From various comments on Twitter recently it is pretty clear to me that some thoughts on how to use Funds to best effect would be worthwhile. This should be fairly straightforward to write so I am diving straight in without a plan but I have been mulling it over for a while.
If you nip over to the ‘Funds’ page on my Website (it might be on WD2 – I really can’t remember !!), then that has some definitions on it with regards to what the various types of Funds are and it also has an example Portfolio which is based on something I constructed with a Friend a few years ago for her own Investing. Recently she has sold about 80% of this Portfolio because she is moving house and I must get around to confirming with her what she still holds. Anyway, that Portfolio example does give an indication of how you can diversify across Funds if you have a Portfolio that only uses Funds and has no Individual Shares in it.
My mate Phil (@sloan_phil on the Tweets) has kindly provided this Guest Blog following the recent events regarding cuts to Dividends and his action in reviewing and rejigging his Income Portfolio. I have read it a couple of times for proofing and all that and it is really good and has some excellent insights into investing in US Stocks.
Many thanks to Phil for providing WD Readers with this and a personal thank you for saving me a load of work in writing a blog this week !!
Fairly recently I caused a bit of a stir on the Tweets when I suggested that People who have regular payment plans into Funds (normally Unit Trusts – see my ‘Funds’ page for definitions of what the different types of Funds actually are), might be wise to suspend the automatic payments prior to the Coronavirus problems when it is highly likely that we could see Stockmarkets really struggling.
I got a lot of flak for this and it is very understandable why because there are maybe some advantages of such drip-feeding over time; but for me personally, I wouldn’t do this at all. But then I am perhaps a different type of Investor to many others and there is an element of ‘Horses for Courses’.
If you haven’t read Parts 1 and 2 yet, then scroll back down my Blog Page a tiny bit and you should find them very easily.
Features of an ideal Dividend Stock
There are many aspects and features that make a particular Stock suitable for an Income Portfolio - the following spring to mind as things to consider:
Kindly Phil has written another P2P related Blog for us and again it includes some links to Special Deals where you can get a Discount and Phil and myself get a small slice as well. Please note these can be High Risk Investments and if in doubt you should consult with a qualified Financial Advisor - we make no recommendation with regards to suitability for you and we are not qualified or FCA regulated. If this is new to you then make sure you read Phil’s previous Guest Blog and you will find within that one some Lower Risk P2P Investments like Zopa and Ratesetter.
In my first article for Wheelie’s Website last month I wrote about the 'how's and ‘why's' of P2P (Peer to Peer), and if you're unfamiliar with the area it might be worth you reading my first article, paying particular attention to the risks involved:
The Guest Blog below comes from a good mate of mine who attended an Investors Chronicle event recently in London. Very kindly he offered it up for a wider Audience and now he is extremely famous, but in an Anonymous kind of manner !!
Anyway, a huge (and Bold) THANK YOU on behalf of all WD readers to ‘you know who you are’.
It’s very much appreciated, WD.
Why is Diversity Good?
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