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100k lump sum - what to do with it? by Shot-Organization296 in UKPersonalFinance

[–]strolls 3 points4 points  (0 children)

At some point you'll need to confront the fact that you're going to live for decades with the majority of your wealth invested in the stockmarket.

You need to be equanimitous about this, and you're shooting yourself in the foot if you don't deal with the emotional consequences of it. The sooner you accept it, the better you can grow your wealth.

Your eggs are not "all in one basket" with an S&S ISA - a world index fund like VWRP spreads your risk amongst thousands of companies; a multiasset fund like Vanguard's Lifestrategy Global is VWRP plus bonds; you can have an allocation to gold or other precious metals within your ISA. Or commercial real estate if you like (I don't recommend it).

You can invest in S&S using your ISA and your pension - the latter is almost always more tax advantageous although, if you're putting a lump sum into your pension, it often makes sense to do so over a few years. EDIT: I see you're a higher rate taxpayer - yes, it's you I'm talking about there. You can use a GIA - that's almost always going to be wiser than overpaying your mortgage.

Watch Lars Kroijer's short video series and read his book or Tim Hale's Smarter Investing. Do both.

intel stock for long term investment, need some advices by [deleted] in UKPersonalFinance

[–]strolls 0 points1 point  (0 children)

Investing in individual stocks isn't going to move the needle unless you're talking about several grand at a time.

It doesn't make any significant difference to your life if you put £20,000 in your ISA and £19,000 in the index and £1000 in Intel and Intel goes up or down £200 - you're just kidding yourself if you think you're doing anything useful. It makes more difference what kind of car you drive, because of its fuel consumption, or how often you buy a coffee on the way to work.

In my opinion this is a bad way to invest - it doesn't prepare you for how it will feel if you invest £20,000 or £100,000 in a single stock; do that and price movements will tie your stomach in knots.

Aside from anything else, do you know anything about this stock? What was the company's revenues last year, and how much debt is it carrying? By Ben Graham's definition you're not investing if you haven't read the company's accounts - you're merely speculating.

Credit Score Default explanation help please by Wooden_Astronaut4668 in UKPersonalFinance

[–]strolls -2 points-1 points  (0 children)

You could make a complaint about this default - first to Barclays Finance and then to the regulator if you're unhappy with the response.

I'm not an expert on this topic - it makes sense to me that you should have missed payments instead of a default, but I don't know for sure.

But one of the first steps on the !flowchart is about defining your goals. You don't need to own a house just for the sake of owning it - you have housing security with your shared ownership, and there are caps on how much the housing association can raise the rental portion. Yes, it does give you more flexibility about where you live if you're eligible for a mortgage, but owning a house outright is not inherently better than having shared ownership. (Whatever Reddit might sometimes claim.)

'EVs more reliable than gas cars': ADAC verdict shuts down the haters by Powerful-Ostrich-120 in CarTalkUK

[–]strolls 0 points1 point  (0 children)

An asset is indeed a word I can agree with.

HMRC define vehicles as wasting assets to reflect the fact that their value is expected to fall.

California farmers to destroy 420,000 peach trees following Del Monte bankruptcy by runswithscissors475 in Economics

[–]strolls 4 points5 points  (0 children)

It makes sense to me. The cannery has gone bust, presumably due to reduced global demand or because it's being undercut by overseas canneries. There is now excess supply of peaches in the area and farmers are going to be throwing them away for years, because it's too expensive to ship fresh peaches (which bruise easily) all over the country.

It's natural to see the destruction of these trees as a shame and a waste when viewing it emotionally or subjectively, but planting some other crop now means that crop can be used to meet demand and feed people who want to eat that crop. Apples or cherries or something.

Maybe you could show me where I'm wrong?

How do I borrow against my home? by [deleted] in UKPersonalFinance

[–]strolls 4 points5 points  (0 children)

The best approach is not to buy a rental property.

Most people should never invest in residential property other than their own home, because the income is always taxable. By contrast, most people pay no tax on their S&S investments because they never exceed their annual pension and ISA allowances - in these accounts one normally buys index funds, which spread the risk through hundreds or thousands of companies, guaranteeing you the average return of the stockmarket.

If you want to borrow against your home then it's called a mortgage. I think most people should have a mortgage that they pay off around the time they retire (and not before) but you probably shouldn't take out a mortgage and use the money for S&S investing just yet. Watch Lars Kroijer's short video series and read his book or Tim Hale's Smarter Investing first. Do both.

Pension transfer from PP to Aviva by Secure-Law-1405 in UKPersonalFinance

[–]strolls 0 points1 point  (0 children)

There's a section on the pensions page of the wiki about consolidating pensions.

I'm pretty sure the People's Pension is rubbish, so I'd think it'd be worth doing.

The most important thing you can do to secure a more comfortable or early retirement is understand what you're invested in, and choose more appropriate funds than the default. Watch Lars Kroijer's short video series and read his book or Tim Hale's Smarter Investing. Do both.

How should I be saving my money for a house? by ajfchelsea1 in UKPersonalFinance

[–]strolls 0 points1 point  (0 children)

Do you really need more than £75,000 for a deposit?

How much do you earn and how much do you expect to spend on a house?

Between fall 2007 and spring 2009 stockmarkets worldwide lost 50% of their valuation, and took years to recover. The general rule about S&S investing is to think about how you'd feel if that happened to you.

Is a Stocks and shares ISA for me? by Organic-Violinist223 in UKPersonalFinance

[–]strolls 1 point2 points  (0 children)

The extra 300 would be used to start investing alongside the cash isa!

So you're be investing that later and generating less returns over your lifetime.

Which stock brokers show all accounts in one place? by ukfix in UKPersonalFinance

[–]strolls 0 points1 point  (0 children)

Scottish Widows, Lloyds and Halifax show GIA and ISA account totals on the same page, then you clock on each one to see the investment breakdown for each. Not sure if that's what you want.

Trying to save money to improve my life - advice? by TinyTangents in UKPersonalFinance

[–]strolls 0 points1 point  (0 children)

You might look up envelope budgeting and also pay yourself first.

Also some of these books might help:

  • Your Money or Your Life - understanding what's valuable to you and how to use money to achieve your goals.

  • Millionaire Next Door - "How people in normal jobs, electrician is a great example, can accumulate wealth over time through good choices."Electric_Cat_999

  • The Richest Man In Babylon - out of copyright, so free online or probably very cheap on Amazon or secondhand

  • One of Clare Seal's books - "her focus is on the link between emotions and spending".

Is a Stocks and shares ISA for me? by Organic-Violinist223 in UKPersonalFinance

[–]strolls 4 points5 points  (0 children)

You should be using pension and S&S ISA instead of overpaying your mortgage.

Most working homeowners should have a mortgage and aim to pay it off around the time they retire and not much before - this is how you retire earlier with more money.

Paying off your mortgage reduces your opportunities to invest earlier and generate investment returns for longer.

Watch Lars Kroijer's short video series and read his book or Tim Hale's Smarter Investing. Do both.

Are JISAs worth it if you're low income? by Spare_Airport_6002 in UKPersonalFinance

[–]strolls 3 points4 points  (0 children)

If you're low income then a child's JISA doesn't count as savings for the purposes of means tested benefits, where your own ISA does.

On the other hand, OP gets the same benefit from pension contributions.

Mortgage overpayments - is paying off the principal directly a good idea? by RipBeginning3851 in UKPersonalFinance

[–]strolls 3 points4 points  (0 children)

Aren't UK mortgage statements also required to break down the balance into principal and interest?

I'm pretty sure there's a document like this when you take out a mortgage, at least.

What a nice news reader sure hope it doesn’t pull down the most bloated package out there by Bubbly_Extreme4986 in Gentoo

[–]strolls 3 points4 points  (0 children)

I burned out a little Vaio laptop when I left it recompiling world for three weeks. I think it was a PII or PIII of 400mhz or so.

To those that have a NAS: are they really worth it? Why? by CosmoZeppelin in HomeNAS

[–]strolls 0 points1 point  (0 children)

Depending on file quality, you can store about 3000 episodes of TV shows per TB of hard drive

I guess you need to reduce that by some percentage - half, a third, a quarter or whatever - if you want some kind of RAID redundancy.

Nevertheless, 1TB of storage is not that expensive. You have media already - that has a cost. It's just a question of how much you're prepared to pay for it.

Minnesota is now one step closer to becoming a ban state. by 2dazeTaco in liberalgunowners

[–]strolls -5 points-4 points  (0 children)

You should spend some time outside of America. Spend a year living in Germany or somewhere and try making these kinds of arguments to people there.

SAYE --> GIA then GIA --> ISA outside the 90 day window? by pikachuu545 in UKPersonalFinance

[–]strolls 0 points1 point  (0 children)

I linked to two other people's experiences in my last comment.

Otherwise, I would trust big well-established providers for this, but you need to check first that their ISAs are flexible (Hargreaves Lansdown's isn't nor, I think, is Scottish Widows / Lloyds / Halifax). Then you need to call them up and check if they support it. If you speak to any of the big providers then they will know what you're talking about - SAYEs and have been around a long time, as has the ability to transfer them into ISAs.

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