How long would you need to raise £1000 ?

[mill]

Delving into my history, you might, if it was issued decades ago, but you would pay a massive premium for it. The redemption yield would be pathetic. Or running yield. Its been a few years.

The coupon might be 5.5%. But you’d struggle actually getting that.

 

[roydo]

The coupon might be 5.5%. But you’d struggle actually getting that.

Indeed. But folk buy the sizzle, not the sausage. Unless, like you said, you go junk fishing.

And why does that remind me of some of our transfers ffs!

 

[evilwebby]

True dat. I am on the cusp of deciding what I should do. Got upto a 10 year time line to just forget about a sizeable sum, keeping 10 years of income effectively in the bank.

I sway between 5 or 10 years income though. Then I think a long time frame = global trackers. Then I remember dividends (which trackers dont get), which over 10 years would be a real bonus, (someone mentioned compound interest, I am a fan).

Then I speak to a few IFAs, who all say the same, and all want to charge £0000's for sommet I dont need nor asked for, so then I look at the Merlin range from Jupiter, (again, a fan), who do what IFAs try to do, but better. And cheaper.

10 years with Merlin Growth and Merlin Income, (acc units), makes sense, kinda, to me.

Thisi s not advice, nor have I ever worked for Jupiter, (although I have met Mr Bonham Carter a few times, and he has a very pretty sister).

10 years is a decent time horizon but it is not that long if you enter at a bad time when valuations are high - there are many examples in history where you'd still be under water after 10 years or even longer. Look at out own FTSE100 - it was grossly overvalued at the peak of the dotcom boom and now 21 years later it is still lower than it was back then (not including dividends). It has basically failed to deliver any significant returns for an entire generation of investors who abandoned it long ago and instead put their money into property.

I think the next decade is going to be tricker than the last decade for all investors looking to grow their money.. everything is so expensive; future returns have been sucked forward and there's not much upside left. The best thing we can do is make sure we're setting aside more of our income for investments. We can't control what the markets return, but we can control, to a greater extent, what we spend and save.

 

[Tramps_mate]

10 years is a decent time horizon but it is not that long if you enter at a bad time when valuations are high - there are many examples in history where you'd still be under water after 10 years or even longer. Look at out own FTSE100 - it was grossly overvalued at the peak of the dotcom boom and now 21 years later it is still lower than it was back then (not including dividends). It has basically failed to deliver any significant returns for an entire generation of investors who abandoned it long ago and instead put their money into property.

I think the next decade is going to be tricker than the last decade for all investors looking to grow their money.. everything is so expensive; future returns have been sucked forward and there's not much upside left. The best thing we can do is make sure we're setting aside more of our income for investments. We can't control what the markets return, but we can control, to a greater extent, what we spend and save.

FTSE 250 a better bet instead of 100?

 

[PITA]

The coupon might be 5.5%. But you’d struggle actually getting that.

As you know it doesn’t matter what the coupon is. It’s all about the yield.

 

[mill]

FTSE 250 a better bet instead of 100?

The FTSE 250 you are buying domestic UK relative to the FTSE 100.

The FTSE 100 is mostly banks, energy, materials and industrials etc. Lots of cyclical. Lots of ‘value’. What you will get from those companies however is relatively global revenue streams. Around 80% of the revenues from the FTSE 100 comes from outside of the U.K. It’s one of the reasons why the UK equity market has been negatively correlated to sterling in recent times (although that hasn’t always been the case).

So you are getting a bias towards fairly mature companies that are exposed to the global economic cycle. They tend to pay a decent yield (rather than earnings growth).

Hardly any tech whatsoever (which is one of the reasons why the U.K. market has lagged).

In many ways it’s kinda the opposite in make up to the US market.

The FTSE 250 is more exposed to domestic UK and so the U.K. economy which post brexit is a bit risky.

You probably want a more global tracker (but again these have their own biases because the indices they track are constructed in different ways).

 

[evilwebby]

Yeah the midcaps have done much better, but you would be making an active bet in targetting that particular part of the market. By definition most Investors have their money in FTSE100 stocks which represent about 83% of the entire UK equity market. The midcaps make up about 10-12% and AIM and small caps make up the rest.