Reply to: Shares!

[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.

[gingerjedi]

Nah, it's Rooney in his caravan.

Is Gordon with him?

[wurzel]

Nah, it's Rooney in his caravan.

Even more scarey

[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.

[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.

[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]

[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

[SallyAnne]

[QUOTE=lukemg;1173758] 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?

[ads1980]

ha ha - funnily enough I've bought a load of BP shares like

I dont blame you! I bought a load of shares in RBS when they were rock bottom. I got them at 10.5p and now they are in the region of 40-50p.

[SallyAnne]

ooh and don't buy Shares magazine, or you'd be bancrupt by now e.g they've tipped BP and Barclays, Lloyds etc. numerous times over the last few years...ouch!

ha ha - funnily enough I've bought a load of BP shares like

[moorfield]

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

Take a look at the Motley Fool HYP boards - this might suit if you're thinking along those lines.

[lukemg]

Skip the IFA, they are guessing too, if they know so much about what to do with money how come they ain't rich.
You have to do your own research and at least raise your knowledge to a level where you realise how little you know ! This will make you cautious.
Start with paying off debts, a mortgage is acceptable but by choice pay off over a reduced term or with chunks - this is likely to be the best investment decision you make, guaranteed return plus when it's paid off, all the cash goes to you - Not many IFA's suggest this - funny that..
Presuming you have done this, you need to be looking at only a percentage of your reserves into the market, consider monthly contributions to LOW COST all-share tracker ISA (look up pound-cost averaging to find out why)
Once this fund is ticking over consider an investment in a solid managed UK, european or US fund, this spreads the risk of exchange rate changes, even if the markets broadly track each other.
Couple/few years down the line maybe consider some more exotic funds, S.E. Asia China, BRIC's, Latin America (maybe a few more years for this exotic)
Consider some money in bonds for a fixed return for balance.
Expert companies with hundreds doing research struggle to beat the general market, what chance do you think you have ?
Spread the risk, look at the 150 funds HL have recommended and try to get rich....slowly and make sure you do it all in an ISA wrapper.

[SupremeSpod]

I'm investing my pension fund in fine wines.

If that goes tits up at least I'll be too pissed to care.

[Bagpuss]

ooh and don't buy Shares magazine, or you'd be bancrupt by now e.g they've tipped BP and Barclays, Lloyds etc. numerous times over the last few years...ouch!

[gingerjedi]

Have a look on here: Fool.co.uk: Stock Investing Advice | Stock Research

I like this one: Ten Steps to Financial Freedom - The Motley Fool UK

If only my dad had the internet in 1971.