On Thu, 16 Jul 2015 12:51:39 +0100, tony sayer wrote:

My IFA makes me money by making sound financial plans for the
future
by suggesting a portfolio of investments that fit with my
aversion,
or not, to risk and also taking into account my circumstances and
where along the plan we are. For instance you move market based
investments out of the market and into guaranteed bonds/gilts/cash
when you are a few years from say retirement. So of the market
crashes or even drops just a bit you don't lose the value that you
have built up from taking a risk on the market for the previous
years. Investing in the market is medium to long term, at least
five
years, and you have to sit tight through when the market slumps.

Some sort of witchcraft then;?...

Not really the long term, 5 years, trend in the markets is upward
some times not a lot, sometimes considerable. The hard bit is working
out where you are happy far as risk v return is concerned and what
spread of investments to utilise to match that risk/return profile.

You may be happy to put £5k into a rather risky investment that could
double in value year on year. Perhaps the bulk is then in something
that has a good fund manager and a track record of returning at the
upper end of it's sector. The maybe another significant amount in
bonds or gilts, some perhaps fixed term.

The important thing to do is to regulary rebalance the portfolio. A
year on that 5k risky investment is now worth 10k, you don't want to
lose that. So realise 5k of it and move that cash into the lower risk
but also lower return part of the portfolio.

This is part of what a decent IFA does.

Open question for the group, how much is a "serious amount of
money"?

I'd say around 10 K odd..

Only two responses, everyone waiting for everyone else?

£10 k wouldn't last 6 months even with our frugal life style, we eat
and keep warm but there is very little "disposable income" after the
bills have been paid. We don't smoke, drink, eat out, have
holidays...

To me a serious amount of money starts to kick in at about £100k. ie
an amount that could generate an income of a few k/year without
erroding the capital below inflation but might be a bit risky.

--
Cheers
Dave.

In article o.uk, Dave
Liquorice scribeth thus
On Thu, 16 Jul 2015 12:51:39 +0100, tony sayer wrote:

My IFA makes me money by making sound financial plans for the
future
by suggesting a portfolio of investments that fit with my
aversion,
or not, to risk and also taking into account my circumstances and
where along the plan we are. For instance you move market based
investments out of the market and into guaranteed bonds/gilts/cash
when you are a few years from say retirement. So of the market
crashes or even drops just a bit you don't lose the value that you
have built up from taking a risk on the market for the previous
years. Investing in the market is medium to long term, at least
five
years, and you have to sit tight through when the market slumps.

Some sort of witchcraft then;?...

Not really the long term, 5 years, trend in the markets is upward
some times not a lot, sometimes considerable. The hard bit is working
out where you are happy far as risk v return is concerned and what
spread of investments to utilise to match that risk/return profile.

You may be happy to put £5k into a rather risky investment that could
double in value year on year. Perhaps the bulk is then in something
that has a good fund manager and a track record of returning at the
upper end of it's sector. The maybe another significant amount in
bonds or gilts, some perhaps fixed term.

The important thing to do is to regulary rebalance the portfolio. A
year on that 5k risky investment is now worth 10k, you don't want to
lose that. So realise 5k of it and move that cash into the lower risk
but also lower return part of the portfolio.

This is part of what a decent IFA does.

Around here they just buy house and rent 'em out;!..

Open question for the group, how much is a "serious amount of
money"?

I'd say around 10 K odd..

Only two responses, everyone waiting for everyone else?

£10 k wouldn't last 6 months even with our frugal life style, we eat
and keep warm but there is very little "disposable income" after the
bills have been paid. We don't smoke, drink, eat out, have
holidays...


I thought that original question meant how much could you lay your hands
on if needed like now?..


To me a serious amount of money starts to kick in at about £100k. ie
an amount that could generate an income of a few k/year without
erroding the capital below inflation but might be a bit risky.


Yes around that ..

--
Cheers
Dave.




--
Tony Sayer