Income from capital whilst sailing

BrendanS

I thought the discussion was about the High Yield Portfolio as described on the motley fool website, my initial post. I assumed from your post stating that high yield shares are high risk that you had taken a look at the strategy and were posting your views. Hence the discussion. My mistake.
 
The problem arose with the first line of your response
"I would invest the capital directly in high yielding shares"
That is a high risk strategy, which while can provide a very good return, is very risky too.
 
None of that's high risk, if you want high risk you may as well do it properly.

I'm thinking about the same thing, taking a couple of years off, and am also looking into funding.

My current experiment has been trading on Betfair, which I started on a small scale in January of this year. From an initial trial risk capital of two grand I've been making about £500 a month. Not enough to give up a salary for yet but If I can keep up the success rate till the end of the year I figure it'll be worth a go with a greater investment.

Naturally it's not for everyone as it needs a fair amount of study and mathematical ability, there's a steep learning curve and it's high risk if you get it wrong. But you don't get owt for nowt, and all you need is internet access and an hour or so a day to keep it ticking over.
 
please make sure you rake independent advice and pay for it by the hour.
you will find a lot of what has been written above is not correct.
the cost of the advice will be more than off set by the peace of mind you will get about purchasing the correct product for you and your risk profile.
regards alan
 
Over the past 4 years I have built up a small property portfolio with a view to sitting back on my boat in Greece whilst the money takes care of itself. (Even got the boat waiting for me in Greece!)
It hasnt worked out that way though and I think that the cautionary comments in this thread are well founded. The market is flat/shrinking so you cannot rely on capital growth to fund you. Rental property requires careful management if it is to give you a decent revenue. I am currently trying to find a "runner" who owes me 800 pounds. Dont get me wrong, you can make money but if you want an easy life invest elsewhere ...
 
There is an excellent money site written by Martin Lewis the journalist which regularly comes up with best deals in all sorts of areas such as savings, mortgages, mobile phones and credit cards.

There are loads of forums and if you have time to spend you can waste hours on there.

However if you are looking to maximise returns on savings you would do well to spend a couple of hours browsing what he has to say - top paying deposit account is now 5.4% AER although it comes with a health warning!

Money Saving Expert
 
I have about 12 properties. Yes it's been great in the past when a house could be bought for 20,000 or so, and the rent not much different than today. with houses now worth £100,00 plus.

Collecting rent is becomeing harder and harder. They just disapear these days, if they dont want to pay.

The house is wrecked even by the best tennants, if only by painting up the walls, only as far as they can reach, usually in a gastly shade of purple!!

We even had one couple left half way through making Sunday dinner. We found it all, half prepaired, three months later.

Then course, dont forget when you come to sell, theres the tax man rubbing his grubby mits!
 
I've had properties I rent out for years, its been dam good, but the market is over subscribed now, everyone's in it. Things may look up when the law changes next year, when people can purchase residential properties with pension funds, at the moment you can only have commerical properties in a pension fund.

Then the residential property purchase market its likely to be good, but it will further over subscribe the rental side of things.

I would get gilts or whatever, property prices apart from the above, are very, very likely to fall.
 
Note of caution re. what you read in the papers about the property market. Think - if the commentators are so knowledgeble, how come they are still working? Truth is nobody really can predict the property market (otherwise we'd all have bought property in Edinburgh 8 yrs back and made a mint!)

Anyway, all I really want to add is to think carefully about loosing foothold in the UK property market and enjoy your travels /forums/images/graemlins/smile.gif
 
Hi
Have you tried TMF -- The Motley Fool (fool.co.uk) which has sound sense on most financial topics and forums which can advise on residential prop investment etc.

My humble advice is don't (property that is) for reasons of risk amply spelt out above. Nor would I use an 'investment manager', be he she or it from a bank, an 'independent financial advisor' (an oxymoron in that they all get kickbacks on what they 'advise') or any other sort.

TMF's take on life (which I share) is make your own decisions, don't pay others to 'advise'. Horror tales abound of 'well qualified' 'advisors' who have lost people thousands.

If I was on your place, I would research a mix of bond funds, bought through a low-cost internet based broker, and stock market tracker products, possibly exhange traded funds (iShares). For safety and flexibility a good chunk (30%?) might be in a ING a/c or similar -- 4.75% IIRC.

The investments would pay regular dividends into a sweep a/c which u could draw upon.

I'd submit that the biggest traps are (a) to put all your eggs in one basket (thus avoid a single property) and (b) to believe that someone who charges you money (and it may be hidden charges in the form of commissions from providors) is cleverer than you are.

Good luck (and do your own research!)

Chris

PS counting the months till I can do the same.....
 
You must log in or register to reply here.

Share this page

Top