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Made in ca
Fresh-Faced New User




The SP500 has had a pretty poor past month, down 7% from ATH. Is now a good time to spend less on models and more on equities, or should I hold out a bit longer to avoid catching the knife?
What are you folks doing?

This message was edited 1 time. Last update was at 2022/01/20 22:18:19


 
   
Made in us
On a Canoptek Spyder's Waiting List




Dollar-Cost-Averaging always, whether it's ETF's, Mutuals, Crypto, etc. I buy the same amount dollar-wise each month (VOO, QQQ, ETH, BTC). Even if everything dropped 50% I'd keep going. I don't have my entire life savings tied up in equity though, so I'm not too worried about a huge crash.

Anything short term I use https://app.capitoltrades.com/trades as an indicator of trends.

This message was edited 3 times. Last update was at 2022/01/20 23:41:19


 
   
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Fixture of Dakka





Getting investment advice from a bunch of gamers is probably not the most profitable use of your money...

CHAOS! PANIC! DISORDER!
My job here is done. 
   
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Morally-Flexible Malleus Hearing Whispers




Forget the Stockmarket, Buy Land. In the Country. People are going to be FLEEING the cities in the next 5-10 years, no one is going to want to live in cramped city conditions for 5k a month, when you can own a house 20 minutes away with acres of land for the kids, for 2k a month.

I wish I'd invested more in Maine. My house I bought in 2019 for 265 is now worth 345. I live 25-30 minutes from any major city, on a dead end street. The time to invest in COVID is now.
   
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Nasty Nob




Crescent City Fl..

 Vulcan wrote:
Getting investment advice from a bunch of gamers is probably not the most profitable use of your money...


Yes, this is a very very fair point.

I'm not even finished with my first year of investing. The question was asked, I'm working on buying high yield dividends stocks working toward brining in 500.00 a month as my goal. (Our basic household expenses. not counting food, gas.) I held AMC for a while but I believe I missed my good chance to make any monthly on it over the Summer when it hit 70-ish My only goal for that was to buy it wait and sell to launch my investments. It's similar to how I have paid for my 40K hobby for over 20 years. I'm picking up a few painting commissions as well this year to put money into my investments as well. I'm likely to sell an army to help reach my goals.

Spoiler:

I'm not sure I care very much about stock growth just a steady trickle in of monthly/quarterly dividend. again I am a total noob and just reading anything and everything I can find about what ever I might invest in. The only stock I carry for "growth" is PHUN DWAC and CFVI. PHUN being the lowest costing stock, under or about 3 dollars, I just need it to hit 6. More than that would of course be much better but I am setting my expectations very low. I'm trying to be a realist and figure Orange Man may be onto something and maybe it's enough to make some money this year.
What I am learning is, and this relates to those three stock choices, to look for more companies working with or under another as supports. all three of those are like legs on a table. Forgive the bad example, I am sure there is a better one. I am sure there are other examples of the same I just haven't discovered yet. My motivation is only that I want the money, not political.
As far as my other dividend stocks, I plan to buy or have, I am plotting how much I can spend ever month this year to buy a set number for the next 11 month. I'm mad at myself as I feel I am 9 years behind where I would be had I known I could have gotten into this back then. I made nearly 10 grand in painting commissions, over a year and a half, and have nothing much to show for it now. Most of that could have been put to work and I really whish I had.

To wrap this up I do think having a set amount as a minimum to invest is a good plan, if that helps. I do buy the dip when I can if I am already into something just to help me get where I am going but I also have to decide if that's the choice or is it something else. I also don't worry too much about the drop in stock price as I see the market like the sea. The tide comes in and goes out. And if that is not going to change what my dividends are then I don't care. Unlike watching AMC get dragged this far below what I worked it down to, it's become unacceptable to hold very much of that as I see it as a possible winning scratch off tickets, if it happens cool but I can't justify holding more than a few when that money could be working for me else where.


I have to say I like that I can actively manage my investments. My wife tried investing through some kind of fund and that money seems like it's evaporated and has no idea what she had been invested in through the fund. so win or loose at least I get to drive.
MY brother buys into companies he likes, Like Hasbro and some associated with his work. One of the guys he worked with buys Uranium. I need to look into Wild Turkey and folk-art paints.

Hope this was in some small way helpful. Best of luck!

This message was edited 2 times. Last update was at 2022/01/21 01:36:13


Sigh, Yet another doomed attempt by man to bridge the gap between the material and spiritual worlds 
   
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The Great State of New Jersey

I personally mainly invest into tech and defense stocks, I'm heavily invested into EVs (not Tesla, thats at this point a house of cards waiting to collapse as soon as people wise up that Elon Musk promises the same "breakthroughs" will happen next year, year after year after year. I pulled my 5x return out of there and invested it elsewhere) and space stocks especially, which means my portfolio is very much in the red at the moment (buying opportunity!) but I'd much rather take the risk on stock that still has potential upside of several thousand percent than invest into cyclicals - in 20 years the return on holding Bed Bath & Beyond stock probably won't be meaningful versus that of a company thats launching rockets into orbit daily.

FezzikDaBullgryn wrote:
Forget the Stockmarket, Buy Land. In the Country. People are going to be FLEEING the cities in the next 5-10 years, no one is going to want to live in cramped city conditions for 5k a month, when you can own a house 20 minutes away with acres of land for the kids, for 2k a month.


People have been doing that for 30+ years, COVID isn't going to change that. Yeah, briefly there was a flight to the *suburbs* which caused surburban real estate to spike dramatically, but all signs are indicating that the population flows are starting to flow back towards the cities again.

CoALabaer wrote:
Wargamers hate two things: the state of the game and change.
 
   
Made in gb
Ridin' on a Snotling Pump Wagon






Hi.

I work in the finance industry.

Please do not ask random nerds for investment advice. We’re not Financial Advisors. And even if some of us are (I’m not for clarity) you are not their client, so you’ve no come back.

You want to discuss the best way to invest any capital you have? Talk to an IFA.

And do be aware that Cryptocurrency isn’t just very high risk, but completely unregulated, leaving you with no recourse if things go Tits up.

   
Made in ca
Fresh-Faced New User




 Mad Doc Grotsnik wrote:
Hi.

I work in the finance industry.

Please do not ask random nerds for investment advice. We’re not Financial Advisors. And even if some of us are (I’m not for clarity) you are not their client, so you’ve no come back.

You want to discuss the best way to invest any capital you have? Talk to an IFA.

And do be aware that Cryptocurrency isn’t just very high risk, but completely unregulated, leaving you with no recourse if things go Tits up.


How did you get into the finance industry? I'm in a completely unrelated field, but would be interested in making a switch.
   
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Sheer. Blind. Luck.

I can’t really say more, as due to my specific role I’m asked not to identify myself online.

The job really isn’t as awesome/secret as that suggests. But it is what it is.

   
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There are some important rules when it comes to investing, one of them being:

Time in the market is more important than timing the market.

In other words the best time to invest is usually now. Of course it’s easy to prove this wrong with hindsight, though none of us knows what tomorrow will bring so we have to make decisions based on what we do know.

I agree that this forum is probably not the best place to get financial advice, there are lots of better resources available for free on the internet. I’d link you to some but the ones I know are UK specific so probably not of much use to a Canadian.

Seeing an Independent Financial Advisor is a good idea for some. A lot of people don’t have enough spare cash to make that worth doing though
   
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I’d genuinely argue that if you can’t afford professional consultancy, you probably can’t afford to lose whatever it is you’re looking to invest.

Anyone can of course take a punt on the market. A significant part of an IFA’s job is to recommend investments within the risk appetite of the client, and that any the client can genuinely afford to lose that money should things go hideously wrong.

Fun fact? Insistent Client is no longer a valid defence in the U.K.

Insistent Client means someone who asked you for advice, and was then hellbent on ignoring that advice, and doing something else.

The correct thing to do there is to refuse their business. The client is free to go and invest in whatever hare brained scheme they want - but if your assessment of their risk appetite and assets says no, you say no.

As for Bitcoin and other Crypto, CFD, Currency Speculation etc? Not only unregulated, but if you cannot explain it to the man in the street in a couple of minutes? I’d say you do not understand the product and the associated risks, so don’t invest.

Not to mention the worrying number of scammers up to no good in relation to such things.

This includes “acting as your advisor”, and “investing” on your behalf. That money, far too often, simply goes in their back pocket, whilst they show you pretty graphs they claim demonstrate how well you’re doing, and you should invest more. What’s that? You want to withdraw and crystallise your gains? Oh sure that’ll take 72 hours oh no I’m sorry the market crashed and all your money is gone every last bit of it I’m so very very sorry but there’s bugger all you can do about it.

   
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 Mad Doc Grotsnik wrote:
I’d genuinely argue that if you can’t afford professional consultancy, you probably can’t afford to lose whatever it is you’re looking to invest.


This suggests that most people shouldn't have a workplace pension because they don't fully understand it and they haven't had it explained to them by a professional who's time they paid for. Maybe you didn't mean that.

It's now easier than ever to invest in the stock market. Whether you do it through your pension or some other way. Picking the right fund manager really isn't hard, for most people this means going with a global tracker fund or multi asset fund and leaving it at that. After 10 years or more they'll probably be considerably wealthier than if they'd left the money in cash. It would be a shame for someone to lose out on those gains simply because they haven't employed the services of a Financial Advisor.

Sure, other forms of investing, which are a lot more speculative and a lot less regulated, are trickier to invest in. My personal view is that investing in Crypto for example shouldn't be done by anyone who isn't comfortable with the possibility that they could lose it all. It's not something I've ever invested in and probably never will. Such investments are very different to investing sensibly in the stock market though.
   
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Decrepit Dakkanaut




UK

I suspect Mad Doc is more cautious because he has to deal/his work has to deal with the fall-out of people who started off, cautious, got over confident and literally lost everything (or at least life-changing amounts of money).


Not to mention when you aren't familiar with a subject, even with the power of the internet, its very easy to get led astray. With how search-engines work and how people search based on what they know and how many internet articles tend to be limited snippets of info not comprehensive - its very easy to self-learn and get led very far down the wrong pathway. Thus making logical choices on bad and incomplete information.



There's also the risk that, without advice, you can end up making small gains over time which encourage you to keep investing; but where if you stood back and reviewed it from the start you'd realise you were actually losing money over time or getting a very tiny return on that investment. Same as how compulsive gamblers can often get led down that same path - a win here and a win there encourages them on and they never pause to see the amounts they are losing to get those wins.


In the end investment is very much like gambling. So I can see why he'd suggest that if you can't afford a consultant and professional advice, that chances are the amount you have to invest might be too small to be worth investing in a more risky manner.

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El Torro wrote:
 Mad Doc Grotsnik wrote:
I’d genuinely argue that if you can’t afford professional consultancy, you probably can’t afford to lose whatever it is you’re looking to invest.


This suggests that most people shouldn't have a workplace pension because they don't fully understand it and they haven't had it explained to them by a professional who's time they paid for. Maybe you didn't mean that.

It's now easier than ever to invest in the stock market. Whether you do it through your pension or some other way. Picking the right fund manager really isn't hard, for most people this means going with a global tracker fund or multi asset fund and leaving it at that. After 10 years or more they'll probably be considerably wealthier than if they'd left the money in cash. It would be a shame for someone to lose out on those gains simply because they haven't employed the services of a Financial Advisor.

Sure, other forms of investing, which are a lot more speculative and a lot less regulated, are trickier to invest in. My personal view is that investing in Crypto for example shouldn't be done by anyone who isn't comfortable with the possibility that they could lose it all. It's not something I've ever invested in and probably never will. Such investments are very different to investing sensibly in the stock market though.


Workplace Pensions are a valid point. I myself have a work related pension, which as such things go, if mine isn’t safe, no-one’s is safe.

But Pensions, unlike certain investments are very heavily regulated. There are rules, laws, guidelines, restrictions and what have you. And more importantly? Recourse should things go Tits up.

I shan’t share details of my particular pension scheme. But it’s subject to the same checks and balances all U.K. Pension Schemes are subject to.

But let us not prance around my central point. Any and all investments have a risk factor. All of them. Because the market forces that drive your investment to success or over a cliff just….are. Hence why an IFA has to balance their client’s risk appetite and truly disposable assets. Also hence how scammers promising frankly doubtful returns find the desperate, and I do not say this lightly, the stupid/naive into parting with their dosh.

I am, categorically, not calling anyone contributing to this thread a scammer. But folk need to realise certain opportunities are not regulated for a bloody good reason.

The greater the promise, the greater your suspicion should be.

   
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Storm Trooper with Maglight





 Mad Doc Grotsnik wrote:
But let us not prance around my central point. Any and all investments have a risk factor. All of them. Because the market forces that drive your investment to success or over a cliff just….are. Hence why an IFA has to balance their client’s risk appetite and truly disposable assets. Also hence how scammers promising frankly doubtful returns find the desperate, and I do not say this lightly, the stupid/naive into parting with their dosh.

I am, categorically, not calling anyone contributing to this thread a scammer. But folk need to realise certain opportunities are not regulated for a bloody good reason.

The greater the promise, the greater your suspicion should be.


I don't think our views are that different, though at the risk of discussing for the sake of it I'll say this: My previous post was just dispelling the myth that investing is some mystical art that only trained professionals understand. There is plenty of information out there about how to invest sensibly and (relatively) safely. Blogs, Youtube videos and forums (ideally not forums that specialise in toy soldiers) are all good sources of information. Yes, there is a lot of misinformation out there too, but I think most people can exercise the due diligence to avoid the pitfalls, without paying someone who has made a career out of advising people how to invest. Sure, there are people out there with a lot of money and very little financial sense. For them perhaps an IFA is the best resort. That's not to say that IFAs are the best solution for everybody. Self education is enough a lot of the time.

To use a concrete example, let's say someone invests all their investments in a single multi asset fund (essentially a fund that tracks the global stock market as well as some money in government bonds in case anyone was wondering). A lot of people do this, whether it's their workplace pension or a more active choice. Historically investing this way will almost 100% of the time mean that your investments have beaten inflation if they stay invested for 10 years or more. Many IFAs will suggest this form of investing, perhaps dressing it up a bit to ensure their client doesn't realise how simple it is.

Yes, it's possible to lose all your money if you invest all your money in a globally invested multi asset fund. This has never happened in the hundreds of years of stock market investing but that doesn't necessarily mean it never will happen. However if the world's stock markets all drop to zero that means that a financial meltdown of epic proportions has happened and money in general is basically worthless. In this scenario the global population will probably be more interested in where to scavenge their next meal from than how much money they have.

That's just a long winded way of saying that investing in the stock market can be safe and profitable, as long as some important rules are followed. Getting an IFA to set it up and monitor it might be a nice to have for some people but certainly not essential for many.



As for more risky types of investing, I think we agree that this is speculating (and can be compared to gambling) so I won't bother commenting on that any further.





 Overread wrote:
In the end investment is very much like gambling. So I can see why he'd suggest that if you can't afford a consultant and professional advice, that chances are the amount you have to invest might be too small to be worth investing in a more risky manner.


The idea that all types of investing are essentially gambling is incorrect and very outdated. Propagating such myths is also why a lot of people are poorer than they need to be.
   
Made in gb
Bryan Ansell





Birmingham, UK

I have a few funds that I invest in, small amounts (what I would spend on overly expensive high street coffee every week).

I ignore them as best I can, Looking in on them over the last 18 months raised my blood pressure too much but a recent glance tells me that what the experts all say is correct.

The stock market and investments are for the loooong term.

If you can afford to loose the sum invested then any time is right.


   
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Southeastern PA, USA

nutlord wrote:
The SP500 has had a pretty poor past month, down 7% from ATH. Is now a good time to spend less on models and more on equities, or should I hold out a bit longer to avoid catching the knife?
What are you folks doing?


Well, it depends. A financial advisor will start by asking you about your goal and timeframe, and how sensitive you are to risk...i.e. what are you trying to do, by when are you trying to do it, and how comfortable will you be seeing your money go up and down with market fluctuations. Your answers to questions like that will drive their recommendations.

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BUY KHORNE!

STOCKS FOR THE STOCK MARKET!!

SHARES FOR THE SHAREHOLDERS!!!


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P.S. Sorry, had to be done. You may now return to normal service (quite a good discussion)

This message was edited 2 times. Last update was at 2022/01/22 08:31:53


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 Zed wrote:
*All statements reflect my opinion at this moment. if some sort of pretty new model gets released (or if I change my mind at random) I reserve the right to jump on any bandwagon at will.
 
   
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Philadelphia PA

I think it depends on what you mean by invest.

Do you want to sock money away in a stable but increasing form that'll be there when you retire? Then I'd follow Mad Doc's advice, see an advisor, look into what benefits your work offers, etc.

Do you just want to play with some disposable cash and maybe make a short term profit? Then I wouldn't put in more than you can afford to lose - just like gambling.

I made a net $1100 off the whole Gamestop thing and figured I was pretty savvy. Then I put some of that in a bio-tech company that makes monoclonal antibody treatments for arthritis and such. They'd just gotten turned down by the FDA on their latest product so the stock had slid from a stable $15 per share to $5. Great, I thought, let's jump in and reap the rewards when it goes back up.

Well the stock has since slid to $1 per share. They're still a successful company producing things, but I'm staring at a loss now.

It's fun while it lasts, but I don't think anyone here (aside from maybe Mad Doc) will be setting the market on fire anytime soon.

I prefer to buy from miniature manufacturers that *don't* support the overthrow of democracy. 
   
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Bryan Ansell





Birmingham, UK

 ScarletRose wrote:
I think it depends on what you mean by invest.

Do you want to sock money away in a stable but increasing form that'll be there when you retire? Then I'd follow Mad Doc's advice, see an advisor, look into what benefits your work offers, etc.

Do you just want to play with some disposable cash and maybe make a short term profit? Then I wouldn't put in more than you can afford to lose - just like gambling.

I made a net $1100 off the whole Gamestop thing and figured I was pretty savvy. Then I put some of that in a bio-tech company that makes monoclonal antibody treatments for arthritis and such. They'd just gotten turned down by the FDA on their latest product so the stock had slid from a stable $15 per share to $5. Great, I thought, let's jump in and reap the rewards when it goes back up.

Well the stock has since slid to $1 per share. They're still a successful company producing things, but I'm staring at a loss now.

It's fun while it lasts, but I don't think anyone here (aside from maybe Mad Doc) will be setting the market on fire anytime soon.


Playing the market? then be prepared to take hits.
Investing? Then 5 years is barely a bare minimum length of time to assess success.
   
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Overread kind of gets my perspective, without knowing what exactly it is that I do, day in, day out.

In the financial world? I’m kind of the bucket boy. I clear up other peoples mess. Sometimes. It Depends.

If you, Dear Dakkanaut, don’t really understand the proposition of an offered investment? If you can’t explain that deal to me or the next man?

You need to understand and accept that, in the remote chance it’s well on the level and genuine? You. Do. Not. Understand. It. Enough. To. Invest.

Again, that doesn’t mean I think your thick, daft, stupid etc. Just contextually naive. There’s nothing inherently wrong with being naive.

But if you don’t understand what your cash dollar pound franc money is meant to be doing?

Give your head a wobble. Take a breather. Because if we don’t invest our spare cash dollar pound franc money? You’ve…..not actually lost anything.

Sure you might miss out on big returns? But do realise such returns absolutely are the exception, not the norm.

   
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Hey how come the other shitposts were kept up and mine was removed?
I've had very legit concerns that I've just had sat sleeping in mod inboxes that were really sincere, and then as soon as I start posting like a facebook-conspiracy-page-admin-boomer on meth, suddenly they have all the time in the world for me?

I understand that carving out a space on the forum so rich old people who have money to burn can brag about the fascinating minutiae of how to horde while the rest of the world teeters on the brink of really extreme costs of living and stuff, and god knows, GW thinks that they're the only important ones in this fandom, so I guess it makes sense that the mods here at dakkadakka would follow suit, but damn. I can see why GoldhenHorde stuck around for so long, y'all really do just give the trolls that extra TLC.
   
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 Mad Doc Grotsnik wrote:
Overread kind of gets my perspective, without knowing what exactly it is that I do, day in, day out.

In the financial world? I’m kind of the bucket boy. I clear up other peoples mess. Sometimes. It Depends.

If you, Dear Dakkanaut, don’t really understand the proposition of an offered investment? If you can’t explain that deal to me or the next man?

You need to understand and accept that, in the remote chance it’s well on the level and genuine? You. Do. Not. Understand. It. Enough. To. Invest.

Again, that doesn’t mean I think your thick, daft, stupid etc. Just contextually naive. There’s nothing inherently wrong with being naive.

But if you don’t understand what your cash dollar pound franc money is meant to be doing?

Give your head a wobble. Take a breather. Because if we don’t invest our spare cash dollar pound franc money? You’ve…..not actually lost anything.

Sure you might miss out on big returns? But do realise such returns absolutely are the exception, not the norm.


In a broader sense, this feels like something becoming increasingly true about a highly technical world. The common person doesn't have vast knowledge outside their own specific profession or expertise. No amount of curious reading is going to turn me into someone with a doctor's level of understanding about medicine or an electronic engineer's level of understanding about computer hardware. The age where anyone with the right tools and know-how could DIY anything has kind of come and gone. Many of the systems the world runs on are too complex for average joe to just pick up after some youtube videos beyond the most basic level and the basic level isn't enough to make big decisions without rolling big dice.

   
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Bryan Ansell





Birmingham, UK

MDG is giving sound sensible advice.

He hasn't said anything that isn't true. I mean, a financial advisor would skirt around the same info and invoice you for the privilege.
   
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dream archipelago wrote:

Are you like this around people in real life? I imagine it would be a lonely life if you were.

To the OP: I invest what I can afford and do so every month. It's slow gains but gains nonetheless.


Are you like this around people in real life? That is incredibly rude and I cannot imagine anybody would want your company for acting this way when a person is giving their best, honest advice.
   
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Also, in general? Just as it’s never too early to sort out a Pension, it’s never too early to sort out your Will.

I say this as I’ve just remembered I still need to nominate a beneficiary for my Death In Service benefits, which includes my entire Pension Pot should I snuff it whilst still employed where I am.

Again I shan’t be gauche and give exact figures, but let’s just say if the worst does happen? My God Daughter will be in for a pretty healthy lump sum.

The Will aspect comes in regarding what I want to happen to that cash. Her Mum is levelheaded and entirely trustworthy. Her Dad? No. Hell no. I’ll do everything I can to keep his sweaty, chinless hands off that cash. Which will mean some kind of Trust.

Some Trusts are effectively just a Safe Box. The money goes in and just sits there. Others include investment vehicles, with the intent to maximise the value for when it’s released to the beneficiary.

I’ll also need to figure out what sort of Pay Out Ages I can specific. 21 is off course a common one, but I do fear we’re all still too naive at that age to make sound financial choices. I reckon perhaps 25. Even better if I can keep it entirely secret before then, so Wilf doesn’t get it into her head that “I can do what I want because come this specific birthday my financial slate is wiped clean”.

And yeah. That’s gonna need professional, genuinely knows what they’re talking about, advice.

   
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 Mad Doc Grotsnik wrote:
Also, in general? Just as it’s never too early to sort out a Pension, it’s never too early to sort out your Will.

I say this as I’ve just remembered I still need to nominate a beneficiary for my Death In Service benefits, which includes my entire Pension Pot should I snuff it whilst still employed where I am.

Again I shan’t be gauche and give exact figures, but let’s just say if the worst does happen? My God Daughter will be in for a pretty healthy lump sum.

The Will aspect comes in regarding what I want to happen to that cash. Her Mum is levelheaded and entirely trustworthy. Her Dad? No. Hell no. I’ll do everything I can to keep his sweaty, chinless hands off that cash. Which will mean some kind of Trust.

Some Trusts are effectively just a Safe Box. The money goes in and just sits there. Others include investment vehicles, with the intent to maximise the value for when it’s released to the beneficiary.

I’ll also need to figure out what sort of Pay Out Ages I can specific. 21 is off course a common one, but I do fear we’re all still too naive at that age to make sound financial choices. I reckon perhaps 25. Even better if I can keep it entirely secret before then, so Wilf doesn’t get it into her head that “I can do what I want because come this specific birthday my financial slate is wiped clean”.

And yeah. That’s gonna need professional, genuinely knows what they’re talking about, advice.


With circumstances like that, I've always wondered if you can make some sort of specification on how the funds can be spent.

I think it would be a bit too much to dictate all of it, but saying like half or 10K of this can only be used for the purpose of a deposit on a house or something like that.

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As it stands right now? She’d be getting just shy of £200k, the vast majority coming from Death In Service benefit. So I’d definitely discuss restrictions and that as part of any Trust.

I think I’d particularly want to insist that if she’s buying a property with it, it’d have to be in her sole name.

In fact, I do wonder if I could just instruct it’s spent on a flat or similar, to be rented out. That way she has the benefit of legally owning a property, and a potential rental income.

I mean she’s only 6, so someone nthat age owning a home sounds ludicrous. But I can’t immediately think of any legal barriers to it?

I imagine the flat would be in the Trust’s name as a legal entity, and by rental funds go into it, as I very much doubt she could be a landlord until the age of 18, due to not being able to sign a binding contract until she’s of majority.

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Decrepit Dakkanaut




UK

£200K I'd certainly say should be left in trust with some trusted people appointed to help manage it. That said its also in the region where careful investment could yield quite a significant return per month - be that through rental or investments. So there's potential for it to both be a lump sum; a house buying amount or even just a living costs aid (ergo living off the interest/investment gains and leaving the bulk of the money untouched.


I think the best is appointing people you trust to help manage the money so that should the worst happen to you, there's someone you trust who can help guide her in manging such a serious sum of money. It also means that its more flexible to her situation in the future. You might dictate that it should be "for a house" however you might pass on and in the interim her situation might change to the point where a house is far from the most important thing in life.

I'd say a trust with simple goals setup to perhaps just preserve the amount or even consider investment of a portion of the whole toward growing it; and then simply a set of general policies/ideals as to how the money can be used in the future.



I would also say that when she turns 16 or so (or there abouts) she wants to be involved with the management of the money if anything is done with it outside of purely having it as a saving. That doesn't mean she's making choices, just that she becomes involved and aware of what goes on. Again this one really depends how you set things up, but I think its important that she learns early how such money can be and should be managed in a sensible manner so that upon whatever age she is allowed to use it, she's more "aware" of what to do rather than just suddenly getting it dropped in her lap.

This message was edited 1 time. Last update was at 2022/01/23 22:16:49


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