This is The Best Time to Start Investing - Here's Why

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[@Daniel-er3ys]

Can I just say that your channel and Damian are the 2 single best channels on KZbin for UK people. Both are excellent. Been watching both for about 6 months now to help myself understand everything etc and started investing in January 2024 and yes I too wish I had started sooner 😂

[@livingart2576]

Agreed. For me it’s Toby, Damian and Sasha. Been subscribed to Toby for a while and I love his honest, calm approach.

[@The_Unintelligent_Speculator]

Agreed.

[@TobyNewbatt]

Thank you Daniel that's very kind, I think we've got a really good community here in UK finance and I still think we're just getting started :)

[@keithlos1497]

Should be taught in schools.

[@aarongallagher3998]

Facts!!

[@Dr.JubairsFinance]

Today is the best time to give your video a like

[@TobyNewbatt]

Today is the best time to reply and give a ❤️

[@itzjjg]

Best response ever

[@1292liam]

today, this is a strong comment

[@turner1622]

Educational as always mate, loving the work you put in to the channel for us all to benefit.

[@jimcraiggeezer]

Definitely easier and with KZbinrs like yourself its so easy to get unbiased information... 😊thanks.

[@nathanandsopa]

Thanks Toby, I have shared your videos with many of my friends who have expressed an interest in investing. When I start to get a little overwhelmed by the noise of all the Cassandras, I watch one of your videos.😀

[@TobyNewbatt]

Thank you! Happy to help as many people as possible

[@jonathanreevescad]

I do remember having paper stock certificates, and what a pain it was. My dad got me started. These days it’s so easy to get started with regular small amounts. I have now got my 3 boys started on their investment journeys and they have 30-40 years ahead🤩

[@TobyNewbatt]

It’s funny I saw an advert for some company who sells stock certificates as a novelty now maybe I need some for a wall decoration!!

[@RS-cl5wg]

8:21 there is a famous historical investment study that was done, that showed that even if you could time the exact bottom every time and waited to buy the dip, you would make less than DCA. The reason is that it takes so long for the dips to happen and the amount of appreciation you miss out on outweighs the benefits of getting the stocks at a discount. What i don’t understand is how that is possible if all that really matters is the number of shares you owe. As long as you save the same amount u would have invested and waited for stocks to be cheaper. After 30 years, wouldn’t you have more shares than if you DCA?

[@anthonybrown4874]

Quite right Toby now you can avoid IFAs as back in the day they would sell you a product that was arguably suitable for you but certainly earned them commission now you can access a wide range of products at low low charges.

[@dalebettison8053]

Love it, well done. Been learning about this for over a year now and have started, only lost £3:74 so for but with compounding, I should be skint in 10 years.....

[@lifeutopia7568]

Thanks Toby - i've only just begun my investing journey after being given the confidence by informative channels such as this one. I was brought up to fear the stock market as something very risky but with sensible choices into secure ETFs this is not the case. Thank you!

[@TobyNewbatt]

There's always risk, but I think as long as you stick to truly long term thinking and stay well diversified you give yourself a great shot. Easier said than done but if we are going to have a bumpy road ahead - we are all in this together.

[@TomsPersonalFinance]

Great points, Toby 😊

[@TobyNewbatt]

Thanks Tom :)

[@shocks123]

Sound advice, no one makes money if your not invested

[@mattsennett]

I agree Toby that pound cost averaging over time is the best way to invest. More than happy buying today, especially as the market dipped due to a hot US CPI print, as in years to come no one will remember that specific bit of short term news.

[@TobyNewbatt]

exactly that, i've already forgotten what I've had for breakfast :P

[@Dasm.]

Another banger of a video!

[@martamay6855]

as always to the point!

[@simoneperugini6185]

The thing is always the same. In a utopic world this is the worst time to invest but of course we cannot predict the future because as i think the better investment should be sports betting. Don’t think too much and just put money into ETf

[@jmcooney2000]

Great video thanks! Liked and subscribed

[@TobyNewbatt]

Welcome!

[@valerienewbatt9678]

Great video Toby.

[@TobyNewbatt]

Thanks 👍

[@Earthshock09]

I am 29 years old and got a long time horizon 30-40 years before retirement and started in corona pandemic and I am happy i’ve started investing lump sum and DCA all my way to retirement.. love your video’s Toby! Keep it up ❤

[@TobyNewbatt]

Thanks and good luck :)

[@paulevans1139]

Good video again!!👌🏻👍🏻 what's your thoughts on keeping the cash in 212 getting 5.2% interest as opposed to investing it into stocks returning 3-4% dividends??

[@TheGavranatar]

This

[@TobyNewbatt]

great question - interest on cash and investing (for dividends or anything else) aren't really comparable. - Savings is guaranteed with no capital at risk - you get 5.2% no matter what (although do bear in mind that this wont last forever) - Investing (for dividends or anything else) - you may get 3-4% yield - but the capital is at risk. This could be great, you may end up getting another 5% on top as capital appreciation, or you could go nowhere, or even lose money. However - good luck trying to time it right to know whats best - the opportunity cost is important to consider. I think this could actually make a great video topic as theres lots ot tak about - what do you think? Saving vs Dividends? Something like that?

[@larsenb4803]

@@TobyNewbatt Great idea. I've been thinking is it best to keep cash in savings and switch to investments when interest rates fall, or invest now with the expectation stock markets will rally on news of interest rate cuts? Or invest now on the basis you're probably going to beat 5.2% anyway?

[@Vinyl-Sloth]

If you need cash within 5 years keep it as cash

[@Norfolkpaul]

One more great video 😊

[@TobyNewbatt]

Thank you 🤗

[@nicobass1966]

Cheers Toby, great sound advise as always - get that FA cert, you would do well. I've bought 3 trades over the last 18 months and on average the SPY has returned me an average of 15.40%, what cash ISA or savings account would do that, yes a rocky road sometimes but as you say worth it in the long run, cheers Nick

[@TobyNewbatt]

Thanks buddy. It's been a wild ride so far hasnt it!

[@Chasworth]

If u invest in accumulating etfs on invest engine, does the total balance reflect everything your portfolio is worth, (including compounded intrest after dividends are reinvested)? and how often does the reinvestment occur? Sorry if its a silly question😀

[@crimsonpirate1710]

Ive been investing/trading since 1995. Its nice to read that many of you have now picked up the gauntlet. Keep spreading the word people. We dont need wealth management firms like St James Place. Do it yourself. You will save and make a fortune.

[@TobyNewbatt]

💪💪💪

[@paulevans1139]

Hi Toby, yeah definitely be worth a video, give people something to think about and share perspectives. I don't think rates are going to drop soon, so what about holding the cash, then investing the internet payments, playing with the "house money " so to speak?

[@ChrisShawUK]

To be honest, it's better to just copy what experienced investors do rather than try to make up your own strategy. You don't get extra points for dreaming up new ways. Start now, add regular contribution, accept guaranteed market return from index funds, repeat for two decades.

[@JustClipz-td2lf]

It would be good to see, once you've invested and your investments have reached good money. What would be the best process to take out that money. Is the best option similar to dollar cost averaging where you take it out monthly no matter the price and that would make no difference

[@TobyNewbatt]

A great topic for anothter video where I can talk through some ideas :)

[@ChrisShawUK]

That is a good question. I stopped working five years ago, aged 51. What I do is hold four years of lifestyle spend and choose appropriate points to top up that pot (in fact today was one of those points!)

[@chqshaitan1]

great video bud

[@TobyNewbatt]

always grateful for the support thank you :)

[@nathenleelewis]

What Tea ☕ coffee, do you use Toby? Thanks for all your lessons.

[@TobyNewbatt]

I have a fancy coffee machine.. but i'm a decaff man now as caffeine really messes up my sleep..im so boring :P

[@david-fletcher]

Today....as in Today might not be the best day.... US CPI print which came in higher than expected. I think core came in even higher at 3.8 ! Looks like market stimulating May FOMC rate cuts might be off the table, but who knows ?

[@TobyNewbatt]

All short term noise 😀 I would argue that days like today are exactly why you need to just start as a long term investor. Unless you can control inflation and interest rates and all the other bad bits of news that will come out? 😉

[@david-fletcher]

@@TobyNewbatt Totally agree however.... Imagine if you had invested a lump sum prior to the covid crash!.....S&P500 fell 34%......Right now you would be sitting pretty !

[@SomeoneSmarter]

I am one of your statistics. I'm in my mid 40's and I have had a cash ISA for many years. I've only just got into SS ISAs and I'm seeing results already. I tried encouraging my Mum to start growing her savings and she said no. Investments are a huge gamble, she would lose all her money, etc. I think a lot of people think like this. EDIT - Great content, I just Subscribed!!

[@adrianl5899]

In the event she is retired and under 75, she could put £2880 into a pension and get £720 boost from tax relief. Perhaps that's an easy introduction to how it's not all going to be lost!

[@user-pp5lv6dl2k]

Thanks Toby. Can you do a video explaining how navigate vanguard ETFs. I set up a dd for a fixed amount monthly but they don’t let us buy fractional shares so will money be left in my isa? Do I need to manually reinvest all the time? I bought an accumulation etf fund. I wanted to set and forget x

[@TobyNewbatt]

I presume you are talking about Vanguards platform. Unfortuantely you can't buy fractional ETFs there and you will be left with change. You have two options, use one of their mutual funds (like I do for my pension) which allow you to invest in whatever amounts you want OR move platform to one that allows you to invest in fractional ETFs :)

[@user-pp5lv6dl2k]

@@TobyNewbatt Thanks Toby for responding. I’ll be changing it to the FTSE global all Cap Index fund on vanguard because I like their reputation for my main passive investment strategy. This one is okay for fractional shares? What about the VUAG?

[@tomonetruth]

Regarding regular investing: suppose I have a lump sum, but not enough income to regularly invest - should I invest all of it now, or invest in several smaller amounts spaced over, say, the next year?

[@adrianl5899]

I understand 3/4 of the time a lump sum has beaten dripfeeding. Risk appetite matters though, so if a drop after investing panics the investor to sell or stop investing, that lump sum may be statistically favourable matters little.

[@chriswood1149]

Thanks for another informative video. I have a question on DCA though: For example, say if I have £20k cash now to invest with. Is it best to invest all of this at the start of the tax year (ie now), or invest £1666 monthly over the next year.

[@gregothy9190]

The more you spread it out, the lower the risk. It depends on your risk tolerance, but if you pick the wrong time to invest the massive chunk, you could lose out on growth.

[@gregothy9190]

Look up "dollar cost averaging"

[@ChrisShawUK]

​@@gregothy9190lower the risk of what? 20k is not a massive sum. If you're going to stay invested for decades, then just invest the whole lot and get on with your life.

[@MrKlawUK]

is there a way to calculate the difference in outcomes if fees and ETFs are not identical? eg my pension has their own all world which tracks the same index as vanguard and others, but won’t be identical. I don’t know how to compare relative performance. The fees I can more easily compare I guess. Main thing is I want to benefit from salary sacrifice into pension so would need to consider partial transfer so need to understand the potential difference to see if its worth it.

[@TobyNewbatt]

Hmmm...so your pension provider should give you a breakdown of your performance showing exactly how much in fees they have taken off so that part is easy to compare I guess. If a fund tracks the same index, this is very likely to be almost identical across all fund providers - yes there is always some tracking differences. Another thing to consider though is even if the fund is not quite as good - if you are getting salary match by your employer and tax relief you have to factor that in too.

[@cvigti]

I invest in SPYL. I'm in Portugal. 0.03 TER for the S&P500 (full replication, physical and accumulating) 👌😉👍

[@TobyNewbatt]

Nice that’s super cheap!!!

[@coderider3022]

Practically giving it away.

[@anthonybrown4874]

I can see the sense in your point of view but its sometimes wiser to attend to financial fundamentals first. Off topic I can see replies with hit me up followed by numbers I assume a telephone number it might be worth publicising if this is Scamming.

[@tyroneholmes6354]

On trading 212 is the money in free funds (and gaining 5.2% interest), covered by FSCS? (like the invested money is)

[@TobyNewbatt]

The short answer is it depends. Technically it is not protected if it’s invested into money market funds. But it is if it’s inside banks. Trading 212 invest the money and pay you interest on it only if you opt in.

[@gill3011]

Hi. I can’t seem to find any info on this. Hope you can help! Does having more than one ETF in a stocks and shares ISA negatively impact compound interest?

[@adrianl5899]

For ease of comparison, 100% in 1 ETF that grows 5% pa will have the same result as 50% into 2 ETFs that both grow 5% pa. So what matters is not the number of ETFs but their growth.

[@gill3011]

Thank you 😊

[@marcwareham9351]

“Just keep buying” The only issue with being able to trade in and out of stocks so easily is that people tend to trade in and out on their emotions. Most investors actually underperform the market because of this. The most successful investors were found to have forgotten they had stocks, or they was dead 💀. To avoid this I only buy etfs I’m never plan on selling.

[@adrianl5899]

Excellent point. Although access to investing is good, a downside is that too many will tinker, trying to time the markets or act emotionally, not realising just how damaging it is to their future wealth. Similarly, while the ease of transferring ISAs and pensions is welcome, doing so by having to convert to cash can lose more than it gains people if they happen to miss some of the best investment day/week/month gains.

[@whereisgabri3641]

Great video. However, probably the best time to invest was 5 or 10 years ago buying some bitcoin!

[@TobyNewbatt]

Can you get me the delorian please 😉

[@kw8757]

@@TobyNewbatt The Bitcoin Bro's never fail to show up in the comments.

[@ti99er]

Barclays launched iShares in 2000. I've been tracking them ever since. Source: The Guardian "LSE sets up market for Barclays iShares" Fri 25 Feb 2000.

[@TobyNewbatt]

seems crazy that Barclays sold them to Blackrock, they got a bargain!

[@ti99er]

Barclays Global Investors(including iShares) was sold to BlackRock for $13,500,000,000(£8,250,000,000) in 2010 and got a stake 20% of in BlackRock too. Source: The Guardian: US giant BlackRock buys arm of Barclays bank. 12th June 2009.

[@ianashelford]

Grey hair eh? I've been going grey for 12 years! And not 40 yet! Lol. Good luck for the run this weekend. 🏃‍♂️💪

[@TobyNewbatt]

😂😂 thanks buddy!

[@andychen111]

Inflation data kinda disagrees with this entry point 😜. Informative video though

[@TobyNewbatt]

FOMC has entered the chat 😂

[@cdhawkia]

I have a lump sum of money. Is it better to place it all in ETF's now? Or slowly feed in over a year?

[@boyasaka]

Many are prediction a recession in USA which will knock the s and p down Dollar cost average

[@adrianl5899]

I believe 3/4 of the time lump sum will have beaten dripfeeding, so mostly it's about risk appetite and whether seeing a fall in the short term would negatively impact investor behaviour, such as selling low or ending investing.

[@tariqphoto]

i only risk a grand a year. probably not enough to build wealth but its as much as i can afford

[@TobyNewbatt]

You’re doing better than lots of people keep it up 👍

[@Robzo]

Hi Toby random question - what’s that screen in the background on the wall ? Is that a stocks and shares display screen? 😂

[@TobyNewbatt]

check my description, i put a link there as so many people asked about it :)

[@mohiburkhan5886]

Yeah i agree with some parts way easier at the moment to invest with minimal fees but easier doesn't mean better time to invest right now. With the state of inflation in the u.s.a which is proving very sticky at the moments and the very high interest rates plus the stock market is at all time high..with the issues in the middle east aswel it doesn't help current markets. U.k has dipped into a mkld recession so it doesn't fare any better either. China's stock market is crashing.So yeah more convenient but not the "BEST TIME TO INVEST THAN EVER BEFORE" people should be very very cautious.

[@markmcgee73]

Ica ica baby

[@Chanesmyname]

Yes, today is the best time to invest…but my shining new ISA has dropped by £150. on going live. Jeez. Never mind, I have seen worse and I hope I don’t need that fund for many years anyway.

[@alanmorris3854]

When I opened mine it dropped the next day then the next then the next then the next untill it hit minus £360 then up dawn for a bit now it's £ 2589 as of today. I'm no financial advisor or expert but keep going buddy it will turn around. There's dividends and interest on that to so just keep swimming

[@tonyh1460]

Same here, did a bed and ISA and invested £20 big ones Sunday evening Down now too, wish I’d spread it over at least a week 😂 But hey ho, I’ve been investing for a while so I reconcile myself into thinking, I’ll probably never get to spend it all anyhow so I won’t notice those missing £££

[@alanmorris3854]

@tonyh1460 true but don't matter how much your up or down until the day you cash in until then it's just numbers on a screen

[@guitarsandcheesecake1632]

Great video. And very true but I opened my personal pension, which is invested in stocks and bonds etc, in 1992. My friend was a a financial advisor and she sorted it all out for me. It was not difficult.........

[@lifeisagame2023]

It was so hard pre 2009

[@TobyNewbatt]

So many brutal times we’ve got off lightly so far for our generation

[@superslip103]

It's crazy to think that if you have a cash ISA, you could increase your returns from around 4% to 14% per year in about 12 clicks of a mouse

[@kinggeoffrey3801]

It can also go the other way. I remember the 08 crash. Took me 5 years to recover. 😅

[@markfindlay8636]

Ah the good old days 🤔

[@TobyNewbatt]

They don’t make em like they used to! 😎

[@XclusiveAaron]

0:25 I'm 29 and have loads of grey hairs, had them since about 22 😭 sorry I did take more from the video that than I promise 🤣👍

[@nax1807]

my heart breaks every time I see VUSA in the red on my portflolilo for over a week almost losing confidence in S&P...😪

[@TobyNewbatt]

A week? You cant be serious :P - you need to think a bit more long term than that

[@Abdul_Rahman86]

In Somalia you can invest in pirates. You go to the market. You pay money to fund the pirates. Either weapons or boats etc. Then you get a share of their profits lolll. 😂😂😂. That being said great video and I can’t agree more. I was talking to some younger people at work. I told him how vanguard works and don’t even have an app. They thought I was ancient loll

[@TobyNewbatt]

Is there a pirate ETF that we can invest in inside our ISAs? :P

[@Abdul_Rahman86]

@@TobyNewbatt high risk high reward lol.

[@adrianl5899]

​@@TobyNewbattMSCI All-Pirate Index... coming soon.

[@johnristheanswer]

We have cowboys in UK.

[@VegasMilgauss]

Gah I’m getting ripped off! I pay 0.23 for global all cap.. FFS 🤦

[@TobyNewbatt]

For us UK investors that’s pretty good. In the US they make our fees look expensive

[@VegasMilgauss]

@@TobyNewbattah, that makes me feel better. Thanks for the reply and love the videos.

[@prisol]

Vanguard VHVG accumulation etf is 0.12% here in UK

[@coderider3022]

Global all cap has em and small caps and more mid caps which drives up price. It’s good value tbh and won’t matter for small pots.

[@iPawk]

@@TobyNewbatt Can I ask what's your go-to all-world ETF considering fees? I'm about to go for VWRP which is 0.22% and obvs if there's a better one I'll change.

[@timlodge8267]

I lost a lot of money in 1989 buying Euro Tunnel shares at £11.22 a share I bought a hundred the fees were quite a lot and the worst the shares dropped to pennies massive wake up call I done a lot more reading then invested in 60k in 2014 now my money has doubled with reinvesting dividends.

[@boyasaka]

Doubling your money in the last ten years is poor seen as the last ten years have been mainly bullish

[@timlodge8267]

@@boyasaka OK thank you on your advice on doubling my money being poor, I fill quite happy, how did you get on?

[@boyasaka]

@@timlodge8267 I didn’t mean to sound nasty I’m guessing you invested in British stocks which haven’t performed very well over the last ten years Compared to the USA Where in the last ten year you could have quadrupled your initial investment The uk ftse 100 has only rose about 20 percent in the last ten years Compared to almost 200 percent on the s and p 500 The Nasdaq 100 has rose about 400 percent in ten years So Uk FTSE 100 £10k to £12 k in ten years S and P 500 10k to 30k in ten years Nasdaq 100 10k to 50k in ten years If you had 10k 10 years ago and now have 20k Your 7k up as with inflation as what 10k could buy in 2014 you.noe need 13k I doubled my money during covid Shares halved in value within months of Covid hitting the world but they were back up within a couple of years Lloyds went from 60p to 25p Barclays went from £1:80 to 90 p Airbus went from £1:40 to 60p But within a year or 2 after they halved , they were back up plus more In some cases I’m looking forwtd to the next global crash , like covid or 2008 or 2002

[@jollama]

The best day to invest is the day you turn 18. Next video

[@dm_psych_]

I agree, and the second best time to invest is today 💪

[@timlodge8267]

If the S&P dropped 30% I will fill my boots.

[@boyasaka]

I have 40k ready Slowly drip feeding a grand a month in as it’s looking a bit Rocky I hope it does drop 30 percent and I’ll put the lot in in one go

[@tcgtqu]

@@boyasakawhat you are doing is timing the market, but hey, each to their own.

[@montyloads]

It is timing the market but at a time when you are receiving 5% roughly on your money on the sidelines and while the s&p is proped up by several stocks which are highly overvalued and all riding the wave of associating themselves with AI which is causing a bubble to these stocks which make up such a big chunk of the markets, add to the equation that inflation still is not under control. It could end up being the wrong decision but the 5% is subsidising you for taking that risk

[@boyasaka]

@@tcgtqu I am dollar cost averaging likes I’ve done for years , 1500 a month I bought 1500 quid a worth of VUAG yeaterday

[@kevinsyd2012]

So if the S&P drops only 25% you'll do nothing and hang on to your cash???

[@adriandemit4720]

First

[@TobyNewbatt]

Adrian wins today 🥇

[@DevilErnest]

No very convincing this video releasing after announcement of US inflation data today😂

[@riddlergorshin]

It’s best to start investing when stock prices are supressed. The best time to buy is when there’s blood on the streets. You forgot the classic Buffet quote.

[@TobyNewbatt]

I’d argue it’s a perfect time as this is exactly the kind of thing people try to time the market by looking at 😉

[@coderider3022]

Yes, it’s good time now / this month based on inflation data news today. If that inflation value was .01 in other direction, they would have surged like crazy.

[@87vortex87]

On the day inflation in the US missed its expectation? Dam,n, that's bold. 😉 just kidding.

[@TobyNewbatt]

:P

[@hustlinhitch]

Was talking to my former boss and I mentioned I'd started investing. She then said she'd been investing for 25 years and had more than enough to retire on. She give me the details of her financial advisor.

[@Mark.maximus]

British English, Toby...Maths! Not Math 👍. Really enjoying your videos and content 💯👌

[@TobyNewbatt]

Forgive me for my sins

[@Mark.maximus]

@@TobyNewbatt 🤣 all is good Mr Toby, sir 😇

[@DestinationWealth1]

Hey Toby Great video (as always). I started investing around 14 years ago in a similar way to yourself so I'm slightly further along on my investing journey and I'm still amazed at the power of compound investing having just surpassed the £300k mark. Just set up this new KZbin channel documenting my journey. I've sent you a personal email to your iCloud address with a couple of questions you may be able to help me with. Keep up the good work. Adam

[@potnoogle5780]

Penny crayon