Take a look at Hargreaves Lansdowne, Stocks and Shares ISA, Ready-made ISA, Choose a ready made ISA.
Select Growth, Balanced Growth.
There is plenty of data there on past performance, but eventually you always have to trust a domain expert as to what the level of risk is. Your potential for loss is almost always 100%
The Ready-made ISA managed portfolios are something I think I could invest in but I need to do some reading first to get a better grasp of the details. It used to be simple, go to a bank, open a savings account, get 6% yearly interest and thank you very much. Now thereās so much money sloshing about the banks donāt want ours anymore. I assume thatās the reason anyway. Grumble moan.
If you can afford to lose 10% of it, why not invest that 10% into a high risk high return investment? Such as UK smaller companies unit trusts. You could also look for social benefits, like green electricity bonds.
Iād be happy to risk 10% on a safer bet at a lower rate of return more so than 10% on a more risky bet at higher rate of return. But yep, itās another mini-strategy to consider.
There is a lot of truth in this. Quantitative Easing was really designed to do two major things
(i) Avoid a collapse in asset prices and a deflation
(ii) Create a bit of a consumption boom through increases in the availability of money
Supporting and eventually driving up asset prices necessarily drives down rates of return. In the current situation we have done two things with any spare cash
(a) Buy additional years of pension. This is great because the Government subsidises you through tax rebates. I will have a full pension for my 18 years of service in Australia and by the time I have done 12 years in the UK I will have a second full pension. You need to be more than 10 and preferably more than 15 years from retirement for this to work for you
(b) We have paid off our mortgage as fast as possible. Every extra Ā£1 you pay off is returning you the stream of future interest payments you would otherwise give to the bank.
These strategies are fucking boring but paid well in the medium term. They are also low risk. (a) is best if you pay a very high marginal rate of tax and really needs you to get some professional advice in order to optimise the outcomes. (b) works best if you have an Aussie style mortgage, which we did for 18 years in Oz, so have no mortgage to bother about now. You would need advice on (b) to avoid some fecker mis-selling you a product. After (a) and (b) there are ISAs etc, but we really have not got enough extra income to be arsed with those.
Very sound advice. Never, ever service a debt you donāt have to service. By all means keep a cash buffer for unexpected circumstances, but other than that, pay off debt. Then itās time for coke and hookers.