Current Affairs Stocks and shares and stuff

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4737carlin said:
Anyone have a Vanguard account? i dont understand this stock and shares stuff but i do have ann account on there and let them get on with it.

What i want to know is are ETF and ESG investment plans worth doing? i only do those 60\40 and 80\20 lifestyle plans, but they have loads of options for other type of investing, while i understand you can lose money on this, which are the safest ones?
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Sensible, long-term investing can be the simplest thing to do... you just need to ignore the very many people that want to give you help and advice. They probably have a vested interest. They may well be parasites...

To keep things simple, you can get by with just two investments. A global, passive tracker... and a low risk, short term, high quality government bond fund. You just need to decide on your risk tolerance and investing time frame. Generally, in your 20's, and if you can tolerate fluctuations in your investments, you can be 80-100% in shares, with the rest in low risk, but low return, bonds. As you get older, it's sensible to reduce your exposure to shares, and move them to bonds, in case share investments fall heavily in the year or two before you plan to retire.

Vanguard Lifestyle funds essentially decide the level of risk you need and/or can tolerate. 100/0, 80/20, 60,40, 40,60... that is your split between shares and bonds. Shares are higher risk, higher return. Bonds are lower risk, lower return.

IMHO, these funds are ok. They are fine. They are sensible for many... good for novices, and ok for people who don't want to pay for financial advice. They are not the most efficient, though. They have a home, UK bias. Trust in global capitalism to avoid this.

Nobody cares more about your money than you do. It's worth the investment of your time to learn this stuff.
 
Mr. White said:
Sensible, long-term investing can be the simplest thing to do... you just need to ignore the very many people that want to give you help and advice. They probably have a vested interest. They may well be parasites...

To keep things simple, you can get by with just two investments. A global, passive tracker... and a low risk, short term, high quality government bond fund. You just need to decide on your risk tolerance and investing time frame. Generally, in your 20's, and if you can tolerate fluctuations in your investments, you can be 80-100% in shares, with the rest in low risk, but low return, bonds. As you get older, it's sensible to reduce your exposure to shares, and move them to bonds, in case share investments fall heavily in the year or two before you plan to retire.

Vanguard Lifestyle funds essentially decide the level of risk you need and/or can tolerate. 100/0, 80/20, 60,40, 40,60... that is your split between shares and bonds. Shares are higher risk, higher return. Bonds are lower risk, lower return.

IMHO, these funds are ok. They are fine. They are sensible for many... good for novices, and ok for people who don't want to pay for financial advice. They are not the most efficient, though. They have a home, UK bias. Trust in global capitalism to avoid this.

Nobody cares more about your money than you do. It's worth the investment of your time to learn this stuff.
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Ok thanks, I've been looking at a few trying to find a low one to go with the 60 40 I did, also looking at a few that are only a few months old thinking maybe it's a good idea to get in early
 
4737carlin said:
Ok thanks, I've been looking at a few trying to find a low one to go with the 60 40 I did, also looking at a few that are only a few months old thinking maybe it's a good idea to get in early
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Don't try to time things... timing is for traders. Investing is for investors.

For passive investing, bigger is better, established is better... lower risk, lower cost, lower buy-sell spread...

For long term investing, it's sensible to drip feed in...when you can, the same amount each and every month... pound cost averaging.
 
Mr. White said:
Don't try to time things... timing is for traders. Investing is for investors.

For passive investing, bigger is better, established is better... lower risk, lower cost, lower buy-sell spread...

For long term investing, it's sensible to drip feed in...when you can, the same amount each and every month... pound cost averaging.
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Ok nice one mate, yeah I think I'm over thinking something I don't understand
 
Mr. White said:
Don't try to time things... timing is for traders. Investing is for investors.

For passive investing, bigger is better, established is better... lower risk, lower cost, lower buy-sell spread...

For long term investing, it's sensible to drip feed in...when you can, the same amount each and every month... pound cost averaging.
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Pound cost averaging - one of adjustments to a term I'd not thought of over on this side - where's its dollar cost averaging - and a VERY good approach for long term investing. Been through that with both my kids - one age 31, good professional salary and investing like made, the other, age 22, is skiing every day and buying beers at night. But then headed out to find a real job this summer (he claims).
 
4737carlin said:
Anyone have a Vanguard account? i dont understand this stock and shares stuff but i do have ann account on there and let them get on with it.

What i want to know is are ETF and ESG investment plans worth doing? i only do those 60\40 and 80\20 lifestyle plans, but they have loads of options for other type of investing, while i understand you can lose money on this, which are the safest ones?
Click to expand...

I think @Mr. White has given an excellent summary.

Just to add in, Vanguard are a really good provider, with low fee options.

I'd personally go for a broad tracker. VOO does the SP500. Theres an MSCI global tracker too that gives you some international exposure. These are fine. If you wanted to be a bit more complex, Joel Greenblatt does an ETF that weights towards cheaper stocks more, so outperforms over longer periods, it's a Gotham ETF but cant recall the name. That is also one to recommend.

Put what you can into these each month/quarter. Dont worry about projections, dont worry about recessions, or downturns etc. Typically when it's at its worst, the forward return opportunities are greatest. Ignore 99% of the experts on Bloomberg or whatever.

If you want to try alternatives, you need to get familiar with reading balance sheets, income statements and crucially cash flow statements, or at least cash flow statements. These can be fun, but do have a bit more risk. Again, as with the above, you are trying to avoid buying the things everyone else is buying.

You want to buy companies that are cheap compared to either the cash flow they generate, or their business equity (book value) or a bit of both. There is a bit more risk in this, and I'm not sure vanguard offer this service.
 
IrishBlue2022 said:
Planning on starting to put some money into investments on a monthly basis but aiming for the long game so would have no plans to touch funds in the next 20 years. Thinking of starting small, maybe around £50 a month with some lump sum payments throughtout the year from my self employed work which is sporadic. Is tjis worthwhile to invest so little monthly?

Have been reading a bit around stocks and shares isa's. Are they a good starting point or should i be going another direction? I'm a complete novice so any tips, guidance advice is welcome.
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I would say this is a good idea, and going it via a stock and shares isa is a good idea. Check the fees though.
 
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