Investment strategy musings

[StepOne]

The fidelity fund at .13% is very cheap but you will need a platform that does not charge too much. The fidelity charges are not cheap.

You can buy the Fidelity fund through iWeb - £5 a trade and no platform fees.

StepOne

[Pastcaring]

Hiya all

From a down under investor it just seems to be a case of leave it alone to compound.For the guy pound cist averaging,why.For instance borrow 10,000 quid,use the 250 per month to pay back the loan.Dividends from day one.Say a10percent return,then that is almost more than he is putting in every month for ever.

Nobody ever got rich by saving up.

Be aware you can also lose 50percent in a crash that can happen in the first or any year .Not for the faint hearted .

The expressions Time is money and Let the money do the work.

To try it check out the price of say Barclay's in 1990,use theDRP and see what they are worth now.

For down here then NAB has been the worst performing bank for the last 28 years.Average wage of around 28,000 dollars in 1990 bought 4000 shares then ,use theDRP and you have around 17,000 shares now at 30 dollars each,a total of 510,000dollars .

Which is easier,paying back a loan of 28,000 dollars,or trying to save up 510,000 dollars.

BRK teaches that,10 dollars each in 1965, 300,000 now because he reinvested dividends,IE,divi from Wells Fargo buys more shares in KOK and so on.

We have a beauty down here,Westfield.Accepted a takeover bid and has new owners from later on this year,actually a cash plus scrip offer.

However a 1000 dollar investment at the IPO in 1960 now has a value of 440 million,all dividends re invested and rights issues taken up.Twelve months wages back then .Where were the crystal ball gazers and tea leaf readers when we needed them.

Also the Buffet gem of common sense,if they knew what was going to happen they would be buying shares,not selling advice

Good luck all.

[Dod101]

My dear Friend, Inv35t, of course you are right, but how far does that get the average young guy?

Dod

[OLTB]

The average person could retire at 60 with just £170,000 of liquid wealth. Cost average accumulated savings into stocks periodically and that is well within achievable for most to achieve across their working lifetime.

Hi 1nv35t - some really interesting points made in your post and I was a little unsure how £170k could support a 60 year old through say 25 years of retirement. Do you mean that once State Pension kicks in, the combined sums could support someone’s basic requirements?

Cheers, OLTB.