![dividends[1].jpg](https://i.imgur.com/N6bsXQT.jpg "dividends[1].jpg")
I live in the UK and I'm about to invest in long term Vanguard funds, with a focus on dividends.
VYM - Vanguard High Dividend Yield
VIG - Vanguard Div Appreciation
VHYL - Vanguard FTSE all-world high dividend yield
I'm planning on putting £1500 initially, and £1000 per month (along with any reinvested dividends)
Would you say this is a good move, especially with the pound sterling being currently weak against the dollar?
>>1372979
Why the emphasis on dividends?
>>1372979
Maybe do that after the financial collapse brough to us by a german bank that will not be named? You know that there could be a next 2008 any minute now, right?
>>1373012
>I like the idea of passively getting income, hopefully when I can retire I can live off them
Two things.
a) You don't have to buy dividend funds now to have them later.
b) Buying only dividend funds results in a sub-optimal asset allocation (all stocks, all large- to ultra-cap).
Now. Do bongs have 401(k)s? What sort of vehicle is this money going in? What are the tax implications?
>>1373009
>IDS HABBENING
>>1373015
>You don't have to buy dividend funds now to have them later.
But surely the earlier you invest the better since you have more time to reinvest/compound the dividends?
>Buying only dividend funds results in a sub-optimal asset allocation (all stocks, all large- to ultra-cap).
As I said I'm not too experienced in investing, investing in these blue chip funds gives an element of relative safety which I like, and I don't have to spend too much time researching
I am enrolled in the pension scheme of my company which is relaveily similar to 401ks (I believe). I'm not too sure what you mean by the last questions
>>1373026
>But surely the earlier you invest the better since you have more time to reinvest/compound the dividends?
Yes, absolutely. But you don't have to invest in dividend stocks, you may find better returns on different types of portfolios that may or may not include dividend-paying stocks, or stocks at all.
If your end goal is self-sufficiency in retirement then you need to reach a net worth that allows you to live off the returns generated by investments as soon as possible within your risk profile. It's at that point where you need to worry about how to generate those returns. Until then the goal is to increase net worth.
>As I said I'm not too experienced in investing, investing in these blue chip funds gives an element of relative safety which I like, and I don't have to spend too much time researching
There's nothing wrong with this reasoning but you would be doing yourself a favor if you were to start reading into finance and investing and learning how things work. With apologies to your lifestyle I can all but guarantee you it would be a more worthwhile use of your time than at least one thing you spend a lot of time doing now (e.g., posting on an anime messageboard).
>I am enrolled in the pension scheme of my company which is relaveily similar to 401ks (I believe).
I have no idea how British pension programs work, but the two main questions are:
a) What variables that affect the value of your investment in this program can you control?
b) What can you do to maximize the benefits you receive from this program?
So for example, if you have to contribute a certain amount of pre-tax money, then you should contribute the maximum amount feasible, especially if your employer matches a certain amount. But it's not limited to money, maybe you have to work there a certain number of years to be vested in the program, then that should factor into your decision to quit.
>>1372979
Are you doing this via an ISA?
>>1374233
Through an online stock broker... I'm sorry I don't understand what you mean
>>1374233
>>1374844
Just looked into this further. I have opened an investing ISA with my broker, however to transfer funds I'll be subject to comission... either £5 per trade if I sell my current shares and rebuy, or I can pay £40 per stock... gah.
I currently have investments in 10 company stocks to the value of £8700. Is it even worth it to transfer this amount?
>>1374939
Why is your broker fucking you in the ass? Do you pay extra for that?
Iweb used to be good at £5 per trade but it now has a £200 opening fee.
Hargreaves is ok but can be a bit pricey with management fees
I wouldnt bother transferring those (bed and isa). Just keep plowing in your 1k per month into your new ISA. Try to use your full £~15k per year
If you are investing more than £15k then start doing more research.
Also, make sure you have some savings. I suggest at least 10k in an instant access savings account. The Santander 123 accounts are worth having, despite the fee, at that amount.
>>1373012
Imminent as within a matter of weeks. There will be movies made from this one.
>>1373015
>Now. Do bongs have 401(k)s? What sort of vehicle is this money going in? What are the tax implications?
We have ISAs which are tax free, you can get stocks and shares ISAs as well and can invest around £15000 per year into them.
>>1373026
>>1374233
>>1374844
>>1374939
>>1375435
>>1375583
Also consider getting an SIPP. Unlike an ISA, this cannot be accessed until you're 55, however the govt gives you 25% on top of whatever you invest. More restricted, but great if you're putting cash away for the long-run.
>>1375632
Wow that is good. Almost as good a rate as inflation between now and 2041
>>1376126
Sorry I said cash, but typically you put shares or funds in it. My mistake! You definitely wouldn't want to put cash in that!
Same applies to these "lifetime ISAs" when they come out, except they can be cashed out early to buy a house.Worth looking into. I use hl.co.uk
>>1375632
Do you trust all the governments between now and your retirement to NOT take a piece of this money that you will never be able to access until then?
If yes, or if you are near to 55, then consider a SIPP
ETFs are for retards.
Why the fuck would you want to invest in all of the shitty companies that are floating around when you can choose to invest in only the good ones?
>>1377052
>you can choose to invest in only the good ones
If it's so easy, skippy, go do it. If you're right, you'll be the highest paid professional stock picker in the world, and eventually become the wealthiest man on the planet.
Or, alternatively, it's harder than it sounds and you'll fail like every other stock-picking idiot out there,
