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Ask HN: Which 5 investments of £1k each should I make?

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Re: Ask HN: Which 5 investments of £1k each should I make?

#21

Post by cimmanom »

lesss365 wrote: post #16

If you're considering following the suggestions of investing in the stock market, hold off until a possible Brexit market reaction passes in March. Also, wait to see if the S&P can get up and hold steady above $2750. If it can't hold above that mark for a month or so, expect significant drop. Read up on simple moving averages (sma), relative strength index (rsi), and stochastic rsi indicators. Then read up on golden…

Thank you for this, especially the Golden Cross / Death Cross links. I learned something today.

Re: Ask HN: Which 5 investments of £1k each should I make?

#22

Post by mooreds »

cabraca wrote: post #11

Do you have debt? Yes? Pay it off! Do you have an emergency fund? No? make that your investment! Do you have 3-6 times your monthly expenses set aside? No? make that your investment! Still money left? invest in MSCI World oder S&P 500 ETFs and let it sit for a decade or two ... that should net you your 10x growth Edit: removed the MSCI EM ETF recommendation ... S&P 500 performs better.

Great financial advice. I might quibble with the last bit, because we don't know what country the poster is in nor the time horizon for using the money. That will affect the investment possibilities. But the rest is spot on.

Re: Ask HN: Which 5 investments of £1k each should I make?

#23

Post by satysin »

cabraca wrote: post #11

Do you have debt? Yes? Pay it off! Do you have an emergency fund? No? make that your investment! Do you have 3-6 times your monthly expenses set aside? No? make that your investment! Still money left? invest in MSCI World oder S&P 500 ETFs and let it sit for a decade or two ... that should net you your 10x growth Edit: removed the MSCI EM ETF recommendation ... S&P 500 performs better.

I was about to post close to the exact same thing so I am glad to see it already mentioned.

IMHO £5k is too little to be worth investing in anything if you don't have the three things you mentioned in order.

Personally if I came into £5k and didn't need to clear any debts or top up my safety net I would treat myself to some new clothes, a new computer, a holiday or some other good experience before I think about investing it. Then again I have learnt the hard way that a lot of the time investing is just setting money on fire. These days I rather enjoy money when I get a little bit extra :)

Re: Ask HN: Which 5 investments of £1k each should I make?

#24

Post by mooreds »

mooreds wrote: post #22
cabraca wrote: post #11

Do you have debt? Yes? Pay it off! Do you have an emergency fund? No? make that your investment! Do you have 3-6 times your monthly expenses set aside? No? make that your investment! Still money left? invest in MSCI World oder S&P 500 ETFs and let it sit for a decade or two ... that should net you your 10x growth Edit: removed the MSCI EM ETF recommendation ... S&P 500 performs better.

Great financial advice. I might quibble with the last bit, because we don't know what country the poster is in nor the time horizon for using the money. That will affect the investment possibilities. But the rest is spot on.

Actually I guess he is in the UK (the pound indicated that). Savings even more important in that case due to Brexit.

Re: Ask HN: Which 5 investments of £1k each should I make?

#26

Post by ovi256 »

zMiller wrote: post #12

Considering the current political and economic climate : 1- Pay back as much debt as you can: Signs point to the 'cheap money' party ending relatively soon and debt will start becoming considerably more expensive to carry. 2- Bitcoin. Yes, I said it. My 2 cents: Forgetting the debate on the currency aspect and its usability as such . A politically neutral store of value has a use case and there is a tremendous need f…

>debt will start becoming considerably more expensive to carry Only if it's not fixed interest. If you have low fixed interest debt, is there any reason not to keep it ?

Re: Ask HN: Which 5 investments of £1k each should I make?

#27

Post by IshKebab »

cabraca wrote: post #11

Do you have debt? Yes? Pay it off! Do you have an emergency fund? No? make that your investment! Do you have 3-6 times your monthly expenses set aside? No? make that your investment! Still money left? invest in MSCI World oder S&P 500 ETFs and let it sit for a decade or two ... that should net you your 10x growth Edit: removed the MSCI EM ETF recommendation ... S&P 500 performs better.

I have debt - a mortgage. But it's only 2%. Surely it makes more sense to invest in the stock market (~7% over a long period) than pay that off.

Re: Ask HN: Which 5 investments of £1k each should I make?

#28

Post by fucking_tragedy »

IshKebab wrote: post #27
cabraca wrote: post #11

Do you have debt? Yes? Pay it off! Do you have an emergency fund? No? make that your investment! Do you have 3-6 times your monthly expenses set aside? No? make that your investment! Still money left? invest in MSCI World oder S&P 500 ETFs and let it sit for a decade or two ... that should net you your 10x growth Edit: removed the MSCI EM ETF recommendation ... S&P 500 performs better.

I have debt - a mortgage. But it's only 2%. Surely it makes more sense to invest in the stock market (~7% over a long period) than pay that off.

Liabilities are liabilities. If you got hit by a truck tomorrow, you'd still be on the hook for your mortgage, but your earning ability will have diminished. If the stock market tanks tomorrow, you're still on the hook for your mortgage and there goes your investments.

Re: Ask HN: Which 5 investments of £1k each should I make?

#29

Post by EliRivers »

such that even if 4 fail, one grows 10x over 5 years

This seems really hard. Sounds like you're asking for some kind of coupling; a set of five stocks such that if any four of them go to zero, one of them will definitely multiply by ten. If anyone here could do that reliably, they wouldn't be here.

Whatever you end up investing in, don't forget to do it inside a taxfree ISA.

Re: Ask HN: Which 5 investments of £1k each should I make?

#30

Post by cycrutchfield »

zMiller wrote: post #12

Considering the current political and economic climate : 1- Pay back as much debt as you can: Signs point to the 'cheap money' party ending relatively soon and debt will start becoming considerably more expensive to carry. 2- Bitcoin. Yes, I said it. My 2 cents: Forgetting the debate on the currency aspect and its usability as such . A politically neutral store of value has a use case and there is a tremendous need f…

Oh great, another crypto shill looking to recruit new bagholders.
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