ISA 2018/2019 – Strategy, Saving The Full Amount and The End Game

It’s the 6th of April which means only one thing, the beginning of the new tax year. This makes me excited as it means that I now get another £20,000 to add to my stocks and shares ISA. And if you are not excited about this it’s because you do not fully understand the concept and the great benefits that an ISA possesses. If you are someone like me who wants to achieve financial freedom at a relatively young age, an ISA is the way to go. In essence, an ISA is a legalised tax heaven for the average person like you and me. You are able to earn dividends […]


The Mutual Fund Game Is Rigged In The Managers Favour

I have alluded to fees being an antithesis to performance many times over the past few years. Fees are the main reason why index funds outperforms actively managed funds. The following from famed venture capitalist Chris Sacca further cements why fees are an investors worse nightmare and that mutual funds are rigged in the managers favour. Although the comments below are to do with venture capital but it could as well be applied to mutual funds. Have a read and see whether or not you are still comfortable holding your money in a mutual fund. Chris Sacca on Fees: “This is a rigged game, right? And I’m just looking to […]


January February March Dividend Income

The first quarter of 2018 has absolutely flown by. It doesn’t feel that long ago that I was ringing in the new year in style but it’s been three months already. And with the end of the first quarter of 2018, it’s dividend income update time. This is one of my favourite times of the quarter as I get to review my previous three months worth of passive income from my dividend income portfolio. Without repeating the wild ride we experienced in the market last quarter, I could find comfort in one thing, my dividends. As we all know, the market may move up and down irrationally and seemingly on […]


March Monthly Stock Purchase – Perseverance and Temperament are Key To Investing Successfully

2018 has so far been a dreadful year for the UK market with prices dropping 7.2% year to date. This UK has been the worst performing developed market in 2018. Whist they have been several profit warnings for London listed companies, part of the fall in UK shares has been due to a market de-rating. Many companies in the UK market are trading at discounts when compared to global peers of similar quality. Just look at Royal Dutch Shell trading at a discount to Exxon Mobil, BAT trading at a discount to Altria and RB trading at a discount to Church and Dwight. This is why it is an important […]


How Long Will It Take To Double My Money Through Investing In The Stock Market

One of the questions I get consistently asked is ‘how long it will take to double my money on the stock market or with any other investment?’ The answer depends on the rate of return. If you have a high rate of return, it will take a shorter period to double your money and if you have a lower rate of return it will take longer. Have a look at the below table to see how long it will take to double your money. As a reference, the historical average return of stocks is approx 7%-8% so you would double your money every 10 years via stock market investing. Besides […]


Do You Pay Tax On Accumulation Fund Units

One often questions I get asked a lot is ‘do you pay tax on accumulation funds?’ The simple answer is yes, you need to pay tax on accumulation funds if they are held outside an ISA or SIPP (Pension) wrapper. You will need to pay income tax on any distributions and capital gains tax on any capital appreciation. What are Accumulation Funds Accumulation funds are funds whose income is automatically reinvested in the fund. An accumulation unit is designed to offer you growth in the fund rather than income, so any income generated will be reinvested within the fund. Income funds on the other hand distribute any interest or dividend […]


Terry Smith Fundsmith Equity Fund Buys Facebook Shares In Its Portfolio 3

Terry Smith, the founder of Fundsmith, is a man I greatly admire. He is an anomaly in the world of investing and finance due to his his straight talking nature. He is a breath of fresh air as he is one of the only fund managers to eschew fees, invest his own money in the funds he runs and doesn’t performance chase for short term gains. His flagship funds performance has been exceptional since its inception with cumulative returns of 260.9% or 19.1% per annum. For reference, the MSCI world index generated returns of 133.3% or 12.3% per annum over the same period. Terry Smith is one of those active […]


What Is The Financial Independence Retire Early (FIRE) Movement And How To Obtain It 2

Over the past few years, many of you who are interested in personal finance have come across the FIRE movement. This article will help explain what this movement is all about and how you could be one of the people that follow the movement. What is Financial Independence Early Retirement (FIRE)? Financial Independence and Early Retirement, or FIRE for short, refers to achieving a level of passive income that covers all your expenses and spending commitments allowing you to withdraw from the workforce and retire early. Most people who join the movement hate their jobs and thus aim to create a self-sustaining pile of money that let’s them do whatever […]


February Stock Purchases – Be Cheerful Of Falling Stock Prices 2

February has seen shares in London listed companies finally experience some volatility and drop a notch. There was a combination of reasons for this; weakness in US shares, the rising value of the pound and the fear that interest rates may be increased faster than expected. This latter point is the most pronounced with the result being that solid defensive companies have seen their share prices drop more than the wider market. As someone still in the wealth accumulation stage of their life, I cherish lower stock prices as it gives me the opportunity to buy the stocks I like on the cheap. The only people who should wish for […]


Fidessa Plc – A Takeover Approach Of An Increasingly Rare Serial Compounder Of Wealth

This past week Fidessa Plc – a company I have been buying shares in via my monthly stock purchase programme – received a takeover bid from Temenos for a total value of £36.467p a share. The shares in the company consequently shot upas a result of he takeover bid and are now trading at £38; a price above Temenos bid price. The reason for the shares shooting higher than the bid price is due to heavyweight investor Elliot disclosing an increased stake in Fidessa implying that the current takeover price undervalues Fidessa. Elliot normally gets what they want – just look at how Qualcomm increased their bid for NXP semiconductors […]