When you're thinking about investing

When you’re thinking about investing, what are the main things you’d take into consideration?

Do you have an investment plan, or do you just go for it? And how do you decide how much to invest?

The only area I have ever really considered investing in is an S&S ISA, for a minimum term of 10 years, however, have still not had the bottle to do so.

I am not a great risk taker or gambler. I do not even do the lottery.

The thought of my capital investment going down, after all the years savings to get it, just prevent me from taking the plunge.

At the height of the bitcoin increases, I invested £100, just to test the water.

As stated in the above sentence, it turned out to be at the height, and I cashed in 15 months later for just over a tenner!!!

In 2008, I secured a seven year fixed rate mortgage at 5.39%. I thought that the security of knowing my exact payments for seven years was a win-win. Then the markets crashed and mortgages were being toddled out at a fraction of that. Told myself that the extra was like an insurance premium, just to pacify my inner self :man_shrugging:

As they say, you need to “speculate to accumulate”. It’s just not for me.

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Long term goals are to invest for 55, the age in which I hope I am not working anymore. It will be a struggle.

I invest about 20% of my monthly income into various portfolios, and I always look at my long term projections of “if I save this each month until I am 55, how much will I likely have?” It’s not guaranteed but it helps me understand.

As for what - I invest in many ETFs that interest me and general portfolios chosen by Nutmeg & Tickr, and for shares via Freetrade I choose companies I have an interest in.

The interest could be that I love their products and their brand and I would choose to buy their products over others. It doesn’t give you any more insight but it keeps you invested emotionally. Think about Emma gummy bears and how it was often Pro users talking about it - if you are invested emotionally as well as financially, things will matter more.

Trainline and some airlines are good examples here. Buying (pre-lockdown) about 160 train tickets and 45 plane tickets a year on average made me invested on who I invested in by my high use and preference on how to book or who to travel with.

Another interest steam could just be you enjoy what the company is trying to achieve or you think their technology is disruptive.

Tesla is a good example here as I can’t yet afford to splash out just for the fun of it, but with their home solar products, the million mile battery discussions, and seeing my friend’s Tesla and the joy it brings him, I am interested and want to know much more and be part of it.

Sorry for such a long answer @rebekah

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Aghh annoying! And to think it could have been a completely different story if you’d invested even a few months earlier?! :see_no_evil:

Retiring at 55 - love that goal! :raised_hands:

So each month do you keep re-investing in the same companies, or would you look for new areas?

@Pa.ul you mentioned above that you cashed your bitcoin in after 15 months - how do you both decide when is the best time to get rid?

If only you kept hold of it.
I had £60 from back in 2017 now worth £800ish. Wish I bought so much more tbh.

No way!!! :cry:

Value was dwindling and did not wish to complicate the financial matters of my divorce with bitcoin finance :grin: :man_shrugging:

I love how it is also another one of those “investments” where if you lose the government say “Tough!”, but if you are fortunate enough to succeed, they say, “We’ll have a slice of those profits. Cheers :+1:

Mad world of speculation and taxes.

Achieved! :grinning:

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That’s amazing!!

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You only lose if you sell at a loss. I generally keep everything, even if not great performing as long term hold out will beat trading up and down nearly every time.

If I held stock and I then questioned the ethical values of a company, I would consider a small loss personally but it’s a tough one as there is always something every company could do better.

General rule 1: if it ain’t broke, don’t fix it!

General rule 2: if you need the cash and thus need to sell, you invested too much to begin with.