Do you currently invest for dividend income? Do you do it via stock picking or via investing in funds? If you aren't investing at all, what is stopping you? :)
The Humble Penny I invest in Index Funds. But choose Accumulation instead of Income type so dividends are included in the price. I know accumulation may prove cheaper for dividend investing for the long term BuT considering going Income type so I can use the dividends to invest in other things.
@@MissAbsss If you can invest in things with a better return than what you are getting, then whats the point in your current investments? you may as well liquidate your current investments and put the money in that thing instead
Hi Ken, I’m a 20 year old university studying computer science working part time so I can generate income to invest. I just wanted to say keep posting keep going !! Your channel has really become a must watch for me. God bless you and your wonderful family 🙏🏻
God bless, Tamuka! 😀. Hearing you say you're 20 years old just makes me think- WOW! You have such huge potential if you apply the ideas and ride the asset of time
Hi Ken, I am 25 and making a steady income with a good amount in savings at the moment and I have just started to educate myself on investment! Your videos are absolutely amazing, you are so transparent and explain things so clearly and you're really building my confidence. I plan to invest soon once I have found the right path for me but I wanted to let you know that your content is invaluable to me 😊
This video is fantastic! As a beginner it really allows me to have a better understanding on the things to look at before and consider before investing... Thank you so much for all your videos!!
I just began investing at the beginning of this week, I'd thought about it and talked about it with my wife for AAAAGES but never did anything, mostly out of not knowing how to actually go about it. I decided I'd begin with a fund, and build from there. It is with the help of this channel and a couple of others, and reading some books that I decided that I have to do it, otherwise I'll continue only talking about it and not actually doing it.
Hi Ken, I am a late bloomer and am just getting into stocks, I opened a vangaurd account following watching your videos. I now try to watch a video a day. You both (And Mary) are giving me so much inspiration on pursuing financial freedom even in this late stage of my life. Keep bringing it. You are amazing.
Aww, Sharon :). That means a lot to us 😊. Keep going for sure. Every step forward is worth it. Soon we'll be releasing something that means that we can even help you more. Be on the look out for it
Hey Ken, great info, appreciate the videos. Would be interested in seeing a follow up and thoughts in the current climate with many companies cutting dividends. Mainly whether you would look to invest elsewhere until dividends are re-introduced. Cheers
As a beginner, very clear, very useful information. Tank you very much. I thought the best P/E would be between 20 and 25. More than that was overvalued.
Hi Bro. I really enjoyed this video, good for newbies like me. It was really good. Please can you do more thorough ones on EFT and Index in relation to the current market. Already watched you did 6 months ago. Many thanks God bless
Nice, Panda Boss! I really enjoyed making this one and could have gone much deeper but will keep creating more in this area in the near future depending on what people want to learn :). Do you currently invest for dividend income?
@@TheHumblePenny I've started to. My main focus now is to pay off my debt, but I've started dabbling with investing with small amounts just to learn it. I had my first dividend last month (£0.24 - haha!). But considering I had ONE share, I was surprised I got one. I've just got a job in a Big 4 company though so more money to invest soon!! Buying stocks as gifts is an amazing idea!!!
Imagine it's Christmas, your girlfriend spots a small box, you pick it up, get down on one knee, open it up, and inside is a note: "I bought you some stocks and shares. Happy Christmas. xxx" :P
I invest in funds, and a tiny amount in one company's shares. Could you explain generally how an index fund with accumulation dividends works compared to dividends being paid cash? I've never quite grasped it as on Hargreaves Lansdown there's only a dividend date...
Hi Sophie The rate you talk about is the Dividend Yield. For Accumulation vs Income, you should notice a higher yield for "Income" because the denominator in the Dividend Yield calc is "Share Price" and the price of the Income fund will always be lower than the price of the Accumulation fund because dividends are not being reinvested. Generally, with Accumulation funds, the dividends received are simply reinvested and that helps that fund perform better than one that has income withdrawn because the latter has more money at work. Make sense?
Excellent video, as someone who is not confident with numbers, you really made this topic easy to understand! I will watch this again to make sure I've grasped all the major points but thank you so much all you do to increase the level of financial literacy of the general public! Your material should be taught in schools! This kind of information is actually useful and applicable! Thank you so much!👏🏾👏🏾👏🏾👏🏾🙏🏽 For your continued success!
What a great site you have here, could you do a piece on capital gains tax and stock Isa's please? I'd find it easier to understand if you could explain these matters. Thanks very much for the info so far, I managed to cut my mortgage down to 14 years by overpaying and now have some spare monies to invest.
😊I’m new to investing. I’m investing in the vanguard life strategy 100% index fund and I’ve just opened an account with AJ Bell where I pick my own shares to buy and invest in including dividend stocks. 🦠 The crash in the market has provided me with the opportunity to buy cheap stocks. 🤑
@@TheHumblePenny there is such a huge variety of ETF and Funds to invest in. Can you please recommand 2 or 3 ? Im actually a bit lost in all morningstar recommandations ! or please if you got a bit of time to advice on this fund: "Rathbone Global Opportunities Fund Institutional Acc I class". thank you very much (in advance)
I'm investing in global all cap accumulation to build my wealth in a one fund portfolio however I'm so unsure wether to invest for dividends along side it🤔 looking forward to watching this video. Also is it possible to use an app like freetrade using a general investment account along side vanguard or will i have to stick to vanguard?
Great video. Found this really helpful. I invest into an accumulated dividend fund on Vanguard (which I didn’t realise so thanks for clearing it up with your video)
Dividend investing makes a lot of sense for the retired or people that need to spend the dividends. For everyone else I've yet to hear a good argument.
@@TheHumblePenny Here's Terry Smiths view better than I could explain! "Take the example of an average S&P 500 company. Currently it has a payout ratio of 52 per cent - in other words half its profits are distributed as dividends - a return on equity net of tax of 15 per cent and its shares trade on a price to book (market value divided by book value) of 3.5 times. So, which generates more value for shareholders, reinvestment of the dividend paid out, or the reinvestment of profits by the company? The first handicap of reinvested dividends is that dividends are taxable in the hands of most shareholders. The exact amount of tax payable will depend upon where the shareholder is resident and which tax band they are in. If you are in the UK and a higher-rate taxpayer, dividend income will be taxed at 32.5 per cent, so you will only be left with 67.5 cents out of every dollar of dividend to reinvest. (I am using US dollars as I chose the S&P Index for the example, but the principles are the same for the FTSE 100 and sterling.) Handicap number two is that you reinvest at the market price for the shares which, given the price to book is 3.5x, means that you will get to own just 28.5 cents (100 ÷ 3.5) of the company’s capital for every $1 you reinvest. For every $1 of dividend paid out you get 67.5 cents after tax, which buys you just 19 cents of the company’s capital (67.5 ÷ 3.5). That doesn’t sound like much of a bargain. In contrast, every $1 of retained income which also belongs to you as a shareholder suffers no additional tax and is reinvested in the company’s capital at book value, so you get 100 cents of capital for every $1 retained. As if that is not enough of a reason to prefer retained earnings to dividends, each $1 which is retained on your behalf is turned into $3.50 of market value because the company’s shares trade on 3.5x book. This is the arithmetic of compounding and it is what equity investors should seek to capture, as those in Warren Buffett’s Berkshire Hathaway have done since it has not paid a dividend since Mr Buffett took control in 1965.
@@Metro6am Analysis of dividend paying stocks in S&P 500 - ua-cam.com/video/tzKsQDd6op8/v-deo.html The numbers definitely suggest that 0% dividend stocks fare better in the good times as companies get to reinvest those profits as you've said, not so much the case when you throw a couple of recessions in over the longer run.
Hi Ken, thank you for posting this very informative video. How do I access this information for index funds? When I use Hargreaves Lansdown to search for index funds, there is no 'dividend breakdown' tab for each fund?
Hey Linda It varies by platform. Vanguard, for example, are fully transparent with this. Check out our recent Vanguard video to see how to find this. It's called "Investment ISA - How to Open An Account with Vanguard"
All our content is about Financial Independence and not about Retiring Early (although this can become an outcome from becoming Financially Independent). Everything we share is what is necessary for building generational wealth😀.
I don't quite think of it that way. I focus on my goals and invest in asset classes around the world that will help me deliver the average return that I'm aiming for. No one knows when there will be a crash of any kind.
Great video. Brilliant breakdown of the dividends/finances on hargreaves site! How frequent would you invest in indexes such as ftse and s&p500? Monthly? Would it be best to start low and incrementally increase each month? Cheers for the content 👍🏼
The Humble Penny cheers! Opened a Freetrade account, 40% in ETFs, 20% commodities and 40% in stocks across different industries. We’ll see how it goes 👌🏼
Hi. This was excellent, although I'm a beginner and lots went over my head. It seems as though you have a nice spread of investment.. Any suggestions. I've opened the vanguard life strategy fund 100 equity accumulation but I also would like to buy into individual companies...
Great video again - opened a stock investing account with Trading 212 last year but haven’t used it yet but will be making my first investments soon (have always invested in dividend paying funds). Do you plan any videos on SIPPS specifically from a child’s perspective. I’ve been talking to my son with regards to starting a SIPP for my grandson he’s 4 - thinking if we can max out the contribution for maybe 4 years it should give him a good pot in the future....doesn’t seem to be much information on this.
Hey Man, thanks! About SIPPs for kids, I did a podcast about this recently and will look to create a video about it soon. You can listen to the podcast episode here: thehumblepenny.com/media Look for the section on the "Shades of Black Parenting Podcast"
Great videos! You are really clear and I've already learnt a lot over the last few hours watching your videos. I'm new to investing (not yet started) and trying to get my head around it all. So my question is regarding eligibility. I am a UK citizen but working in Malaysia for a local environmental NGO. When I went to Vanguard website it said that you need to be a UK resident. So I am struggling to understand if I can in fact use this platform for trading in Funds? Any thoughts or advice would be very much gratefully received.
Hi Nicola, Great to hear that our videos are being watched in Malaysia! 😊. The internet continues to marvel me. We were in Malaysia for some of our honeymoon. Your question is an interesting one. I think the safest thing to do is to call Vanguard and ask. Here is their number - 08005870460. Ordinarily, I'd think you can invest via the UK site as a ctizen. Then again, it might depend on how often you come back to the UK as there are general residency rules. Plus there is the question of where you pay tax. E.g. If you open a SIPP and make a contribution to it, you should get a tax rebate if you're a UK tax payer. However, you don't get a rebate via a Stocks and Shares ISA. So it might be that you can open the latter account. I'd be very interested to know what Vanguard say. Please keep us posted. Good work taking the leap to invest though. It is life changing stuff 😊
Hi i have been told to invest in a way that either focuses on yield or total return? This is confusing me- i invest in VLS60 would VWRL be accumulation or are dividends different?
Hey Ken, is it possible to use both Vanguard and Hargreaves Lansdown as investing platforms at the same time? :) When I was looking at the rules for Vanguard, I'm pretty sure I saw them saying you can't use another investing platform or your account will be terminated or something like that. (I could be wrong of course) :)
Hi Matthew - I think you can use both and having spoken to others who have done this for a while, its not uncommon, to have more than two investment platforms. Vanguard is quite popular but I'm with HL at the moment and there's alot of transparency I find, its also user friendly and so there may not be much of a different in terms of service to Vanguard. It really boils down to preference.
Hi Ken, not yet but I plan to start soon alongside overpayments on my mortgage. Trying to increase my savings rate by cutting expenses and budgeting and using any savings for this. You guys are helping me and my wife with this :-D
Hi Ken, I've being looking at Lloyds banking group as a dividend stock the finances look good on paper & it's a 5.8% yield but motley fool are advising investors to sell shares in Lloyd's and I'm not sure what Brexit will do to the banking sector
Interesting. I'd highly recommend doing your own analysis because Motley will say what suits them ofcourse. The point about the banking sector and BREXIT is important. If they worry you, spread your risk and invest via a cheap passive fund.
You have to pay fees on buying shares. Stocks Overnight Fees CFD Trades (for leveraged and short positions only) (eToro’s Fee + Libor)/365 * Units * StockPricein$ (closing Price) eToro’s BUY Position Fee: 6.4% eToro’s SELL Position Fee: 2.9% FOR EXAMPLE Buy 50 units of a stock at closing price of $450 BUY (long) Positions: 450*50*(6.4%+1.55%)/365 = $4.90 a day SELL (short) Positions: (2.9%+1.55%)/365*50*450 = $2.74 a day
I dont understand all that! SP500 got higher return than any dividents and its been solid for all these countless years. Why would we invest in dividents at all ?
Great video, Ken. Few people are aware that FTSE100 itself is currently yielding 4.3%, with the highest 25% yielding above 6%. It's the best place to look for income investors right now.
@@TheHumblePenny The composition of the FTSE100 is heavily tilted towards banks, commodities and other older industries and therefore has become a value-play, but value itself has been largely out of favour in the last 5-10 years as big tech and growth stocks have been preferred. Also, the FTSE has largely gone noewhere in the last 20 years; investors don't see it as a wealth-building engine. Throw in short term Brexit uncertainty and the general preference for UK investors to prefer property to equities and you have all the ingredients for the FTSE's lowly rating
FTSE seems to be doing well. The real question is, do you have confidence in the UK economy? Although strictly speaking a lot of the companies on the FTSE100 make their money abroad
I'm very new to investing, seriously wish i was a little more financially savvy in my 20's so I could have started earlier. (This stuff should be taught in school not just economics classes) Past two years i have been putting money into 'Fundsmith Equity Fund I Class Accumulation' which has performed quite well so far. Will be keeping tabs on your channel for more ideas of where else to invest, thanks!
@@TheHumblePenny its with fidelity and has a 0.95 % ongoing charge. I think there is a very small service fee also but cant remember of the top of my head i will find out.
@@TheHumblePenny i think at this early stage its relatively small, if i start getting the fund into the high 5 figures then that would obviously change. What would you consider a standard ongoing charge?
@@badenohare7622 There are funds / ETFs out there with charges in the 0.10% to 0.25% range. Ongoing charges can have a significant effect over the long term. If you invested $10,000 at the age of 25 for 40 years until you retired at 65, then the fund with a 0.10% charge would have about $41,000 more than the fund with a 0.95% charge by the end, assuming a 7% annual growth. Personally, I could do with the extra! :-)
Do you currently invest for dividend income? Do you do it via stock picking or via investing in funds? If you aren't investing at all, what is stopping you? :)
The Humble Penny I invest in Index Funds. But choose Accumulation instead of Income type so dividends are included in the price. I know accumulation may prove cheaper for dividend investing for the long term BuT considering going Income type so I can use the dividends to invest in other things.
@@MissAbsss If you can invest in things with a better return than what you are getting, then whats the point in your current investments? you may as well liquidate your current investments and put the money in that thing instead
Lm
What’s your opinion on trading 212?
@@deborahmabulu9757 I've just started with them, seems good for beginners
Hi Ken, I’m a 20 year old university studying computer science working part time so I can generate income to invest. I just wanted to say keep posting keep going !! Your channel has really become a must watch for me. God bless you and your wonderful family 🙏🏻
God bless, Tamuka! 😀. Hearing you say you're 20 years old just makes me think- WOW! You have such huge potential if you apply the ideas and ride the asset of time
I do not know you but wish i had that confidance at such a young age
Hi Ken, I am 25 and making a steady income with a good amount in savings at the moment and I have just started to educate myself on investment! Your videos are absolutely amazing, you are so transparent and explain things so clearly and you're really building my confidence. I plan to invest soon once I have found the right path for me but I wanted to let you know that your content is invaluable to me 😊
Your kind message means more than you know, Renee 😊🙏🏽
This video is fantastic! As a beginner it really allows me to have a better understanding on the things to look at before and consider before investing... Thank you so much for all your videos!!
Much appreciated!
I just began investing at the beginning of this week, I'd thought about it and talked about it with my wife for AAAAGES but never did anything, mostly out of not knowing how to actually go about it.
I decided I'd begin with a fund, and build from there. It is with the help of this channel and a couple of others, and reading some books that I decided that I have to do it, otherwise I'll continue only talking about it and not actually doing it.
Hi Ken, I am a late bloomer and am just getting into stocks, I opened a vangaurd account following watching your videos. I now try to watch a video a day. You both (And Mary) are giving me so much inspiration on pursuing financial freedom even in this late stage of my life. Keep bringing it. You are amazing.
Aww, Sharon :). That means a lot to us 😊. Keep going for sure. Every step forward is worth it.
Soon we'll be releasing something that means that we can even help you more. Be on the look out for it
Great information thanks 😊
Thank you 😉
Hey mate incredible content and you have managed to answer a lot of ky questions!!! SUBSCRIBED! :D
👊🏾
Hey Ken, great info, appreciate the videos. Would be interested in seeing a follow up and thoughts in the current climate with many companies cutting dividends. Mainly whether you would look to invest elsewhere until dividends are re-introduced. Cheers
Thank you for your videos. I'd love to see a video about socially responsible/ethical investing.
As a beginner, very clear, very useful information. Tank you very much. I thought the best P/E would be between 20 and 25. More than that was overvalued.
Thank you 😀. I know an Anna Hernando
Hi Bro. I really enjoyed this video, good for newbies like me. It was really good. Please can you do more thorough ones on EFT and Index in relation to the current market. Already watched you did 6 months ago. Many thanks God bless
sure, noted! ;)
So excited by this notification 😂 I’m currently at work but look forward to watching this on my way home! Your videos always motivate me so much!
Nice, Panda Boss! I really enjoyed making this one and could have gone much deeper but will keep creating more in this area in the near future depending on what people want to learn :). Do you currently invest for dividend income?
@@TheHumblePenny I've started to. My main focus now is to pay off my debt, but I've started dabbling with investing with small amounts just to learn it. I had my first dividend last month (£0.24 - haha!). But considering I had ONE share, I was surprised I got one. I've just got a job in a Big 4 company though so more money to invest soon!!
Buying stocks as gifts is an amazing idea!!!
@@pandabossanna Congrats on the 24p!! #mindset for success is what matters 😉
Imagine it's Christmas, your girlfriend spots a small box, you pick it up, get down on one knee, open it up, and inside is a note: "I bought you some stocks and shares. Happy Christmas. xxx" :P
😆
Thank you for breaking this down. Very informative video !
Hey Okpala, much love for the kind message :)
I invest in funds, and a tiny amount in one company's shares. Could you explain generally how an index fund with accumulation dividends works compared to dividends being paid cash? I've never quite grasped it as on Hargreaves Lansdown there's only a dividend date...
Hi Sophie
The rate you talk about is the Dividend Yield. For Accumulation vs Income, you should notice a higher yield for "Income" because the denominator in the Dividend Yield calc is "Share Price" and the price of the Income fund will always be lower than the price of the Accumulation fund because dividends are not being reinvested.
Generally, with Accumulation funds, the dividends received are simply reinvested and that helps that fund perform better than one that has income withdrawn because the latter has more money at work.
Make sense?
Cheers ken.
I'm just starting out.
So this was useful, a bit full on for a beginner. But thanks again.
1love
Have you seen our video for beginner investors?
ua-cam.com/video/u4n8f-YL5_I/v-deo.html
Excellent video, as someone who is not confident with numbers, you really made this topic easy to understand! I will watch this again to make sure I've grasped all the major points but thank you so much all you do to increase the level of financial literacy of the general public! Your material should be taught in schools! This kind of information is actually useful and applicable! Thank you so much!👏🏾👏🏾👏🏾👏🏾🙏🏽 For your continued success!
Pleased to read your comment 😊. Thank you 🙏🏾. Kindly share with others.
@@TheHumblePenny yes, I'm sharing with my nephew who has an interest in investing and financial education. So grateful for your channel, thanks.
What a great site you have here, could you do a piece on capital gains tax and stock Isa's please? I'd find it easier to understand if you could explain these matters. Thanks very much for the info so far, I managed to cut my mortgage down to 14 years by overpaying and now have some spare monies to invest.
Thanks and Welldone, Sean. Noted re investing and taxes.
😊I’m new to investing. I’m investing in the vanguard life strategy 100% index fund and I’ve just opened an account with AJ Bell where I pick my own shares to buy and invest in including dividend stocks. 🦠 The crash in the market has provided me with the opportunity to buy cheap stocks. 🤑
Good time to invest, yes!
Great vdo, thank you very much Ken, it was so helpful
Excellent! Great to hear 😀
@@TheHumblePenny there is such a huge variety of ETF and Funds to invest in. Can you please recommand 2 or 3 ? Im actually a bit lost in all morningstar recommandations ! or please if you got a bit of time to advice on this fund: "Rathbone Global Opportunities Fund Institutional Acc I class". thank you very much (in advance)
Excellent. Very informative.
👊🏾
Hi Ken, thank you very much for all the videos. Your explanations are very clear and easy to understand. Keep up the good work x
Hey Lillian, much appreciated 😊
I'm investing in global all cap accumulation to build my wealth in a one fund portfolio however I'm so unsure wether to invest for dividends along side it🤔 looking forward to watching this video. Also is it possible to use an app like freetrade using a general investment account along side vanguard or will i have to stick to vanguard?
Hi Tom, yes you can use a general investment account and make the most of your Capital Gains allowances per year
Question, could you recommend a platform to invest commodities? Love this video ❤👌🏿
great stuff, clear as always :-)
Much appreciated, Stephen :)
Great video man really enjoyable 💪🏻
Much appreciated 👊🏼
Great video. Found this really helpful. I invest into an accumulated dividend fund on Vanguard (which I didn’t realise so thanks for clearing it up with your video)
Dividend investing makes a lot of sense for the retired or people that need to spend the dividends. For everyone else I've yet to hear a good argument.
I reinvest...
@@TheHumblePenny Here's Terry Smiths view better than I could explain!
"Take the example of an average S&P 500 company. Currently it has a payout ratio of 52 per cent - in other words half its profits are distributed as dividends - a return on equity net of tax of 15 per cent and its shares trade on a price to book (market value divided by book value) of 3.5 times.
So, which generates more value for shareholders, reinvestment of the dividend paid out, or the reinvestment of profits by the company?
The first handicap of reinvested dividends is that dividends are taxable in the hands of most shareholders. The exact amount of tax payable will depend upon where the shareholder is resident and which tax band they are in. If you are in the UK and a higher-rate taxpayer, dividend income will be taxed at 32.5 per cent, so you will only be left with 67.5 cents out of every dollar of dividend to reinvest. (I am using US dollars as I chose the S&P Index for the example, but the principles are the same for the FTSE 100 and sterling.)
Handicap number two is that you reinvest at the market price for the shares which, given the price to book is 3.5x, means that you will get to own just 28.5 cents (100 ÷ 3.5) of the company’s capital for every $1 you reinvest. For every $1 of dividend paid out you get 67.5 cents after tax, which buys you just 19 cents of the company’s capital (67.5 ÷ 3.5).
That doesn’t sound like much of a bargain. In contrast, every $1 of retained income which also belongs to you as a shareholder suffers no additional tax and is reinvested in the company’s capital at book value, so you get 100 cents of capital for every $1 retained.
As if that is not enough of a reason to prefer retained earnings to dividends, each $1 which is retained on your behalf is turned into $3.50 of market value because the company’s shares trade on 3.5x book.
This is the arithmetic of compounding and it is what equity investors should seek to capture, as those in Warren Buffett’s Berkshire Hathaway have done since it has not paid a dividend since Mr Buffett took control in 1965.
@@Metro6am Analysis of dividend paying stocks in S&P 500 - ua-cam.com/video/tzKsQDd6op8/v-deo.html
The numbers definitely suggest that 0% dividend stocks fare better in the good times as companies get to reinvest those profits as you've said, not so much the case when you throw a couple of recessions in over the longer run.
What do you think of the iShares Emerging markets dividend etf at about 8% yield in light of what you say about caution over higher yields?
Hi Ken, thank you for posting this very informative video. How do I access this information for index funds? When I use Hargreaves Lansdown to search for index funds, there is no 'dividend breakdown' tab for each fund?
Hey Linda
It varies by platform. Vanguard, for example, are fully transparent with this. Check out our recent Vanguard video to see how to find this. It's called "Investment ISA - How to Open An Account with Vanguard"
Make a video about building generational wealth. Loads of stuff about retiring early but not about building wealth to last generations
All our content is about Financial Independence and not about Retiring Early (although this can become an outcome from becoming Financially Independent). Everything we share is what is necessary for building generational wealth😀.
The Humble Penny good point sir!
Really useful video, thanks!
Amazing content.. People charge for this info on teaching platforms such as Udemy... Really grateful for the info ❤️
😊🙏🏽
Would you prefer to invest in the LSE or NYSE right now with the fear the NYSE might crash within the next 12-36months?
I don't quite think of it that way. I focus on my goals and invest in asset classes around the world that will help me deliver the average return that I'm aiming for.
No one knows when there will be a crash of any kind.
"Don't Try to Time the Market" (Warren Buffet)
Great video. Brilliant breakdown of the dividends/finances on hargreaves site! How frequent would you invest in indexes such as ftse and s&p500? Monthly? Would it be best to start low and incrementally increase each month? Cheers for the content 👍🏼
Thanks! 😀. Monthly, yes. Start small and get comfy!
The Humble Penny cheers! Opened a Freetrade account, 40% in ETFs, 20% commodities and 40% in stocks across different industries. We’ll see how it goes 👌🏼
WELLDONE!
Hi. This was excellent, although I'm a beginner and lots went over my head. It seems as though you have a nice spread of investment.. Any suggestions. I've opened the vanguard life strategy fund 100 equity accumulation but I also would like to buy into individual companies...
Great video again - opened a stock investing account with Trading 212 last year but haven’t used it yet but will be making my first investments soon (have always invested in dividend paying funds). Do you plan any videos on SIPPS specifically from a child’s perspective. I’ve been talking to my son with regards to starting a SIPP for my grandson he’s 4 - thinking if we can max out the contribution for maybe 4 years it should give him a good pot in the future....doesn’t seem to be much information on this.
Hey Man, thanks!
About SIPPs for kids, I did a podcast about this recently and will look to create a video about it soon. You can listen to the podcast episode here:
thehumblepenny.com/media
Look for the section on the "Shades of Black Parenting Podcast"
The Humble Penny Much appreciated, I’ll have a listen.
Ken, is a vanguard global bonds index fund a good investment? I have added it to my portfolio but it doesn't seem to be performing for me.
30 years ago 30k had same buying power as 100k today. however if you had bought 30k worth of gold back then, you would have now 200k+
Great videos! You are really clear and I've already learnt a lot over the last few hours watching your videos. I'm new to investing (not yet started) and trying to get my head around it all. So my question is regarding eligibility. I am a UK citizen but working in Malaysia for a local environmental NGO. When I went to Vanguard website it said that you need to be a UK resident. So I am struggling to understand if I can in fact use this platform for trading in Funds? Any thoughts or advice would be very much gratefully received.
Hi Nicola,
Great to hear that our videos are being watched in Malaysia! 😊. The internet continues to marvel me. We were in Malaysia for some of our honeymoon.
Your question is an interesting one. I think the safest thing to do is to call Vanguard and ask. Here is their number - 08005870460.
Ordinarily, I'd think you can invest via the UK site as a ctizen. Then again, it might depend on how often you come back to the UK as there are general residency rules.
Plus there is the question of where you pay tax. E.g. If you open a SIPP and make a contribution to it, you should get a tax rebate if you're a UK tax payer. However, you don't get a rebate via a Stocks and Shares ISA. So it might be that you can open the latter account.
I'd be very interested to know what Vanguard say. Please keep us posted.
Good work taking the leap to invest though. It is life changing stuff 😊
Hi i have been told to invest in a way that either focuses on yield or total return? This is confusing me- i invest in VLS60 would VWRL be accumulation or are dividends different?
Hey Ken, is it possible to use both Vanguard and Hargreaves Lansdown as investing platforms at the same time? :) When I was looking at the rules for Vanguard, I'm pretty sure I saw them saying you can't use another investing platform or your account will be terminated or something like that. (I could be wrong of course) :)
Hi Matthew - I think you can use both and having spoken to others who have done this for a while, its not uncommon, to have more than two investment platforms. Vanguard is quite popular but I'm with HL at the moment and there's alot of transparency I find, its also user friendly and so there may not be much of a different in terms of service to Vanguard. It really boils down to preference.
Great video, so helpful in understanding investing and investment tools :-)
Hey Mark, much appreciated! 😀. Are you currently investing for dividend income?
Hi Ken, not yet but I plan to start soon alongside overpayments on my mortgage. Trying to increase my savings rate by cutting expenses and budgeting and using any savings for this. You guys are helping me and my wife with this :-D
@@markirwin4425 Awesome, Mark! :)
Great video!! I really wanna start investing but idk where to start and how much I need 😭
Emmanuel, I've got you covered 😉. Watch this:
ua-cam.com/video/u4n8f-YL5_I/v-deo.html
Hi Ken, I've being looking at Lloyds banking group as a dividend stock the finances look good on paper & it's a 5.8% yield but motley fool are advising investors to sell shares in Lloyd's and I'm not sure what Brexit will do to the banking sector
Interesting. I'd highly recommend doing your own analysis because Motley will say what suits them ofcourse.
The point about the banking sector and BREXIT is important. If they worry you, spread your risk and invest via a cheap passive fund.
You have to pay fees on buying shares. Stocks Overnight Fees
CFD Trades (for leveraged and short positions only)
(eToro’s Fee + Libor)/365 * Units * StockPricein$ (closing Price)
eToro’s BUY Position Fee: 6.4%
eToro’s SELL Position Fee: 2.9%
FOR EXAMPLE
Buy 50 units of a stock at closing price of $450
BUY (long) Positions:
450*50*(6.4%+1.55%)/365 = $4.90 a day
SELL (short) Positions:
(2.9%+1.55%)/365*50*450 = $2.74 a day
I dont understand all that! SP500 got higher return than any dividents and its been solid for all these countless years. Why would we invest in dividents at all ?
What’s your views on crypto currency and would you invest
No, Adam. I don't know enough about it to have confidence in it.
Great video, Ken. Few people are aware that FTSE100 itself is currently yielding 4.3%, with the highest 25% yielding above 6%. It's the best place to look for income investors right now.
Very interesting point. Why do you think it's yielding so highly now?
@@TheHumblePenny The composition of the FTSE100 is heavily tilted towards banks, commodities and other older industries and therefore has become a value-play, but value itself has been largely out of favour in the last 5-10 years as big tech and growth stocks have been preferred. Also, the FTSE has largely gone noewhere in the last 20 years; investors don't see it as a wealth-building engine. Throw in short term Brexit uncertainty and the general preference for UK investors to prefer property to equities and you have all the ingredients for the FTSE's lowly rating
Hi ken great video I have been investing in the vanguard life strategy I didnt relise their was a dividend as well wow
Hi Stephen
Most people don't realise 😀
Hi guys what do you think of investing in vanguard ftse 100 cheers steve
FTSE seems to be doing well. The real question is, do you have confidence in the UK economy? Although strictly speaking a lot of the companies on the FTSE100 make their money abroad
@@TheHumblePenny Im thinking of drip feeding mony into vanguard ftse 100 not just capital growth but also dividend if I get them cheers steve
Help me invest...
What do you need help with specifically?
People really think the stock market a computer game or smt 😂
Honestly
I'm very new to investing, seriously wish i was a little more financially savvy in my 20's so I could have started earlier. (This stuff should be taught in school not just economics classes) Past two years i have been putting money into 'Fundsmith Equity Fund I Class Accumulation' which has performed quite well so far. Will be keeping tabs on your channel for more ideas of where else to invest, thanks!
Cheers, Brendan! 😀. What do you pay to have access to that fund?
@@TheHumblePenny its with fidelity and has a 0.95 % ongoing charge. I think there is a very small service fee also but cant remember of the top of my head i will find out.
@@badenohare7622 that's crazy expensive!
@@TheHumblePenny i think at this early stage its relatively small, if i start getting the fund into the high 5 figures then that would obviously change. What would you consider a standard ongoing charge?
@@badenohare7622 There are funds / ETFs out there with charges in the 0.10% to 0.25% range. Ongoing charges can have a significant effect over the long term. If you invested $10,000 at the age of 25 for 40 years until you retired at 65, then the fund with a 0.10% charge would have about $41,000 more than the fund with a 0.95% charge by the end, assuming a 7% annual growth. Personally, I could do with the extra! :-)
My comment is silly but I find your eyebrows distracting
😆🤨 speechless
😂😂😂 going to be looking at them from now on.
Thanks for being a sport Humble