Passive Investing

Unless you're living in a place for a long time, or find a real good deal on mortgage, renting + low fee Vanguard is the way to go.

http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2740027

related research

In the UK, they are introducing an ISA where you can put in up to 4k a year and the government gives a 25% bonus.

The only stipulation is that you have to use it to pay for a house deposit or wait until 65 to withdraw it, or else you lose the bonus and any interest accrued.

Would it be best to max out the ISA and then put any other savings in a low fee vanguard?

>>1169240
it's shit

It's the best, and also low risk, while also being boring.

Investing should be pretty passive, I think. Otherwise, it ceases to qualify as an investment and becomes a job.

Take real estate, for example. You can buy a place, rent it out yourself and do all the work on it. But then you don't really have an investment, it's a job. OTOH, put it under a management company and you just get the money each month. It's now much more an investment.

>>1169125
I practice it (though I don't have vanguard in my portfolio). Between my day job, my hobbies and my social life, I don't have time to also day trade, that's a full time, high-stress job all on its own.

Overated as fuck by lazy ass accountants.

>>1171773
You might be overestimating the work that's involved in a rental. I have been renting out a place for 2 years and had to go there once to redo the caulking in the tub.

I invested in a Vanguard ETF a few months back.

Yesterday the 1 April 2016 was supposed to be the first dividend pay date.

I've still not received the div?

Anyone else invested in vanguard that relieved their div?

The fund I bought was VUKE.

FTSE 100 etf

>>1172467
So you got lucky. I know someone that got a bad tennant,

> Refused to pay rent
> Had to be evicted
> 6 month ordeal
> house was destroyed including a major leak that had ripped a hole through one of the ceilings.

If you're in the building trade being a landlord is far more of a passive investment.

If I wanted to invest in property, I'd buy stock in home builders and a good point in the market. A true passive investment.

I worry enough about my own property, worrying about a portfolio of houses isn't worth it to me.

>>1169240

It sounds shit

ISA allowance this year is £15,240, next year it's £20,000

You'd be doing well to max your ISA out

I'm looking at opening a SIPP when I use up my ISA this year

In theory SIPPs are better because of the 25% tax free drawndown on retirement, but unlike an ISA your money is tied up until retirement age, and the government will likely shift that age forward between now and when you retire

>>1173188

* just to add, I think this dogs dinner ISA-SIPP hybrid is because the government doesn't like paying tax relief on SIPP contributions, because in a sense, a government in 2016 is helping out a government in 2046, and politicians are short termist

>>1169125
Statistically, you will not beat the market. Passive investing yields the most assuming you pick a low expense ratio index fund

>>1172688
You probably have it set to automatic reinvestment.

>>1169125
Vanguard and the like is better to preserve capital when you're around or in retirement age IMO. There's much, much better choices if you're young.

>>1173188

What about using the Lifetime ISA for 3-5 years as a means of saving up for a deposit on a house? I already have a decent amount saved, so I'd have no problem putting in 4k to get the 1k bonus each year.

I would still have enough left over to invest in index funds in addition to the Lifetime ISA.

I'm aiming to buy a house in the next 5 years, so it seems like the best option based on the timescale.

It seems like the best plan if I want to buy a house in the next 5 years.

What are the better choices in your opinion?

>>1169125
Best for most people, because of taxation advantages.

>>1173541
>sive investing yields the most assuming you pick a low
like what

>>1169125
i passive invest. in 10 years, my annual compensation from my job has increased by more than 5x; i won't get that kind of return focusing my time on active investing, so i go with basic index funds / efts that cover a wide range of the market, vti, voo, vbr (for a bit of extra appreciation potential), and bnd, which i rebalance quarterly (should be monthly). i also like dividends, so the vanguard s&p 500 dividend index etf features prominently in my tax deferred accounts.