Advice Investing

[Overdriven]

So I've recently gone over my finances and realised a few things:

1. I have a chunk of cash going into a current account with 0 interest which is now annoying me (Holiday/Rainy Day/Other fund) which I probably need to do something with so it actually earns me something, but I need the ability to withdraw without fees.
2. I have no real long term investment portfolio (See point of this thread)
3. I have enough "spare" money once everything leaves my account to actually invest into funds/ETFs.
4. I have a risk appetite of "medium/high" and I'm probably going to have a few hundred a month for "YOLO" ETFs.
5. I'm looking LONG term (30 years) - Obviously will change things up.

I've spent a little while researching what words mean and have built a tiny portfolio of all accumulative funds and 1 company I want to keep a hand on because I have faith in the world. Percentages are how much of my monthly split goes into each, for now.

1. Baillie Gifford American (Class B) Accumulation (35%) - Major tech .
2. Baillie Gifford Emerging Markets Leading Cos (B) Accumulation (25%) - Major eastern investment
3. BlackRock China A-Share Opportunities (USD) Accumulation (20%) - Because they're our overlords.
4. International Consolidated Airlines Group SA - Ord EUR0.10 (CDI) (20%) - Because I can pretty much bet the world requires tourism and we're not going back to boats.

Any comments? No, I'm not putting my money into the UK till we're a year+ into brexit.

 

[caLLous]

Step 1 would be not asking a bunch of reprobates on the internet for investment advice. Step 2 would be to bung it all in crypto.

 

[Gwadien]

I know nothing, but putting money in airlines right now?

 

[Overdriven]

I know nothing, but putting money in airlines right now?

Long term. It's currently at the same levels it was 10 years ago. If it doesn't improve in the next 10 years then we've got bigger problems.

Step 1 would be not asking a bunch of reprobates on the internet for investment advice. Step 2 would be to bung it all in crypto.

Nah, makes me nervous. Also, people here probably do this.. Better than using Reddit.

 

[caLLous]

Nah, makes me nervous.

So your risk appetite isn't *that* high then.

 

[Overdriven]

So your risk appetite isn't *that* high then.

To be fair, last week I did pull everything I had OUT of Crypto. Which was silly of me.

 

[Scouse]

Any comments?

Go and pay for professional advice would be mine tbh.

 

[Rubber Bullets]

When my parents died I received a sizable inheritance. I went and spoke to an independent financial advisor and ended up putting it into an investment portfolio with her, it's currently managed by a company called Rathbones. It has performed way above inflation and above the FTSE since, and is now almost entirely in a stocks and shares ISA so any increases are tax free. I do pay the advisor a fee, and a small percentage of any extra money I invest, but this has been tiny in comparison to the value increases. I'd certainly start down that route if I was you, and you might not even pay for an initial consultation.

 

[Moriath]

So I've recently gone over my finances and realised a few things:

1. I have a chunk of cash going into a current account with 0 interest which is now annoying me (Holiday/Rainy Day/Other fund) which I probably need to do something with so it actually earns me something, but I need the ability to withdraw without fees.
2. I have no real long term investment portfolio (See point of this thread)
3. I have enough "spare" money once everything leaves my account to actually invest into funds/ETFs.
4. I have a risk appetite of "medium/high" and I'm probably going to have a few hundred a month for "YOLO" ETFs.
5. I'm looking LONG term (30 years) - Obviously will change things up.

I've spent a little while researching what words mean and have built a tiny portfolio of all accumulative funds and 1 company I want to keep a hand on because I have faith in the world. Percentages are how much of my monthly split goes into each, for now.

1. Baillie Gifford American (Class B) Accumulation (35%) - Major tech .
2. Baillie Gifford Emerging Markets Leading Cos (B) Accumulation (25%) - Major eastern investment
3. BlackRock China A-Share Opportunities (USD) Accumulation (20%) - Because they're our overlords.
4. International Consolidated Airlines Group SA - Ord EUR0.10 (CDI) (20%) - Because I can pretty much bet the world requires tourism and we're not going back to boats.

Any comments? No, I'm not putting my money into the UK till we're a year+ into brexit.

Who would you buy the shares through? I always wanted to dabble just for fun in shares and such. But things i see is just putting it into investment funds rather than buying individual shares.

 

[Rubber Bullets]

Who would you buy the shares through? I always wanted to dabble just for fun in shares and such. But things i see is just putting it into investment funds rather than buying individual shares.

You need to go through a broker such as Hargreaves Lansdown for instance. My dad used them and did his own investing. Part of the reason my inheritance was as good as it was, but it takes knowledge and luck to be successful.

Buy shares online

Open a low cost, easy to use share dealing account in under 5 minutes and buy shares today. Find out more.

www.hl.co.uk

 

[Hawkwind]

I know nothing, but putting money in airlines right now?

I have seen this put about on the internet by a few so called experts and to be frank it's about the stupidest thing I've heard. The airlines that are still alive, mostly from govt subsidies are not in good shape in the short to near term. The market is not even expected to recover for another 2 years and that is according to IATA. There are other organisations such as APEX putting out a different narrative but that is more of marketing and sales message, trying to be positive. They also have a vested interest from their own business.

Reasons airlines will take a long time to recover:
1. Restructuring costs, a lot of airlines have too much seat capacity and need to either mothball, sell or just scrap some aircraft. Aircraft they have not finished paying for!
2. They layed off pilots and crew to save operational costs. It will take time and a lot of investment in training to get the pilots back and airworthy (certified to fly again on aircraft type), takes many hours of expensive simulator time.
3. Airline business is a tough one. The old joke used to be "how do you become a millionaire in the airline business? It's simple you just borrow a billion and start an airline! 😃

In short I worked in aviation for 30 years and I would not invest a penny in any airline!

 

[Gwadien]

I have seen this put about on the internet by a few so called experts and to be frank it's about the stupidest thing I've heard. The airlines that are still alive, mostly from govt subsidies are not in good shape in the short to near term. The market is not even expected to recover for another 2 years and that is according to IATA. There are other organisations such as APEX putting out a different narrative but that is more of marketing and sales message, trying to be positive. They also have a vested interest from their own business.

Reasons airlines will take a long time to recover:
1. Restructuring costs, a lot of airlines have too much seat capacity and need to either mothball, sell or just scrap some aircraft. Aircraft they have not finished paying for!
2. They layed off pilots and crew to save operational costs. It will take time and a lot of investment in training to get the pilots back and airworthy (certified to fly again on aircraft type), takes many hours of expensive simulator time.
3. Airline business is a tough one. The old joke used to be "how do you become a millionaire in the airline business? It's simple you just borrow a billion and start an airline! 😃

In short I worked in aviation for 30 years and I would not invest a penny in any airline!

I was questioning it, not agreeing with it.

 

[SilverHood]

Overdriven, looks like a decent long term approach. For most people, funds and ETFs is the best way to go. Buying and selling individual stocks can work out, but you need to do some research first, and you need to subscribe to market alerts so you get notified when there's major news or movements in your investments. Best advice I ever got was "buy shares in products that you love or use every day, sell them when you stop using those products".

Investment in airlines is not necessarily a bad bet, but I would always ask the question, can I get a better or equivalent return with more safety?

 

[Aoami]

Use it to pay off your mortgage if you have one.

 

[Overdriven]

Go and pay for professional advice would be mine tbh.

Is part of my plan in Feb, just making sure I've got everything planned on my side. Nothing more fun than exported bank statements and Excel.

Who would you buy the shares through? I always wanted to dabble just for fun in shares and such. But things i see is just putting it into investment funds rather than buying individual shares.

Funds are long term for me. Investing in individual shares is mostly going to be short term stuff / lets see what happens.

You need to go through a broker such as Hargreaves Lansdown for instance. My dad used them and did his own investing. Part of the reason my inheritance was as good as it was, but it takes knowledge and luck to be successful.

Buy shares online

Open a low cost, easy to use share dealing account in under 5 minutes and buy shares today. Find out more.

www.hl.co.uk

That's who I'm with! Fees are a bit meh but oh well.

I have seen this put about on the internet by a few so called experts and to be frank it's about the stupidest thing I've heard. The airlines that are still alive, mostly from govt subsidies are not in good shape in the short to near term. The market is not even expected to recover for another 2 years and that is according to IATA. There are other organisations such as APEX putting out a different narrative but that is more of marketing and sales message, trying to be positive. They also have a vested interest from their own business.

Reasons airlines will take a long time to recover:
1. Restructuring costs, a lot of airlines have too much seat capacity and need to either mothball, sell or just scrap some aircraft. Aircraft they have not finished paying for!
2. They layed off pilots and crew to save operational costs. It will take time and a lot of investment in training to get the pilots back and airworthy (certified to fly again on aircraft type), takes many hours of expensive simulator time.
3. Airline business is a tough one. The old joke used to be "how do you become a millionaire in the airline business? It's simple you just borrow a billion and start an airline! 😃

In short I worked in aviation for 30 years and I would not invest a penny in any airline!

See below.

Overdriven, looks like a decent long term approach. For most people, funds and ETFs is the best way to go. Buying and selling individual stocks can work out, but you need to do some research first, and you need to subscribe to market alerts so you get notified when there's major news or movements in your investments. Best advice I ever got was "buy shares in products that you love or use every day, sell them when you stop using those products".

Investment in airlines is not necessarily a bad bet, but I would always ask the question, can I get a better or equivalent return with more safety?

Removed IAG. Spent the evening thinking about it - Split it between the other 3 - IAG is the one I keep thinking is a good idea but you're likely right, can make more shorter term - I'll cry in 5 years when it goes back up.

Use it to pay off your mortgage if you have one.

Do - remortgaging in August (2021). Hopefully going to go under the £1,000pm barrier with this one. (It's a bit higher atm..)

 

[Scouse]

Use it to pay off your mortgage if you have one.

Might be a bad idea.

Credit is at an all time low. Many mortgage rates are currently lower than inflation so the value of your mortgage is being eroded just from the length of time you hold it.

The thing to do is put overpayments into something that makes more interest than your mortgage + inflation. Then if interest rates go up use your investment to blow a chunk off your mortgage.

Always look at the return rates and factor in inflation. Also when borrowing remember compound interest - high interest rates over 10 years can be cheaper than low over 25 years.

 

[Aoami]

Inflation is currently 0.8%!

 

[Scouse]

Inflation is currently 0.8%!

Yeah - this year is a clusterfuck especially. (Which is why I said might!)

But lots of mortgage rates are ~2% - so if you can get a ROI of 5%+ on your overpayments then investing will grow that pot faster - and when interest rates rise pay off in bulk.

Don't expect interest rates to rise any time soon though!

 

[Aoami]

Personally I squirrel a bit away in a stocks and shares ISA managed on the moneybox app. The majority of my savings are sitting in a savings account losing money, but I am looking to buy a new place so all my savings will go on putting down as big a deposit as possible (+ the equity from my flat) so I can have a smaller mortgage. Something comforting about having your money in bricks and mortar imo.

 

[Scouse]

Something comforting about having your money in bricks and mortar imo.

I hear ya. All our wealth is almost all tied up in it and I'm about to make a punt to do more of the same (intending to build a furnished holiday let - I'm not 100% sure about that though as it does mean other people being near my house - but then I'm not rich, and if I can leverage my property I think I need to otherwise I'll be working till I drop).

 

[MYstIC G]

I hear ya. All our wealth is almost all tied up in it and I'm about to make a punt to do more of the same (intending to build a furnished holiday let - I'm not 100% sure about that though as it does mean other people being near my house - but then I'm not rich, and if I can leverage my property I think I need to otherwise I'll be working till I drop).

Keep in mind you're more likely to be able to choose who you work for than choose who might be in your home

 

[Scouse]

Keep in mind you're more likely to be able to choose who you work for than choose who might be in your home

Not thinking of in my house. Thinking of a separate building.

 

[Hawkwind]

See below.

Removed IAG. Spent the evening thinking about it - Split it between the other 3 - IAG is the one I keep thinking is a good idea but you're likely right, can make more shorter term - I'll cry in 5 years when it goes back up.

Personally, I think that is a good idea. Even the last report by IATA shows 2019 levels of passenger traffic are not expected until at least 2024. Until then it will be a very tough journey for the airlines. European airlines are expected to lose a further $11Bn in 2021 alone!

 

[Tay]

Who would you buy the shares through? I always wanted to dabble just for fun in shares and such. But things i see is just putting it into investment funds rather than buying individual shares.

Its how you hedge your investments though, spread the money around so when one thing goes down something else inevitably goes up, thats how to gradually grow funds. Quick cash make or break stuff requires an online brokerage I presume, many Banks these ays have trading arms that can be bolted on the normal banking facilities.

I have no affiliation with Revolut, so I dont know if they are good bad or whatever. I heard it mentioned a few weeks back and looked at them briefly, its essentially a bank account that allows you access to a whole plethora trading facilities. stocks, crypto, commodities etc have a gander might do exactly what you need.

Lots of banks (or more precisely credit card companies) wont let you buy crypto with their cards etc. But Revolut appears differant.

Might be worth a dabble.

 

[Moriath]

Its how you hedge your investments though, spread the money around so when one thing goes down something else inevitably goes up, thats how to gradually grow funds. Quick cash make or break stuff requires an online brokerage I presume, many Banks these ays have trading arms that can be bolted on the normal banking facilities.

I have no affiliation with Revolut, so I dont know if they are good bad or whatever. I heard it mentioned a few weeks back and looked at them briefly, its essentially a bank account that allows you access to a whole plethora trading facilities. stocks, crypto, commodities etc have a gander might do exactly what you need.

Lots of banks (or more precisely credit card companies) wont let you buy crypto with their cards etc. But Revolut appears differant.

Might be worth a dabble.

Why would you buy crypto with a credit card? My debit card buys it fine.

 

[MYstIC G]

Why would you buy crypto with a credit card? My debit card buys it fine.

I imagine so you can try and flip it in under the payment terms of the card so you make a profit using someone else's money plus if you make a loss you can spread the debt

 

[Aoami]

Would Credit Cards offer any protection against crypto theft or the person closing up the exchange and running away with all the money like what happened to my mates?

 

[caLLous]

Nothing protects you against crypto theft as far as I know. Maybe if an exchange owner did a runner but not for individual theft.

 

[Scouse]

Would Credit Cards offer any protection against crypto theft or the person closing up the exchange and running away with all the money like what happened to my mates?

No. And what exchange were your mates on? That would have been all over the news.

 

[Aoami]

No. And what exchange were your mates on? That would have been all over the news.

Can't remember, it was a small one. https://forums.freddyshouse.com/members/megadave.8894/ was one of them affected.