hazellend
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Post by hazellend on May 23, 2018 20:59:45 GMT
I'm only involved in rental properties and P2P, but I want to buy ETFs through Degiro or ETF-Matic, but I also want 20% of this portfolio in gold-funded funds, which would protect me the eventuality of a financial crisis. I am still in the study phase with the ETF investents. What do you think about what I want to do? Too complicated.
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macq
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Post by macq on May 23, 2018 21:43:47 GMT
I'm only involved in rental properties and P2P, but I want to buy ETFs through Degiro or ETF-Matic, but I also want 20% of this portfolio in gold-funded funds, which would protect me the eventuality of a financial crisis. I am still in the study phase with the ETF investents. What do you think about what I want to do? There is a thread today on the MSE investment forum about the merits of the Permanent Portfolio idea which uses 25% Gold at all times which may be of interest.Unlike many on MSE who tell people they are wrong to be doing certain things investment wise i always feel that if you are happy with your plan then that's all that matters.But i do wonder when people hold Gold/Silver which may be flat for many years do they sell when it rises in a crisis for a profit or do they just sit on it as protection?
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Post by samford71 on May 23, 2018 22:18:50 GMT
There is a thread today on the MSE investment forum about the merits of the Permanent Portfolio idea which uses 25% Gold at all times which may be of interest.Unlike many on MSE who tell people they are wrong to be doing certain things investment wise i always feel that if you are happy with your plan then that's all that matters.But i do wonder when people hold Gold/Silver which may be flat for many years do they sell when it rises in a crisis for a profit or do they just sit on it as protection? There are a number of well known portfolio asset allocations that include a significant slug of gold. Harry Browne's "Permanent Portfolio" has the highest weighting being 25% equity, 25% bonds, 25% cash and 25% gold. The Ray Dalio "All seasons" portfolio has 7.5% (with another 7.5% in commodities), with 30% in equities and 55% in bonds. The "Gyroscopic" (or "Desert") portfolio has 10%, with 30% in equities and 60% in bonds. All of these portfolios are broadly defensive with low weightings in equities to reduce volatility. Nonetheless, the most well-known balanced portfolios (Markowitz, Three fund, Core four, Ivy etc) have no gold. Return numbers from 1900 show why:  Note the property numbers are price terms only and exclude rental yield (since there is no robust data). Gold is clearly not an asset, and acts more like a currency more than a commodity or collectible. While it can diversify/protect in short-term risk averse scenarios, it's long term defensive properties are less obvious. Long-term it generates a return comparable to cash depos (which makes sense since it acts like a currency). For those that want to look at the return profile of the Permanent portfolio (or other well know types) and don't have access to data sources, then the following website is quite useful: link
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Post by gugulete on May 24, 2018 5:27:16 GMT
Thank You very much for the link.
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angrysaveruk
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Say No To T.D.S
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Post by angrysaveruk on May 24, 2018 8:45:56 GMT
I'm only involved in rental properties and P2P, but I want to buy ETFs through Degiro or ETF-Matic, but I also want 20% of this portfolio in gold-funded funds, which would protect me the eventuality of a financial crisis. I am still in the study phase with the ETF investents. What do you think about what I want to do? There is a thread today on the MSE investment forum about the merits of the Permanent Portfolio idea which uses 25% Gold at all times which may be of interest.Unlike many on MSE who tell people they are wrong to be doing certain things investment wise i always feel that if you are happy with your plan then that's all that matters.But i do wonder when people hold Gold/Silver which may be flat for many years do they sell when it rises in a crisis for a profit or do they just sit on it as protection? I think gold is there in case of an economic apocalypse/ hyper inflation - which is a very realistic scenario with the exponentially growing debt mountain. Problem is the government is likely to confiscate it off you if that occurs, so you have to hold physical and bury it  . I would also put farming land in the same group as gold - in fact farming land is probably a very good long term investment.
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Post by dan1 on May 24, 2018 8:50:45 GMT
There is a thread today on the MSE investment forum about the merits of the Permanent Portfolio idea which uses 25% Gold at all times which may be of interest.Unlike many on MSE who tell people they are wrong to be doing certain things investment wise i always feel that if you are happy with your plan then that's all that matters.But i do wonder when people hold Gold/Silver which may be flat for many years do they sell when it rises in a crisis for a profit or do they just sit on it as protection? I think gold is there in case of an economic apocalypse/ hyper inflation - which is a very realistic scenario with the exponentially growing debt mountain. Problem is the government is likely to confiscate it off you if that occurs, so you have to hold physical and bury it . I would also put farming land in the same group as gold - in fact farming land is probably a very good long term investment. Particularly through the generations as it attracts significant reliefs from inheritance tax
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travolta
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Post by travolta on May 25, 2018 17:41:33 GMT
I think gold is there in case of an economic apocalypse/ hyper inflation - which is a very realistic scenario with the exponentially growing debt mountain. Problem is the government is likely to confiscate it off you if that occurs, so you have to hold physical and bury it . I would also put farming land in the same group as gold - in fact farming land is probably a very good long term investment. Particularly through the generations as it attracts significant reliefs from inheritance tax Woodland. My woodland has risen 100% in 5 years. (16 acres … use it for my logburners) Nil inheritance tax or capital gain plus it warms you 5 times : Cutting, loading ,stacking, carrying to house , burning ,oops 6 : cleaning up.
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angrysaveruk
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Say No To T.D.S
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Post by angrysaveruk on May 25, 2018 18:59:35 GMT
Particularly through the generations as it attracts significant reliefs from inheritance tax Woodland. My woodland has risen 100% in 5 years. (16 acres … use it for my logburners) Nil inheritance tax or capital gain plus it warms you 5 times : Cutting, loading ,stacking, carrying to house , burning ,oops 6 : cleaning up. I have considered buying a woodland myself, seems like a very cool thing to own for the price. Is there a fairly liquid market for woodlands and how do you estimate the market value - is there some kind of hippy estate agent who comes round and values it?
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macq
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Post by macq on May 25, 2018 20:51:30 GMT
ishares timber & forestry ETF - no chopping,stacking etc  |
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nush
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Post by nush on May 25, 2018 20:54:08 GMT
farmland works well for me as well, bought as hobby land, 16 years later i have been offered 13 times the amount, its done well as my pass time, also provided plenty of firewood over the years. i haven't really gained anything yet though as i still own it and probably will for the next 10 years or so.
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zlb
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Post by zlb on Jun 8, 2018 14:07:22 GMT
Many Baby Boomers as parents & grandparents already provide financial support to their children & grand children. The idea that millennials are entitled to a £10k handout is preposterous. I watched a TV quiz the other night in which a 23 year old had a chance to win £6k. When asked by Bradley Walsh, the quizmaster, what he'd spend it on he replied, a holiday in Bali or maybe a deposit for a house. Therein lies the problem! At that age I was working every hour to raise a deposit for a house. I was prepared to wait for the holidays, Iphones & other luxuries until I was on the property ladder. When I got my first mortgage in 1976 I was paying 11% pa interest which was the prevailing rate at the time. The big difference is that in 1976 house prices were 3 times average earnings. Currently they are nearly 8 times earnings, much more in the South/London. So I would say therein lies the problem actually - even by foregoing the holiday the house isn't affordable, however many hours are worked, so might as well have the holiday. I think the boomers' sense of entitlement (to unearned housing wealth) is at least as great as the millennials. see: www.ons.gov.uk/peoplepopulationandcommunity/housing/bulletins/housingaffordabilityinenglandandwales/2017Yes! It's been said that the relationship between hard work and quality of life has been broken - may years after that became somewhat obvious, but at least it's been noticed. Public sector (who aren't the high profile professions in the news) have had between a nationally agreed 0% and 1% maximum pay rise for >10 years now, etc. This doesn't only apply to millenials. Those who were too early in their careers to buy housing in the the early 90s recession are also affected by corollary of this.
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zlb
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Post by zlb on Jun 8, 2018 14:24:17 GMT
1. Does anyone know how a first time buyer can (legally) get on the housing ladder through BTL? i.e. initially let it out to help pay for it as can't afford to live there immediately.
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zlb
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Post by zlb on Jun 8, 2018 14:24:40 GMT
2. Why do people use mutual/friendly bonds? e.g. I read of one recently that described itself as "medium risk" for 1.45% (possibly) with capital returned at 70% initially (possibly).
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r00lish67
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Post by r00lish67 on Jun 8, 2018 14:44:39 GMT
1. Does anyone know how a first time buyer can (legally) get on the housing ladder through BTL? i.e. initially let it out to help pay for it as can't afford to live there immediately. Could you buy with a traditional mortgage, move in, and take in lodgers as opposed to tenants, perhaps?
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jlend
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Post by jlend on Jun 8, 2018 14:45:04 GMT
2. Why do people use mutual/friendly bonds? e.g. I read of one recently that described itself as "medium risk" for 1.45% (possibly) with capital returned at 70% initially (possibly). I remember having one. They were around before PEPs and hence ISAs From my limited knowledge... They are a tax free saving vehicle, that comes with some life insurance. E.g. www.scottishfriendly.co.uk/tax-free-investments/scottish-bondFelt like an endowment to me. Kept it until it matured. Am not sure what the maximum investment is a year but it is small. Assume the fees and cost of providing insurance eat up quite a bit
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. I would also put farming land in the same group as gold - in fact farming land is probably a very good long term investment.
