Comments on: What To Do with £10,000 – ISA, Property or Shares? http://www.where-does-it-go.com/money-saving-investments/investing-10000-pounds/150 Keeping tabs on personal finance £1 at a time Sat, 01 Aug 2009 23:33:06 +0000 hourly 1 http://wordpress.org/?v=3.0.1 By: Investing in Shares http://www.where-does-it-go.com/money-saving-investments/investing-10000-pounds/150/comment-page-1#comment-1192 Investing in Shares Mon, 29 Jun 2009 09:12:36 +0000 http://www.where-does-it-go.com/?p=150#comment-1192 I agree with the clearing off debt point. Even more important, if you have a mortgage, use the money to pay down the loan - interest rates will rise again as surely as day follows night. Investing in stocks - yes, but not in trackers, which seem to perform poorly (if you bought a tracker in 2000, you would have lost money in the following nine years!). I would say, sit down and stock pick the hard way - learn to read company accounts, learn what all the ratios mean, crunch the numbers yourself, look for the gems amid the dross. It's very hard work, but definitely better than following tips in the newspapers or blindly giving the money to fund managers. Also work out the point at which you should sell the shares, and stick to it. People lose money because they wait for the top, but hardly anyone actually manages to catch the top. Most miss it and end up losing money. Better to sell early and bank actual profits (was it the Rothschilds who said that their secret was that they sold too soon?) I agree with the clearing off debt point.

Even more important, if you have a mortgage, use the money to pay down the loan – interest rates will rise again as surely as day follows night.

Investing in stocks – yes, but not in trackers, which seem to perform poorly (if you bought a tracker in 2000, you would have lost money in the following nine years!).

I would say, sit down and stock pick the hard way – learn to read company accounts, learn what all the ratios mean, crunch the numbers yourself, look for the gems amid the dross. It’s very hard work, but definitely better than following tips in the newspapers or blindly giving the money to fund managers. Also work out the point at which you should sell the shares, and stick to it. People lose money because they wait for the top, but hardly anyone actually manages to catch the top. Most miss it and end up losing money. Better to sell early and bank actual profits (was it the Rothschilds who said that their secret was that they sold too soon?)

]]> By: Robert Brown http://www.where-does-it-go.com/money-saving-investments/investing-10000-pounds/150/comment-page-1#comment-898 Robert Brown Wed, 22 Apr 2009 18:04:29 +0000 http://www.where-does-it-go.com/?p=150#comment-898 Thanks for the comment Tate, that is a fair point. I've been a little bitter against the shares recently which lost thousands in the recent troubles, even though it was diversified. But it wasn't zero as you say. Thanks for the comment Tate, that is a fair point. I’ve been a little bitter against the shares recently which lost thousands in the recent troubles, even though it was diversified. But it wasn’t zero as you say.

]]> By: Tate Barnes http://www.where-does-it-go.com/money-saving-investments/investing-10000-pounds/150/comment-page-1#comment-896 Tate Barnes Wed, 22 Apr 2009 14:40:15 +0000 http://www.where-does-it-go.com/?p=150#comment-896 I agree with the basic themes overall, however with regard to the comment '...but with the current climate that £10,000 invested could equally end up as £0 once the company goes bust...', I don't think this type of comment is necessary or constructive. No-one should invest in equities with out at least a small amount of advice, and the smallest level of advice would include the concept of diversification of an equity portfolio. i.e. £2,500 FTSE100, £2,500 S&P500, £2,500 BRIC50 and £2500 Something else. I agree with the basic themes overall, however with regard to the comment ‘…but with the current climate that £10,000 invested could equally end up as £0 once the company goes bust…’, I don’t think this type of comment is necessary or constructive. No-one should invest in equities with out at least a small amount of advice, and the smallest level of advice would include the concept of diversification of an equity portfolio. i.e. £2,500 FTSE100, £2,500 S&P500, £2,500 BRIC50 and £2500 Something else.

]]> By: Robert Brown http://www.where-does-it-go.com/money-saving-investments/investing-10000-pounds/150/comment-page-1#comment-850 Robert Brown Tue, 07 Apr 2009 06:38:19 +0000 http://www.where-does-it-go.com/?p=150#comment-850 Yes I must say I'm eyeing the stock market more than ever before at the moment, there must be some deals out there if you're ready to take the long view. Thanks for your thoughts, Simon. Yes I must say I’m eyeing the stock market more than ever before at the moment, there must be some deals out there if you’re ready to take the long view. Thanks for your thoughts, Simon.

]]> By: Simon http://www.where-does-it-go.com/money-saving-investments/investing-10000-pounds/150/comment-page-1#comment-849 Simon Tue, 07 Apr 2009 00:44:30 +0000 http://www.where-does-it-go.com/?p=150#comment-849 I agree - priority first must be to pay off or reduce any expensive debts - in this low inflation environment the real value of debts is not going to fall quickly with low wage inflation. I personally am liking the stockmarket at the moment - with the FTSE100 around the 4000 mark, off a high of around 6700 in mid-2007 (a fall of 40%), there is certainly a lot of "long term value" out there - notice I said long-term - I figure a minimum of 5 to 10 years. Also remember that the FTSE100 is an "index" of share PRICES and takes no account of any dividend income from holding those shares - you can gain from shares in two ways - appreciation in price and from the dividend income. If you're concerned about stock-market volatility you could consider dripping in your money over time - this is known as "pound cost averaging" and reduces your risk over time. I agree – priority first must be to pay off or reduce any expensive debts – in this low inflation environment the real value of debts is not going to fall quickly with low wage inflation.

I personally am liking the stockmarket at the moment – with the FTSE100 around the 4000 mark, off a high of around 6700 in mid-2007 (a fall of 40%), there is certainly a lot of “long term value” out there – notice I said long-term – I figure a minimum of 5 to 10 years.

Also remember that the FTSE100 is an “index” of share PRICES and takes no account of any dividend income from holding those shares – you can gain from shares in two ways – appreciation in price and from the dividend income.

If you’re concerned about stock-market volatility you could consider dripping in your money over time – this is known as “pound cost averaging” and reduces your risk over time.

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