Trading UK Shares as non UK Resident
#32
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Joined: Feb 2011
Posts: 0
Re: Trading UK Shares as non UK Resident
Will add the next chunk of money this weekend once I've figured out how much to leave as my emergency fund and once I have done more research. Going to start thinking of the balance with bonds as well. Thinking 80/20 (stocks/bonds) balance works well for the next few years whilst I'm still young(ish).
#33
Re: Trading UK Shares as non UK Resident
Traditionally, you'd take 100 minus your age, or 110 minus your age, as your % in equity, the balance being in bonds. Then adjust for your personal risk tolerance and cash pile (the more cash you have, the less you strictly want to have in bonds). You can also look at one of the retirement funds for some guidance. For instance, https://investor.vanguard.com/mutual.../overview/0696 (pick your retirement timeline then look at the Portfolio & Management tab. I've noticed that these funds have swung more heavily into equities recently though as bond yields are so poor).
Last edited by csdf; Nov 25th 2020 at 12:30 pm.
#34
Account Closed
Joined: Feb 2011
Posts: 0
Re: Trading UK Shares as non UK Resident
Traditionally, you'd take 100 minus your age, or 110 minus your age, as your % in equity, the balance being in bonds. Then adjust for your personal risk tolerance and cash pile (the more cash you have, the less you strictly want to have in bonds). You can also look at one of the retirement funds for some guidance. For instance, https://investor.vanguard.com/mutual.../overview/0696 (pick your retirement timeline then look at the Portfolio & Management tab. I've noticed that these funds have swung more heavily into equities recently though as bond yields are so poor).
I was working on similar, I'm 32 so 80/20 is roughly right with the 110 or as I calculate - age as a % - 10. Same same.
Figured I'd adjust this every 5 years or so. The main thing I want to do now is get the % of savings as high as possible for a few years to really pack it in.
I've got the emergency money sorted, decided on a number last night, just need to look at the constantly moving wedding date for how much I want quick access to for that, there's not loads left to pay but certainly some.
The rest is getting put in.
#35
Re: Trading UK Shares as non UK Resident
Perhaps its not worth putting all your money into the 2 funds all at once but rather on a monthly, quarterly basis - which usually gives you a better long term return than dumping it all once
You should really do some back-testing over 5 yrs (ideally 10 yrs) and you will see the different returns you can get over funding on all at once vs month vs quarterly periods
In regards to your wedding (kudos btw) tell the Mrs she is lucky to get you and a chip buttie by the sea is as good as its going to get (i did that approach with Mrs UKCityGent and have the black eyes to prove it!)
You should really do some back-testing over 5 yrs (ideally 10 yrs) and you will see the different returns you can get over funding on all at once vs month vs quarterly periods
In regards to your wedding (kudos btw) tell the Mrs she is lucky to get you and a chip buttie by the sea is as good as its going to get (i did that approach with Mrs UKCityGent and have the black eyes to prove it!)
#36
Re: Trading UK Shares as non UK Resident
Some recent analysis of this has suggested that lump sum actually returns better than dollar-cost averaging. A bit of reading here for anyone that's interested: https://ofdollarsanddata.com/dollar-...g-vs-lump-sum/
Either way, unless you have gigantic balls of steel you might prefer DCA even if the returns are slightly lower, just to keep the internal demons of fear at bay.
Either way, unless you have gigantic balls of steel you might prefer DCA even if the returns are slightly lower, just to keep the internal demons of fear at bay.
#37
Account Closed
Joined: Feb 2011
Posts: 0
Re: Trading UK Shares as non UK Resident
Perhaps its not worth putting all your money into the 2 funds all at once but rather on a monthly, quarterly basis - which usually gives you a better long term return than dumping it all once
You should really do some back-testing over 5 yrs (ideally 10 yrs) and you will see the different returns you can get over funding on all at once vs month vs quarterly periods
In regards to your wedding (kudos btw) tell the Mrs she is lucky to get you and a chip buttie by the sea is as good as its going to get (i did that approach with Mrs UKCityGent and have the black eyes to prove it!)
You should really do some back-testing over 5 yrs (ideally 10 yrs) and you will see the different returns you can get over funding on all at once vs month vs quarterly periods
In regards to your wedding (kudos btw) tell the Mrs she is lucky to get you and a chip buttie by the sea is as good as its going to get (i did that approach with Mrs UKCityGent and have the black eyes to prove it!)
I'm intending on investing regularly - probably quarterly so I bank a bit each month to the side and invest in chunks like that.
My thinking about dumping what I've got now (minus the emergency fund and some wedding float) is that the other option is it continues to sit in an offshore current account going backwards.
On the wedding, we're going reasonably large, over a weekend, but with it being pushed once and about to be pushed again the money has gone in drips so no biggie.
Some recent analysis of this has suggested that lump sum actually returns better than dollar-cost averaging. A bit of reading here for anyone that's interested: https://ofdollarsanddata.com/dollar-...g-vs-lump-sum/
Either way, unless you have gigantic balls of steel you might prefer DCA even if the returns are slightly lower, just to keep the internal demons of fear at bay.
Either way, unless you have gigantic balls of steel you might prefer DCA even if the returns are slightly lower, just to keep the internal demons of fear at bay.
Either way, I'll basically be doing both.
#42
Re: Trading UK Shares as non UK Resident
Sorry, the browser froze up on me while I was still writing and didnt realize it posted the first few words that I had typed already. So the question I was going to ask (without trying to hijack someone else's thread) was, are the investing options that are discussed on here open to non-British nationals? I have a valid NI no. and an address in the UK but no status. I would like to get into the markets in (or through) the UK and although I wish I used my ISA room when I was a tax resident once upon a time, I hope its still not too late to find ways to invest. So does anyone know about the investment opportunities available to foreign nationals or know of any sources where I can obtain such info?
Thanks.
#43
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Joined: Feb 2011
Posts: 0
Re: Trading UK Shares as non UK Resident
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Sorry, the browser froze up on me while I was still writing and didnt realize it posted the first few words that I had typed already. So the question I was going to ask (without trying to hijack someone else's thread) was, are the investing options that are discussed on here open to non-British nationals? I have a valid NI no. and an address in the UK but no status. I would like to get into the markets in (or through) the UK and although I wish I used my ISA room when I was a tax resident once upon a time, I hope its still not too late to find ways to invest. So does anyone know about the investment opportunities available to foreign nationals or know of any sources where I can obtain such info?
Thanks.
Sorry, the browser froze up on me while I was still writing and didnt realize it posted the first few words that I had typed already. So the question I was going to ask (without trying to hijack someone else's thread) was, are the investing options that are discussed on here open to non-British nationals? I have a valid NI no. and an address in the UK but no status. I would like to get into the markets in (or through) the UK and although I wish I used my ISA room when I was a tax resident once upon a time, I hope its still not too late to find ways to invest. So does anyone know about the investment opportunities available to foreign nationals or know of any sources where I can obtain such info?
Thanks.
My Interactive Brokers account is with me here under my UAE address and status, nothing linked to a UK address and I'm able to buy stocks/funds etc from anywhere in the world - I just focus on UK based as it makes some sense (also, think there are some tax things with the yank ones, but have never really looked into it).
#44
#45
Account Closed
Joined: Feb 2011
Posts: 0
Re: Trading UK Shares as non UK Resident
All that matters is I cashed out a few of them to get all my money back and now hold a very small pot, waiting for them to go to the moon. Then I get a Breitling.