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Where to invest for long term

Investment discussion for beginners. Why you should invest your money, get help getting started
Urbandreamer
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Re: Where to invest for long term

#373250

Postby Urbandreamer » January 5th, 2021, 7:44 am

Dumbfool wrote:My initial choices were

VGOV - 5%
VFEM - 10%
VMID - 15%
VUKE - 50%
VEVE - 20%

I was hoping that in the short to medium term (0-5yrs) VUKE would offer the greatest growth potential due to the FTSE 100 currently being so low after Covid (hopefully bottoming out tomorrow/ this week..... if I buy them) with any divs/income being reinvested automatically.

I haven’t worked out the income from dividends yet so if any one could easily advise I would appreciate that.

Equally if the above is totally wrong then some constructive criticism would be welcomed.

Thx in advance.


I believe that T212 have something called pies that accumulate dividends to reinvest automatically. Other brokers just reinvest the dividend back where it came from automatically if you ask. Most don't do fractional shares though and charge for doing it. I don't have a T212 account so can't comment further on running one. Though I believe that there may be some oddities at T212 if you have a share split, which of course doesn't happen with ETF's or index trackers.

To calculate dividends you can build a spreadsheet using excel, librecalc or google sheets. Alternatively you can download the HYPTUSS (HYP top up) spreadsheet that runs on excel or librecalc.
http://lemonfoolfinancialsoftware.weebly.com/
HYPTUSS does a lot more, but the top up method is one that you may not have bought into, I haven't. It's a great tool though, even if you don't use all of it.

Which brings me to the question of if your choices are totally wrong. They wouldn't work for me, but obviously are the best choices for you. The point is not to do what suits someone else but to do what's right for you.

NOTE, since you are going to use an ISA, don't make the mistake of using your dealing account for one thing/method and ISA for another, transffering funds between the two. Apparently some people don't realise that each transfer into the ISA is part of your ISA allowance with most brokers.

thedukewood
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Re: Where to invest for long term

#373609

Postby thedukewood » January 5th, 2021, 9:10 pm

Great thread.
May I ask a related question which when to invest?
I find I'm stuck procrastinating with ITs with all the discount/premium, z scores etc.
I am talking about lump sum investing. Clearly if it was monthly I would be naturally pound/cost averaging.
Of course I could split up my pot but that would mean higher trading costs I think over time
Does the usual all in advice apply with ITs, are there other things I should/could look at.

Thank you

tjh290633
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Re: Where to invest for long term

#373799

Postby tjh290633 » January 6th, 2021, 12:08 pm

thedukewood wrote:Great thread.
May I ask a related question which when to invest?
I find I'm stuck procrastinating with ITs with all the discount/premium, z scores etc.
I am talking about lump sum investing. Clearly if it was monthly I would be naturally pound/cost averaging.
Of course I could split up my pot but that would mean higher trading costs I think over time
Does the usual all in advice apply with ITs, are there other things I should/could look at.

Thank you

There is a saying "The time to invest is now". The opposite view is that you don't know which way the market is going to move, so dribble it in gradually.

If you are investing for the long term, it probably is not important to try to compensate for market movements. Doing nothing is your worst option. The market is still historically low, having peaked in May 2018 at almost 7,800. If you are investing in ITs, delay is probably going to hurt you, but if you are going to invest in several, do it once a month for each IT that you wish to buy.

In other words, for example, buy FCIT now, ATST next month, CTY the month after and so on. I have just used some EPICs picked randomly. That is not going to affect your trading costs. Use an ISA or platform provider who charges a flat fee for both annual changes and trading fees.

TJH

thedukewood
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Re: Where to invest for long term

#374285

Postby thedukewood » January 7th, 2021, 12:27 pm

Thank you that's very useful - I have also learnt something as I hadn't come across the EPIC acroym before

Thanks again

kempiejon
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Re: Where to invest for long term

#374291

Postby kempiejon » January 7th, 2021, 12:34 pm

thedukewood wrote:Thank you that's very useful - I have also learnt something as I hadn't come across the EPIC acroym before

Thanks again



EPIC is the old name I think (which most posters here use) as you're new and learning it's actually a TIDM. Also referred to as a ticker
Tradable Instrument Display Mnemonics. A short, unique code used to identify UK-listed shares. Previously known as EPIC.
EPIC stands for 'Exchange Price Information Code', and TIDM stands for ‘Tradable Instrument Display Mnemonics’.

thedukewood
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Re: Where to invest for long term

#374383

Postby thedukewood » January 7th, 2021, 4:02 pm

Thank you.
I do feel I need to follow something / have a bit of a guide rail whilst getting into this with a view to look/ learn / act / learn and then do from there.
What are people's thoughts on following John Barron's growth portfolio as a starting point in the IC ( I don't have that yet but clearly could ). Just trying to set my course so I don't overwhelm myself with info etc.

Thank you

OLTB
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Re: Where to invest for long term

#374407

Postby OLTB » January 7th, 2021, 4:46 pm

Afternoon thedukewood

I have three investment strategies - a HYP, an IT portfolio and a passive portfolio. I chose these as I don't know which one will be best for me longer term and if I have a mix, I wont be all wrong!

In terms of the IT portfolio, I subscribe to John Baron's website and have invested in his 'Summer' portfolio for the past three years. It has done very well for me and I have no regrets in following this. One point I would make is that he 'tinkers' fairly often and suggests shaving 0.5% off certain ITs here and there. I don't tend to do this as the more you tinker, the more it costs in trading fees which does have an effect on performance as these fees add up. I simply let things move about and only make changes if he suggests a complete sell/new buy or a significant trimming where the costs aren't too much of an issue.

Cheers, OLTB.

TUK020
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Re: Where to invest for long term

#374408

Postby TUK020 » January 7th, 2021, 4:48 pm

thedukewood wrote:Thank you.
I do feel I need to follow something / have a bit of a guide rail whilst getting into this with a view to look/ learn / act / learn and then do from there.
What are people's thoughts on following John Barron's growth portfolio as a starting point in the IC ( I don't have that yet but clearly could ). Just trying to set my course so I don't overwhelm myself with info etc.

Thank you

This site is a very good starting point:
https://monevator.com/
Try reading everything in the essential reading tab

thedukewood
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Re: Where to invest for long term

#374716

Postby thedukewood » January 8th, 2021, 12:27 pm

Thank you - I do know this site but going over it again / making sure I haven't missed anything will be useful


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