Return on equity ISA and retirement investments?

Question

They say that you should return an average of 9%/year after tax on various managed funds in ISA's and pensions. Does anyone actually come close to this return or is it just me making less than 3% most years? How do you go about changing and choosing the best returns?
UK replies only please unless you have foreign funds to suggest.
Thanks, Ed.

Answer 1

If you can find an ISA that pays 9% I'd like to see it! I think the best one around at the moment is about 6% and that's only an introductory offer. My pension is better but not 9%... who's this "they", then, and where do they put their money? :)

Changing the make-up of your investments within a pension fund can normally be done once a year. Keep your ear to the ground and see what the markets are doing - do you get out of equities and into property, or into fixed-rate bonds? It's a gamble, but remember you're thinking long-term - don't panic over one or two bad years. Look what happened to it all on September 11th, and that couldn't have been predicted.

Answer 2

You should have no trouble hitting 5-6% ... even if all you do is buy FTSE100 shares and bank the dividends.

If you are only getting 3% I guess you are either 'churning' your stocks too fast to get the dividends or are choosing too many 'penny shares' ...

If it's not working for you, maybe you should stick with cash funds or Index trackers ?

(NB - a lot of people are getting very nervous about the stock market - if investing in shares I would try to pick ones that are going to survive any possible downturn - Oil, Water, Food ..)

Answer 3

If you have a decent amount of money in ISAs. do you use a fund supermarket and keep track of your investments on-line it is easy to move money from fund to fund to get the best return. I would suggest you think about funds investing in commercial property around the world as well as shares and bonds. If you're not using a fund supermarket Fidelity have a good one which is called Fundsnetwork.

Answer 4

those are commonly mis-offered to the incorrect people for the incorrect motives, and commonly are mis-represented by ability of sales people who might desire to make commissions. they are able to be incredibly complicated and confusing to correctly known how they actually artwork. there's a 10% penalty for withdrawal in the previous fifty 9-a million/2, so that they are no longer for youthful people. There are costs, very complicated approaches of capping returns, and you are not getting dividends, so your return would be limited. you will no longer lose money yet you will no longer make lots by using capping approaches. Your returns would be greater bond like at possibly 4%-5%. additionally, your constructive aspects would be taxed at undemanding income expenditures, no longer at decrease capital constructive aspects expenditures. so that they are no longer that great an investement except you're older and definitely great faint-hearted approximately making an investment. if so, one could be marvelous for you. do exactly no longer assume lots out of those.