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Been with Ratesetter for a couple of years now earning 3%+ with instant access, more if it is deposited for 1 year or 5. Company holds a large Fund to cover any defaults.
Gold bullion is on the up, with market and currecy uncertainty it's always a safe haven although it's really long term. Atkinsons sell bullion coins cheaper than Royal Mint and Bullion by Post.
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50% in a US fund
20% in a UK fund
20% in an Asian fund
10% in a "risky" fund
You will find that different funds grow/shrink at different rates, but balancing them out on an annual basis, you will limit your falls, and make your gains a bit more concrete when one fund/region does unusually well.
Also, don't panic when stocks fall. You are in for the long haul, so even if it drops 10% YOY, it will go back up again.
Tbh, all these are the same thing in different wrappers. Managed funds. The key is to select one that has done consistently well over a number of years. Old Mutual do good funds. One of the most successful over the last (many yeas) has been the Lindsell Train GLobal Equity fund.
Market rising or dropping - the main aim of a fund is to out perform the market and anyone else. They do it by the quality of decisions.
Get on an investment site, like Hargreaves Lansdown and do some research into the best performing funds over at least 5 years. Pick a few, spread your investment, put a few quid in each month. They will do the rest.
The main take home I was given is that it is a long game - it's better to pay off debts (mortgage excepted, although this can also be a good idea to clear early and will potentially save thousands) and and ensure you don't leave yourself short. Maximise isa allowance for tax efficiency.
Again,not an expert - after discussing at some length, I knew I wanted to do it but not yet as I don't have the disposable income for it and it was smarter to increase pension contribution instead.
Debts vs investments - depends on the interest rates and the return. E.g a mortgage at 1.5% isn't worth paying off IMO as you should be able to make at least double that return, if not three or four times it, in a good investment.
If you have 100k in a mortgage at 1.5%, leave it, and put the money you'd repay it off with into an investment that will get you more than that in a return.
However, a debt at 5% interest is worth paying off.
Most funds fail to beat most indexes most of the time.
As for historic performance, check out Neil Woodford. He's a guy changing the face of investing (not in a good way). He was shitting cash for decades and has done appallingly in recent years. He is fuelling a move for more and more people to drop the active funds and go for trackers.
Personally, until the next correction, I'd choose to pay off debts way before investing as it keeps your finances simple and is no risk steady progress.
I'm keeping my investments in cash funds for now
I lost 50% of my pension fund in the last crash, so this isn't as unlikely as people think
But such things don't last forever and I'm in this for the long game so I'm staying put.
At the moment I have most things one would want, all the guitars, amps and pedals; a car i own outright; all 3 consoles on the market with games over 100 games in my library, I travel a few times a year and still have some money left over. My mortgage will be paid off in around 7 years, there is a small balance on my credit card but at 0% so going to spread that repayment over it's 0% terms and put remainder funds into investments. It would stop me seeing that I have money in my account even if it's an ISA account and will stop me spending it. I have a bad tendency to buy things on impulse and I realise it is best to put my money away to a place that I can't touch for the sake of me.
Ouch that's pretty nasty
How do you account for the fact that that can happen? For example long term you can probably ride it out but if you were nearing retirement and that happened it would be crushing.
If you want to access that money in the next 5-10 years it should be in potentially volatile stocks & funds but moved towards bonds and gilts. Lower returns but much less likely to fall over