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Post by plaguedbyfoibles on Oct 2, 2022 20:08:08 GMT
Intending on opening a Stocks and Shares ISA (effectively the UK equivalent of a Roth IRA used for equity investing, for any Americans out there) with Vanguard, with my first investment being an index fund, pursuing a dollar cost averaging / drip feed strategy.
Given the volatility of sterling right now, should I prioritise a US oriented index fund rather than a FTSE one?
Or should I treat the sterling crisis as short term noise and instead diversify, via Vanguard, using a fund that invests in UK, US and global equities?
I earn £30,000 per annum at my current employer (who have a performance linked bonuses structure in place for which I am eligible), have about £60,000 in savings, have £3,416.85 as of 24th September 2022 from my previous workplace pension, and have no debt whatsoever, either short- or long-term (I did not pursue tertiary education).
Currently, I am 27 years of age.
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littleoldlady
Member of DD Central
Running down all platforms due to age
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Post by littleoldlady on Oct 2, 2022 20:19:05 GMT
If I knew the answers I would be relaxing on a beach instead of reading p2p forums. I can only give you my opinion and that is that I would put the money into your pension rather than an ISA - unless you think you will need the funds for a property purchase or something before the drawdown date. You would still have the problem of deciding which investment vehicle to choose but one person's guess is as good as anyone else's.
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Post by Ace on Oct 2, 2022 21:35:14 GMT
By coming to the decision that you want a tracker you've already come to the wise conclusion that your stock picking skills are probably not better than the 90% of investment managers that fail to beat the indexes over the long term. Why not take the next logical step and conclude that, like the vast majority of the rest of us, you don't know which sectors or regions will outperform which next, and just pick a global tracker (e.g. VWRL) in either a pension or an ISA to maximise your personal circumstances and tax efficiency.
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Post by overthehill on May 17, 2024 8:24:38 GMT
I hope you all stayed tough on your share portfolios whether isa, non-isa or pension. Most investors should be about back to the very high peak of around oct 2021 which is pretty good considering global events, markets are always priced for the future not the present. All that inflation and profit gouging still to trickle through to profits as well.
I'm actually still about 2% down almost entirely due to Asia which in turn is almost entirely due to China which in turn we'll leave it at that. It's a tricky one looking forward buy, sell or hold ?
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benaj
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Post by benaj on May 17, 2024 8:45:00 GMT
Not sure if the OP still reading this thread. TBH, he was not doing badly at all for his age. Most UK graduates these days are already in debt like 50k instead of 60k savings. Now I wonder how much that 60k has grown?
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Post by Ace on May 17, 2024 8:45:41 GMT
Global trackers are now 10% above the 2021 peak.
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Post by overthehill on May 17, 2024 9:17:33 GMT
A fund like Fidelity Index World which follows the MSCI global index is up 20% since late 2021. 50% of most 'world' indexes is US + Japan as a minimum so portfolio performance over the period is determined by your overall spread.
There's plenty of data showing that un-managed trackers can be just as good as more expensive managed funds in a downturn or upturn.
My portfolio is lagging because the UK, Europe, SE Asia funds are still 0-15% below the Sep2021 values.
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mogish
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Post by mogish on May 30, 2024 16:02:23 GMT
Yip trackers have performed better and are generally cheaper than managed funds.
In my case I just need to wait until the baillie gifford dogs , japan, smt and my bb healthcare reach what I paid for them , sell and move to hsbc ftse global tracker.
Less stress,, less looking, less charges.
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