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Long term investing challenge

  • 20-02-2019 1:42pm
    #1
    DinaDaRi
    Registered Users Posts: 4 ✭


    I’m trying to set up an investing strategy (long term -18 years) for a child allowance. Basically, how to save/increase the value of money that I’ll be receiving every month as a child allowance for the next 18 years. I’ll be starting this year and I was thinking something like 1/3 gold (physical gold bars), 1/3 investment fund (global, index, 5+ risk because it’s a long term), 1/3 real estate investment fund, with possible recalibration every 3 years to keep them 1/3 - 1/3 - 1/3

    Gold part is easy, I’m already doing it for myself and will just buy more once per year.

    I’m more in dilemma about the investment fund. When I look at (for example) statistics for the last 10 years and take into the account the management fees it’s hard to find something useful (profit-making) ☹ Any bits of advice?

    Also, is there a comparison of different reits that could be useful for choosing the right one? Anyone already investing and willing to advise?

    Any comments would be appreciated.
    Tagged:


Comments

  • #2
    Jim2007
    Moderators, Business & Finance Moderators Posts: 10,358 Mod ✭✭✭✭Jim2007


    Any portfolio with a weighting of over about 6% or 7% in property, precious metals or commodities is considered a very high risk strategy to say the least and you got 66% assigned to them.... good luck with that.


  • #3
    DinaDaRi
    Registered Users Posts: 4 ✭DinaDaRi


    Jim2007 wrote: »
    Any portfolio with a weighting of over about 6% or 7% in property, precious metals or commodities is considered a very high risk strategy to say the least and you got 66% assigned to them.... good luck with that.

    So...any suggestions for investment fund (I presume you would see that as a better solution?). I couldn't find anything that would bring positive return (when you take management fees into account) for the last 10 years :(


  • #4
    Jim2007
    Moderators, Business & Finance Moderators Posts: 10,358 Mod ✭✭✭✭Jim2007


    DinaDaRi wrote: »
    So...any suggestions for investment fund (I presume you would see that as a better solution?). I couldn't find anything that would bring positive return (when you take management fees into account) for the last 10 years :(

    Nobody can give you a guarantee on this stuff, but generally speaking the best returns are achieved by asset allocation not stock picking. Start by sorting out your asset allocation first. 60+ percent in property and commodities is not it.

    Have a look at investment trusts as an alternative to funds, but do your research carefully because NAV, Benchmark and Price can be a bit quirky.

    https://www.bmogam.com/wp-content/uploads/2019/02/fc-investment-trust-plc-factsheet.pdf


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