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Post by tory on Nov 23, 2019 10:54:59 GMT
I'd agree with that unless it is literally your only savings.
Buy that Leica and save the rest of it.
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Post by Mr. FOLLARD on Nov 23, 2019 11:42:09 GMT
OK.
So shares are the way to go if you're looking at long-term gains.
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rayge
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Post by rayge on Nov 23, 2019 13:19:16 GMT
If you put £5000 away for 5 years, you'll get £118 per year (interest is not compounded, so you might as well take it annually). You'll have to pay income tax on that, assuming you earn more than £12k a year, which will leave you about £90 a year (a day's wages - is the time involved worth that?), or enough for a one Greggs coffee a week. You won't be able to touch that £5,000 for the whole term, and when you get it back, inflation or some other economic disaster sparked by Brexit or some other fuckery will have diminished its value. I see you mentioned shares, but although these might give you a bit more in terms of dividends, they can indeed go up or down in resale value, and there are hidden costs involved in buying or selling through a broker or some kind of investment fund. Basically, you are investing in shares by getting into the fixed interest schemes, but the company selling the bonds are taking the gamble for you. You would be much better off investing it in stuff that you need or want, especially if it keeps value, such as gold. There's no way you're going to make anything worthwhile on £5k anyway. If it really is surplus, put it in an easy access BS account for 0.5% or whatever, and then if something more interesting does turn up in the bonds line, and interest rates are no longer flatlined, you can move it into something worthwhile.
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Post by tory on Nov 23, 2019 13:25:07 GMT
OK. So shares are the way to go if you're looking at long-term gains. Buffett's maxim of "invest in what you know" is very true I think. For a safe bet, FTSE blue chip stocks are your best bet, but obviously you need major capital to buy those in a significant block to make it worth your while. To make major gains in smaller stocks you a) need to do a massive amount of research and b) recognise that you will have a bumpy ride.
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Post by tory on Nov 23, 2019 13:26:43 GMT
With £5k you are probably better off putting it in premium bonds. They wont lose value and you might win something far greater than the middling £100 you will make per annum.
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rayge
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Post by rayge on Nov 23, 2019 13:32:18 GMT
With £5k you are probably better off putting it in premium bonds. They wont lose value and you might win something far greater than the middling £100 you will make per annum. I endorse this - was going to mention it in my post, but wasn't sure they were still going.
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Post by Mr. FOLLARD on Nov 23, 2019 13:56:36 GMT
Thank you, friends!
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Post by Cousin Lou on Nov 23, 2019 15:44:31 GMT
OK. So shares are the way to go if you're looking at long-term gains. Buffett's maxim of "invest in what you know" is very true I think. For a safe bet, FTSE blue chip stocks are your best bet, but obviously you need major capital to buy those in a significant block to make it worth your while. To make major gains in smaller stocks you a) need to do a massive amount of research and b) recognise that you will have a bumpy ride. While true enough as any invester will say, Buffet doesn’t really stick to it. Look what Heinz did since Buffet bought abt a quarter of their shares
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Post by Cousin Lou on Nov 23, 2019 15:57:50 GMT
With £5k you are probably better off putting it in premium bonds. They wont lose value and you might win something far greater than the middling £100 you will make per annum. They pay no interest at all. Instead you’re in a lottery with a 1-25000 chance to win anything. I think I’d look at daytrading if you have some time to spend on it. Commissions/codts these days are futile.
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nolamike
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Post by nolamike on Nov 26, 2019 15:09:13 GMT
The sensible thing is to learn a trade under those circumstances. That's the funny thing. My brother went to college, I don't know why, to join my dad in his small kitchen and bathroom remodeling business afterwards. Instead of continuing with it after my dad wanted to leave, my brother decided to become a building inspector for real estate transactions. He wasted his time going to college - he could've gotten his contractor's and building inspector's license much earlier. It took him a few years to get going, but he's well established now and makes over a quarter million each year for like the last 10-15 years. He's rich as fuck. I think there's a fundamental problem with the expectations placed on today's high school students, or at least, problems with how we communicate expectations to them. A LOT of schools tell students that they have to go to college, without really providing any alternatives... and this is coupled with the fact that vocational training has been disappearing from a lot of high schools. Kids aren't taught that they can learn a trade and get started on a good career without college, if that's what they're more interested in doing. At the same time, I'm not sure that kids who are 17 or 18 are even really capable of deciding what they want to do for the rest of their lives. If you go into a trade, and get started on a full-time job, it becomes very difficult to then go back and get a college degree; at the same time, if you go to college, you are looking at spending a fortune on pursuing a degree which may or may not set you on a fulfilling career path.
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Post by Deleted on Nov 27, 2019 15:46:09 GMT
That's the funny thing. My brother went to college, I don't know why, to join my dad in his small kitchen and bathroom remodeling business afterwards. Instead of continuing with it after my dad wanted to leave, my brother decided to become a building inspector for real estate transactions. He wasted his time going to college - he could've gotten his contractor's and building inspector's license much earlier. It took him a few years to get going, but he's well established now and makes over a quarter million each year for like the last 10-15 years. He's rich as fuck. I think there's a fundamental problem with the expectations placed on today's high school students, or at least, problems with how we communicate expectations to them. A LOT of schools tell students that they have to go to college, without really providing any alternatives... and this is coupled with the fact that vocational training has been disappearing from a lot of high schools. Kids aren't taught that they can learn a trade and get started on a good career without college, if that's what they're more interested in doing. At the same time, I'm not sure that kids who are 17 or 18 are even really capable of deciding what they want to do for the rest of their lives. If you go into a trade, and get started on a full-time job, it becomes very difficult to then go back and get a college degree; at the same time, if you go to college, you are looking at spending a fortune on pursuing a degree which may or may not set you on a fulfilling career path. You're right. My brother's son was asked to decide to pick a major his freshman year at University of Colorado. I think that's crazy. I went to junior college because I had no idea what I wanted to major in. I found journalism and declared it as a major when I went to San Jose State. There, I transferred to Advertising after a year and a half, because I didn't want to attend and write city council meetings and my minor was graphic design. I thought Advertising combined both writing and graphics. I also stayed on a semester after to get my English degree and entered the masters program while getting my single-subject secondary credential. I tried teaching for a year or two, but it paid nothing, and went into Insurance for five years, which I hated. I worked my way into marketing communications, where my degree applied more. I was talking to a co-worker, the head of investment affairs at our company, a month or so ago. His son is going to Univ. of Michigan for business and I brought up my nephew. My co-worker said he's still trying to figure out what he wants to do. And yes, I had friends who didn't go to college and tried going back. The road to getting a degree was just too long after awhile and they quit - it's hard to work and study. I tell my kids I just want them to be happy, but also cite the unemployment figures of college graduates vs. non-college. The problem these days is student debt. My college education was relatively cheap and I had to pay off a meager student loan, which I did in a year.
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nolamike
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Post by nolamike on Nov 27, 2019 16:16:50 GMT
I think there's a fundamental problem with the expectations placed on today's high school students, or at least, problems with how we communicate expectations to them. A LOT of schools tell students that they have to go to college, without really providing any alternatives... and this is coupled with the fact that vocational training has been disappearing from a lot of high schools. Kids aren't taught that they can learn a trade and get started on a good career without college, if that's what they're more interested in doing. At the same time, I'm not sure that kids who are 17 or 18 are even really capable of deciding what they want to do for the rest of their lives. If you go into a trade, and get started on a full-time job, it becomes very difficult to then go back and get a college degree; at the same time, if you go to college, you are looking at spending a fortune on pursuing a degree which may or may not set you on a fulfilling career path. You're right. My brother's son was asked to decide to pick a major his freshman year at University of Colorado. I think that's crazy. I went to junior college because I had no idea what I wanted to major in. I found journalism and declared it as a major when I went to San Jose State. There, I transferred to Advertising after a year and a half, because I didn't want to attend and write city council meetings and my minor was graphic design. I thought Advertising combined both writing and graphics. I also stayed on a semester after to get my English degree and entered the masters program while getting my single-subject secondary credential. I tried teaching for a year or two, but it paid nothing, and went into Insurance for five years, which I hated. I worked my way into marketing communications, where my degree applied more. I was talking to a co-worker, the head of investment affairs at our company, a month or so ago. His son is going to Univ. of Michigan for business and I brought up my nephew. My co-worker said he's still trying to figure out what he wants to do. And yes, I had friends who didn't go to college and tried going back. The road to getting a degree was just too long after awhile and they quit - it's hard to work and study. I tell my kids I just want them to be happy, but also cite the unemployment figures of college graduates vs. non-college. The problem these days is student debt. My college education was relatively cheap and I had to pay off a meager student loan, which I did in a year. Yeah, those statistics are bleak. You need a college degree nowadays for low-paying, entry-level work that shouldn't really require a college degree. And the loans are brutal.
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