Pensions and ISA ideas

spark240

I’m quite surprised that there are folks here talking about pension funds of +Millions....I’ve had a good Income and invested in various sectors , a reasonable amount since I was 20 ( now 55) ....and even then I’m not looking at anything like those numbers ...I’m happy with what my funds have produced, so I don’t think I’ve done badly, but to produce millions I would have had to invest every single penny I’ve ever earned.

RandallFlagg

spark240 said:

I’m quite surprised that there are folks here talking about pension funds of +Millions....I’ve had a good Income and invested in various sectors , a reasonable amount since I was 20 ( now 55) ....and even then I’m not looking at anything like those numbers ...I’m happy with what my funds have produced, so I don’t think I’ve done badly, but to produce millions I would have had to invest every single penny I’ve ever earned.

Pension fund value is just one part of net worth valuation.

spark240

Pension fund value is just one part of net worth valuation.

yes I appreciate that,,,,,even so,,,they are still some big numbers.

capo4th

House and pension million quid plus is easy for many many people. 

Tell your kids to start saving now. 

PolarityMan

RandallFlagg said:

PolarityMan said:

I don't think the expectation of a second dip is based on past performance, I think it more based on the fact that current growth isnt reflective of the state of economic health and has really jsut been a reaction to the various stimulus measures. I suspect too late to get into tech right now, I'd expect as an when normality resumes they will take a slight dip as people rely less on services. Id like to get some in my portfolio but I suspect now is not a good time to buy tech.

Why? is technology finished as a sector? will there be no further technological progress in the world?

That's a ridiculously short term view, I it's great time to buy into good tech funds for a 5 year or longer investment, there is a lot of exciting and new technologies around us and plenty of technological developments are needed to sustain human life and our needs in the next 50-100 years.

Here's Ben Rogoff, head of Polar Capital Global Technology Fund explaining their portfolio management strategy and clearly demonstrating to me that he and his team have a far better understanding of the tech sector than I have or have time to have reinforcing why I prefer to let competent fund managers make the investments decisions for me.

It's more that I think they might take a bit in the short term as right now many tech companies will be benefiting from lockdown so might be a better buy later in the year.

RandallFlagg

PolarityMan said:

It's more that I think they might take a bit in the short term as right now many tech companies will be benefiting from lockdown so might be a better buy later in the year.

Oh OK, so you're you're market timer. I wish you the best of luck with that!

ToneControl

PolarityMan said:

RandallFlagg said:

PolarityMan said:

I don't think the expectation of a second dip is based on past performance, I think it more based on the fact that current growth isnt reflective of the state of economic health and has really jsut been a reaction to the various stimulus measures. I suspect too late to get into tech right now, I'd expect as an when normality resumes they will take a slight dip as people rely less on services. Id like to get some in my portfolio but I suspect now is not a good time to buy tech.

Why? is technology finished as a sector? will there be no further technological progress in the world?

That's a ridiculously short term view, I it's great time to buy into good tech funds for a 5 year or longer investment, there is a lot of exciting and new technologies around us and plenty of technological developments are needed to sustain human life and our needs in the next 50-100 years.

Here's Ben Rogoff, head of Polar Capital Global Technology Fund explaining their portfolio management strategy and clearly demonstrating to me that he and his team have a far better understanding of the tech sector than I have or have time to have reinforcing why I prefer to let competent fund managers make the investments decisions for me.

It's more that I think they might take a bit in the short term as right now many tech companies will be benefiting from lockdown so might be a better buy later in the year.

Many think that US tech is currently overpriced. Huge P/E ratios
Also likely advertising will drop on FB and google, they could have reduced earnings
technology advanced massively from 1990 to 2010, but there was still a dotcom bubble that burst

PolarityMan

RandallFlagg said:

PolarityMan said:

It's more that I think they might take a bit in the short term as right now many tech companies will be benefiting from lockdown so might be a better buy later in the year.

Oh OK, so you're you're market timer. I wish you the best of luck with that!

Well not exactly just dont want to buy at a peak. 

RandallFlagg

ToneControl said:

Many think that US tech is currently overpriced. Huge P/E ratios
Also likely advertising will drop on FB and google, they could have reduced earnings
technology advanced massively from 1990 to 2010, but there was still a dotcom bubble that burst

Seen Ben Rogoff's comments on tech P/E ratios in the linked vid.

You know, I really believe that If you want to reach that island over yonder you're going to have to get in the water and swim, fannying around dipping your toes in and out worrying if the water is going turn choppy or not isn't going to build long term wealth. You need to get invested and swim. If a storm comes it will pass and blue skies will return, just stay the course and keep in the water. 

https://www.daveramsey.com/research/the-national-study-of-millionaires

RandallFlagg

Here'e an interesting article on portfolio diversification and the risks of over diversification in large mutual funds.

The benefit of diversification to eliminate stock specific risks diminishes rapidly when your portfolio passes 20 stocks.

When mutual funds get so large due to popularity then it can become difficult for them to maintain their original investment principles that made them successful in the first place as they have to find a home for all that influx of cash. That's a concern I have with the popular Fundsmith fund which is now at £18BN.

https://www.investopedia.com/investing/dangers-over-diversifying-your-portfolio/

spark240

capo4th said:

House and pension million quid plus is easy for many many people. 

Tell your kids to start saving now. 

Can be you mean,,,,I suspect the fact it isn’t....Taking your house into account is fine if your going to seriously downsize....that’s if you haven’t had to work till 70+ to pay for it.

I work with a load of people aged 20-30.....the don’t own a house and probably never will now,....when I was in that age group at work most of us had, or were saving for our own home.

Top five counties with largest pension pots, on average:

 • Surrey - £87,947

 • Hertfordshire - £87,882
 • West Sussex - £84,036
 • Middlesex - £83,406
 • Kent - £81,571

  

 Bottom five counties:
 • County Durham - £48,741
 • Cleveland - £48,711
 • Nottinghamshire - £48,509
 • Worcestershire - £47,882
 • Avon - £34,870

spark240

As well as the above....the average Combined gross salary of around £30k, leaves about 2k per month .

 Average mortgage of £700, plus car, insurance, phone, BB, TV, ...I’d say a Million pound plus pension is way out of the average persons reach.

ThePrettyDamned

What's a good product to drip feed £50 per month into?

Must be an S+S ISA. Was looking at a vanguard lifestrategy, but wasn't sure if it was possible to use vanguard but go into a specific selection of funds. 

RandallFlagg

ThePrettyDamned said:

What's a good product to drip feed £50 per month into?

Must be an S+S ISA. Was looking at a vanguard lifestrategy, but wasn't sure if it was possible to use vanguard but go into a specific selection of funds. 

Any of the major platforms (Vanguard/Hargreaves Lansdown/Standard Life etc) will be pretty good, look for one with a good choice of funds to choose from, or if you want to go single stocks you may need to go to a more specialist platform.

I'm with Standards Life, mainly so I can see savings in the same app as my pension. The platform charges are all around 0.5% a year and the fund fees will vary depending on what you choose, equity trackers are low fees and mutual funds typically between 1-2%

I recommend selecting a good Acc fund rather than an Inc fund if you are planning to invest for the future. An Accumulation fund will reinvest dividends from the stock into buying more stocks where an Inc fund will pay out the dividend as cash that you can choose to hold or reinvest, Acc does the reinvesting automatically.

research some funds via MorningStar or the Standard Life fund filter is pretty good to starts a shortlist.

There is also Fundsmith which has done well and is very popular but is getting a bit big: https://www.fundsmith.co.uk

RandallFlagg

spark240 said:

capo4th said:

House and pension million quid plus is easy for many many people. 

Tell your kids to start saving now. 

Can be you mean,,,,I suspect the fact it isn’t....Taking your house into account is fine if your going to seriously downsize....that’s if you haven’t had to work till 70+ to pay for it.

I think Capo was referring to house value plus pension as part of your net worth calculation may get some people to a net worth of circa £1M at retirement.

House value + pensions + assets of value - debt = 

spark240

RandallFlagg said:

spark240 said:

capo4th said:

House and pension million quid plus is easy for many many people. 

Tell your kids to start saving now. 

Can be you mean,,,,I suspect the fact it isn’t....Taking your house into account is fine if your going to seriously downsize....that’s if you haven’t had to work till 70+ to pay for it.

I think Capo was referring to house value plus pension as part of your net worth calculation may get some people to a net worth of circa £1M at retirement.

House value + pensions + assets of value - debt = 

Yeah I know....but net worth means nothing until you release the funds really does it .?

or you want a loan...

spark240

ThePrettyDamned said:

What's a good product to drip feed £50 per month into?

Must be an S+S ISA. Was looking at a vanguard lifestrategy, but wasn't sure if it was possible to use vanguard but go into a specific selection of funds. 

I’m in Old Mutual Wealth....but I think the min. PM is £100.

Johnnyseven

ThePrettyDamned said:

What's a good product to drip feed £50 per month into?

Must be an S+S ISA. Was looking at a vanguard lifestrategy, but wasn't sure if it was possible to use vanguard but go into a specific selection of funds. 

Have a look at Lindsell Train Global Equity Class D Income via Hargreaves Lansdown. It might be £100 minimum but you could put in £50 a month but invest every other.

ThePrettyDamned

RandallFlagg said:

ThePrettyDamned said:

What's a good product to drip feed £50 per month into?

Must be an S+S ISA. Was looking at a vanguard lifestrategy, but wasn't sure if it was possible to use vanguard but go into a specific selection of funds. 

Any of the major platforms (Vanguard/Hargreaves Lansdown/Standard Life etc) will be pretty good, look for one with a good choice of funds to choose from, or if you want to go single stocks you may need to go to a more specialist platform.

I'm with Standards Life, mainly so I can see savings in the same app as my pension. The platform charges are all around 0.5% a year and the fund fees will vary depending on what you choose, equity trackers are low fees and mutual funds typically between 1-2%

I recommend selecting a good Acc fund rather than an Inc fund if you are planning to invest for the future. An Accumulation fund will reinvest dividends from the stock into buying more stocks where an Inc fund will pay out the dividend as cash that you can choose to hold or reinvest, Acc does it the reinvesting automatically.

research some funds via MorningStar or the Standard Life fund filter is pretty good to starts a shortlist.

There is also Fundsmith which has done well and is very popular but is getting a bit big: https://www.fundsmith.co.uk

Is aviva any good? My. Pension is with them so would add convenience... 

RandallFlagg

ThePrettyDamned said:

RandallFlagg said:

ThePrettyDamned said:

What's a good product to drip feed £50 per month into?

Must be an S+S ISA. Was looking at a vanguard lifestrategy, but wasn't sure if it was possible to use vanguard but go into a specific selection of funds. 

Any of the major platforms (Vanguard/Hargreaves Lansdown/Standard Life etc) will be pretty good, look for one with a good choice of funds to choose from, or if you want to go single stocks you may need to go to a more specialist platform.

I'm with Standards Life, mainly so I can see savings in the same app as my pension. The platform charges are all around 0.5% a year and the fund fees will vary depending on what you choose, equity trackers are low fees and mutual funds typically between 1-2%

I recommend selecting a good Acc fund rather than an Inc fund if you are planning to invest for the future. An Accumulation fund will reinvest dividends from the stock into buying more stocks where an Inc fund will pay out the dividend as cash that you can choose to hold or reinvest, Acc does it the reinvesting automatically.

research some funds via MorningStar or the Standard Life fund filter is pretty good to starts a shortlist.

There is also Fundsmith which has done well and is very popular but is getting a bit big: https://www.fundsmith.co.uk

Is aviva any good? My. Pension is with them so would add convenience... 

Just had a very quick look and they have over 2,000 funds to choose from. Check out their platform fees and if any good I would say crack on.