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Reasons to be Cheerful


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It would be a brave man who would invest in the current markets rather than over pay their mortgage at present, yeah you might get an extra % here or there but is it worth the risk?

 

Only the individual can answer that.

You just told me to speculate on stocks recovering in a year

 

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On 06/05/2020 at 03:32, Granny Danger said:

Only 5 years since I started managing my own pension.

Individual years are not important.

They are if/when they wipe out any previous years' returns

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2 hours ago, hk blues said:

They are if/when they wipe out any previous years' returns

Anyone who thinks in terms of single years should avoid investing in shares and/or funds. Such investment always has to be undertaken in the basis of a longer timescale.

 

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Anyone who thinks in terms of single years should avoid investing in shares and/or funds. Such investment always has to be undertaken in the basis of a longer timescale.
 
This is kind of what the pensions advisor I seen told me.

Point A is now, point B is 30 years from now. Point B will always be forecast to be higher, but in between the line will saw tooth like f**k.

The less time you have between the points, the more exposed to individual drops (and rises) you are.

I should add for Mixus clarity that the cheap debt thing is the theory behind it.

My personal reality is that I always target the mortgage, because I have a personal phobia of debt.
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43 minutes ago, Granny Danger said:

Anyone who thinks in terms of single years should avoid investing in shares and/or funds. Such investment always has to be undertaken in the basis of a longer timescale.

 

Yes.  But, my point still stands, one year in isolation can wipe out several years of good returns.  

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2 hours ago, Bairnardo said:

This is kind of what the pensions advisor I seen told me.

Point A is now, point B is 30 years from now. Point B will always be forecast to be higher, but in between the line will saw tooth like f**k.

The less time you have between the points, the more exposed to individual drops (and rises) you are.

I should add for Mixus clarity that the cheap debt thing is the theory behind it.

My personal reality is that I always target the mortgage, because I have a personal phobia of debt.

Investing is always a judgement call but the best approach is to look at past experience.  A quick check of the FTSE or Dow will show that over an elongated period (20 - 30 years) the market will always perform positively.  Even accounting for slumps, recessions and ‘black swan’ events.

I reckon anyone investing now is going in at the bottom end of the market with the worst hits already having been experienced.

Though anyone who isn’t comfortable should certainly avoid it at the moment.

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1 hour ago, Granny Danger said:

Investing is always a judgement call but the best approach is to look at past experience.  A quick check of the FTSE or Dow will show that over an elongated period (20 - 30 years) the market will always perform positively.  Even accounting for slumps, recessions and ‘black swan’ events.

I reckon anyone investing now is going in at the bottom end of the market with the worst hits already having been experienced.

Though anyone who isn’t comfortable should certainly avoid it at the moment.

I don't disagree with you, but we can apply the same analysis to house prices over time.  The problem is we don't always have the luxury of choosing when to jump on and off the bus and can get caught out.  

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9 minutes ago, hk blues said:

I don't disagree with you, but we can apply the same analysis to house prices over time.  The problem is we don't always have the luxury of choosing when to jump on and off the bus and can get caught out.  

No we don’t.  Anyone who cannot commit to long-term investing, whether through a SIPP, ISA, or some other vehicle, should probably avoid it.  But many folk will have some for of retirement plan which, by definition, is going to be a lengthy one.

On that basis any 20-30 year period will show positive results.  Take this excerpt to illustrate this:

The most recent 20-year span, from 2000 to 2020, not only included three bull markets and two bear markets, but it also experienced a couple of major black swans with the terrorist attacks in 2001 and the financial crisis in 2008. There were also a couple of outbreaks of war on top of widespread geopolitical strife, yet the S&P 500 still managed to generate a return of 8.2% with reinvested dividends. Adjusted for inflation, the return was 5.9%, which would have grown a $10,000 investment into $31,200.

 

Taking a different 20-year span that also included three bull markets but only one bear market, the outcome is far different. In the period from 1987 to 2006, the market suffered a steep crash in October 1987, followed by another severe crash in 2000, but it still managed to return an average of 11.3% with dividends reinvested, which is an 8.5% inflation-adjusted return. Adjusting for inflation, $10,000 invested in January 1987 would have grown to $51,000.

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3 minutes ago, throbber said:

We actually couldn’t get it as Deliveroo don’t deliver oo our address so got a burger from a place in Portobello instead. It probably wasn’t as good as 5 guys tbh but it was certainly overpriced which somewhat made up for it.

Probably fox meat. 

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 New purchase on the way..
 
CEB4949B-9274-43F2-99BC-4613F124DACB.jpeg.a7318ece797a58a80ae1eea364885593.jpeg
Didnt you already have that? I dont really like the wire rope. Fond the sort of cable type rubberised ones carry a touch more weight and are better....

Need to look mine out though. Hoping to hang the bag outside tomorrow or Saturday where I can use it, rather than my rabble of a garage
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4 minutes ago, Bairnardo said:

Didnt you already have that? I dont really like the wire rope. Fond the sort of cable type rubberised ones carry a touch more weight and are better....

Need to look mine out though. Hoping to hang the bag outside tomorrow or Saturday where I can use it, rather than my rabble of a garage

I’d seen them and the name amused me but never bought before. A gym in the Maldives had them and I got on well with them. Ropes tend not to last long with me and the only one I’ve got left is so painful when it hits you that it could end up breaking a toe. 

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24 minutes ago, MixuFixit said:


The authentic Nova Porty experience

Had to look the place up as I was certain it would sell different types of ironically-named fries and “slaw”. Of course it does. 

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