Do you invest?

I’m not sure I understand your position.

The logic of the stock market is that people constantly find ways of starting companies that build value and grow. That could be by digging resources out of the ground, making clothes, selling food, making weapons, the list is endless. Individually some of those companies will fail, but at the same time other people will spot opportunities and will start new companies that thrive and grow.

By investing in an index tracker you get to own a piece of a large swathe of those companies (which ones will depend on the type of tracker you choose). The individual failures are outweighed by the successes and the new starters because ultimately as long as there are people on earth, those people will have needs and wants that they are willing to pay to be satisfied. Companies, and stock markets, grow by successfully finding ways of fulfilling (or creating!) those needs and wants.

it sounds like your take on this is that the whole system will somehow collapse, but to realistically happen that is a sort of “end of days” scenario for humanity. At that point I think we’ll have much bigger problems than losing money on the stock market, so I don’t think I’d be prepared to bet on it - certainly not at the risk of losing out while the wealth grows.

One of the biggest issues I see is that the wealth that is being generated is concentrated in the hands of fewer and fewer people - hence why we now have billionaires and probably the worlds first trillionaire soon.

Ordinary people need to get some of these benefits too, and owning a stake in these companies is the only way that will happen. Keep your money as cash and you are standing on the sidelines watching the rich get even richer, leaving you further and further behind.

https://rebeldonegans.com/finance/rfs/course-notes/?fbclid=IwVERFWAQSVItleHRuA2FlbQIxMQBzcnRjBmFwcF9pZAo2NjI4NTY4Mzc5AAEeHqScYjGgsytFy-fAMOCEnLcMnVy5ZFTd031aRxVxdO9g7fBGbbihMWDMSFMaem8IzgnTdSsclOPxkDQUICA#roadmap

this is the link for Rebel finance school. They also have a Facebook page which is very useful.

I had no idea bout investing but this breaks it down I watched all the videos here before deciding to invest. There are some very clear basics guidance to follow that will suit th majority of the population.

look into JISA fo kids. SIPPS an JSIPPS for pensions for kids and adults.
absolute game changer.
the tax free wrapper and the compound interest is incredible.

this honestly change my life and I wish I had started investing decades ago.

Yes, I use my full ISA allowance every year and pay AVCs. I’m also about to open a GIA.

’m about 70% global developed world tracker plus a few smaller holdings in value funds I like.

Going to have to start derisking a proportion soon which I think is going to be a different challenge.

Which part of that isn't true in your view?

Have a look at a stocks and shares ISA and just start putting some money in each month. I was also overwhelmed with choice, returns, fees etc. So many opinions and reviews.

But I decided that just making a start on something was better than doing nothing. So I opened a Nutmeg account for the children and added the investment section to Monzo for me. I know they’re probably not the best ones, but both were very easy to open so I just did it. The Nutmeg app is now called JPM Investing for some reason.

It was a bit concerning to start with as I did it just after Trump and the tarrifs chat so it was consistently losing money. But I held my nerve as people said you need to and now Monzo is up 13%. I took the advice of only investing what you can afford to lose so I still save into a normal savings for easy access money.

What a shame this is your outlook.

This. Global equity trackers are the easiest and cheapest way to invest. Most managed funds do not achieve higher returns and have eye-watering charges that erode any gains.

As for “so called portfolio values is just a big bubble caused by (some) people having too much money on their hands and it can be erased at any moment. Investments are essentially about trying to get something for nothing”… That’s just ridiculous. For evidence of how ridiculous a statement this is, check out Warren Buffet and Berkshire Hathaway.

@Babsandherwabs agree and I've done a sipp for mine self invested personal pension again as I approach pension age I wonder how amazing it would have been to have little bonus pot to look forward to

@NotAnotherScarf the times has a campaign to get 15 hours into schools of proper invesment .

@Greentoytractor yes I do but like you far far too late !
Unlike you I've never had tens of thousands sat doing nothing ..

For those wondering what to do some good podcasts and links already there but read the classics like a simple path to wealth...and so on

Buy broad and diversified and it all balances out s d you can't go wrong.
I've drummed it into my DC and my 14 year old wants be to buy her shares. She has a sipp junior stocks ISA.

I would recommend having a look on the Boring Money website, it's very much aimed at encouraging more women to educate themselves in how to invest. It cuts through the jargon and makes investing feel much less daunting. You also receive a very amusing newsletter every Friday which always brightens my day. It's run by a woman for women, highly recommended.

If you can go without your savings for a year and not touch them,put them in a bond.
Interest is slightly higher and some if them you can get monthly interest.
1 year bond.

I don't believe that investments will really work going forward. Big part of the so called portfolio values is just a big bubble caused by (some) people having too much money on their hands and it can be erased at any moment.

Investments are essentially about trying to get something for nothing.

Yep, have been banging cash into my pension and S&S ISA for years, all in global equity trackers, and it's no exaggeration to say it's changed my life. In my mid 40s I'm already as sure as I can be that I'll have a very comfortable retirement from my mid 50s at the latest. If I'd stayed in cash or stuff like premium bonds I'd be absolutely nowhere near the same position. I've never once picked a stock or switched investments, don't see the point, just keep the payments going in through thick and thin and forget about it - I'm as passive as it's possible to be.

My kids all have Vanguard stocks and shares ISAs, they’re under 10 and have thousands! If they keep it investing for a couple more decades it should grow to a crazy amount. Wish someone had done that for me, must be nice 🤣

For myself I have an ISA but not as good, and premium bonds but not enough in there anymore to win very regularly.

watch the 7 seasons of billions show, certainly gives perspectives with investments etc

No, all our cash for savings is going into a Lisa and funds for buying our first home. But once we've done that we are looking at investing. Money regularly into something with a wide portfolio (I think that's the term) that is always going to steadily grow seems to make sense for a long term investment. Ideally we would like to set something up for the dc.

Absolutely. Read a book about the stock market and the power of compound interest when I was in my 20s and started investing in low cost trackers and leaving it there long term. Much less effort than shifting cash around for slightly better interest rates.

Now I alternate - one year sensible tracker ISA, next year slightly more wacky ISA.

I've just started too! Well about a year ago. I'm not in the UK so I don't know what it's called but there's a robot that buys and sells stocks and shares for me. So my rate of interest is currently at 5.36%. Before the recent bombing it was at 6.5. Investing for dummies is how my bank advisor pitched it to me. I'm definitely going to encourage DC to do the same.

Same here. My parents are well off but they never invested either, just regularly moved savings around for best rates etc and paid into pensions. We're busy paying off the mortgage before age 49.

If you read the calcs in The Psychology of Money, if anyone just consistently invested the same amount regardless of the conditions of the market, they will make more than someone who tries to boom and bust.

I highly recommend the book, I shied away from investing for years because of comments like this, but actually, investing little, often, and AS EARLY AS POSSIBLE is much better than an "only money you can lose" perspective.

I have a managed S&S ISA. I don't know enough to do it myself and while I could learn I also know my brain and that I simply wouldn't keep track of things so managed is best for me although potentially lower return.

I only started it this year and I'm in my 40s, I didn't really know anything about them and I thought that investing was all complicated and large numbers and financial advisors. I wish I had known earlier because I could have so much more of a cushion. But I figure I still have a good length of time to build it up so if the best time to be start was in my 20s then the second best time is now!

My 19 year old is working and on a good wage and has already started a S&S ISA. They save a good chunk each month in a cash ISA for the shorter term (car, moving out fund) and another chunk in S&S which they basically synth internet to touch at all for at least 10 years. I'm so impressed!

Investment Trusts are good for cautious investors as they spread risks.

I invest in property but apparently as a landlord I’m the devil incarnate. I used to invest in stocks using a financial advisor but just could not get my head around beta markets and all the jargon and frankly made much more buying and selling property. Bricks and mortar I get so I’m sticking with that.

Yes. Invested my inheritance. Was doing very nicely until this week, although I feel bad mentioning that.

Only started in my 40s, I WISH someone had educated me in my 20s. Parents were very risk averse and could have made an absolute killing but were always cash savers. Next best thing is educating my own DC.

Edited to add I read something the other day - if you can afford to invest £5k a year from age 25 - 35 and then leave it till 65, you will most likely be a millionaire or very close. Compound interest is mind blowing. Of course when I was this age I was saving for house deposit, having children etc so very hard to find that kind of money but my god.