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Si1

The three Pillars of Sheeple investment

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Houses houses houses

Cash savings accounts - building society, cash ISAs.

Fiver a week on lottery tickets.

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Getting in on an investment about 5 - 10 years after it would have been a good idea. BTL being the prime one. "Cor, have you heard about this Bitcoin, £15k. I'm gonna mortgage me house!"  "Gold is £1,200 / oz.  Gonna sell everything I own to buy some."

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Yup taxi to station and cab driver was talking to me about looking to buy to let a couple of places. Also on about Etherium and Bitcoin as he's heard about them and did I know about them.

Nowt I said could change his mind that these three were the way to go. Response always - well you get nothing for your money in the bank.

And there is the problem in a nutshell, people and institutions chasing yield because nothing is paying out.

Still was a slightly more fun drive than the Trump supporting cabbie I had once, longest 2 hrs of my life.

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15 hours ago, Si1 said:

Cash savings accounts - building society, cash ISAs.

Really? would be interested in reason for this?

By comparison for someone who has the time then yes, but I don't have the time over my own business to study non-secure investments to the extent that I'd not have to put some (not all) of my money in secure ones.

Potentially, what you eventually buy with Cash savings could go down enough in value, that you still beat inflation.

15 hours ago, Si1 said:

Fiver a week on lottery tickets.

I knew someone who was £20 PW (they haven't won yet).

Edited by Arpeggio

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Better three things than one.....better more than three things, one of them yourself or could be your own business.....take back control.....eggs and baskets and all that.;)

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On 17/03/2019 at 09:00, Ghostly said:

Getting in on an investment about 5 - 10 years after it would have been a good idea. BTL being the prime one. "Cor, have you heard about this Bitcoin, £15k. I'm gonna mortgage me house!"  "Gold is £1,200 / oz.  Gonna sell everything I own to buy some."

 Or fifteen years too late.

I encountered a seemingly well run and reputable buy to let operation (hard to believe I know) whose founder told me that as they were only interested in income their criteria dictated that they should not buy anything post 2000 as prices were by then too high!

Another guy I did some work for set up his btl empire in the mid 90s, 11 small properties. A third bought 50 small properties along the south coast early 2000s.

These are the smart money, and struck me as pretty decent types, the latter two I knew quite well. Seemingly miles better than much of the tide of scum in recent years. As a Yank once said to me, the trouble with people who don't know is that they don't know they don't know.

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1 hour ago, scottbeard said:

So, turning this around, what do you think the ordinary everyday man or women SHOULD be investing in instead?

I go for not investing at all although the reason to do something just to stop savings from being devalued is sound enough.

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13 hours ago, Staffsknot said:

Yup taxi to station and cab driver was talking to me about looking to buy to let a couple of places. Also on about Etherium and Bitcoin as he's heard about them and did I know about them.

Nowt I said could change his mind that these three were the way to go. Response always - well you get nothing for your money in the bank.

And there is the problem in a nutshell, people and institutions chasing yield because nothing is paying out.

Still was a slightly more fun drive than the Trump supporting cabbie I had once, longest 2 hrs of my life.

I have ~400k in a DC/money fund pension, compounding in real terms at ~5% a year.

Ive another 20 years before I plan on touching the fund.

 

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On 17/03/2019 at 10:20, nome said:

BTL, where you are buying the house for cash makes absolutely no sense - the yield is too low.

IO BTL makes no sense if you have assets i.e. its a get rich or go bust trying play.

With S24 IO BTL is a get poor scheme.

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2 hours ago, scottbeard said:

So, turning this around, what do you think the ordinary everyday man or women SHOULD be investing in instead?

We dump all our earnings that would attract 40% tax into AVC's / SIPPS

Investments in:

Shares - usually target high dividend shares for ISA and SIPP

P2P spread across 5 different providers. Annual return >5%. About a 1/3rd with ISA coverage so tax free. 

Use premium bonds to hold cash in short / medium term. Returns similar to a cash ISA and could win a biggy. 

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6 hours ago, scottbeard said:

So, turning this around, what do you think the ordinary everyday man or women SHOULD be investing in instead?

Yourself. It has never been easier to spin up a professional looking business. The massive tax advantages of running your own business (not just the legit ones) outweigh by some measure the returns on any other investment when netted against an employees PAYE bill.

When do you make decent money you get to do all the tax effective stuff - employees do as a bonus. 

 

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19 hours ago, GregBowman said:

Yourself. It has never been easier to spin up a professional looking business. The massive tax advantages of running your own business (not just the legit ones) outweigh by some measure the returns on any other investment when netted against an employees PAYE bill.

When do you make decent money you get to do all the tax effective stuff - employees do as a bonus. 

 

i think we need a thread dedicated to this. 

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On 17/03/2019 at 07:45, Si1 said:

Houses houses houses

Cash savings accounts - building society, cash ISAs.

Fiver a week on lottery tickets.

And antiques, up to inc 'limited' edition plates.

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  • 295 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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