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Why on earth would you trust a Bank with such a decision? Do you know what they are investing your money in and what the fees are?
You can't ever call the stock markets and how they will move!
SO for example if I sell my FTSE100 holding now to take advantage of the rise before an expected second dip does that reduce my total ISA allowance, or is it fine because the cash stays in the stocks and shares ISA?
I know its timing the market but seems like a second fall is inevitable.
I guess I could hedge and prepare to put more in if the falls again.
Its all in vanguard btw if it makes any difference.
Feedback
The key I've found is to not chase big returns and to be patient. I started 12 years ago and have maxed out my S&S ISA for myself and my wife each year. Initially the return was low in momentary value, but now a 5% gain is substantial. That's the patience part, it takes years to build the wealth to a point where it can be impactful on your life. Too many people start late unfortunately.
With regards to not chasing big returns I mean risking to much on a few ideas. I tend to have about 10% in gold, 40% in market trackers, 20% in managed funds, 20% in blue chip stock, evenly split between the UK and US and I save 10% for risky stuff.
I've make over 200% returns in 6 months on some of my risky stuff and sometimes think, I should have put more in, but quickly remind myself my goal is 5-7% gain YoY.
In the current market conditions, anyone can make big returns. I'd just suggest not getting too pulled in to a high return mentality and not hedging, otherwise you could end up with some losses.
The other thing is to reduce losses as much as possible, but never sell on a lose. When the virus was kicking off in Italy, I sold all my positive positions and held cash. Because of this I've made an extra 30%+ vs if I'd stayed in, like a lot of my friends did.
I'm getting to a point now, where I'd rather pay a wealth manager to handle things. It can consume a lot of time and play on emotions if you're doing it all yourself.
Feedback
I managed to get in about a week after the lowest point so has done quite well and tempted to move back to cash and wait another drop.
Of course if the drop doesnt come it leaves me buying in again at a higher cost.
That's why I started my kids ISA's the day they were born, as time is the biggest factory in wealth creation and something you can't earn more of.
However now is the best time in years to start given the market conditions, so you'll benefit from that.
I'd focus initially on an Accumulation All FTSE tracker and an S&P tracker. Low risk over the long term. Once you're comfortable with that, build out some specific low risk stocks.
Don't know if I'm missing something and being a bit thick... but I'm not sure I follow the above maths.
£800 per month for 20 years is £192k in deposits (not £243k). I've not made any allowance for inflation (to increase the monthly investment sum) as we don't know what inflation will be.
Hargreaves Lansdown has a calculation tool that says £800 per month for 20 years (with 7% pa growth) results in a total fund of £408,324. (and 30 years would result in a fund of £940,851). What am I missing?
Also... is 7% pa a reasonable expectation?
None of this is exact, but it's as close as you can get.