tax capital and/or capital gains is certainly a concern. I dislike CG at 28% and up. I would hate CP at 50%!
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macq
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Jul 7, 2019 13:15:03 GMT
Post by macq on Jul 7, 2019 13:15:03 GMT
It seems like the returns on bonds are One of the problems for some and while equity/cash is fine there is also the point that bonds are used for diversification and in theory(theirs not mine) a down turn which is why multi asset funds like Vanguards VLS or L&G multi index etc use them.It could even be worth looking at strategic bond funds or bond ETF's but at the end of the day bonds are not expected to have equity type returns but over the last few decades there have been times where they have done that and that seems to lead to high expectations at present times
For myself using the company pension and the choices offered i have used Royal London & Baillie Gifford bond funds for about a 70/30 split with equity,but think that is sufficient so using a ISA i have debt,infrastructure and renewables for income (and hopefully growth) and to spread the risk
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bg
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Post by bg on Jul 7, 2019 13:41:15 GMT
An interesting debate this. I have the majority of my investible assets in equities (as opposed to property and P2P). I believe we are in a secular bull market which is being driven by automation and the switch by companies to using debt as capital. I know lots of people who won't touch equities as they say they are well overpriced...the same people have sat out the huge market rally over the past few years and were quick to say "Told you this was coming" when we had the 15% correction last year (which has now more than reversed). When these people start buying in, maybe that's when I lighten up my positions a little. I can see the merits of passive investing and agree its probably suitable for most people. I however have an entirely active portfolio which allows me to invest in the themes I feel are changing the world and driving growth/profit. These are technology, an ageing population, automation and rise of the east/emerging markets. I also favour smaller companies which I don't think can be hit effectively using a global tracker. I refuse to invest in bonds. I don't day trade, i'm long term buy and hold. My portfolio is made up of 85% investment trusts with the rest in a few self select stocks and a couple of specialist ETF's. The attached screenshot shows my return relative to global large caps. I'm happy with my approach, the results and have no plans to switch to passive.  |
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macq
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Post by macq on Jul 7, 2019 14:16:31 GMT
what might appeal(but not advice  ) to people who invest in p2p and lending on loans but don't like bonds could be something like Sequoia infrastructure (SEQI) which lends money to finance projects over a term but could be considered bond like yielding 5% - 6%.But unlike a P2P platform the lending is via a FTSE 250 company but still obviously with risks p.s just an example there are others to look at as well |
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hazellend
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Jul 7, 2019 16:25:23 GMT
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Post by hazellend on Jul 7, 2019 16:25:23 GMT
When talking about bonds I am referring to government bonds. Corporate bonds don’t interest me because they tend to be closely correlated with equities.
As I see it gov bonds should be used if one wants to reduce the volatility of their equity portfolio by sacrificing some gains. Government bonds tend to be inversely correlated to equities so are generally expected to rise when equities fall.
I have a very high risk tolerance and see dips as opportunities to invest new cash at lower prices. I am a member of a DB pension scheme so don’t see any need for low risk assets. I also have a depression proof job unaffected by the economy, as long as I do t get a sacked for incompetence/negligence.
My portfolio is 100% invested. I usually have 1 - 4 % in cash as I prefer to let cash accumulate to a certain amount before I add to my favoured global ETF outside of tax sheltered accounts.
Finally, I invest on a total return basis. A dividend is just a forced capital sale. There is no difference between selling equities vs not re-investing if you need money .
Always thinking about tax efficiency is also very important
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macq
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Post by macq on Jul 7, 2019 16:52:54 GMT
the thing with dividends is they can be seen as good to some i.e retired people,with hopefully smooth payments with no need to sell funds if the market drops for a few years
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Stocks
Jul 7, 2019 17:45:10 GMT
Post by wallstreet on Jul 7, 2019 17:45:10 GMT
Finally, I invest on a total return basis. A dividend is just a forced capital sale. There is no difference between selling equities vs not re-investing if you need money . Always thinking about tax efficiency is also very important
I'm not sure you get it.
First you mention total returns, then you do a 180 and start bashing dividends.
Then you say there's no problem selling equities to raise cash, whilst the point is that you should not find yourself in a position where you sell to raise money.
Finally you harp on about tax efficiency. Whiilst in the line above you tell people just to sell up whenever they want to raise cash. So what happened to CGT considerations then ? All out the window in your weird view of the world ? Or are you telling people they should sell up in their ISA and take cash out from their ISA ? Something which, quite frankly, would be the dumbest thing the world to do !
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hazellend
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Post by hazellend on Jul 7, 2019 17:57:33 GMT
Finally, I invest on a total return basis. A dividend is just a forced capital sale. There is no difference between selling equities vs not re-investing if you need money . Always thinking about tax efficiency is also very important
I'm not sure you get it.
First you mention total returns, then you do a 180 and start bashing dividends.
Then you say there's no problem selling equities to raise cash, whilst the point is that you should not find yourself in a position where you sell to raise money.
Finally you harp on about tax efficiency. Whiilst in the line above you tell people just to sell up whenever they want to raise cash. So what happened to CGT considerations then ? All out the window in your weird view of the world ? Or are you telling people they should sell up in their ISA and take cash out from their ISA ? Something which, quite frankly, would be the dumbest thing the world to do ! Does your aggressive style actually ever help you persuade people? I don’t currently take any money out of my portfolio as I’m in the accumulation stage. When we start to withdraw I will first of all deplete taxable accounts using a combination of not reinvesting dividends and selling capital. There’s (off the top of my head) about 25k per couple per year of capital gains allowance. I do a bit of tax gain harvesting so hopefully will have limited capital gains by that time anyway. Im not bashing dividends. My opinion is that one should not focus on dividends in an equity portfolio and total return is more important, leads to a better diversified portfolio, and has more opportunity for tax efficiency . It is you that clearly doesn’t get it. You come across as very arrogant and immature in your opinions. Don’t forget that everybody’s investment policy will be different due to the fact that we all have unique circumstances. I am managing a largish portfolio for two people spread across 2 ISAs, 2 LISAS, 2 SIPPS, 2 general investment accounts, a DB pension, and one of us is a non earner so am utilising the 18.5k savings income tax free which is available to us with P2P outside of ISAs. Long term I see us getting out of P2P as I don’t want to be actively managing the P2P side of things in retirement.
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michaelc
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Jul 11, 2019 23:19:33 GMT
Post by michaelc on Jul 11, 2019 23:19:33 GMT
Could someone please kindly point me in the direction of a free site that would allow me to list and order stocks on the main markets by their headline statistics? I thought the likes of google finance might do that but I can't see how. e.g. view the stocks by sector, order by market cap, by yield etc. I've just done some searches to find such a site but haven't got very far.
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corto
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Post by corto on Jul 12, 2019 7:30:38 GMT
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bobo
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Post by bobo on Jul 12, 2019 8:25:49 GMT
Google formally moved out of that sort of information about 5 years ago. I use Trustnet a lot as corto suggested it has a great search engine but it has hidden it very well in its "tools" zone.
ii not bad and if you join ii you can get some good tools inside the portal.
londonstockexchange is also a useful tool
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macq
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Post by macq on Jul 12, 2019 9:38:02 GMT
Morningstar has the free site or sign up free for more portfolio tools etc(there's also a premium part if wanted)
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bobo
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Post by bobo on Jul 12, 2019 10:46:52 GMT
I've tried to use Morningstar over the years and find the results are inconsistent, I also find that the logging-in system regularly fails and when I paid to access to better tools I didn't really benefit. Others may do well with their tools but I find them poor quality.
I have used Stockopedia which costs a reasonable amount but the data is generally good, but again check the details of any asset that comes up, they don't manage the data very well (well but not perfectly) so when converting it into information you can become unstuck. In terms of low cost, they are the best.
But even here you will find they cover Trusts badly and Funds not at all. Ed tells me they are working on a Funds tool but when?
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bobo
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Post by bobo on Jul 17, 2019 13:06:29 GMT
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hazellend
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Jul 17, 2019 13:36:13 GMT
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Post by hazellend on Jul 17, 2019 13:36:13 GMT
Don’t look for the needle just buy the bloody haystack!
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) then there's an excellent blog called Early Retirement Now, which ran a very comprehensive study of safe withdrawal rates for early retirees. I've linked to part 19 below just as it touches on the same, but it really covers every aspect.
) to people who invest in p2p and lending on loans but don't like bonds could be something like Sequoia infrastructure (SEQI) which lends money to finance projects over a term but could be considered bond like yielding 5% - 6%.But unlike a P2P platform the lending is via a FTSE 250 company but still obviously with risks
