Member Info for zac0_4

I admire your optimism!!

Hi TomE - let me know what you don't understand from my post and I'll try to explain.

TomE - a couple of points, as I understand them, with regards to pension contributions.

(i) you cannot "take at least 25% of your pension pot tax free". You can take up to a maximum of 25% of the value of your pension pot tax free. The balance is taxed as income.
(ii) current rules allow you to access your pension pot from the age of 55 upwards. This is expected to rise to the age of 57 from 2028.
(iii) basic rate tax payers currently enjoy tax relief on contributions of 20%. So, in effect you make an instant return of 25% on any contribution you make. As an example, if you put £80 into your pension, this is currently topped up to £100 by the government.

A SIPP (self invested personal pension) can be set up as a share and fund account allowing you to trade shares and funds yourself.

MrMath - you have my sympathy! I'm not at that level. I'm in for just short of £20k. Currently sitting on a £9k capital loss but having received dividends to date of about £3.8k I'm sitting on a nett loss of approx 26%. Having said that I'm also in RDSB for just over £11k. Overall my oil investments stand me a nett 22% (ish) loss at present!

It's very easy to say "be happy with your entry price". You clearly aren't a long-term holder with an average cost price of £4.53 per share!!!!

Mr.Smith - that's fine if you don't need the income. For long term investors requiring income this, and a number of other UK listed dividend paying shares, have been nothing short of a disaster. Once this reaches a level where I feel more comfortable selling I will. No more dividend shares for me. Global equity funds produce far better results.

Alas-Smith - totally agree. I have a considerable holding both here and BP. No choice but to sit it out. In addition to other dividend paying shares I also hold positions in numerous funds.

Technology businesses are here to stay, they are shaping our future and will continue to do so. Tesla is often used as an example as to how overvalued tech stocks are and with Tesla I possibly agree. But nothing to date has convinced me that Apple, Microsoft, Facebook, Google etc, etc will suddenly crash.

I invest in tech companies via the L&G Global Tech Index fund. It's low cost, well diversified and, in my opinion, a good way to invest in global tech businesses.

"what will be worth more in 10 years - one of the NRR retail centres or shares in Tesla" . . . well given that the total value today of all of NRRs retail centers and pubs is £150m, and Tesla is worth $420bn I'd have to say Tesla! Or, was it a trick question?

I don't get the whole 'value' v 'growth' stocks debate. For me a business is either likely to do well in the future or not. My holding here has, quite rightly, been marked down. Revenue has been hit hard, there is uncertainty around future income and sentiment around its products is negative. Alternatively, my holding in L&G Global Tech Index fund continues to thrive. Companies in the index have utilised their competencies to take advantage of the current situation, they are growing their market share and will continue to disrupt going forward. I don't see it as any more complicated than that.

Freedom4Uall - "This normally stable share price . . . "

There's been nothing stable about this share price for years!!! Sept 2017 £3.46, 2018 £2.48, 2019 £1.89 and now £0.51.
Please explain the stability in those figures!!!!!

It is an interesting video but I think I'll stick to taking data and advice from the UK Chief Medical Officer and UK Government Chief Scientific Adviser!

ROCKONUK01 - "New to stocks and shares. What approach is be applied....day trading and or longer term diversified portfolio?"

If I was just starting out again I'd do the following - invest every single month in a global diversified fund, every month without fail, year after year after year, I'd only invest in the accumulation version of the fund, I'd never sell, I'd never panic, and over the long-term (hopefully) enjoy a very healthy return on my investment.

I wouldn't entertain single shares until I had the above in place via a direct debit payment! Good luck.

robleo - I always invest in the accumulation version of funds. In this way any income that's produced is re-invested automatically. That helps with the compounding effect over the long term. Good Luck with your investments.

Gwapo1985 - just for your information here are my top 5 performers over the last 12 months:

Legal & General Global Technology Index
LF Blue Whale Growth
Rathbone Global Opportunities
Legal & General Global Health & Pharmaceutical Index
Fundsmith Equity

I'm invested in the accumulation version of each fund in all cases. Good luck with your investments.

Tom78 - I'm sure my funds will take a bit of a pasting tomorrow looking at US markets this evening. I'm about 85% in funds and 15% in directly held shares. I'll look to continue to increase the balance in favour of funds over time.

The one piece of advise I would give to someone looking to start investing would be this: Pick a good quality global equity fund / invest every month without fail / year on year on year / never panic / never sell / watch your investment grow!

Good Luck!

Thronegames - I think everything fell in March! My tracker type funds fell but have recovered as follows:

L&G Global Health & Pharma - fell 18% in March - now recovered and sits 2% above pre-fall level
L&G International Index - fell 27% in March - now recovered and sits about same as pre-fall level
L&G Global Tech - fell 25% in March - now recovered and sits 25% above pre-fall level
My holding here ie L&G direct holding fell 56% in March and is still 36% below pre-fall level

Markets not looking good at the moment. I'll simply hold and hopefully over the next few years my holdings in UK shares will slowly recover to a level that I'm happy to sell at. Once that point is reached that's it for me with the FTSE. It's appalling. There's little resilience and poor recovery. Been like that for years. Never mind we've got Brexit to contend with at the year end!!! Good Luck.

' . . . theoretically their shareholders should benefit . . . '

Should, but haven't! My return here over the last 5 years has been around 15%, and that includes dividend returns! My returns over the same period in 3 L&G tracker funds are as follows: L&G International Index 98%, L&G Global Health & Pharma 80% and L&G Global Tech 273%.

As I've said, once this gets back to a reasonable level I'm selling. I make a lot more money as a L&G customer than a L&G shareholder!

Benrumpson1 - you seem to be looking for the holy grail! They are out there but hard to find. I've been investing for 20+ years and early days had some good wins and some heavy losses.

What's made me most money over the years has been the following: invest every month in a global equity fund, every month without fail. Do it over the long term. Year after year after year. Never sell. And over a long period of time make a very healthy return!

The above would be my one piece of advise to young people starting out in investing.

I agree! When the time is right this will be sold. Along with my other individual UK based dividend paying shares. Over many years I've moved the majority of my individual investments into global equity funds. There's no comparison. Simply taking capital as and when I need it has proved far more profitable. My 4 remaining individual shares have simply cost me money to hold. And that includes L&G which is the best of a bad bunch!

'Not many places one can get an almost certain 8% these days' . . . I agree. And there's absolutely no certainty that you'll get 8% here over the next 12 months!