The Investment Thread

[thistledo]

1 hour ago, Granny Danger said:

Yeah, we’ve got a bit in that fund, wish it had been more but hedging bets, etc.

Fundsmith, by comparison, ‘only’ up 21% despite a better performance the previous year in comparison. 

Likewise, probably a bit tech heavy at the moment actually and some of it will be getting offloaded when the time is right, hard to tell when that is, it was a bit cyclical for a while but seems more steady following the US election result. 

Fundsmith equity has been a steady ship for many years now, a lot of that down to Terry Smith and the fees reflect that, superb if you want to chuck a large sum down and have little time for management, definitely better value out there though. 

[Granny Danger]

On 10/09/2020 at 05:07, MONKMAN said:

Musk said himself that Telsa was overvalued, then his net worth dropped $16 billion in 6 hours when it crashed.  Depending on how their battery conference goes in a couple of weeks, it could drop further.  

 

I’d say long term, it’ll still be a good investment. They’re the market leader in electromotive vehicles, with a lot of the other manufactures implementing their technology.

 

72% growth in the 3 months since this was posted.  Good call!!!

 

[MONKMAN]

47 minutes ago, Granny Danger said:

72% growth in the 3 months since this was posted.  Good call!!!

 

It’s been a ridiculously easy year to make money in the stock market. 

[Netan Sansara]

49 minutes ago, MixuFruit said:

PE ratio of 1200, why are folk buying it, just speculation? 

It's not even like they sell the most electric cars, not even close. 

Tesla announced it was raising another $5b and the market reacted by going up. It must be the most hype driven stock in recent times. Currently seems they can do no wrong but we shall see. 

What i struggle with tech stocks is that I understand the whole concept of the future growth being priced in currently, but at what point does this turn? When does TSLA at 1200 PE “stop”? Like at what price does the market say “ok great we can no longer justify the future potential Value being priced so high”. I just can’t see how long term they capture what would really have to be the entire market to justify these valuations. Anyway, if I knew all this I’d probably not be working and be living off my gains in the market. 

[resk]

On 09/12/2020 at 19:48, Netan Sansara said:

Tesla announced it was raising another $5b and the market reacted by going up. It must be the most hype driven stock in recent times. Currently seems they can do no wrong but we shall see. 

What i struggle with tech stocks is that I understand the whole concept of the future growth being priced in currently, but at what point does this turn? When does TSLA at 1200 PE “stop”? Like at what price does the market say “ok great we can no longer justify the future potential Value being priced so high”. I just can’t see how long term they capture what would really have to be the entire market to justify these valuations. Anyway, if I knew all this I’d probably not be working and be living off my gains in the market. 

Stonks always go up, that's all you need to know.  

[Priti priti priti Patel]

I am looking to start preparing for retirement. I am 30 and due to sheer good luck currently have somewhere between £1500-2k disposable income per month and that looks fairly steady.  If I play my cards right (and choose to be career minded) this could increase towards 10k per month during the next few decades - although no guarantees. If possible I would love to retire early (wouldn't we all). What's the best place for me to put my money?

From some very brief reading online it seems that pension funds offer the best value for money although I probably won't get employer contributions as I move around jobs a lot and tbh don't want the hassle of transferring my pension every time. The downside of pensions is that you can't claim them until you're 60 or 65 or something which would rule out retiring before that - although I appreciate I could put money in another fund to cover the period before the pension comes due.

I also don't own property yet so maybe it is better to buy a house before locking money away so that I can start accruing equity.

Lots to consider and perhaps I need to speak with a financial adviser but, yeah, if anyone here's every considered these questions before I am all ears...

Edited January 18, 2021 by Margaret Thatcher

[Granny Danger]

28 minutes ago, Margaret Thatcher said:

I am looking to start preparing for retirement. I am 30 and due to sheer good luck currently have somewhere between £1500-2k disposable income per month and that looks fairly steady.  If I play my cards right (and choose to be career minded) this could increase towards 10k per month during the next few decades - although no guarantees. If possible I would love to retire early (wouldn't we all). What's the best place for me to put my money?

From some very brief reading online it seems that pension funds offer the best value for money although I probably won't get employer contributions as I move around jobs a lot and tbh don't want the hassle of transferring my pension every time. The downside of pensions is that you can't claim them until you're 60 or 65 or something which would rule out retiring before that - although I appreciate I could put money in another fund to cover the period before the pension comes due.

I also don't own property yet so maybe it is better to buy a house before locking money away so that I can start accruing equity.

Lots to consider and perhaps I need to speak with a financial adviser but, yeah, if anyone here's every considered these questions before I am all ears...

Definitely a pension fund (SIPP) for a number of reasons not the least being the tax advantages.

Presently you can draw a private pension at 55 but this will go up to 57.  One option is to go for 75-80% SIPP and the rest in a stocks and shares ISA so that you have access to cash.  No tax advantages for a ISS going in but benefits when it’s in/growing and on withdrawal.

This advice is offered on the basis that your user name is ironic, if you do have any sympathy for the old boot you should put your money into Northern Rock.

 

[Priti priti priti Patel]

15 minutes ago, Granny Danger said:

Definitely a pension fund (SIPP) for a number of reasons not the least being the tax advantages.

Presently you can draw a private pension at 55 but this will go up to 57.  One option is to go for 75-80% SIPP and the rest in a stocks and shares ISA so that you have access to cash.  No tax advantages for a ISS going in but benefits when it’s in/growing and on withdrawal.

This advice is offered on the basis that your user name is ironic, if you do have any sympathy for the old boot you should put your money into Northern Rock.

 

Indeed. I created this account shortly after she kicked it with the same profile picture as now. The implication that she had come here to shit post from down below. I didn't consider how poorly it would age...

Thanks for the useful advice - sounds like a private pension is definitely the way to go!

Edited January 18, 2021 by Margaret Thatcher

[Sergeant Wilson]

1 hour ago, Margaret Thatcher said:

 perhaps I need to speak with a financial adviser 

No, you'll get all the advice you need here.

[resk]

3 hours ago, Margaret Thatcher said:

 

From some very brief reading online it seems that pension funds offer the best value for money although I probably won't get employer contributions as I move around jobs a lot and tbh don't want the hassle of transferring my pension every time.

Do you mean that you are working as a permanent employee in these jobs?  If so then opting out of workplace pension schemes is leaving money on the table for the sake of saving a bit of life admin - generally considered a terrible idea for the vast majority of people.  If you're self-employed then aye have a look at SIPPs.   

You can get advice professionally - I don't have much experience of that - but what you can also do is just start reading - I actually found it quite enjoyable educating myself about markets, passive v active investing, pensions, ISAs and the like.  It feels relevant when it's your own money.  Monevator and Money Saving Expert are decent starting points.   

 

[Priti priti priti Patel]

13 minutes ago, resk said:

Do you mean that you are working as a permanent employee in these jobs?  If so then opting out of workplace pension schemes is leaving money on the table for the sake of saving a bit of life admin - generally considered a terrible idea for the vast majority of people.  If you're self-employed then aye have a look at SIPPs.   

You can get advice professionally - I don't have much experience of that - but what you can also do is just start reading - I actually found it quite enjoyable educating myself about markets, passive v active investing, pensions, ISAs and the like.  It feels relevant when it's your own money.  Monevator and Money Saving Expert are decent starting points.   

 

Yeah, permanent employee, but for the past five years I've generally only stayed at each firm for about one year on average. The first time was for getting sacked but the other three moves have all been my choice and upward in both salary and company reputation (and on one occasion to a more senior role). I am hoping to make another move in the next couple months which may be long term, in which case I'd opt in, or maybe just for a year or so before going traveling. When I looked at it, the benefits of opting in seemed quite slim for such short periods of employment. I think you don't start getting employer contributions until three months in any way?

Edited January 18, 2021 by Margaret Thatcher

[resk]

9 minutes ago, Margaret Thatcher said:

Yeah, permanent employee, but for the past five years I've generally only stayed at each firm for about one year on average. The first time was for getting sacked but the other three moves have all been my choice and upward in both salary and company reputation (and on one occasion to a more senior role). I am hoping to make another move in the next couple months which may be long term, in which case I'd opt in, or maybe just for a year or so before going traveling. When I looked at it, the benefits of opting in seemed quite slim for such short periods of employment. I think you don't start getting employer contributions until three months in any way?

I'm not sure about the three month thing.  The percentages may not seem much but it's still really tax efficient (normally contributions are taken pre-tax and NI).  The thing about targeting early retirement is that yes you will need access to some funds prior to when you can access your pension pot(s) and state pension, but most likely you will also survive to see those pension access ages.  I look at it like this - not joining my workplace pension and getting the maximum employer match would mean that I am basically letting my employer underpay me.  YMMV, IMHO, this is not financial advice, etc etc etc.      

[strichener]

2 hours ago, Margaret Thatcher said:

Yeah, permanent employee, but for the past five years I've generally only stayed at each firm for about one year on average. The first time was for getting sacked but the other three moves have all been my choice and upward in both salary and company reputation (and on one occasion to a more senior role). I am hoping to make another move in the next couple months which may be long term, in which case I'd opt in, or maybe just for a year or so before going traveling. When I looked at it, the benefits of opting in seemed quite slim for such short periods of employment. I think you don't start getting employer contributions until three months in any way?

If you are signed up for the workplace pension (i.e you don't opt out) then you get employer contributions straight away.  If you can contribute to this with a salary sacrifice arrangement then you can also save NI.  If you make your own contributions through taxed salary then you will get tax relief but will have paid NI.  There is also no need to go down the SIPP route.  For someone that can't be bothered with a workplace pension (by FAR the easiest way to save for retirement) then the maintenance of a SIPP probably isn't for you.

[Sergeant Wilson]

45 minutes ago, MixuFruit said:

If you're earning that kind of disposable dough and it's only going to go up, I'd recommend you just pay an independent financial adviser rather than relying on the P&B hive mind tbh.

How dare you!

I'd like to know what is liable to yield about £10k disposable income.

[101]

48 minutes ago, MixuFruit said:

If you're earning that kind of disposable dough and it's only going to go up, I'd recommend you just pay an independent financial adviser rather than relying on the P&B hive mind tbh.

You mean someone with £120k sloshing about should spend some money?

[Priti priti priti Patel]

20 minutes ago, Sergeant Wilson said:

How dare you!

I'd like to know what is liable to yield about £10k disposable income.

I work in law in London. My CV and timing is such that if I want I can potentially move into a permanent corporate role. The entry level salary is about £150k (i.e. straight out of uni and aged about 23/24) and then rises year on year. It's sickening and almost exclusively limited to posh white middle Englanders, which isn't me, but it might be an option if I want it. The down side is the hours, working culture, etc and as a person I'm not very good at hiding my distaste or keeping my spirits up, so I'm undecided  (and ofc I might be unsuccessful) but it's a possibility.

17 minutes ago, 101 said:

You mean someone with £120k sloshing about should spend some money?

I don't have that now. And I don't know how much a financial adviser costs or what sort of adviser I'd want to talk to. But you're right I should look into it. I just don't have a habit of paying for "unnecessary" things, I didn't grow up with money so it's a bit alien to me, plus I've been spending my disposable on other things so haven't had the need. Posting on P&B was kind of the first thing I did after thinking about it.

[Priti priti priti Patel]

10 hours ago, strichener said:

 For someone that can't be bothered with a workplace pension (by FAR the easiest way to save for retirement) then the maintenance of a SIPP probably isn't for you.

Probably a valid point actually, I do tend to avoid hassle as much as possible. The difference I guess is the workplace pension for each employer would be total less than £100 each time, but yeah if a SIPP requires ongoing maintenance I can't guarantee I'd stay interested for a long time.

[Sergeant Wilson]

5 minutes ago, Margaret Thatcher said:

I work in law in London. My CV and timing is such that if I want I can potentially move into a permanent corporate role. The entry level salary is about £150k (i.e. straight out of uni and aged about 23/24) and then rises year on year. It's sickening and almost exclusively limited to posh white middle Englanders, which isn't me, but it might be an option if I want it. The down side is the hours, working culture, etc and as a person I'm not very good at hiding my distaste or keeping my spirits up, so I'm undecided  (and ofc I might be unsuccessful) but it's a possibility.

I don't have that now. And I don't know how much a financial adviser costs or what sort of adviser I'd want to talk to. But you're right I should look into it. I just don't have a habit of paying for "unnecessary" things, I didn't grow up with money so it's a bit alien to me, plus I've been spending my disposable on other things so haven't had the need. Posting on P&B was kind of the first thing I did after thinking about it.

Based on that I'll make the assumption you're not daft. I'd apply some of that intelligence to doing some proper research, then using some recommended sources of advice. You won't be the first in your peer group to have had to sort this out.

I won't go further than that other than saying that doing nothing is worse than the usual PnB advice to blow it on drink, drugs and women.

[PB1994]

6 minutes ago, Sergeant Wilson said:

Based on that I'll make the assumption you're not daft. I'd apply some of that intelligence to doing some proper research, then using some recommended sources of advice. You won't be the first in your peer group to have had to sort this out.

I won't go further than that other than saying that doing nothing is worse than the usual PnB advice to blow it on drink, drugs and women.

Wait, what? That wasn’t serious advice?

f**k.

[AyrExile]

Speak with a financial adviser. You might not choose to follow their advice or stick with them forever but they will increase your knowledge in this area. You talk about saving money for the next 25-30 years. The correct advise here could easily alter the end product by a six figure sum with the amount you are planning to invest. Unless you are willing to make the time and effort to research them paying someone makes sense. It may grate you paying unnecessary extra cash but an extra 1 or 2 percent growth per annum will add up