Re: Stocks and Shares?
Originally Posted by
Rachel
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she said to just leave it there long term and forget about it. OK so far but I do sometimes feel concerned, especially having read all Realist's posts.
As long as it keeps up with inflation and makes me some kind of profit, then that's fine.
And there's the rub Rachel.
Where do you think your actual money is sitting in that situation? Do you think it is in a bank account somewhere?
Do you think it is just sat in the fund you were advised to invest it in while you sit back and forget about it?
Please can I have some of your money? You can sit back and forget about it and I'll pay you back with a little bit of interest later on !!
All savings schemes, pensions etc are predicated on this same nonsense. When you give YOUR money to someone else, they just go out and make more money with it FOR THEMSELVES and give you back a tiny percentage.
Let me give you an example.
Your fund updates you each year on how much your investment has increased by. Let's say you put £1000 in that fund in January.
What happens is, during the year, the people you gave your money to go and gamble with it themselves. Let's say they invest it into a company called EasyMoney, a nice volatile company that they are familiar with.
In February the share price of EasyMoney rises from 1p to 1.3p a 30% rise. Your fund managers having used your £1000 in January to buy EasyMoney shares at 1p now sells them for a 30% profit. Nice ! The pot is now £1300.
By April the EasyMoney share price falls back to 1.1p. Your fund managers once again use YOUR money to buy more shares.
In July the share price rises again to 1.3p again and they sell again. More profit.
This process repeats through the year.
At the end of the year the EasyMoney share price resettles again at 1.1p.
What do you think your actual pot will look like at this point ?
I would like to suggest that it will show as £1100.
That is, your original £1000 from January, invested when the EasyMoney share price was 1p and then when the share price finishes at 1.1p at the end of the year, that's the 10% increase you made.
But you say . . . . what about all those buy/sell trades they made throughout the year making tons more profit . . . where is that?
That my dear, is in their pockets.
This is what happens when you give YOUR money to someone else. They make money with it because money comes to money, but they have no intention of giving the profits back to you. You will just get a pittance.
Isn't it nice being able to gamble with other people's money ?!
And if those gambles/trades go the wrong way and the share prices go down etc. Well then I'm sorry Madam but due to the financial collapse and the volatile markets and uncertainty with BrExit and the trade agreements etc etc your fund has not appreciated as well as we had hoped, sorry !
The entire financial system(s) of this country and indeed of the world are geared up to take money from the naïve and unsuspecting and to transfer it into the pockets of the savvy and largely corrupt.
Fools and their money etc.
If I walked up to you in the street and said "lend me £1000 and I'll invest it somewhere and get you a return" you'd tell me to sod off.
Put a man in a nice suit, give him a respectable looking company to work within and suddenly people start believing the fairy story. Throw in some great sounding authoritative bodies like the FSA, FCA and people think "oh ok, well they can't be crooks because they are all governed and regulated by these outfits".
Again, fools and their money.
The world is not what it was, hasn't been for many years.
Just as you MUST now take responsibility for your own health, and properly research medications, treatments, good/bad foods, natural cures etc, so too must you now take the time to learn and understand the corruption in the finance world, the way the systems are rigged against you and how you will stay poor if you foolishly give your hard earned money to someone else to "invest" on your behalf.
Take control.
It is your money.
Choose where YOU want to invest it and go and invest it yourself. It really is not difficult. Then YOU can be making those 3-4 trades in EasyMoney in the year and YOU will keep ALL the profits made along the way.
Sure it's complicated, there's a lot of confusing jargon and plenty of sharks out there, but then everything in life is hard and needs to be learned.
I realised some years ago that pensions are a huge scam and will likely turn out to be one of the biggest scandals of the century much like former Endowment Mortgages and PPI selling. I stopped putting money into my then, final salary company pension and transferred that pension into a private SIPP. They didn't like it obviously as it's money out of their pocket, but they had no choice.
Now I have what is essentially a simple bank account. It shows on my screen with a sizable pot of money in its balance. I can, at will, instantly invest any part of that, any amount in any stock or share that I see fit. If I think Marks and Spencers is going to do well I can, TODAY, invest any amount of that pension pot in M&S. I can equally sell any such shares instantly at will. Any profits go straight into that pension pot balance. Like everyone I have to pay the small transaction charge £10 for each trade that I make.
Are there any companies that you think will do well? Have you heard of FITBIT? The electronic watch/device that monitors your heart rate and associated metrics which is great for keep fit enthusiasts? Lot's of people saw the potential of that and invested, bought shares in FITBIT. The share price ultimately rocketed once the devices went to market and the company has been a huge success.
Don't get me wrong. You can invest in companies and find that they don't do well. Imagine if you had invested in BP at the time when they had the oil spillage.
But your destiny is in your hands. Your control and you get ALL of the profits instead of some 3rd party syphoning them all off.
There's plenty to learn and I'm certainly no expert, but I am learning too. What's important is that I am in control.