Category: Investing ideas

How can affluent divorcees fund future school fees?

FIRE v LondonLeave a comment

A friend of mine, very sadly, is getting divorced.  At the moment this divorce remains relatively amicable, with both sides being constructive and the financial matters largely resolved.  But one key issue remains outstanding – how to provide for private school fees for the two young (aged between 5 and 10) children.

This couple are, relatively speaking, asset rich but income poor (though will both be higher rate tax payers).  Based on anticipated regular income levels, private schooling would be unaffordable. But based on current net assets of over £3m, they think they can set aside funds to cover, at least partially, future schooling requirements.

Continue reading “How can affluent divorcees fund future school fees?” →

In praise of Limit Orders

FIRE v LondonLeave a comment

I’ve been busy in the last few months.  I’ve bought a house, and to support this I’ve dramatically restructured by investment portfolio.  And I’ve never been more grateful for Limit Orders.

What is a Limit Order?

As most of my readers will already know, a Limit Order is an order to buy or sell a particular asset (usually a company’s shares, or an ETF) only when the price reaches a particular point before a deadline.

The alternative to a Limit Order is a Market order, which means to buy/sell that asset right now, at the current market price.

A Limit Order means to buy/sell only provided a price condition is met.  By definition this condition might take some time to occur, or may never occur, and hence you need to set a deadline.  This deadline might be ‘next trading day’ or it could be several weeks away.  In my experience brokers don’t like deadlines longer than about 3 months away.

What do I use Limit Orders for?

In recent weeks, I have found myself using Limit Orders in five scenarios: Continue reading “In praise of Limit Orders” →

Five investments to start your portfolio

FIRE v London1 Comment

I came across an excellent article recently in Australia’s Sydney Morning Herald – Five simple trades to get you started with share investment – and found myself lamenting that such clear, wise guidance isn’t commonly seen in the UK press.

The best time to start investing is always today.  Especially when the stock market (sorry, share market, in Australia) is offering lower prices than for many years previously.

The specific suggestions for Australians aren’t quite going to work for most Brits, Americans or continental Europeans however.  Here are my tweaks for those of us in the northern hemisphere: Continue reading “Five investments to start your portfolio” →