UA-cam started recommending your channel to me a couple of weeks ago. Even though I am in Canada your general advise still applies. Thanks for being one of those financial planners that understands and practices fiduciary responsibility. Your clients are lucky. Most over here are commissioned salespeople masquerading as financial planners and advisors. I started reading and researching a few years ago and decided to give index funds a shot given the historical data showing how rare it is for any advisor or fund manager to beat the market over 5 years. The result is that there is much less emotion and activity as you note and profits are much more consistent and quite good year over year and the fees are much much lower. Win - Win!
I love buying into business but the bonus to property is the cash flow if you rent out and the leverage from the bank. Its great also to be able to diverse so buy business and property
Pete, great video! I work at HL and the message that I give to my friends & family (not clients as I’m not qualified to give advice, just info) is put it in the index. Completely agree with that sentiment. However, Uncle Warren would say contrary to your use of tracker. Why a global tracker and not an S&P 500 tracker?
Uncle Warren is a US investor, and I’m not. I understand the logic that by investing in the S&P you’re getting global exposure, but I don’t see why you wouldn’t ACTUALLY invest globally. That way you diversify the FX risk a bit and discover that that there really is a world outside the US of A!
@@MeaningfulMoney thanks for the reply. Simply put, world tracker funds grow less than the S&P. Why not pick the best of the largest and most productive economy in the world? That's just me ay, can understand if a client wants exposure to the world economy. Me, I just want exposure to the best and most productive market on the planet... Rather than all the markets on the planet.
I preach an approach to investing called core and satellite investing. So your core should be global, multi-asset low cost funds. Then if you want to have fun with some other investments, that’s fine. They are satellite holdings, around the side. Don’t bet the farm on these and keep them to 15% or less of your total invested funds. More here: ua-cam.com/video/Arjo8bCpk8o/v-deo.html
US based funds seem to be doing especially well , is it still better to invest in a global fund or is the risk with a single country fund like the US worth taking?
I absolutely love your content. Im 29 and my mortgage will finish in just over 10 years (we won't be moving). I've have a maxed premium bond account and have recently got into PIP (I'm now self emplyed) and S&S ISA. So that's where most of my saving is going. Thanks for all your help, like everything, keep it simple, keep it consistent and you'll get where you want to be :)
I've started putting money into my pension but hesitant to add more. I'm almost 40 - so if I invest 500 per month for 25 years myself then surely I can the take 500+ out of the account per month for the following 25 years (approx 6000+ per year). The pension annuity is a fraction of that.
Here in the UK, there’s no compunction to buy an annuity. And the 500 per month gets made up immediately to 625 per month so there’s real benefit in saving into a pension.
I've just been speaking to a pensions man about my private pension. Basically, if I turn it into an annuity I can get a return of £27.00 a month to live on lol!
If you want to retire on £20,000 a year you’ll need £250,000 to return £10,000 and the rest will be made up from state pension. If you have years before retirement £300 a month into a SIPP that is invested in an index fund such as S&P 500 for the next 30 years could give you a pension pot of £1 million or a £40,000 pension.
If the fund sits inside the ISA, then no. They are two different things: the ISA is the account, a fund is the underlying investment. An account without the tax breaks of an ISA is usually called a General Investment Account, or GIA.
Hi pete, I find your videos very informative but I have to be the dumb ass in the class and ask, when I decide to stop trading (once started) how would I close down the portfolio and cease trading?
Pete how important is it to use accumulation funds compared to distribution funds for long term holdings? Because you aren’t the first person I’ve heard to say that or can I have the name of video were you explain it?
It won’t make much of a difference either way, Kevin. Distribution funds spin out their dividends so you have to reinvest them. This is easy enough, you just have to be sure to tell your platform to reinvest them when they land, which you can usually automate. With Accumulation funds it all just happens internally. There’s no difference for taxation purposes. HTH!
Another great video. It must be very hard to toe the fine line between guidance and advice during these videos. looking forward to the next one. Keep up the great work
Hi, What are your thoughts (in general) regarding the whole “paying off your mortgage early”. This seems to have mixed opinions & as I respect yours, I was hoping you’d perhaps respond & also may have already/will make some content on the matter?
Assuming that you have a pension and ISA strategy in place, what do you think of in investing in physical assets such as art and watches. One advantage being that you get to enjoy them, one disadvantage being that you need to know what you're doing.
Is it £499 for Financial Foundations & Build Wealth BUNDLE? I am about 6 years from retirement with reasonable work based pension and I am also currently investing in a SIPP and and a stock and shares ISA to improve my pension pot. Even though my retirement is not too far off I still seem myself in my accumulation phase.
1;45 Whatever you do don't buy property in an open end fund, like a unit trust. I own Foreign and Colonial Commercial Property. It's an investment trust: a "closed end" structure. What that means is that the trust takes no responsibility for giving you money if you want to sell. You have to sell in the stockmarket, so if you and everyone else are panicking the "discount to net asset value" will open up and you'll get a crap price. Me and the other investors don't have to sell a building during a collapse to suit you. Open ended funds do, or they have to prevent redemptions altogether. Open ended funds in property (or anything illiquid) are a disaster waiting to happen.
Making money is actually very simple don’t need a whole channel. Invest into fundsmith and blue whale via your isa. End of story. Why people make it so complicated is beyond me.
People used to say the same about Woodford Capital. Didn't end well. Terry Smith is a very clever, and I'm sure a very decent guy, but be wary of relying on one approach.
@@MeaningfulMoney Neil woodford became arrogant and didn’t disclose all of his positions - not something fundsmith does. I also named a second fund there blue whale. Having one fund is absolutely fine when it’s a relatively balanced one with around 30 positions. Either way I’m happy with my 18.5% returns.
*Warren Buffett talking about investing* 50k views *Warren Buffett's new sports car* 2 million views Has anyone else noticed that most people don't care for useful info like this video, yet a video of a cat sitting on a glass table gets millions? Makes you wonder what the average person actually does with their time. I love learning financial education. I tried encouraging others to do so, but they're scared of an average s&p500..... But the same person has a car loan paying £300 a month on a depreciating liability. I guess you can't help others who don't want to help themselves 😑
If you haven't seen it yet, here's the video where I explain how I invest my own money: ua-cam.com/video/bp5R3dIQzhU/v-deo.html
UA-cam started recommending your channel to me a couple of weeks ago. Even though I am in Canada your general advise still applies. Thanks for being one of those financial planners that understands and practices fiduciary responsibility. Your clients are lucky. Most over here are commissioned salespeople masquerading as financial planners and advisors. I started reading and researching a few years ago and decided to give index funds a shot given the historical data showing how rare it is for any advisor or fund manager to beat the market over 5 years. The result is that there is much less emotion and activity as you note and profits are much more consistent and quite good year over year and the fees are much much lower. Win - Win!
Great advice delivered in a way I understand. Thanks Pete.
I love buying into business but the bonus to property is the cash flow if you rent out and the leverage from the bank. Its great also to be able to diverse so buy business and property
Useful back-to-basics reminder for all of us.
Great video yet again Pete. Thanks for sharing
Thanks for watching, Stuart! 🙏🏻
You r definitely doing your bit,😁🤑❤️
Great vid. Appreciate you take time to explain words that are never taught and seem obscure, like others should know and you shouldn't.
Glad it was helpful!
Really helpfull...thanks
Could not see the option Pete is using here ie tracker, accumulation, global on the trading 212 app? Can anyone help please?
This channel deserves far more subs! Thanks for the great video Pete!
Thank you Adam - very kind!
Thanks
Awesom, thank you
Pete, great video!
I work at HL and the message that I give to my friends & family (not clients as I’m not qualified to give advice, just info) is put it in the index.
Completely agree with that sentiment. However, Uncle Warren would say contrary to your use of tracker. Why a global tracker and not an S&P 500 tracker?
Uncle Warren is a US investor, and I’m not. I understand the logic that by investing in the S&P you’re getting global exposure, but I don’t see why you wouldn’t ACTUALLY invest globally. That way you diversify the FX risk a bit and discover that that there really is a world outside the US of A!
@@MeaningfulMoney thanks for the reply.
Simply put, world tracker funds grow less than the S&P.
Why not pick the best of the largest and most productive economy in the world?
That's just me ay, can understand if a client wants exposure to the world economy. Me, I just want exposure to the best and most productive market on the planet... Rather than all the markets on the planet.
Thank you for this. I would now go do hours of research. What are satelite holdings?
I preach an approach to investing called core and satellite investing. So your core should be global, multi-asset low cost funds. Then if you want to have fun with some other investments, that’s fine. They are satellite holdings, around the side. Don’t bet the farm on these and keep them to 15% or less of your total invested funds. More here: ua-cam.com/video/Arjo8bCpk8o/v-deo.html
Hi. You've said you usually suggest to stay away from shortlists. Why, What's wrong with them?
Another great video Pete & I have asked Father Christmas - aka my wife - for your book. Also is that a Flip up on your top shelf?
Good spot, Gav. That’s the video camera that started it all. I could buy 65 of those with the money I paid for my current camera!
US based funds seem to be doing especially well , is it still better to invest in a global fund or is the risk with a single country fund like the US worth taking?
You sure about that? Us funds have taken a much worse beating than, say, UK funds this year. I’d always go global, no question.
Excellent information for me as a new investor looking for a fund to help me build wealth to secure my retirement in 10 years
Sorry I can’t find the link for your recommendation on property investment.
I absolutely love your content. Im 29 and my mortgage will finish in just over 10 years (we won't be moving). I've have a maxed premium bond account and have recently got into PIP (I'm now self emplyed) and S&S ISA. So that's where most of my saving is going. Thanks for all your help, like everything, keep it simple, keep it consistent and you'll get where you want to be :)
I've started putting money into my pension but hesitant to add more. I'm almost 40 - so if I invest 500 per month for 25 years myself then surely I can the take 500+ out of the account per month for the following 25 years (approx 6000+ per year). The pension annuity is a fraction of that.
Here in the UK, there’s no compunction to buy an annuity. And the 500 per month gets made up immediately to 625 per month so there’s real benefit in saving into a pension.
This a very basic question: can UK residents invest in global funds and us funds?
Absolutely.
I've just been speaking to a pensions man about my private pension. Basically, if I turn it into an annuity I can get a return of £27.00 a month to live on lol!
What do you think is the reason?
@@helixvonsmelix trying to retire too soon, and not having paid enough in I should think. X
Small pensions up to £10k IIRC can just be taken in one go.
@@craigross341 yes, I can take a lump sum
If you want to retire on £20,000 a year you’ll need £250,000 to return £10,000 and the rest will be made up from state pension. If you have years before retirement £300 a month into a SIPP that is invested in an index fund such as S&P 500 for the next 30 years could give you a pension pot of £1 million or a £40,000 pension.
Will you get taxed on the profit though as this is investing in a fund rather than an ISA?
If the fund sits inside the ISA, then no. They are two different things: the ISA is the account, a fund is the underlying investment. An account without the tax breaks of an ISA is usually called a General Investment Account, or GIA.
Wish this video was available when I started out two years ago. Superb advice for which I'm very grateful. Thank you.
Great to have you here, Dave! 👊🏻
Hi pete, I find your videos very informative but I have to be the dumb ass in the class and ask, when I decide to stop trading (once started) how would I close down the portfolio and cease trading?
Pete how important is it to use accumulation funds compared to distribution funds for long term holdings? Because you aren’t the first person I’ve heard to say that or can I have the name of video were you explain it?
It won’t make much of a difference either way, Kevin. Distribution funds spin out their dividends so you have to reinvest them. This is easy enough, you just have to be sure to tell your platform to reinvest them when they land, which you can usually automate. With Accumulation funds it all just happens internally. There’s no difference for taxation purposes. HTH!
@@MeaningfulMoney why is there no difference for tax purposes? Don't the income payments count towards income tax once they leave the fund?
@@MeaningfulMoney thanks
Another great video. It must be very hard to toe the fine line between guidance and advice during these videos. looking forward to the next one. Keep up the great work
Not sure about the advice on Bonds, very little upside and plenty of potential downside in the short to mid term.
Hi, What are your thoughts (in general) regarding the whole “paying off your mortgage early”. This seems to have mixed opinions & as I respect yours, I was hoping you’d perhaps respond & also may have already/will make some content on the matter?
He already did. Do browse through his channel, he did on the topic like 3 months ago across Part 1 and Part 2 videos.
@@izzazross6027 Found it. Thank you 😉
Assuming that you have a pension and ISA strategy in place, what do you think of in investing in physical assets such as art and watches. One advantage being that you get to enjoy them, one disadvantage being that you need to know what you're doing.
Subbed 🙂
Grateful 👍🏻
Is it £499 for Financial Foundations & Build Wealth BUNDLE?
I am about 6 years from retirement with reasonable work based pension and I am also currently investing in a SIPP and and a stock and shares ISA to improve my pension pot. Even though my retirement is not too far off I still seem myself in my accumulation phase.
You probably want the Retirement Planning phase then, @loutol - definitely not Foundations.
1;45 Whatever you do don't buy property in an open end fund, like a unit trust. I own Foreign and Colonial Commercial Property. It's an investment trust: a "closed end" structure. What that means is that the trust takes no responsibility for giving you money if you want to sell. You have to sell in the stockmarket, so if you and everyone else are panicking the "discount to net asset value" will open up and you'll get a crap price. Me and the other investors don't have to sell a building during a collapse to suit you. Open ended funds do, or they have to prevent redemptions altogether. Open ended funds in property (or anything illiquid) are a disaster waiting to happen.
Making money is actually very simple don’t need a whole channel. Invest into fundsmith and blue whale via your isa. End of story. Why people make it so complicated is beyond me.
People used to say the same about Woodford Capital. Didn't end well. Terry Smith is a very clever, and I'm sure a very decent guy, but be wary of relying on one approach.
@@MeaningfulMoney Neil woodford became arrogant and didn’t disclose all of his positions - not something fundsmith does. I also named a second fund there blue whale. Having one fund is absolutely fine when it’s a relatively balanced one with around 30 positions. Either way I’m happy with my 18.5% returns.
*Warren Buffett talking about investing* 50k views
*Warren Buffett's new sports car* 2 million views
Has anyone else noticed that most people don't care for useful info like this video, yet a video of a cat sitting on a glass table gets millions? Makes you wonder what the average person actually does with their time. I love learning financial education. I tried encouraging others to do so, but they're scared of an average s&p500..... But the same person has a car loan paying £300 a month on a depreciating liability. I guess you can't help others who don't want to help themselves 😑