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2017 Financial Outlook/Investments/Strategy |
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#1 |
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Inactive Member
Join Date: Dec 2016
Location: London
Posts: 247
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2017 Financial Outlook/Investments/Strategy
Hiya all
Today I have registered wit a financial forum, but unable to post until my registration has been approved. I'm hoping some that post/read here work, own their own property/s and have or considering again their investment ideas for 2017. Interest rates are close to zero and one is hard pushed to get more than 1.2% The Gov changed the way interest is claculated on saving in April 2016 I beleive so paid net as opposed to gross, 1k interest free for 20% tax payers and mum and dad are 40% tax payers they get 500 quid tax free I think, unless using the Isa route. I have only invested in shares a few times, vis dad's brokers - made a small loss on BT and the postoffice and made up for the loses plus a small net profit when I invested on Morrisons as dad was right he said "share price is too low," then I sold at a profit but would have made a bigger profit if i had held on - timing is the ket. Mum and dad holding off buying another rental property as they feel property prices and stock will cenrtainly crash in 2017, especially close to the trigerring of article 50 in March Peer to peer lending gives high returns but risky from what I have read. I have some premium Bonds and mum and dad hold the max amounts. Me, and my parents all have Santandar current accounts for max interest as well as Barclays for their first closs premeir banksing. What are you plans especially re stocks and property, are you buyign, selling or holding? Thanks |
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#2 |
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Forum Member
Join Date: Oct 2012
Posts: 7,697
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I'm probably going to invest in commodities.
Commodities are agricultural products... like coffee that you had for breakfast... wheat, which is used to make bread... pork bellies, which is used to make bacon, which you might find in a 'bacon and lettuce and tomato' sandwich. MNY x |
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#3 |
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Forum Member
Join Date: Oct 2009
Posts: 8,742
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Quote:
I'm probably going to invest in commodities.
Commodities are agricultural products... like coffee that you had for breakfast... wheat, which is used to make bread... pork bellies, which is used to make bacon, which you might find in a 'bacon and lettuce and tomato' sandwich. ![]() Can you make it stop?
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#4 |
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Forum Member
Join Date: Oct 2013
Posts: 613
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What's considered a good annual return on investment? Or an achievable one?
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#5 |
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Forum Member
Join Date: Jul 2004
Location: Scarborough
Posts: 18,764
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Interesting subject and one that needs a lot of thought and attention to detail...so if I may;-
Bank interest is actually now paid gross rather then net but you are correct in the limits you mention. As for myself I am looking for income generation rather than capital growth so my strategy involves a combination of Government Gilts, High Dividend UK stock (accepting that the actual share prices may fall), fixed rate (long term) savings accounts and high yield income unit trusts. I also hold premium bonds which with todays relatively low inflation are not so bad. There are fixed rate bonds which can pay in excess of 2%, however they are usually 5 year terms and I am not convinced that interest rates will not rise during that time frame. Peer to peer can yield in excess of 8% but is intrinsically risky and not for me I'm afraid. Over the past 12 months my portfolio yielded a net return of just over 6%...which I am more than happy with....hope this year is as good. |
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#6 |
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Forum Member
Join Date: Aug 2010
Location: The Pit of Despair
Posts: 50,130
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Quote:
I'm probably going to invest in commodities.
Commodities are agricultural products... like coffee that you had for breakfast... wheat, which is used to make bread... pork bellies, which is used to make bacon, which you might find in a 'bacon and lettuce and tomato' sandwich. Obviously
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#7 |
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Inactive Member
Join Date: Dec 2016
Location: London
Posts: 247
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Something I have not cosndiered before but dad has suggested and been reading up on this, ie Investment funds that spreads the risk. You can get general funds that tracks markets, top 100/250 etc, or sectors EG, oil/gas, retail/media/etc - then through my little knowldge of this, diffrent investmen fund managers have different costs and track records, but need to check what protections they have in place re your money
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#8 |
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Inactive Member
Join Date: Dec 2016
Location: London
Posts: 247
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Thank you.
I'm particularly interested in "gilts" but have never been sure if these go up if intrest rates are expected to ris, or do they go down if rates expected to go down? Re PB's, especially for higher rate tax payers, you are spot on - even good, safe gamble for 20% tax payers like me. x |
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#9 |
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Inactive Member
Join Date: Dec 2016
Location: London
Posts: 247
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Quote:
What's considered a good annual return on investment? Or an achievable one?
Would have been tempted to buy another rental flat, but the extra 3% tax on top of the usal tax and liklehood of pricess coming down holds me back from that at the moment |
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#10 |
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Forum Member
Join Date: Apr 2005
Location: colchester
Posts: 15,350
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Quote:
Thank you.
I'm particularly interested in "gilts" but have never been sure if these go up if intrest rates are expected to ris, or do they go down if rates expected to go down? Re PB's, especially for higher rate tax payers, you are spot on - even good, safe gamble for 20% tax payers like me. x |
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#11 |
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Forum Member
Join Date: Jul 2004
Location: Scarborough
Posts: 18,764
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Quote:
Thank you.
I'm particularly interested in "gilts" but have never been sure if these go up if intrest rates are expected to ris, or do they go down if rates expected to go down? Re PB's, especially for higher rate tax payers, you are spot on - even good, safe gamble for 20% tax payers like me. x |
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#12 |
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Inactive Member
Join Date: Dec 2016
Location: London
Posts: 247
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Quote:
The cost of buying a gilt depends on the coupon rate...you need to decide whether the price you pay is worth the eventual redemption yield you receive. If you buy a gilt and hold it until redemption date you will almost certainly lose capital but will achieve a fixed rate income.
Many thanks. Having read up on this a few time and tying this in with what you said, makes more sense to me now. TBH, still very complexed to me but at least I am more aware. Another risky option I have considered is what dad does at times, buying "longs/shorts" he tells me to steer clear - he has "limits" set but they do not always work. Dad said only invest into stocks/shares what you can afford to lose. His example was Tesco's seen as a "stalworth" stock and it crashed overnight - he was luck as he "average down and madee a small profit but as he had many thousands of these share, there were som sleepless nights Thanks again
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#13 |
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Forum Member
Join Date: Jul 2004
Location: Scarborough
Posts: 18,764
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Quote:
Many thanks. Having read up on this a few time and tying this in with what you said, makes more sense to me now. TBH, still very complexed to me but at least I am more aware.
Another risky option I have considered is what dad does at times, buying "longs/shorts" he tells me to steer clear - he has "limits" set but they do not always work. Dad said only invest into stocks/shares what you can afford to lose. His example was Tesco's seen as a "stalworth" stock and it crashed overnight - he was luck as he "average down and madee a small profit but as he had many thousands of these share, there were som sleepless nights Thanks again ![]() As an investor you have to be happy with your overall long term strategy and only make tactical changes when circumstances dictate......a trader will always be tinkering with the portfolio to make short term gains. |
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#14 |
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Forum Member
Join Date: Dec 2009
Location: Scotland
Posts: 2,157
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Does anyone remember the guy on here who's gimmick was misspelling words on purpose?
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#15 |
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Forum Member
Join Date: Apr 2005
Location: colchester
Posts: 15,350
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Quote:
Your dad seems to be more of a trader from what you have said.
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#16 |
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Forum Member
Join Date: Oct 2013
Posts: 613
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Quote:
I guess anything gives you a net profit over the inflation index.
Would have been tempted to buy another rental flat, but the extra 3% tax on top of the usal tax and liklehood of pricess coming down holds me back from that at the moment |
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#17 |
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Forum Member
Join Date: Jul 2004
Location: Scarborough
Posts: 18,764
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Quote:
if he exists that is.
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#18 |
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Forum Member
Join Date: Jul 2004
Location: Scarborough
Posts: 18,764
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Quote:
So if you invest ten grand and make a grand profit over a year, that would be a good return?
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#19 |
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Forum Member
Join Date: Apr 2005
Location: colchester
Posts: 15,350
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Quote:
Indeed. However I like to give the benefit and try to respond to the general discussion, especially when i find the subject interesting....I would like to hear other peoples views on investment in todays climate.
For a basic investor, you are probably better with a fund that can invest in a variety of instruments. Really depends on how long you want to lock away your funds. I suppose the ideal would be in initial investor in a project that takes off, but finding one is hard and you would have to be prepared for losses. |
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#20 |
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Forum Member
Join Date: Oct 2009
Posts: 8,742
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Quote:
The safest way to invest in gilts is to buy at inception and hold to maturity. As you note, other ways can lead to capital loss.
For a basic investor, you are probably better with a fund that can invest in a variety of instruments. Really depends on how long you want to lock away your funds. I suppose the ideal would be in initial investor in a project that takes off, but finding one is hard and you would have to be prepared for losses. Have a HobNob Thanks.
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#21 |
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Forum Member
Join Date: Jul 2004
Location: Scarborough
Posts: 18,764
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Quote:
The safest way to invest in gilts is to buy at inception and hold to maturity. As you note, other ways can lead to capital loss.
For a basic investor, you are probably better with a fund that can invest in a variety of instruments. Really depends on how long you want to lock away your funds. I suppose the ideal would be in initial investor in a project that takes off, but finding one is hard and you would have to be prepared for losses. Bonds/Gilts - need a fixed income for a fixed period, not too worried about capital depreciation Premium Bonds - Useful for keeping cash in days of low inflation Equity Investment - Looking for term growth, not worried by market fluctuation Unit Trusts - A good place to start, can mix income and capital growth Property - hmmm, not sure I would want to comment on this one at this time, probably dangerous for investors who might need liquidity Savings accounts - useful but not likely to produce income or capital growth My opinions only |
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#22 |
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Forum Member
Join Date: Jun 2012
Posts: 6,307
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I invest in wine.
I have a good 2013 Malbec which is due to mature shortly and I'm looking forward to reaping the benefits of my investment . . . probably this evening. I have a varied portfolio from a promising 2015 Cabernet Sauvignon to - and I hope to retire on the proceeds of this one - a 1973 Pomagne. |
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#23 |
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Forum Member
Join Date: Oct 2009
Posts: 8,742
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Quote:
I invest in wine.
I have a good 2013 Malbec which is due to mature shortly and I'm looking forward to reaping the benefits of my investment . . . probably this evening. I have a varied portfolio from a promising 2015 Cabernet Sauvignon to - and I hope to retire on the proceeds of this one - a 1973 Pomagne.
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#24 |
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Forum Member
Join Date: Jun 2012
Posts: 6,307
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Quote:
You should diversify and also move into cheese.
![]() Dairylea Triangles seem to offer a steady return. Plus they're foil wrapped. |
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#25 |
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Forum Member
Join Date: May 2005
Posts: 59,676
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Quote:
What's considered a good annual return on investment? Or an achievable one?
2016 was pretty good year for the stock market, especially at the top end of the FTSE. The fall in Sterling after the referendum result meant that overseas earnings are worth more. Over the year it rose 15% in cash terms. However, the outlook for 2017 is very uncertain so I wouldn't be surprised to see falls this year. |
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