Martin Lewis says dump premium bonds.

[mossdog]

Not without risk but I'm on track for about 20% annual growth from investing in managed funds.

.........that's incredible! which funds are those?

[Michaeldyn]

Thats base on a 60k house. You can get it half that i. Golxthorpe. Will that make a good investment?

 

---------- Post added 10-06-2016 at 15:38 ----------

 

.........that's incredible! which funds are those?

 

It will be his virtural fund in coocoo land

[Kateykrunch]

I think I have £40K. I did have £35,000 but inherited some more and had to sell some. I think I ended up with £40,000.

I generally average around £550/£600 in prizes each year, but last year I got £1525.

 

Foxy lady: it's not possible to inherit premium bonds, they can stay in the draw for 12 months and then are cancelled and repaid to the holders estate.

[foxy lady]

Foxy lady: it's not possible to inherit premium bonds, they can stay in the draw for 12 months and then are cancelled and repaid to the holders estate.

 

As executor and beneficiary of the estate I inherited them along with rather a complicated tangle of other investments. Once I had obtained probate and got round to forwarding a death certificate etc to NS&I they sorted it all out. So perhaps I still have £35K, I wouldn't know. I was rather pre-occupied at the time.

Edited June 10, 2016 by foxy lady

[biotechpete]

.........that's incredible! which funds are those?

 

It wouldn't ake much sense without me telling you how much and in what proportions I've invested at what times, which I won't do on a public forum, but for instance, I invested in this 3 months ago

https://www.trustnet.com/Factsheets/Factsheet.aspx?fundCode=JTFYE&univ=O&pageType=performance

[Cyclone]

Not without risk but I'm on track for about 20% annual growth from investing in managed funds.

 

Well, frankly that's amazing. It's far better than any managed funds I've ever heard of.

 

---------- Post added 10-06-2016 at 18:31 ----------

 

Pricey fund isn't it

 

Charges

Standard initial charge 5.00%

Initial charge via Bestinvest 0.00%

Additional bid/offer spread 0.00%

Annual management charge 1.00%

Ongoing charges figure 1.35%

 

So over 3 months that fund has made 8.75% profit, but if you'd invested 6 months ago you'd have lost money. 4.3% specifically. It's rather volatile.

Comparatively a FTSE100 tracker in the last 3 months would have made 2.78%, or over 6 months 4.06%...

[mossdog]

It wouldn't ake much sense without me telling you how much and in what proportions I've invested at what times, which I won't do on a public forum, but for instance, I invested in this 3 months ago

https://www.trustnet.com/Factsheets/Factsheet.aspx?fundCode=JTFYE&univ=O&pageType=performance

........it could be to your advantage to tell us!..........maybe some of us could be tempted to invest in such rewards,thereby uplifting the shareprice to your advantage?

For me that would not help,as I am tempted to believe that stocks are due a monumental correction before too long due to the trillions of monopoly money or printed money(whichever term you prefer) boosting share prices over the last few years............I will stick with real money for the future.........physical gold!

[biotechpete]

Well, frankly that's amazing. It's far better than any managed funds I've ever heard of.

 

---------- Post added 10-06-2016 at 18:31 ----------

 

Pricey fund isn't it

 

Charges

Standard initial charge 5.00%

Initial charge via Bestinvest 0.00%

Additional bid/offer spread 0.00%

Annual management charge 1.00%

Ongoing charges figure 1.35%

 

So over 3 months that fund has made 8.75% profit, but if you'd invested 6 months ago you'd have lost money. 4.3% specifically. It's rather volatile.

Comparatively a FTSE100 tracker in the last 3 months would have made 2.78%, or over 6 months 4.06%...

 

It defaults to the usd fund, I have gbp and didn't pay an initial fee and the three month growth is 10.2%. This kind of discussion is why I'm surprisingly not interested in posting my investment portfolio online.

 

The whole point of investment is to buy low and sell high. Converesely if i'd invested in that fund 2 years ago i could cash in now with 80% profit. My worst performing fund has gained me 2% in the last year. Pretty far from cuckoo land.

[Iwork2shop]

I got a letter this morning saying I'd won £25 ? That makes £50 I've won in the last 3 months

[perplexed]

You forgot stamp duty at 3% on the purchase price, that's £1800 out of pocket on the day you buy it.

And solicitors fee's and a house survey, that's another £1200 gone.

 

So you've just spent 3k of your 40k and borrowed an extra 23k (not the 20 you were budgeting).

 

Landlord insurance cost me more than that every year (and I shopped around), although for the sake of argument we could accept that figure. Gas check is about right, maintenance varies, but I'll accept £500.

 

So, I make the mortgage (over 15 years) £147 a month.

The other annual costs when split by month are £60

Tax (@40% since this is someone who has 40k cash spare) £77/month (actually more as only the interest portion of the mortgage can be offset, but I can't be bothered to work it out, this goes in your favour).

 

So that's a monthly income of £116. It's 25 months before you even break even... Consider it any point before that and you've lost money on this investment.

Lets look over 15 years though, the period after which the mortgage is paid off.

I make that a return of £1392 a year, on an investment of 40k.

So after the 1 time costs of setup, and 15 years later, it's a profit of £17880

 

That is better than a rate of 1.5%, although you've had to work as a landlord for 15 years in order to get the return (which I calculate as approx 2.4%

 

If you put some value against your time and work it out, I doubt that it's really worth it.

 

It wasn't for me. I sold up, the amount of hassle it took to deal with tenants and maintenance issues far outweighed the small amount of profit it generated.

it it were purely an investment, then the return is better than an ISA I'd agree. But there are far better alternatives out there that don't require any personal time investing.

 

For example.

 

http://www.zopa.com

 

I'm currently averaging 4.7% return over the past 3 years. (This is taxed so you can reduce that by 40% to be consistent with the example above, meaning 2.82%). With no effort whatsover.

Other peer to peer lending providers are available, this is just the one I use at the moment.

I think you can even invest in zopa within an ISA wrapper now (if you can't, then it's coming soon). Which then keeps the return at the full 4.7%.

 

---------- Post added 10-06-2016 at 12:02 ----------

 

https://www.zopa.com/lending/isa?email_ok=true&form_error=false#isa-interest-contact

 

ISA not yet ready apparently, still coming soon.

 

You're right here I must admit - being a private landlord on a small scale isn't particularly profitable by the time you factor in the hassle. We sold ours a few months back. Even sticking the money in say, a year long bond with the Bank of Baroda or somewhere similar works out not much worse a return and there's zero effort required.

 

Interesting what you say about zopa - We're using Ratesetter, which seems to be working out well - can't remember the return off hand, but a heck of a lot better than most.