Share dealing
- Thread starter Nishy
- Start date
DamianJ
Forum GOD!
I am no expert and this is in no way financial advice. I have a stocks and shares isa with Hargreaves Lansdown. I only have a very small number of funds rather than individual shares now. I did do quite well out of the only actual shares I've ever owned with Royal Mail that I got when the first went on the stock market.
I know the value of my isa completely tanked during the crash, but has now recovered to be in profit compared to what I've paid into it.
If you are nervous of the value fluctuating it isn't for you, if you're happy to leave it and wait for things to recover if there is any loss that's great and you can do well from it.
A couple of things I picked up from reading.
Funds, essentially large numbers of shares in different companies, are easier than individual companies. I have a small number of different ones that are trackers.
Keep an eye on fees as they can eat into any returns.
Accept that it can and will go down.
It's a long term thing, they used to say 5 years at least, now people are suggesting longer such as 7 to 10 to even out any fluctuations.
I pay in small amounts monthly to even the prices out, rather than trying to time the market and spot any potential bottom of the market guesswork.
I'd be interested in hearing what others do and think.
I know the value of my isa completely tanked during the crash, but has now recovered to be in profit compared to what I've paid into it.
If you are nervous of the value fluctuating it isn't for you, if you're happy to leave it and wait for things to recover if there is any loss that's great and you can do well from it.
A couple of things I picked up from reading.
Funds, essentially large numbers of shares in different companies, are easier than individual companies. I have a small number of different ones that are trackers.
Keep an eye on fees as they can eat into any returns.
Accept that it can and will go down.
It's a long term thing, they used to say 5 years at least, now people are suggesting longer such as 7 to 10 to even out any fluctuations.
I pay in small amounts monthly to even the prices out, rather than trying to time the market and spot any potential bottom of the market guesswork.
I'd be interested in hearing what others do and think.
Thanks very helpful reply. I am going to look at funds now.
I too started both an ISA shares and standard share dealing account with HL. Looked at trading 212 (lower US share fees from what I understand) but opted for HL for now.
Going with the notion that the money being invested is expendable, but would obviously like to make a positive investment. Have a few friends in the field so taking up their tips and some of my own amateur research. Using the crash to pick up a few cheap deals.
I too started both an ISA shares and standard share dealing account with HL. Looked at trading 212 (lower US share fees from what I understand) but opted for HL for now.
Going with the notion that the money being invested is expendable, but would obviously like to make a positive investment. Have a few friends in the field so taking up their tips and some of my own amateur research. Using the crash to pick up a few cheap deals.
Hectorsgaf
Well used member
There will be cheap deals BUT..... will you live long enough to reap any benefit? Not so sure. As always, speculate IF you can afford to lose it, otherwise stay safe but get little return if any.
Burgundy
Forum GOD!
Perfectly happy for the opportunity to buy cheap whenever it presents itself. If I were coming up for retirement, I’d have a think about my asset allocation, but I’m investing with a 25+ year timeframe.
I have an investment account with AJ Bell but for a S&S LISA, where I dabble a little with active funds and occasionally some stock picking. I’m happy to be a bit risky with it due to the government contribution and we can’t access this until 2048. This is really earmarked for fun money in our early retirement so it only gets occasional contributions, making it cheaper than Hargreaves Lansdown. I threw in a bit (with the government chipping in another 25%) in the middle of March. That’s obviously done well due to the markets rallying over May and June but, given the timeframe, those paper gains are essentially meaningless.
Our regular investments are currently held with Vanguard (edit: in a S&S ISA) where we are entirely invested in global equity trackers. We have a direct debit set up, I update our spreadsheets from it once every quarter, and we aim to ignore it until a) it’s time to reduce our equities exposure, or b) the collapse of capitalism. No market timing, no active management, no worrying - we’re just buying the market come what may. When the account hits six figures we’ll see whether it’s worth moving to a cheaper broker. This is for our early and/or phased retirement - to offset the actuarial reduction if we take our DB pensions early.
I have an investment account with AJ Bell but for a S&S LISA, where I dabble a little with active funds and occasionally some stock picking. I’m happy to be a bit risky with it due to the government contribution and we can’t access this until 2048. This is really earmarked for fun money in our early retirement so it only gets occasional contributions, making it cheaper than Hargreaves Lansdown. I threw in a bit (with the government chipping in another 25%) in the middle of March. That’s obviously done well due to the markets rallying over May and June but, given the timeframe, those paper gains are essentially meaningless.
Our regular investments are currently held with Vanguard (edit: in a S&S ISA) where we are entirely invested in global equity trackers. We have a direct debit set up, I update our spreadsheets from it once every quarter, and we aim to ignore it until a) it’s time to reduce our equities exposure, or b) the collapse of capitalism. No market timing, no active management, no worrying - we’re just buying the market come what may. When the account hits six figures we’ll see whether it’s worth moving to a cheaper broker. This is for our early and/or phased retirement - to offset the actuarial reduction if we take our DB pensions early.
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The only "shares" I do is via my SIPP, that is managed on my behalf by a local FA. It is also hosted on AJ Bell and the majority of my pot is invested on the Fundsmith fund. It absolute tanked at the start of March wiping 35% of my pension out... But it has now recovered by more than what was lost. This fund routinely makes in excess of 35% returns, but it also can tank! This doesn't concern my as I won't need access to this pension for another 18 years...
Burgundy
Forum GOD!
Keep an eye on it. Fundsmith has done very well in recent years and Terry Smith has been rightly lauded but, only a few years ago, so was Neil Woodford and look what happened there. I certainly wouldn’t have wanted the bulk of my pension in Woodford Equity Income Fund.
My first career after uni was as a stock broker, but I soon learnt that it was not for me and moved over to the investment analysis on the buy side, but left that for a broader career in corporate finance. I’ve owned stocks and bonds for most of my working life and learnt that if you’re going to be in the market diligence and a long term view and patience are essential along with a healthy respect for the downside. I’m fortunate to have two defined benefit/final salary pension schemes, but I’ve still taken a conservative approach to my investments. At present my portfolio is split 50/50 between cash + fixed income/common stock. The portfolio is diversified by geography, currency and industry, but all in high quality issuers with sound fundamentals, strong balance sheets and top tier management. Nevertheless, the recent stock market crash has negatively affected my portfolio, but not disastrously. I take the long view and don’t worry about the day-to-day gyrations of the market. Because i have a good cash cushion and solid pension income I have not had to sell any of my stocks, but I have done some judicious culling of my weaker holdings for tax loss purposes. Common mistakes include panic selling into a falling market and/or not clearly understanding the difference between investing and gambling. Also, trying to time the market is a dupes game: what matters is not market timing, but time in the market. Bottom line, if you have a well structured and diversified portfolio property aligned with your risk tolerance and financial needs and objectives you should be able to ride out the current storm. Just ignore all the market noise and keep your eye on the long term, which for me is the next 5-10 years. And before I forget, don’t be greedy: pigs get fat, but hogs get slaughtered. This is just my view as an informed layman who’s spent the last 50 years trying to build a secure financial future for my family. I should note also that I have an independent fee-only financial advisor and an independent fee-only portfolio manager, both of whom I discuss my finances and investments with on a regular basis.
Vacumatic
Testy
I did very well in share dealing over the last 20 years. I came out of the stock market at the end of 2019 because I wanted no risk, I turned everything into cash.
There are some real tax advantages in how HMRC deals with capital growth on the share price.
If ever your employer offers a share deal then take it, about 15 years ago my then employer offered a deal to employees at $1 a share limited to 250,000 shares. Fellow employees borrowed heavily, remortgaged their houses, did everything they could. Quite a few bought the maximum. I thought they were crazy and just went for 10000 shares and sold at $44 a share in 2006, they are now trading at $188.
I have heard that the big investors are going back into the market knowing the the Bank of England is ready with QE, interest rates are at an all time low, it looks like the worst of covid is over and that business will recover to better than pre covid levels. If you believe all these factors are true and you have spare cash (that is earning pitiful interest) the you should be buying shares, which shares is the Big question but FTSE 100 companies (ex oil, property and retailers and whatever other companies you think may struggle over the next 5 years) are usually regarded as a safe haven.
Everything depends on how much risk you are prepared to accept and your confidence in the UK economy.
There are some real tax advantages in how HMRC deals with capital growth on the share price.
If ever your employer offers a share deal then take it, about 15 years ago my then employer offered a deal to employees at $1 a share limited to 250,000 shares. Fellow employees borrowed heavily, remortgaged their houses, did everything they could. Quite a few bought the maximum. I thought they were crazy and just went for 10000 shares and sold at $44 a share in 2006, they are now trading at $188.
I have heard that the big investors are going back into the market knowing the the Bank of England is ready with QE, interest rates are at an all time low, it looks like the worst of covid is over and that business will recover to better than pre covid levels. If you believe all these factors are true and you have spare cash (that is earning pitiful interest) the you should be buying shares, which shares is the Big question but FTSE 100 companies (ex oil, property and retailers and whatever other companies you think may struggle over the next 5 years) are usually regarded as a safe haven.
Everything depends on how much risk you are prepared to accept and your confidence in the UK economy.
Burgundy
Forum GOD!
https://monevator.com/ is a really excellent blog that I’d thoroughly recommend delving into.