Is a River Cruise Right for You?

Is a River Cruise Right for You?

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In a recent post I talked about How to Save Money on Cruise Holidays. One or two people asked if I had any specific advice on river cruises, so today I thought I would address this subject.

River cruising has become one of the fastest-growing travel trends in recent years, and it’s not hard to see why. With scenic routes that wind through historic towns, a gentle pace, boutique ships and inclusive experiences, river cruises can feel like a dream holiday. But are they right for you?

In this post, I will explore the pros and cons of river cruising – particularly for older travellers – and share some  tips to help you get the best value for money.

🌊 What Is a River Cruise?

Unlike ocean cruises that traverse vast stretches of sea, river cruises sail inland waterways – think the Danube, Rhine, Seine, Douro, Nile or Volga. Ships are typically smaller, with fewer passengers and a focus on cultural immersion and sightseeing.

👍 Pros of River Cruises

1. Gentle Pace & Easy Exploration

River cruises are designed for relaxation, with stops in multiple towns and cities. You often disembark right in the heart of destinations – no long transfers from ports. This is ideal for older travellers who want culture without stress.

2. All-Inclusive Comfort

Most river cruise packages include meals, onboard entertainment and guided excursions. Fewer hidden costs mean easier budgeting – a big plus if you’re watching the pounds and pence.

3. Accessible & Stress-Free

Ships have fewer stairs and lots of public open space. Many cabins and facilities are designed for accessibility, which suits older passengers or anyone with mobility issues.

4. Scenic Days & Scenic Nights

You rarely miss a view, cruising through vineyards, past castles and alongside charming villages. It’s like a constantly changing hotel window.

5. Sociable but Calm Atmosphere

With smaller ships and more mature crowds, river cruising tends toward a relaxed, sociable vibe without the “big ship” bustle.

👎 Cons of River Cruises

1. Higher Cost per Day

River cruises are often more expensive per person, per day than equivalent ocean cruises or land tours – especially during peak seasons.

2. Smaller Cabins

Space is at a premium. Cabins can feel compact – which might be uncomfortable if you like extra room.

3. Limited Onboard Activities

If you crave night-time entertainment, water-slides or casinos, river cruising might feel too sedate. It’s more about sightseeing than onboard spectacle.

4. Mobility Needed for Excursions

Most shore excursions involve walking tours. While many are gentle, some may not be suitable for travellers with limited mobility unless you choose accessible options.

5. Seasonal & Weather Dependent

River levels vary with the weather. Drought or heavy rain can affect itineraries – something to keep in mind when planning.

💡 River Cruise Tips – Get the Best Value for Money

If a river cruise sounds appealing, here’s how to make sure it’s a smart financial decision:

1. Book Early – Or Last-Minute

Booking early often secures the best cabins and lower prices. But some lines also discount last-minute sailings to fill unsold berths. Stay flexible and watch for deals.

2. Choose Shoulder Seasons

Travelling in spring or autumn often means lower prices, fewer crowds and milder weather — great for cost-conscious explorers.

3. Compare Inclusions

Don’t just look at headline prices. Check what’s included. Flights, transfers, excursions and drinks packages can add up.

A slightly higher headline price with lots included may represent better value overall.

4. Compare direct vs agent pricing

Sometimes booking directly with the cruise line is cheaper; other times a specialist agent will have better exclusive rates.

5. Fly from Regional Airports

River cruise packages often include flights. Compare prices from regional UK airports — you may find cheaper deals than London departures.

6. Consider Solo or Shared Cabins

Some lines offer solo cabins or shared spaces that can be more affordable if you’re travelling alone.

7. Use Loyalty Programmes & Travel Agents

Cruise line loyalty programmes can bring discounts, upgrades or onboard credits. Specialist cruise agents often know about promotions that aren’t publicised online.

8. Plan Your Excursions Wisely

Shore excursions arranged through the cruise can be expensive. Look into local guides or self-guided tours where safe and feasible.

🛳️ How to Book Your River Cruise (and Where to Find Deals)

Booking a river cruise might seem daunting at first – there are many companies, rivers, dates and price points to choose from. But with a bit of know-how and the right resources, you can find great value and a cruise that suits your travel style and budget.

🌐 Specialist River Cruise Websites (UK Focused)

For many UK travellers, booking through a river cruise specialist can be one of the easiest ways to find the best deals and get expert advice:

  • RiverCruising.co.uk – A UK-based specialist agent offering cruises from a range of operators, with ABTA and ATOL protection and support in choosing the best itinerary for you.

  • GlobalRiverCruising.co.uk – Independent UK specialists focused on delivering tailored itineraries and exclusive savings across multiple top cruise brands.

  • Blue Water Holidays / CruisingHolidays.co.uk – UK travel agencies that cover river and small-ship cruises with plenty of detailed itineraries, customer reviews and exclusive deals.

  • LoveitBookit.com – Another trusted UK cruise agency where you can explore river cruise options and get personalised support from cruise experts.

These specialist sites often bundle flights, transfers and insurance into your holiday package and can help you navigate which cruise line and dates are best for your budget.

💻 Discount and Deal Sites

If you’re hunting for current deals and discounts, here are a few places worth checking regularly:

  • Wowcher – Offers curated travel deals, including discounted river cruise holidays in Europe.

  • Cruise comparison sites like Cruise1st also list special seasonal offers and upgrades on river cruise itineraries.

💡 Pro tip: Sign up for newsletters from these sites and the cruise lines themselves — many discount offers (especially early-bird or seasonal sales) go out first to email subscribers.

🚢 Leading River Cruise Companies for UK Travellers

Here are some of the most popular and reputable river cruise operators you might consider when booking:

🌍 Major International River Cruise Lines

  • Viking River Cruises – One of the best-known names in river cruising, with a wide range of European itineraries and good UK-specific resources.

  • AmaWaterways – Highly regarded for quality service, food, and wine, with promotional offers on many routes.

  • Emerald Cruises – Offers strong value deals with flights and extras sometimes included, plus seasonal discounts.

  • Uniworld Boutique River Cruises – Known for luxury, all-inclusive offerings and beautifully designed ships.

  • Amadeus River Cruises – A traditional European operator focused on elegant boutique-style river experiences.

  • CroisiEurope – A family-run French line with a vast range of European river routes and good mid-range pricing.

  • Saga River Cruises – A UK-focused operator tailored for travellers over 50, offering all-inclusive European river cruises with added UK perks such as included chauffeur services and local departures.

📍 How They Work for UK Travellers

  • Many of these companies have UK-specific websites and/or call centres and offer flight-inclusive packages departing from UK airports.

  • Booking early – often 12–18 months ahead – can secure the best cabins and prices, as river cruises tend to sell out popular routes well in advance. (Cruise community insights also suggest booking early rather than waiting for last-minute deals due to limited capacity.)

💭 Closing Thoughts: Is a River Cruise Worth It?

If you love scenic travel, cultural immersion and a relaxed pace – and you’re willing to pay a bit more for convenience and comfort – river cruising can be an unforgettable experience. For older travellers, the accessibility, ease and inclusive nature are major advantages.

But if you’re after huge ships with lots of entertainment or travel on a tight budget, alternative holiday types (like escorted tours or independent travel) might suit you better.

Ultimately, it comes down to your travel priorities, mobility and budget. With smart planning and savvy spending, a river cruise can be both affordable and deeply rewarding.

  • Have you tried a river cruise yourself and would you recommend it? Have any other tips for saving money or making the most of your holiday? Please do leave a comment below!




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Coffee might protect your brain as you age

Guest Post: Your Morning Coffee Might Protect Your Brain as You Age – Here’s the Sweet Spot!

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Today I have a guest post on a subject close to many people’s hearts (including mine!) – what are the benefits (and risks) of coffee drinking and how much a day is best?

This subject may be of particular interest to older people, as the latest research indicates that the caffeine in coffee (and tea) may offer some protection from dementia.

The article is by Eef Hogervorst, Professor of Biological Psychology at Loughborough University. It was originally published in The Conversation and is republished here under a Creative Commons licence.

 

Scientists have found that drinking two to three cups of coffee a day may significantly reduce your risk of developing dementia, but drinking more won’t help protect your brain any further.

A major study tracked 131,821 American nurses and health professionals for up to 43 years, starting when they were in their early 40s. During this time, 11,033 people – around 8% – developed dementia. But those who drank moderate amounts of caffeinated coffee or tea were notably less likely to be among them.

The protective effect was strongest in people aged 75 or younger, who saw their dementia risk drop by 35% if they consumed around 250mg-300mg of caffeine daily – roughly two to three cups of coffee. Crucially, drinking more than this didn’t provide any extra benefit.

Women in the study reported drinking around four and a half cups of coffee or tea per day when they joined, while men drank around two and a half cups. Those who drank more caffeinated coffee tended to be younger, but they also drank more alcohol, smoked and consumed more calories – factors that all have been found to increase dementia risk.

Interestingly, people who drank more decaffeinated coffee showed faster memory decline. Researchers believe this is probably because people switched to decaf after developing sleep problems, raised blood pressure, or heart rhythm disturbances – all of which are themselves linked to cognitive decline and dementia.

Why caffeine might protect the brain

There are sound biological reasons why caffeine could help keep our brains healthy. It works by blocking adenosine, a chemical that dampens the activity of brain messengers like dopamine and acetylcholine. These brain messengers (or neurotransmitters) can become less active as we age and in conditions such as Alzheimer’s disease, so caffeine’s stimulating effect may help counteract this decline.

Caffeine also appears to work through other mechanisms, including reducing inflammation and helping regulate blood sugar metabolism. People who did not have dementia (yet?) but drank more than two cups of coffee daily throughout their lives had lower levels of the toxic amyloid plaques, abundantly found in people’s brains who have Alzheimer’s disease.

Coffee and tea also contain many other beneficial compounds with antioxidant and blood vessel benefits which can all protect the ageing brain.

The American study found that only one to two cups of tea were linked to the best protection against dementia, which may reflect the fact that people in the US drink less tea than coffee overall. Green tea wasn’t examined separately, although most studies suggest it also protects against dementia.

Why does more caffeine stop being helpful? The researchers suggest it may be down to how our bodies break down coffee. Very high doses can also disrupt sleep and increase anxiety, which undermines any brain benefits.

A principle established back in 1908, known as the Yerkes-Dodson law, shows that when we become too stimulated – whether from anxiety or too much coffee – our mental performance starts to decline.

The findings from professional healthcare workers may not apply to everyone. But when researchers combined results from 38 other studies, they found similar results: caffeine drinkers had a 6%-16% lower dementia risk than non-drinkers, with one to three cups of coffee being optimal. Good news for tea lovers – in this broader analysis, drinking more tea was linked to greater protection.

Moderate caffeine intake doesn’t increase long-term blood pressure risk and may even reduce cardiovascular disease risk, which shares many risk factors with dementia. However, people with very high blood pressure are advised to limit themselves to perhaps one cup a day.

It’s worth noting that using “cups” as a measure doesn’t account for how much caffeine these actually contain. Fresh beans brewed at home contain different amounts of caffeine and can affect cholesterol levels differently than instant coffee, for instance.

But you don’t need much to feel a benefit. Even low doses of 40mg-60mg can improve alertness and mood in middle-aged people who normally did not drink (much) caffeine. More is not always better.The Conversation

Eef Hogervorst, Professor of Biological Psychology, Loughborough University

This article is republished from The Conversation under a Creative Commons license. Read the original article.

As always, if you have any comments about this article, please do post them below.




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Post Nuptial Agreements

Guest Post: Why a Post-Nuptial Agreement Could Be a Wise Financial Decision

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Today I’m sharing a guest article on a subject that – while it might seem unromantic – could be crucial to ensuring your financial security in later life.

Sadly, growing numbers of older people are seeing their marriages break down, leading in many cases to separation and divorce. Even if relatively amicable, this is likely to be stressful and emotionally exhausting. And – potentially even worse – it can have serious financial consequences for you and your family, both now and into the future.

My guest today, Richard Scott, a partner in the family team at HCR Law, knows this very well. In his article below he explains the benefit of having a post-nuptial agreement in place if, sadly, your marriage (or civil partnership) should come to an end.

Over to Richard then…

 

For many couples, the idea of a nuptial agreement is an unfamiliar and often unromantic concept. Yet, for those who have already married and whose financial circumstances have evolved, perhaps over many years, a post-nuptial agreement can offer clarity, protection and a far smoother path should the relationship ever break down.

In a climate where personal wealth, business interests and international assets are increasingly common, a carefully prepared post-nuptial agreement is a practical piece of financial planning that complements, rather than competes with, the marriage itself.

Legal status and why it matters

In England and Wales, post-nuptial agreements are not automatically legally binding. However, the courts are prepared to give decisive weight to a nuptial agreement where it is entered into freely by both spouses, with a full understanding of its implications, and where it is fair it is fair at the time of any future divorce.

In practice, that means a properly drafted post-nuptial agreement, supported by independent legal advice for both parties, full financial disclosure and the absence of coercion or pressure can be highly influential. It does not oust the court’s jurisdiction, but it does set a clear roadmap that the court will often follow unless needs or fairness dictate otherwise, particularly if the couple have independent children.

Financial clarity and reduced conflict

One of the principal benefits to any nuptial agreement is certainty. A post-nuptial agreement defines how assets would be treated if the marriage ends, reducing the scope for any dispute over property, savings, investments and pensions. That clarity can save significant legal costs and emotional upheaval by preventing arguments before they arise.

For couples who value transparency and orderly planning, the agreement functions as a financial charter that both parties can rely on, supporting trust rather than undermining it. In my experience, it is not uncommon for a post-nuptial agreement to be used as an option to re-establish trust in a faltering marriage. For instance, where perhaps one spouse has behaved poorly, or had an affair, the other spouse may require the reassurance of a post-nuptial agreement to help put the marriage back on track, instead of filing for divorce.

Protecting pre-acquired, family and business assets

Post-nuptial agreements are especially useful where one spouse brings pre-marital assets into the marriage or expects future inheritances or gifts. Ring-fencing such wealth helps ensure that family assets, heirlooms and intended legacies remain protected.

They are also invaluable for business owners, safeguarding a company’s continuity, shareholder relationships and value. By agreeing how shares and business interests would be treated, spouses reduce the risk of disruption to the enterprise, and this gives confidence to co-owners and investors.

Frequently I advise the children of business owners who are likely to inherit shares in a family business and who – often with their families –want to minimise any disruption to future succession planning by excluding those interests from the matrimonial pot with a post-nuptial agreement.

Sometimes couples who intend to enter into a pre-nuptial agreement simply run out of time to get the agreement finalised before the wedding. Rather than postpone the wedding, a post-nuptial agreement is a valuable alternative which is available to newlyweds and ensures that the opportunity to protect and ring-fence wealth acquired pre-marriage or any future inheritances, is not lost.

Adapting to life’s changes

Circumstances evolve after marriage: a career break to raise children, a relocation, the sale of a property, a windfall or the growth of a business. A post-nuptial agreement allows couples to recalibrate financial expectations to reflect these developments. This is particularly pertinent in second marriages, where there may be competing responsibilities to children from previous relationships, and in international families, where differing legal regimes can complicate outcomes. A tailored post-nuptial agreement brings order to complexity, aligning intentions with the realities of modern family life.

Fairness, safeguards and credibility

A robust agreement is not a blunt instrument. It can include review clauses, housing provisions and arrangements that meet needs fairly, especially where children are involved.

The process itself is not complicated. It involves both spouses’ obtaining independent legal advice, providing full disclosure of their assets and engaging in sensible negotiation. Most of of the clients I advise on this issue are pragmatic and are not out to engineer an unfair outcome, nor are their spouses – it’s about documenting a fair agreement with a view to avoiding contentious litigation in the future should the relationship break down at a later date.

A practical step in prudent planning

In summary, a post-nuptial agreement is a prudent step in managing financial risk. It offers peace of mind, helps safeguard hard-won family assets and businesses and significantly reduces the uncertainty and cost of a future dispute.

Lawyers advising on post-nuptial agreements often liken their importance to life insurance policies. The question for married couples should not be, “Can I afford one?” It should be, “Can I afford not to have one?” As such, for couples who value clarity and wish to protect their financial futures responsibly, it is an option well worth serious consideration.

Richard Scott (pictured below) is a partner in the family team at HCR Law.

Richard Scott

Many thanks to Richard and his colleagues at HCR Law for an eye-opening article on this important topic. As Richard says, devoting some attention to this issue now can potentially save you and your family a lot of grief (and legal costs) in the future.

As always, if you have any comments or queries about this article, please do leave them below.




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How to Save Money on Cruise Holidays

How to Save Money on Cruise Holidays

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Cruise holidays have become increasingly popular with older adults, and it’s easy to see why. They offer a relaxed way to travel, with accommodation, meals, entertainment and transport between destinations all included in one package.

However, cruise prices can vary significantly, and it’s not always obvious where good value ends and unnecessary expense begins. With a bit of forward planning and careful comparison, it’s perfectly possible to enjoy a relaxing and comfortable cruise holiday without spending more than you need to.

Below are some sensible ways to keep cruise costs under control, while still getting the most from your time away.

1. Flexibility Can Make a Big Difference

One of the most effective ways to save money on a cruise is to be flexible about when and where you travel.

  • Cruises outside school holiday periods are usually much cheaper, which suits retirees and semi-retired travellers particularly well.

  • Spring and autumn “shoulder seasons” often combine reasonable weather with lower prices and fewer crowds.

  • Less well-known itineraries can offer excellent value, even though the onboard experience is often very similar.

If you can avoid setting your plans too tightly, you’re far more likely to find a good deal.

2. Compare Prices Using Cruise Deal Sites

Cruise prices are not always the same across different websites, so it’s well worth shopping around. In addition to checking cruise line websites directly, comparison and deal sites can be very useful.

Some UK-based sites worth trying include:

Prices and inclusions can vary, so it’s important to look beyond the headline figure and check what’s actually included.

3. Think Carefully About Extras and Add-Ons

Many cruises offer optional extras such as drinks packages, speciality dining, wi-fi and organised shore excursions. While these can be convenient, they are not always good value for everyone.

For example:

  • Drinks packages tend to suit heavier drinkers, but can work out expensive if you only have the occasional drink.

  • Independent shore excursions, or simply exploring ports on your own, are often much cheaper than ship-organised trips.

  • Onboard wi-fi can be surprisingly expensive. You may be able to get free or low-cost wi-fi locally when the ship is in port.

Choosing only the extras you’ll genuinely use can keep overall costs much lower.

4. Cabin Choice Can Have a Big Impact on Price

Cabin type is another major factor in cruise pricing.

  • Inside cabins are usually the cheapest option and can be perfectly comfortable, especially if you spend most of your time enjoying the ship or going ashore.

  • Obstructed-view cabins often cost less than standard ocean-view cabins, but still offer natural light.

If having a balcony is not essential to you, opting for a more modest cabin can result in significant savings.

5. Consider Cruises Departing From the UK

Cruises that depart from UK ports such as Southampton, Tilbury or Liverpool can be excellent value for money.

They remove the need for flights, overnight hotels and airport parking, which can add substantially to the cost of a holiday. They also tend to be less stressful, which many older travellers appreciate.

6. Timing Your Booking Can Help

There are certain times of year when cruise deals are more common.

  • The early months of the year often bring a wave of promotions, including reduced deposits or onboard credit.

  • Late deals can offer good value if you are able to travel at short notice, although cabin choice may be limited.

  • Booking early can also pay off if you have a particular itinerary or ship in mind.

Signing up for email alerts from cruise lines and deal websites can help you spot price reductions.

7. Make Use of Loyalty Schemes

If you cruise more than once, loyalty schemes are worth considering. Over time, they can provide benefits such as onboard credit, discounted fares or priority services, all of which add to the overall value of your holiday.

Final Thoughts

Cruise holidays don’t have to be expensive, particularly for older adults who have the flexibility to travel outside peak periods. By comparing prices carefully, choosing cabins and extras sensibly, and taking advantage of UK-based cruise deals, it’s possible to enjoy a relaxing and well-organised holiday without overspending. The key is to focus on value for money, rather than paying for features or extras that don’t genuinely enhance your experience.

As always, any comments or questions on this post are welcome. In addition, if you have any tips of your own for saving money on cruise holidays, I would love to hear them! 🚢




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My Investments Update February 2026

My Investments Update – February 2026

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Here is my latest monthly update about my investments. You can read my January 2026 Investments Update here if you like.

I’ll begin as usual with my JP Morgan Personal Investing (previously Nutmeg) Stocks and Shares ISA. This is the largest investment I hold other than my Bestinvest SIPP (personal pension).

As regular readers will know, in June last year I transferred most of the money in my former Nutmeg Fully Managed portfolio (just under £25,000) to a new Nutmeg Income Portfolio. I discussed this in detail in this post, but basically money in this port is invested to generate an income from share dividends and other sources. This is then paid monthly. Capital appreciation is targeted as well, but these portfolios are aimed primarily at older people (and others) who want/need their investment to generate a regular cash income.

In January my JPM Investing income portfolio generated £72.70 of income, which was duly paid in to my bank account on 24 January 2026. That means I have now received a total (tax-free) income of £544.16 to date. That’s about what I would have expected based on JPM’s projected annual return of just under 5% for income ports at my chosen risk level (five).

My income portfolio grew in value again in January. It’s now worth £27,687 compared with £27,052 at the start of last month, a rise of £635. That, does, however, include £651 transferred from what remained in my Fully Managed account (mentioned above), which I have now closed. I had kept a small amount in this for comparison purposes. But as my new Income Portfolio appeared to be generating better returns overall, I couldn’t see much point keeping it. If you subtract this, the Income Portfolio actually fell slightly in value last month by £16.

As the screen capture below shows, this port has increased by £2,083.66 (8.14%) since I opened it in June last year. That’s clearly good going, though I don’t suppose it will carry on like this indefinitely. I should maybe also mention that performance may have been helped a bit by the no-fees introductory offer on Nutmeg/JPM income portfolios until the end of 2025 (which has of course ended now).

JPM Income Port Feb 2026

I still have a smaller, growth-oriented pot using JPM Investing’s Smart Alpha option. This is now worth £4,790 (rounded up) compared with £4,714 a month ago, an increase of £76. Here is a screen capture showing performance over the last year.

JPM Smart Alpha port Feb 26

Finally, at the start of December 2023 I invested £500 in one of Nutmeg/JPM’s thematic portfolios (Resource Transformation). In March 2024 I also invested a further £200 from referral bonuses (something I no longer receive). As you can see from the screen capture below, this portfolio is now worth £956 (rounded up) compared with £934 last month, an increase of £22.

JPM Thematic Port Feb 26

Overall in January I was up by £82 or 0.33%. In addition I did, of course, receive £72.70 in income from my income portfolio. Overall, then, I am in profit for the month by £154.70.

Excluding income generated, the overall value of my JPM investments is up by £1,805 or 5.71% since the start of February 2025, so the April 2025 fall (caused largely by Trump’s tariffs) has now fully reversed. If you add to this figure the £544.16 of income generated so far, that gives a total profit for the last 12 months of £2,349.16 – not a bad return in these uncertain times.

As I always have to say, some volatility is to be expected with stock market investments, but over the longer term they tend to even themselves out (and generally perform better than bank savings accounts, although that is never guaranteed). In general the worst thing you can do is panic and sell up when downturns occur (as happened in April last year). You are then crystallizing your losses rather than giving the markets time to recover. This is something I had cause to discuss in this blog post.

You can read my full original Nutmeg/JPM review here. If you are looking for a home for your annual ISA allowance, based on my overall experience over the last nine years, they are certainly worth considering. They offer self-invested personal pensions (SIPPs), Lifetime ISAs and Junior ISAs as well.

Moving on, I also have investments with P2P property investment platform Housemartin. As discussed in this post, the company rebranded last year from Assetz Exchange.

My investments with Housemartin continue to generate steady returns. Housemartin focuses on lower-risk properties (e.g. sheltered housing). I put an initial £100 into this in mid-February 2021 and another £400 in April. In June 2021 I added another £500, bringing my total investment up to £1,000.

Since I opened my account, my HM portfolio has generated a respectable £297.72 in revenue from rental income. I have made a small net loss of £20.25 on property disposals. Capital growth generally has slowed, in line with UK property values generally.

At the time of writing, 14 of ‘my’ properties are showing gains, 7 are breaking even, and the remaining 23 are showing losses. My portfolio of 44 properties is currently showing a net decrease in value of £79.97. That means that overall (rental income minus capital value decrease and loss on disposal) I am up by £197.50. That’s still a respectable return on my £1,000 and does illustrate the value of P2P property investments for diversifying your portfolio. And it doesn’t hurt that with Housemartin most projects are socially beneficial as well.

The net fall in capital value of my Housemartin investments is obviously a little disappointing. But it’s important to remember that until/unless I choose to sell the investments in question, it is largely theoretical, based on the latest price at which shares in the property concerned have changed hands. The rental income, on the other hand, is real money (which in my case I’ve reinvested in other HM projects to further diversify my portfolio).

To control risk with all my property crowdfunding investments nowadays, I invest relatively modest amounts in individual projects. This is a particular attraction of Housemartin as far as i am concerned. You can actually invest from as little as £1 per property if you really want to proceed cautiously.

  • As I noted in this blog post, Housemartin is particularly good if you want to compound your returns by reinvesting rental income. This effectively boosts the interest rate you are receiving. Personally, once I have accrued a minimum of £10 in rental payments, I usually reinvest this money in either a new HM project or one I have already invested in (thus increasing my holding). Over time, even if I don’t invest any more capital, this will ensure my investment with Housemartin grows at an accelerating rate and becomes more diversified as well.

My investment on Housemartin is in the form of an IFISA so there won’t be any tax to pay on profits, dividends or capital gains. I’ve been impressed by my experiences with Housemartin and the returns generated so far, and intend to continue investing with them. You can read my original review of Assetz Exchange/Housemartin here and my article about the rebranding to Housemartin here. You can also sign up for an account directly via this link [affiliate].

In 2022 I set up an account with investment and trading platform eToro, using their popular ‘copy trader’ facility. I chose to invest $500 (then about £412) copying an experienced eToro trader called Aukie2008 (real name Mike Moest).

In January 2023 I added to this with another $500 investment in one of their thematic portfolios, Oil Worldwide. I also invested a small amount I had left over in Tesla shares.

Last month, as Oil Worldwide hadn’t exactly been setting the world alight, I decided to switch my entire investment in this to another smart portfolio, InTheGame. This port, focusing on the computer gaming industry, has been the top performer for some time in my eToro virtual portfolio.

Unfortunately just as I switched away from Oil Worldwide, US President Trump decided to invade Venezuela. This gave the oil industry a significant boost, which I would otherwise have benefited from. Meanwhile InTheGame hasn’t been doing particularly well. At the time of writing the value of my investment in this has fallen by over 6%. Hey ho! This does of course demonstrate that there are never any guarantees when investing and unexpected events can thwart the best-laid plans. Hopefully in the coming months things will improve again!

As you can see from the screen captures below, my original eToro investment (total value £888.36 in pounds sterling) is today worth £1,119.21, an overall increase of £230.85 or 25.99%.

  • Note: eToro now displays the value of investments in your native currency, although you can change this if you wish.

Etoro main Feb 26

 

Etoro port FEb 26

You can read my full review of eToro here. You may also like to check out my more in-depth look at eToro copy trading. I also discussed thematic investing with eToro using Smart Portfolios in this post. The latter also reveals why I took the somewhat contrarian step of choosing the oil industry for my first thematic investment with them.

As mentioned above, my new investment in InTheGame is currently down by over 6%. My copy trading investment with Aukie2008 continues to do well, however, with an impressive overall profit of 65.20%. Of course, I have held this investment for quite a bit longer.

My Tesla shares, which I purchased as an afterthought with some spare cash I had in my account, are down this month but still showing an overall profit of over 280% since I bought them. If only I had put a bit more money into this!

You might also notice that I have small holdings in Prosus NV, a Dutch internet group, and South Bow, a Canadian energy infrastructure company. To be honest I don’t understand how I acquired these, but I assume they are some sort of bonus I was awarded. In any event, I am happy to have them in my portfolio.

As an experiment, at the start of April last year I put £50 into an investment ISA with Trading 212. As mentioned in my blog post about dividend investing, I put it into the (Almost) Daily Dividends Portfolio, a ready-made portfolio or ‘pie’ on Trading 212. As you can see from the screen capture below, my portfolio is now worth £58.80, an increase of £8.80 or 17.60% over the ten-month period. It has even accrued a grand total of 87p in dividends!

Trading 212 Dividends ISA Feb 26

I am quite impressed with how this investment has been faring, despite the small amount I put in (which means I may be missing out on some smaller dividends). If I increased my investment I would almost certainly become eligible for more dividends, and even more the longer I remain invested. If I had any spare money at the moment, I would consider doing this. Of course, I do now have an income-focused portfolio with JPM Investing as well (see above).

 

 

Moving on, I published various posts on Pounds and Sense in January. I have listed below those that are still relevant.

In What Are Index Funds and How Can You Invest in Them? I looked at one of the most straightforward and cost-effective ways to invest in the stock market, especially for long-term savers and beginners. Index funds track a market index such as the FTSE 100, giving you broad exposure to many companies at once. This helps spread risk and keeps costs low.

I also posted What Are Investment Trusts and How Can You Invest in Them? Investment trusts are a distinctive type of investment company with some unique features; and for the right investor, they can offer real advantages. In this article, I explained what investment trusts are, how they work, and their pros and cons compared with alternatives such as ETFs and open-ended funds.

Also in January I published Planning a UK Holiday This Year? Here Are Some Ideas for you! In this article – an update of an annual post – I shared links to my blog posts about a variety of UK holiday destinations I’ve visited in the last few years, in case you might wish to consider them for short (or longer) breaks in the year ahead.

Finally, I published Make the Government Pay! How to Use Gift Aid to Redirect Your Tax Money. In this article I discussed a perfectly legal way to ensure that at least some of your tax money goes to causes you genuinely support than simply vanishing into the government’s coffers. Gift Aid is a scheme that allows charities to reclaim tax on donations made by UK taxpayers. You can of course use it to boost the value of your donations to the organizations in question – but, as my post reveals, you can even use it to reallocate some of your tax money without spending any money directly.

I’ll close with a reminder that you can also follow Pounds and Sense on Facebook or Twitter (or X as it is called now). Twitter/X is my number one social media platform and I post regularly there. I share the latest news and information on financial matters, and other things that interest, amuse or concern me. So if you aren’t following my PAS account on Twitter/X, you are definitely missing out!

  • I am also on the BlueSky social media network under the username poundsandsense.bsky.social. Twitter/X remains my primary social media platform, but I also post details of my latest blog posts, third-party articles and other financial news and resources on BlueSky for those who prefer to follow me there.

As always, if you have any comments or questions, feel free to leave them below. I am always delighted to hear from PAS readers 🙂

Disclaimer: I am not a qualified financial adviser and nothing in this blog post should be construed as personal financial advice. Everyone should do their own ‘due diligence’ before investing and seek professional advice if in any doubt how best to proceed. All investing carries a risk of loss. 

Note also that posts on PAS may include affiliate links. If you click through and perform a qualifying transaction, I may receive a commission for introducing you. This will not affect the product or service you receive or the terms you are offered, but it does help support me in publishing PAS and paying my bills. Thank you!

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Make the Government Pay! How to Use Gift Aid to Redirect Your Tax Money

Make the Government Pay! How to Use Gift Aid to Redirect Your Tax Money

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As more people in the UK find themselves paying income tax again – particularly retirees whose pensions, savings interest and state pension now push them over the personal allowance – it’s natural to feel frustrated about how that money is used.

While we don’t get much say over how most of our taxes are spent, there is one perfectly legal way to ensure that at least some of your tax money goes to causes you genuinely support rather than disappearing into the government’s coffers: Gift Aid.

What Is Gift Aid?

Gift Aid is a simple scheme run by HMRC that allows UK charities to reclaim tax on donations made by UK taxpayers.

When you donate to a registered charity and tick the Gift Aid box (or complete a Gift Aid declaration), the charity can claim back the basic rate of income tax you have paid on that donation.

Because the basic rate of income tax is currently 20%, this effectively means:

  • For every £1 you donate, the charity receives £1.25.

  • You don’t pay anything extra.

  • The extra 25p comes from tax you’ve already paid.

Instead of that slice of tax being “wasted” by the government, it is redirected to a charity of your choosing 👍

You Don’t Even Have to Spend Any Money

One of the least appreciated aspects of Gift Aid is that you don’t necessarily have to spend any money at all to benefit from the scheme.

Many charity shops now operate Gift Aid on donated goods. When you drop off clothes, books or household items, you’ll often be asked if you’d like to Gift Aid them.

Here’s how it works:

  • The charity sells your donated items in its shop.

  • Whatever price they achieve is treated as a donation from you.

  • The charity then claims an extra 25% from HMRC on top.

So if your donated items sell for £40, the charity can claim an additional £10 in Gift Aid – all without you spending a penny. Once again, that extra money comes from tax you’ve already paid.

Gift Aid Isn’t Just for Obvious Donations

Gift Aid can also apply to payments you might not normally think of as charitable donations.

A good example is the National Trust, along with many other heritage and conservation organisations. When you visit one of their properties, you’ll often see two admission prices:

  • standard admission

  • Gift Aid admission (typically £1 more)

By choosing the Gift Aid price:

  • You pay £1 extra.

  • The charity can claim 25% of the full admission price from HMRC.

In most cases, this means the charity receives far more than the extra £1 you pay. It’s a very tax-efficient way of supporting organisations you already enjoy visiting, and another example of how Gift Aid lets you divert tax money away from HM Treasury and towards something you personally value.

Who Can Use Gift Aid?

You can use Gift Aid if:

  • You are a UK taxpayer, and

  • You have paid at least as much income tax or capital gains tax in the tax year as the charity will claim back.

This is increasingly relevant for older people who may not have paid tax for years but now do so again because of:

  • frozen personal tax allowances

  • rising state pensions

  • workplace or private pension income

  • interest on savings exceeding the personal savings allowance

If you are paying tax, Gift Aid is something you should at least consider using.

Example 1: A Simple Donation

Let’s say you donate £100 to a charity that supports a cause you care about.

  • You give £100.

  • The charity claims £25 from HMRC.

  • Total amount the charity receives: £125.

That £25 would otherwise have gone to the government. With Gift Aid, you decide where it goes.

Example 2: Higher-Rate Taxpayers Can Benefit Too

If you’re a higher-rate taxpayer (40%), Gift Aid can be even more powerful.

Using the same £100 donation:

  • The charity still receives £125.

  • You can reclaim the difference between basic-rate and higher-rate tax via Self Assessment.

This allows you to reclaim £25 personally, reducing the effective cost of your donation to £75.

What Information Do You Have to Provide?

To claim Gift Aid, charities are required by HMRC to collect some basic information from you. This usually includes:

  • your full name

  • your home address

  • a signature or confirmation (such as ticking a box online)

This is simply to confirm that you are a UK taxpayer and that the charity is entitled to reclaim the tax. It’s a one-off process for most organisations.

Gift Aid: A Small Act of Financial Control

People often feel they have little say over how their taxes are spent. Gift Aid doesn’t change the system, but it does offer a rare opportunity to exercise a degree of choice.

By using Gift Aid:

  • You increase the value of your support for charities you believe in.

  • You don’t pay any more tax overall.

  • You ensure some of your tax money is spent on causes you actually believe in.

A Final Word of Caution

Only use Gift Aid if you really are paying enough tax to cover it. If you don’t, HMRC can ask you to make up the difference.

If your tax position changes from year to year, keep this rule in mind. And if you’re only paying small amounts of tax, keep a record of your Gift Aid donations to ensure you don’t accidentally exceed the total tax you have paid.

That said, for millions of UK taxpayers, Gift Aid is a straightforward, perfectly legitimate way to make their money – and their tax – work harder and smarter.

And for those who find themselves now paying tax again in later life, claiming Gift Aid can feel like a small but satisfying win 🙂

If you give to charity – whether in cash, goods, or entrance fees to attractions – it makes sense to make the government contribute too.

As always, if you have any comments or questions about this article, please do post them below.




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UK Holiday Ideas

Planning a UK Holiday This Year? Here Are Some Ideas For You!

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For many of us 2025 was another difficult year, with a cost-of-living crisis driven especially by rising gas and electricity costs.

With the festive season behind us now – and a cold and miserable start to the new year – many of us are understandably desperate for something to look forward to in the year ahead.

Some will be planning to head abroad in search of sunnier climes. But others may be deterred by the cost of going overseas and the additional hassles it may entail.

So today I thought I’d share links to my blog posts about some UK holiday destinations I’ve visited in the last few years, in case you wish to consider them for short (or longer) breaks in the year ahead. Clicking on any of the links below will open my post about the place concerned in a new tab, so you won’t have to keep clicking the Back button to return here.

The Destinations

Llandudno

Llandudno in North Wales is somewhere I’ve been visiting regularly for over ten years now (most recently in 2025, when I went twice). It’s a traditional British seaside resort with a long pier, Punch and Judy show, sweeping promenade, and plenty more (you can see the stunning Victorian seafront in the cover image). It’s very popular with both older people and young families. As well as my main review, my October 2020 Coronavirus Crisis Experience Update includes details of a short break I enjoyed there just before the Welsh government imposed another lockdown 😮

Minehead

Minehead is a North Somerset coastal town. I enjoyed a short break there in 2020 as well, at a time when lockdown rules were relaxed. It was my first visit to Minehead and I particularly enjoyed visiting the National Trust property Dunster Castle, which is just a couple of miles down the road. Sadly the West Somerset Railway which starts (or ends) in Minehead was closed due to the pandemic when I went, but I’d love to go back for a trip on this heritage steam railway sometime in the future.

Aberystwyth

Aberystwyth is in mid-Wales on the Cardigan Bay coast. I have visited it three times now, the first two staying at the Marine Hotel and the most recent at a self-catering apartment called Sea Brin. Aberystwyth is quieter and less commercialized than Llandudno (mentioned above), and the fact it’s a university town means it has quite a cosmopolitan feeling. It’s a good place to chill out, but there are plenty of interesting things to see and do as well.

Aberdovey

I visited Aberdovey for the first time in April 2023. It’s a small town on the mid-Wales coast. It’s about ten miles north of Aberystwyth and five miles south of Tywyn, the home of the Talyllyn Railway (see below). It’s a charming, laid-back place, perfect for a relaxing short break. It has a beautiful beach (with watersports for those who want them) and some great cafes and restaurants. I wouldn’t go there for the night-life, though – even the chip shop closes at 8 pm!

Hewenden Mill Cottages, Yorkshire

I had a particular reason to visit Hewenden MIll Cottages, as my sister Liz and her family live just a couple of miles down the road in Wilsden. Even if I didn’t have family connections, though, I would definitely recommend them for a short break. The accommodation consists of a number of former mill-workers’ cottages, in a beautiful woodland setting. The cottages (such as the one below, where I have stayed myself) are spacious and well equipped. From here you can visit Haworth – home of the Bronte sisters – and the Victorian model village of Saltaire. The area is also great for walking and cycling.

Hewenden Mill bungalow

Aberdunant Hall Hotel, nr Porthmadog

The Aberdunant Hall Holiday Park and Hotel (to give it its full name) is about four miles from the North Wales coastal town of Porthmadog You can stay in the hotel itself (which is quite compact) or in accommodation around the park. I stayed in what they call a Forest Pod, which is roughly the equivalent of half a caravan. It was okay for a short break but if you went as a couple the cramped conditions could put a strain on your relationship! If I went again I would book a room in the hotel or maybe one of the Woodland Escape Suites in the park. I still enjoyed my stay there, and found the location convenient for visiting a range of places including Portmeirion (where the sixties TV series The Prisoner was filmed) and the Ffestiniog Railway, which runs from Porthmadog to Baenau Ffestiniog. It’s also on the edge of Snowdonia, with lots of opportunities for walking and mountain climbing.

Lake Vyrnwy

Lake Vyrnwy is a few miles over the border from Shropshire into Wales. I went there in 2019 after watching a TV show about the history of this artificial lake, which was originally created to provide a water supply for the people of Liverpool in the 19th century (it’s now naturalised and if you weren’t aware of its history you wouldn’t know it was man-made). I stayed at the Lake Vyrnwy Hotel and Spa, which is near the dam at the western end of the lake. This was originally built to accommodate senior managers and engineers on the construction project, though it has of course been extended and modernised many times since. If you want to visit Lake Vyrnwy, it’s the best (possibly the only) option. I happened to choose a bitterly cold weekend just before Easter for my visit, which spoiled it a bit. Still, I enjoyed the beautiful scenery and some great walks. It’s probably not a place to take children, however, as there might not be enough for them to do.

The Talyllyn Railway

The Talyllyn Railway (also mentioned under Aberdovey) is a heritage steam railway in Wales. It starts in the town of Tywyn in mid-Wales, so in October 2018 I booked a short break there. To be honest there isn’t a great deal else to do in Tywyn, but it makes a good base for a day on the railway. And the railway itself takes you through some stunningly beautiful countryside. If you buy one of their very reasonably priced Day Rover tickets, you can get on and off at any station along the route. I highly recommend an hour or two at Dolgoch, which has some great walks and lovely waterfalls.

Warner Leisure Hotels

Warner Leisure Hotels have 16 country and coastal resort hotels across England and Wales. They have a strict adults-only policy, and appeal mainly to an older clientele (based on my experience, the average age is around seventy). As well as accommodation they offer a variety of leisure activities, including day trips, quizzes, guided walks, archery and bowls, social dancing, swimming, and so on. Most of these activities are included in the price, as is the evening entertainment. I have stayed at Bodelwyddan Castle in North Wales and Alvaston Hall in Cheshire. Some aspects I liked, others I wasn’t so keen on, as you can read in my review. You can also see their latest offers by clicking on the banner ad below [affiliate].


The Lake District

About five years ago I took a short break in the English Lake District. I stayed at the Waterhead Hotel, just south of Ambleside, at the north end of Lake Windermere (England’s largest lake). The hotel is located literally a few yards from the lake (hence the name, of course). If you haven’t visited the Lake District before, the area should definitely be on your ‘To Do’ list. There are many miles of beautiful countryside to explore, along with attractions such as Beatrix Potter’s house and Wray Castle. And, of course, you must buy a day ticket for the Windermere lake steamers. You can travel the length of the lake in style on these vessels, while sipping a hot chocolate (or something stronger) and listening to commentary on the scenery passing alongside. Highly recommended 🙂

The Isle of Man

I visited the Isle of Man for the first time in April 2024, staying in the island capital Douglas. I went on a heritage-railway-themed break offered by Newmarket Holidays. So naturally I had trips on the Isle of Man Steam Railway and also the Manx Electric Railway. The latter takes you from Douglas to Laxey and onward to Ramsey. Laxey is the home of the iconic Lady Isabella waterwheel, the largest working waterwheel in the world. The IOM is about the same latitude as Liverpool so obviously the weather can be variable, but I was lucky enough to get wall-to-wall sunshine during my stay. I flew to the island from Birmingham Airport which took about 45 minutes, but you can also get a ferry from Heysham or Liverpool. The Isle of Man is charming and verdant, and largely unspoiled. Definitely worth considering if you’re looking for something a little bit different for a short (or longer) holiday.

Llanbedrog

I visited Lanbedrog for the first time in July 2021. It’s a village on the Llyn (or Lleyn) Peninsula in NW Wales. I stayed at an Airbnb property, the first time I had done this (Llanbedrog doesn’t have any hotels as far as I know). It’s by the coast, roughly half way between Pwllheli (famed for its Butlins camp, now run by Haven Holidays) and trendy Abersoch. It has a beautiful sandy beach which would be perfect for families with young children (or grandchildren). I very much enjoyed my three-night stay and found it a perfect place to relax and chill out after months of lockdown. The National Trust mansion (and garden) Plas yn Rhiw is about seven miles away.

Criccieth

I stayed in Criccieth in North Wales for the first time in June 2022, although I had visited the town in the past. It’s a lovely place to relax and chill out. It has excellent road and rail connections, and there are also some high-quality tourist attractions nearby, including Portmeirion and the Ffestiniog Railway. Criccieth itself is best known for its castle which dominates the town. Although it’s a ruin, many of the walls are still standing and you can enjoy some amazing views across the bay, as far as Harlech Castle and beyond.

Lavenham

I visited Lavenham in Suffolk for the first time in August 2022. It is said to be England’s best-preserved medieval town, with over 300 listed, timber-framed houses. There are various historic buildings such as the Guildhall and Little Hall you can look around. Lavenham also boasts a variety of highly rated pubs and restaurants, and some lovely tea rooms and coffee houses as well! 🍮

Barmouth

Barmouth is a traditional Welsh seaside resort about ten miles south of Harlech. I visited in September 2022, staying at an elegant Victorian Gothic hotel called Tyr Graig Castle. Barmouth has a clean, attractive promenade and beautiful sandy beach which goes out a long way. There is plenty to do for families, including a funfair and amusement arcades. There are various restaurants and fast food outlets along the seafront. There is also a railway station with regular trains to Pwllheli in one direction and Aberystwyth and beyond in the other. Nearby attractions include Harlech Castle, Portmeirion and the Fairbourne miniature steam railway 🚂

Bath

I visited the historic city of Bath in June 2023. There is lots to see and do, although top of many people’s lists will be the stunning Roman Baths. Bath Abbey is well worth a  look too, and you can admire the beautiful Georgian architecture around the city for free! Read my top tips for anyone visiting Bath in this post, including the excellent self-catering accommodation I stayed at.

Other Resources

Here are links to a few other blog posts that may be of interest if you are planning a UK holiday this year…

Booking a Holiday With Airbnb

In recent years Airbnb has become increasingly popular for self-catering holidays. You can book anything from a spare room in someone’s home to a whole house or apartment. My recent short breaks in Lavenham and Llanbedrog (see list above) were in Airbnb properties. You can read all about the booking process in my post.

Find Your Nearest Cashpoint with the Link ATM Locator

Finding a cashpoint in an unfamiliar town (or village) can be challenging, so you might find this free app a useful resource to download. It has helped me avoid embarrassment on several occasions.

Ten Tips for First Time and Solo Cruisers

If your thoughts are turning further afield, you may be considering a cruise holiday as an option. Even if you can’t go abroad, I can testify from personal experience that a cruise of the British Isles (like these, perhaps) can be very enjoyable and enlightening. My blog post sets out a range of tips and advice that will be particularly relevant for first-time and solo cruisers.

Finally, coach holidays are another very popular option among older people especially. I don’t have much experience of this myself, but my friends at Over 60s Discounts have a great article about coach holidays for over-60s in the UK. This includes a list of popular UK destinations and details of several companies offering low-cost coach holidays.

Closing Thoughts

I hope you have enjoyed reading this post and it has given you a some ideas for UK holidays.

Obviously I am a 60-something male and nowadays usually travel on my own. So if your circumstances are different from mine, I understand that some of the destinations mentioned above might not hold as much appeal. In addition, I live in Staffordshire, so the places I go are all reasonably accessible from there.

Finally – as I noticed when reading back my list – I do have a bit of a penchant for places with heritage steam railways nearby, so please bear that in mind as well 😀

Of course, I’d love to hear your views about any of the destinations mentioned, or any other places in the UK you would recommend for a short break or longer holiday. Please leave any comments or questions below as usual.

Note: This is a fully revised update of an annual post.

  Vintage vector created by ajipebriana – www.freepik.com




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Investment Trusts

What Are Investment Trusts and How Can You Invest in Them?

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When most people think about investing, they picture stocks and shares, funds, ISAs and perhaps ETFs. But there’s another long-established option that often flies under the radar: Investment Trusts.

Despite the name, investment trusts aren’t trusts in the everyday sense. They are a distinctive type of investment company with some unique features – and for the right investor, they can offer real advantages.

In this article, I’ll explain what investment trusts are, how they work, and their pros and cons compared with alternatives such as ETFs and open-ended funds.

What Is an Investment Trust?

An investment trust is a publicly listed company whose business is investing in other assets. These might include:

  • shares in UK or overseas companies

  • bonds and other fixed-interest investments

  • property or infrastructure projects

  • specialist assets such as private equity or renewable energy

When you invest in an investment trust, you’re buying shares in the company, not units in a fund. Investment trusts are listed on the London Stock Exchange, and their shares are bought and sold in the same way as any other quoted company.

Importantly, most investment trusts are actively managed, with a professional fund manager making decisions about what to buy and sell.

How Investment Trusts Differ from Funds and ETFs

The key difference lies in structure.

Closed-Ended Structure

Investment trusts have a fixed number of shares in issue. This means:

  • The manager does not need to sell assets to meet investor withdrawals.

  • The trust can take a long-term view and invest in less liquid assets.

By contrast, open-ended funds and ETFs create or cancel units as investors buy and sell.

Share Price vs Net Asset Value (NAV)

Because investment trusts trade on the stock market, their share price is driven by supply and demand. This means shares can trade:

  • At a discount to the value of the underlying assets (NAV)

  • At a premium to NAV

This feature can create opportunities – but also risks – for investors.

The Advantages of Investment Trusts

Potential to Buy Assets at a Discount

One of the biggest attractions is the ability to buy shares below NAV. In simple terms, you may be able to buy £1 of assets for 90p (or less).

Discounts can widen in difficult markets, potentially offering long-term investors attractive entry points.

Gearing (Borrowing to Invest)

Investment trusts are allowed to borrow money to invest, known as gearing.

  • Used well, gearing can enhance long-term returns

  • Used poorly, it can magnify losses

This makes investment trusts potentially more volatile than ETFs or open-ended funds.

Strong Income Records

Many UK investment trusts aim to provide a reliable and growing income.

Crucially, they can retain income in good years and use reserves to maintain or increase dividends in tougher times – something open-ended funds are not permitted to do.

Some UK equity income investment trusts have raised their dividends for decades.

Access to Specialist Assets

Because managers don’t have to meet daily redemptions, investment trusts can invest in:

  • infrastructure and renewable energy

  • private equity

  • property and specialist debt

These areas are often harder to access via ETFs.

Can Be Held in Tax-Free Wrappers

Most investment trusts can be held within tax-free SIPPs and stocks and shares ISAs. That means no tax is payable on income generated or capital growth.

The Disadvantages of Investment Trusts

Discounts Can Persist

While buying at a discount sounds attractive, there’s no guarantee it will narrow. Some trusts trade at persistent discounts for years.

Higher Volatility

The combination of share price movements, discounts and gearing can make investment trusts more volatile than ETFs tracking an index.

Active Management Risk

Most investment trusts rely on the skill of a fund manager. If the manager under-performs, returns may lag cheaper passive options.

Complexity

Compared with a simple FTSE 100 ETF, investment trusts require more understanding – particularly around discounts, premiums and gearing.

Investment Trusts vs ETFs: A Quick Comparison

Feature Investment Trusts ETFs
Structure Closed-ended company Open-ended fund
Management Usually active Usually passive
Can use gearing Yes Rarely
Price vs NAV Can trade at discount/premium Very close to NAV
Income smoothing Yes No
Costs Often higher Usually low

How Can You Invest in Investment Trusts?

You can buy investment trusts through most UK investment platforms, including:

  • Stocks and Shares ISAs

  • SIPPs (Self-Invested Personal Pensions)

  • dealing accounts

They trade just like shares, so you’ll usually pay a dealing fee when buying or selling.

Before investing, it’s wise to check:

  • the trust’s long-term performance

  • ongoing charges

  • gearing policy

  • dividend history

  • whether shares trade at a discount or premium

Are Investment Trusts Right for You?

Investment trusts aren’t for everyone. If you prefer:

  • low costs

  • simple, passive investing

  • minimal volatility

…then ETFs or index funds may be more suitable.

However, for investors willing to do a bit more research, investment trusts can offer:

  • attractive income

  • exposure to specialist assets

  • the chance to buy quality investments at a discount

As always, diversification matters – and investment trusts are best viewed as part of a broader, well-balanced portfolio.

UK Investment Trust Examples

Investment trusts cover a wide range of strategies and sectors, from global growth to income to specialist themes like biotech or renewable energy. Here are some well-known UK trusts across different categories to help bring the concept to life.

📊 Global Growth & Broad Equity

  • Scottish Mortgage Investment Trust (LSE: SMT) – One of the largest and most popular UK investment trusts. It invests globally with a growth-oriented portfolio that includes technology and disruptive companies. It frequently tops the most-bought lists among UK investors.

  • Alliance Witan – A large diversified global trust formed from the merger of Alliance Trust and Witan, offering broad exposure across markets.

  • Baillie Gifford US Growth Trust – Focuses on growing companies based in the United States, blending listed and (up to a limit of) unlisted holdings.

💰 Income-Focused Trusts

  • City of London Investment Trust (LSE: CTY) – A classic UK equity income trust with a long record of increasing dividends year-on-year.

  • JPMorgan Global Growth & Income – Offers a diversified global equity income strategy that regularly features among popular income trusts.

  • Murray International Trust – Another long-running global equity income trust often favoured for income within ISAs.

🌍 Regional & Sector-Specific Trusts

  • Schroder AsiaPacific Fund – Provides exposure to companies across Asia and Asia-Pacific regions (excluding Japan and Australasia).

  • BlackRock Smaller Companies Trust – Focuses on smaller company equities, often with a value or growth tilt.

  • RTW Biotech Opportunities – A sector-specific trust investing in biotechnology companies at various stages of development.

🔋 Other Interesting Themes

  • Greencoat UK Wind (LSE: UKW) – A renewable energy trust investing in UK wind assets. It’s popular among investors seeking income from alternative infrastructure, though returns can be more cyclical.

  • 3i Group – A private equity–focused investment trust with a long track record and often high longer-term returns, though returns may be more volatile.

These examples are not recommendations – just familiar names that illustrate how diverse the investment trust world can be, from broad global strategies to niche sectors like biotech or renewables. Always do your own research (including yield, fees, discount/premium and underlying strategy) before investing.

My Own Trust Investments

Finally, I thought it might be of interest to mention the trusts I invest in myself. Again, I must emphasize that this in no way intended as a recommendation; it is for information purposes only.

I don’t have a lot of money in investment trusts these days, as they are a bit too volatile for my current circumstances and overall investing strategy. But in my Bestinvest SIPP (personal pension) I do hold the following…

BestInvest Investment Trusts

As you can see, I have shares in Fidelity Asian Values and Worldwide Healthcare Trust.

Both these trusts have done well for me, the latter in particular. I chose WHT because I wanted to put some of my pension money into the health sector. That is partly because I expect this sector to perform well as populations – in advanced industrial nations anyway – grow older. But it’s also because I like to think that some of my money may actually help drive advances in medicine/healthcare generally.

I invested in Fidelity Asian Values as my overall portfolio was a bit light on stocks from that region (and also, if I’m honest, because I saw this trust recommended on one of the investment news websites I follow!).

As always, if you have any comments or questions about this article, please do post them below. But bear in mind that I am not a qualified financial adviser and cannot give personal financial advice. All investment carries a risk of loss and past performance is no guarantee of future profits. You should always do your own “due diligence” before investing, and seek advice from a professional financial adviser/planner if in any doubt how best to proceed.




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Index Funds and How to Invest in Them

What Are Index Funds and How Can You Invest in Them?

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Today I thought I would take a closer look at Index Funds. These are among the most straightforward and cost-effective ways to invest in the stock market – especially for long-term savers and beginners.

Instead of trying to pick individual shares, index funds track a market index such as the FTSE 100, giving you broad exposure to many companies at once. This helps spread risk and keeps costs low.

In this article, I’ll explain what index funds are, which market indices they track (with a focus on popular UK and global examples), the pros and cons of index investing, and how you can invest in these funds from the UK.

What Is an Index Fund?

An index fund is a type of pooled investment that aims to mirror the performance of a specific stock market index such as the FTSE 100 or the S&P 500, rather than trying to beat it via active stock picking.

Because these funds simply follow a set rule (i.e. “invest in all the companies in this index”), they tend to have much lower fees than actively managed funds.

Common Market Indices Tracked by Index Funds

UK Market Indices

  • FTSE 100 – Tracks the 100 largest companies on the London Stock Exchange, such as Shell and HSBC.

  • FTSE 250 – Covers mid-sized UK companies (not including those in the FTSE100), giving broader UK-specific economic exposure.

  • FTSE All-Share – Includes hundreds of UK companies across large, mid and small caps.

International Indices

  • S&P 500 (USA) – 500 of the largest US companies by market value.

  • FTSE All-World – Broad global coverage of thousands of companies across developed and emerging markets.

  • MSCI World – Tracks large and mid-cap companies in developed economies.

Popular UK Index Funds You Can Invest In

Here are some specific examples of index funds and ETFs available to UK investors:

UK-Focused Trackers

  • iShares Core FTSE 100 UCITS ETF (LSE: ISF) – Tracks the FTSE 100 index with a low ongoing charge (~0.07%).

  • Vanguard FTSE 100 UCITS ETF (VUKE) – Another FTSE 100 tracker, from Vanguard.

  • Vanguard FTSE 250 UCITS ETF – Provides exposure to mid-sized UK companies via the FTSE 250 index.

  • HSBC FTSE 250 Index Tracker – A low-cost option that tracks the FTSE 250.

  • Vanguard FTSE UK All-Share Index Fund – A broader UK fund tracking a wide range of UK shares.

Global and International Trackers

  • SPDR S&P 500 UCITS ETF – Tracks the S&P 500 for US market exposure.

  • FTSE All-World ETFs / Funds – Provide broad world-wide market exposure including developed and some emerging markets (often available via major brokers under names like FTSE All-World).

  • iShares MSCI World ETFs – Track global developed markets outside the UK.

💡 Most of these are available as ETFs you can buy and sell on the London Stock Exchange, and many can be held inside tax-efficient accounts like ISAs and SIPPs.

Pros of Investing in Index Funds

✅ Low Costs

Index funds usually have much lower fees than actively managed funds because there’s no expensive stock-picking involved.

✅ Diversification

A single index fund can give you exposure to hundreds or thousands of companies, spreading risk across many businesses.

✅ Simple and Transparent

The strategy and holdings are easy to understand – you know exactly which index you’re following.

✅ Competitive Long-Term Returns

Over long periods, passive index funds have often matched or beaten actively managed funds, especially after fees.

Cons of Investing in Index Funds

⚠️ You Can’t Beat the Market

Index funds aim to match the performance of their benchmark, not outperform it.

⚠️ No Protection in Downturns

When the market falls, your fund generally will too – there’s no active manager moving your investment into “safer” assets.

⚠️ Concentration Risk

Some indices (e.g. the S&P 500) are heavily weighted toward certain sectors (like tech), so your exposure might be concentrated.

Ways to Invest in Index Funds in the UK

🪙 Through a Stocks & Shares ISA

This is one of the most tax-efficient ways to hold index funds: you won’t pay UK taxes on gains or dividends each year.

🧓 Via a SIPP

Index funds can form the core of a low-cost SIPP (Self Invested Personal Pension) portfolio. Contributions may also receive tax relief.

📈 Through Investment Platforms

Platforms like Hargreaves Lansdown, AJ Bell, Interactive Investor and Trading 212 let you buy and manage index funds directly.

🤖 Robo-Advisers

Services like Nutmeg (recently renamed JP Morgan Personal Investing) or Moneybox automatically build diversified portfolios using index funds based on your risk profile.

Final Thoughts

Index funds are an excellent foundation for long-term investing – especially if you want a low-cost, diversified, hands-off approach. With options covering UK, US and global markets, you can build a portfolio that matches your goals and risk tolerance.

Disclaimer: I am not a qualified financial adviser and nothing in this article should be construed as personal financial advice. It’s important to do your own ‘due diligence’ before investing and speak to a professional financial adviser/planner if in any doubt how best to proceed. All investments carry a risk of loss.




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Investments Update January 2026

My Investments Update – January 2026

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Happy New Year! Here is my latest monthly update about my investments. You can read my December 2025 Investments Update here if you like.

I’ll begin as usual with my JP Morgan Personal Investing (previously Nutmeg) Stocks and Shares ISA. This is the largest investment I hold other than my Bestinvest SIPP (personal pension).

As regular readers will know, in June this year I transferred most of the money in my former Nutmeg Fully Managed portfolio (just under £25,000) to a new Nutmeg Income Portfolio. I discussed this in detail in this post, but basically money in this port is invested to generate an income from share dividends and other sources. This is then paid monthly. Capital appreciation is targeted as well, but these portfolios are aimed primarily at older people (and others) who want/need their investment to generate a regular cash income.

In December my JPM Investing income portfolio generated £75.04 of income, which was duly paid in to my bank account on 24 December 2025. That means I have now received a total (tax-free) income of £471.46 to date. That’s about what I would have hoped for based on JPM’s projected annual return of just under 5% for income ports at my chosen risk level (five).

My income portfolio grew in value again in December. It’s now worth £27,052 compared with £27,015 at the start of last month, a rise of £37. As the screen capture shows, the port has actually increased by £2,099.98 (8.42%) since I opened it in June this year. That’s clearly good going, though I don’t suppose it will carry on like this indefinitely. I should maybe also mention that performance may have been helped a bit by the no-fees introductory offer on Nutmeg/JPM income portfolios until the end of 2025. That has ended now, of course.

JPM Income port Jan 2026

I still have a smaller, growth-oriented pot using JPM Investing’s Smart Alpha option. This is now worth £4,714 compared with £4,685 a month ago, an increase of £29. Here is a screen capture showing performance over the last year.

NUtmeg Smart Alpha port Jan 2026
And at the start of December 2023 I invested £500 in one of Nutmeg/JPM’s thematic portfolios (Resource Transformation). In March 2024 I also invested a further £200 from referral bonuses (something I no longer receive for reasons I won’t bore you with). As you can see from the screen capture below, this portfolio is now worth £934 (rounded up) compared with £931 last month, a small increase of £3.

JPM Thematic port Jan 2026

Finally, I still have a small amount left in my original Nutmeg/JPM Fully Managed portfolio. I have kept this largely for comparison purposes. This has also increased slightly in value from £637 at the start of December to £642 (rounded up) now, a rise of £5.

Nutmeg Full Managed port Jan 26

Overall in December I was up by £74 or 0.31%. In addition I did, of course, receive £75.04 in income from my income portfolio. Overall, then, I am in profit for the month by £149.04.

Excluding income generated, the overall value of my JPM investments is up by £2,914 or 9.58% since the start of 2025, so the April 2025 fall (caused largely by Trump’s tariffs) has now fully reversed. If you add to this figure the £471.46 of income generated so far, that gives a total profit for the last 12 months of £3,385.46 – not a bad return in these uncertain times.

As I always have to say, some volatility is to be expected with stock market investments, but over the longer term they tend to even themselves out (and generally perform better than bank savings accounts, although that is never guaranteed). In general the worst thing you can do is panic and sell up when downturns occur (as happened in April last year). You are then crystallizing your losses rather than giving the markets time to recover. This is something I had cause to discuss in this blog post.

You can read my full original Nutmeg/JPM review here. If you are looking for a home for your annual ISA allowance, based on my overall experience over the last nine years, they are certainly worth considering. They offer self-invested personal pensions (SIPPs), Lifetime ISAs and Junior ISAs as well.

Moving on, I also have investments with P2P property investment platform Assetz Exchange. As discussed in this post, the company has rebranded as Housemartin.

My investments with Housemartin continue to generate steady returns. Housemartin focuses on lower-risk properties (e.g. sheltered housing). I put an initial £100 into this in mid-February 2021 and another £400 in April. In June 2021 I added another £500, bringing my total investment up to £1,000.

Since I opened my account, my HM portfolio has generated a respectable £291.50 in revenue from rental income. I have made a small net loss of £21.68 on property disposals. Capital growth generally has slowed, in line with UK property values generally.

At the time of writing, 13 of ‘my’ properties are showing gains, 5 are breaking even, and the remaining 24 are showing losses. My portfolio of 42 properties is currently showing a net decrease in value of £72.54. That means that overall (rental income minus capital value decrease and loss on disposal) I am up by £197.28. That’s still a respectable return on my £1,000 and does illustrate the value of P2P property investments for diversifying your portfolio. And it doesn’t hurt that with Housemartin most projects are socially beneficial as well.

The net fall in capital value of my Housemartin investments is obviously a little disappointing. But it’s important to remember that until/unless I choose to sell the investments in question, it is largely theoretical, based on the latest price at which shares in the property concerned have changed hands. The rental income, on the other hand, is real money (which in my case I’ve reinvested in other HM projects to further diversify my portfolio).

To control risk with all my property crowdfunding investments nowadays, I invest relatively modest amounts in individual projects. This is a particular attraction of Housemartin as far as i am concerned. You can actually invest from as little as £1 per property if you really want to proceed cautiously.

  • As I noted in this blog post, Housemartin is particularly good if you want to compound your returns by reinvesting rental income. This effectively boosts the interest rate you are receiving. Personally, once I have accrued a minimum of £10 in rental payments, I usually reinvest this money in either a new HM project or one I have already invested in (thus increasing my holding). Over time, even if I don’t invest any more capital, this will ensure my investment with Housemartin grows at an accelerating rate and becomes more diversified as well.

My investment on Housemartin is in the form of an IFISA so there won’t be any tax to pay on profits, dividends or capital gains. I’ve been impressed by my experiences with Housemartin and the returns generated so far, and intend to continue investing with them. You can read my original review of Assetz Exchange/Housemartin here and my article about the rebranding to Housemartin here. You can also sign up for an account directly via this link [affiliate].

In 2022 I set up an account with investment and trading platform eToro, using their popular ‘copy trader’ facility. I chose to invest $500 (then about £412) copying an experienced eToro trader called Aukie2008 (real name Mike Moest).

In January 2023 I added to this with another $500 investment in one of their thematic portfolios, Oil Worldwide. I also invested a small amount I had left over in Tesla shares.

As you can see from the screen captures below, my original investment (total value £888.36 in pounds sterling) is today worth £1,152.75 an overall increase of £264.39 or 29.76%.

  • Note: eToro now displays the value of investments in your native currency, although you can change this if you wish.

eToro Home Jan 2026

eToro Port Jan 26

 

You can read my full review of eToro here. You may also like to check out my more in-depth look at eToro copy trading. I also discussed thematic investing with eToro using Smart Portfolios in this recent post. The latter also reveals why I took the somewhat contrarian step of choosing the oil industry for my first thematic investment with them.

As you can see, my Oil WorldWide investment is in profit, though at 10.37% it is nothing to get excited about. My copy trading investment with Aukie2008 has been doing better, with an impressive overall profit of 63.35%. To be fair, I have held this investment a bit longer.

My Tesla shares, which I bought as an afterthought with some spare cash I had in my account, are up again this month. They are showing an overall profit of 304.65% since I bought them. If only I had put a bit more money into this!

You might also notice that I have small holdings in Prosus NV, a Dutch internet group, and South Bow, a Canadian energy infrastructure company. To be honest I don’t understand how I acquired these, but I assume they are some sort of bonus I was awarded. In any event, I am happy to have them in my portfolio.

As an experiment, at the start of April this year I put £50 into an investment ISA with Trading 212. As mentioned in my recent blog post about dividend investing, I put it into the (Almost) Daily Dividends Portfolio, a ready-made portfolio or ‘pie’ on Trading 212. As you can see from the screen capture below, my portfolio is now worth £57.34, an increase of £7.34 or 14.60% over the nine-month period. It has even accrued a grand total of 77p in dividends!

Trading 212 Shares ISA Jan 2026

I am quite impressed with how this investment has been faring, despite the small amount I put in (which means I may be missing out on some smaller dividends). If I increased my investment I would almost certainly become eligible for more dividends, and even more the longer I remain invested. If I had any spare money at the moment, I would consider doing this. Of course, I do now have an income-focused portfolio with JPM Investing as well (see above).

 

 

Moving on, I published various posts on Pounds and Sense in December. I have listed below those that are still relevant.

My Top 20 Posts of 2025 is pretty self-explanatory. In this post I listed the top twenty posts on Pounds and Sense in 2025, based on comments, page-views and social media shares, excluding any that were no longer relevant. I hope you might enjoy revisiting these posts, or seeing them for the first time if you are new to PAS.

In Why You Should Beware of Going ‘All-In’ on Electricity I focused on a topic that has become of increasing concern to me in recent months. Over the past decade, UK households have been encouraged to electrify almost everything. Cars are going electric. Gas boilers are being phased out in favour of electric heat pumps. Even cooking is increasingly moving from gas to electricity. Of course, on paper this all fits with the Government’s drive towards Net Zero. But in this post I addressed a growing issue that doesn’t get discussed nearly enough: What happens if the electricity supply isn’t always there when you need it?

Also in December I published New Trading 212 Offer – Get a Guaranteed £25 Cash. This is a rare opportunity to get a guaranteed £25 cash by opening a new Trading 212 Invest account (it’s different from their usual free share promotion, which is currently closed). My post explains what you have to do to claim this money. The offer ends on 20 January 2026.

I also published another syndicated guest post by Primrose Freestone, Senior Lecturer in Clinical Microbiology at Leicester University. This one is on the subject Can You Wear the Same Socks More Than Once? I published another article by Dr Freestone recently on how often you should wash your bedding, which generated a lot of interest. If you enjoyed that article, hopefully you will like this one as well. Again it contains a lot of eye-opening information, including some tips on when and how you should launder socks.

Finally, in What Are the Best Video Calling Tools for Older People? I discussed the benefits for older folk of using video-calling tools and apps to keep in touch with friends and family. I described a range of options, explaining how they work and whom they might be most suitable for. This article was published with Christmas in mind, but obviously it is relevant at other times of the year as well.

I’ll close with a reminder that you can also follow Pounds and Sense on Facebook or Twitter (or X as we have to call it now). Twitter/X is my number one social media platform and I post regularly there. I share the latest news and information on financial matters, and other things that interest, amuse or concern me. So if you aren’t following my PAS account on Twitter/X, you are definitely missing out!

  • I am also on the BlueSky social media network under the username poundsandsense.bsky.social. Twitter/X remains my primary social media platform, but I also post details of my latest blog posts, third-party articles and other financial news and resources on BlueSky for those who prefer to follow me there.

As always, if you have any comments or questions, feel free to leave them below. I am always delighted to hear from PAS readers 🙂

Disclaimer: I am not a qualified financial adviser and nothing in this blog post should be construed as personal financial advice. Everyone should do their own ‘due diligence’ before investing and seek professional advice if in any doubt how best to proceed. All investing carries a risk of loss. 

Note also that posts on PAS may include affiliate links. If you click through and perform a qualifying transaction, I may receive a commission for introducing you. This will not affect the product or service you receive or the terms you are offered, but it does help support me in publishing PAS and paying my bills. Thank you!

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