Shares!

[Bunk]

[QUOTE=SallyAnne;1173826]

if they know so much about what to do with money how come they ain't rich./QUOTE]

Well this is my view too.

About 18 months ago I got an IFA out (recoemmended/pushed on me by accountant) and he was a right tool. Tried to sell me all sorts of sh*te. I backed out at the last minute, and I'm really pleased I did cause it was just as everything went t*ts up (how come he didn't see that coming if he was so fecking clever eh?)

So now I've just signed up with TD Waterhouse and I'm just keeping an eye on a few companies - who are all making money so far...

Buy low, sell high - that's all you have to do, right?

Dirty spekulant

[wurzel]

...

Your avatar looks worryingly like GG Allin. I'm half expecting some rather revolting bodily substances to come flying out from my screen.

[Bunk]

Your avatar looks worryingly like GG Allin. I'm half expecting some rather revolting bodily substances to come flying out from my screen.

Nah, it's Rooney in his caravan.

[IR35 Avoider]

I've just started buying some lately.

Got a couple of grands worth and I plan to buy about another £500 each month (job permitting) - build up a bit of a pot.

Do any of you lot invest regularly? Is it a viable pension plan if you spread bet? (That's all pension firms do on your behalf anyway isn't it?)

I'm thinking 20 years @ £500 per month = £120,000 - is that enough for dividend payments to live off do you reckon?

I'd say buy cheap tracker funds, not individual shares. Read "A Random Walk Down Wall Street" for why it is pointless to pick shares. Not only can you not do it, but neither can anyone else, so make sure you never pay anyone to do it.

Treat "IFA" as synonomous with "con man." This may a bit harsh, as many may be honest people who truly believe they are adding value. You need to remember that [your return] = [what the market gives] - [what you pay to middlemen] and IFA's and fund managers are middle men. The aforementioned book will explain why it is impossible for them (or you) to add value by share picking. Unfortunately investing is an arena where "luck" has a huge effect on outcomes, so there will always be people who have impressive track records. Do not believe this is because they are actually of any use.

I estimate that the earnings yield on shares is currently a little over 4%, on that basis I would argue that £120,000 invested in shares could currently support a long-term annual income of £4,800. The good news is that with growth, your £500 a month for 20 years could reach 180K if earnings multiples remain unchanged, more if they revert to historically average levels early in your investing career.

Alternatively, your lump sum will support whatever an inflation-linked annuity yields at the age you're thinking of buying. There are sites where you can look this up.

[wurzel]

Nah, it's Rooney in his caravan.

Even more scarey

[gingerjedi]

Nah, it's Rooney in his caravan.

Is Gordon with him?

[SuperZ]

Regarding spread betting, I would recommend buying shares in a spread betting company rather than spread betting yourself. IG INdex was a good buy although not sure I would recommend at current levels. Economic uncertainty, volatile markets has increased the popularity of spread betting.

Invest in blue chips (with good divi's for income) and smaller co's also, to possibly have great growth. Possibly avoid companies with future pension issues......and those with heavy union involvement .

Just a few ideas.