August 28, 2025

Dividend Investing vs Total Return: Which Works Best for Income Investors?

Nick Investing savings, pensions, retirement 0 Comments

As we move into our 50s and beyond, many of us start to shift focus from building wealth to drawing income from our investments. But when it comes to generating that income, there are two main approaches investors tend to consider: dividend investing and a total return strategy.

Both can work, but they operate on different principles, and each has its own pros and cons. Let’s take a closer look.

What is Dividend Investing?

Dividend investing involves building a portfolio of shares (or funds) that pay out regular dividends. The dividends received are used as income, while the underlying shares are ideally held long term.

For example, UK companies such as Vodafone or Legal & General have historically paid relatively high dividends. Many investment trusts and equity income funds also focus on this approach, targeting a yield of 4–5% per year.

Pros of Dividend Investing

Predictable income: Dividends can provide a relatively steady stream of cash without needing to sell investments.
Psychological comfort: Many investors prefer “living off the income” rather than dipping into capital.
Inflation protection: Well-managed companies often increase dividends over time, offering some inflation hedge.
Tax efficiency in ISAs and pensions: Dividends received inside these wrappers are tax-free.

Cons of Dividend Investing

Limited choice: By focusing only on dividend-paying shares or funds, you may miss opportunities in sectors with low or no payouts (e.g. technology).
Dividend cuts: Companies can reduce or suspend dividends, as many did during the pandemic.
Potentially lower growth: High-yield companies may not grow as strongly as firms that reinvest profits instead of paying them out.
Chasing yield risk: Investors may be tempted by high yields that aren’t sustainable.

What is a Total Return Strategy?

A total return approach doesn’t focus solely on dividends. Instead, you generate income by drawing a regular amount from the portfolio, which may come from dividends, bond interest, or by selling some holdings. The goal is to maximise the portfolio’s overall growth and then withdraw from that “pot” in a sustainable way.

For example, you might hold a global tracker fund (which pays some dividends but not a high yield) and set up a monthly withdrawal of 4% of the portfolio value each year.

Pros of a Total Return Strategy

Broader diversification: You’re not limited to dividend-paying stocks. You can invest in growth companies, bonds, property, or even alternative assets.
More flexibility: You can adjust withdrawals depending on market conditions, income needs, and tax planning.
Potentially higher growth: By including growth assets, you may end up with stronger long-term performance.
Control over timing: You choose when and how much to withdraw, rather than relying on dividend payment schedules.

Cons of a Total Return Strategy

Selling in downturns: If markets fall, you may be forced to sell investments at depressed prices to maintain income.
Requires discipline: You need a plan (e.g. a safe withdrawal rate) to avoid running out of money too soon.
Less “natural” income: Some investors don’t like dipping into capital, even if mathematically it makes sense.
Market dependency: Income levels may fluctuate depending on performance.

Dividend Investing vs Total Return: At a Glance

Feature	Dividend Investing	Total Return Strategy
Income Source	Dividends from shares/funds	Mix of dividends, interest, and selling investments
Reliability of Income	Can feel steady, but dividends may be cut	Depends on market performance and withdrawal discipline
Diversification	Limited to dividend-paying stocks/funds	Broader choice, including growth assets
Growth Potential	Lower if focused on high yield	Potentially higher with growth companies included
Flexibility	Less flexible, tied to dividend schedules	High flexibility, withdrawals can be tailored
Psychological Comfort	Feels like “living off income”	Requires willingness to dip into capital
Risk in Downturns	Dividend cuts possible	May need to sell assets at lower prices
Best For	Those wanting simplicity and regular income	Those comfortable managing withdrawals for long-term growth

Which Approach is Better?

The answer depends on your circumstances, risk tolerance, and psychology.

If you value simplicity and a steady income stream, dividend investing may be appealing. For example, many UK investment trusts such as City of London or Murray Income have raised their dividends for decades.
If you want maximum flexibility and growth potential, a total return strategy could work better — especially when combined with careful planning, such as withdrawing a fixed percentage each year.

For many investors, a blend of the two is the most practical solution. Holding some dividend-paying funds alongside growth-focused investments can deliver both psychological comfort and portfolio resilience.

My Personal Approach

As mentioned above, I have a mixture of growth-focused investments along with my main income-focused Nutmeg portfolio. I wrote about the latter in a recent blog post and also refer to it in my monthly investment updates (such as this one).

My growth-focused (total return) investments include my Bestinvest SIPP (private pension). This comprises a dozen or so investment trusts and funds, which I chose myself. My SIPP is currently in drawdown, so every month I sell a certain amount in order to release the money I will be drawing. This only takes a couple of minutes, and I vary the fund I choose to avoid depleting any too fast. Of course, most funds accrue dividends and other income which helps replenish them, along with (hopefully) growth in the value of the fund concerned.

As mentioned, my main income-focused investment is with Nutmeg. This provides a monthly income without any action needed from me. If I wanted it to be the same every month I could turn on the ‘smoothing’ function Nutmeg offers, but currently I am simply taking whatever income accrues in the month concerned.

For the time being this blended approach works for me, but as I get further into retirement I may switch more of my money away from growth- towards income-focused investments.

Obviously, the above is just for information purposes. Everyone’s circumstances are different, and what is appropriate for me may not be for you.

Key Takeaways

Dividend investing offers simplicity and natural income but limits diversification and risks dividend cuts.
Total return investing offers flexibility and potentially higher growth, but requires discipline and the willingness to sell assets.
Over-50s should consider their income needs, investment horizon, and attitude to risk before deciding.

👉 Final thought: Remember that both strategies can be made more tax-efficient by using ISAs and pensions. And whichever approach you favour, keeping costs low and diversifying widely remain as important as ever.

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

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

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August 2, 2025

My Investments Update – August 2025

Nick Investing events 0 Comments

Here is my latest monthly update about my investments. You can read my July 2025 Investments Update here if you like.

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

My Income portfolio hasn’t yet generated any income for me. I assume that is because there is a qualifying period before you become eligible to receive dividends (I have asked Nutmeg for clarification about this and am awaiting an answer). Income is due to be paid in cash to my bank account on the 24th of each month, so hopefully I will have some income accrued by August 24th (check out next month’s Update to find out!).

Nutmeg have now confirmed I was basically correct above. They point out that – like all Nutmeg investments – the money in income portfolios is held in the form of ETFs (exchange traded funds). They say: ‘Usually for an ETF to pay a dividend, it is one month after it is recorded. Taking the example of the JP Morgan Global Equity Premium ETF, [a dividend] was declared and recorded in early July and will be paid in August.” It would therefore appear that you have to be invested for between one and two months to start receiving monthly payouts. Nutmeg say I can expect to receive my first income payout on August 24th, so I will await this with interest 🙂

The better news is that this portfolio has grown in value in July. It’s now worth £25,793 compared with £25,092 at the start of last month, an increase of £701 or 2.79%. As the screen capture shows, this portfolio has actually grown in value by £840.89 since I opened it.

I still have a smaller, growth-oriented pot using Nutmeg’s Smart Alpha option. This is now worth £4,346 (rounded up) compared with £4,164 a month ago, a rise of £182. Here is a screen capture showing performance for the year to date.

And at the start of December 2023 I invested £500 in one of Nutmeg’s thematic portfolios (Resource Transformation). In March 2024 I also invested a further £200 from referral bonuses. As you can see from the YTD screen capture below, this portfolio is now worth £863 (rounded up) compared with £827 last month, a rise of £36.

Finally, I still have a small amount left in my original Nutmeg Fully Managed portfolio. I have kept this largely for comparison purposes. This has increased from £581 at the start of July to £594 (rounded up) now, an increase of £13.

As you can see, July was a good month for my Nutmeg investments. Overall I was up by £932 or 2.69%.

I am up by £1,168 since the start of 2025, so the April 2025 fall (caused largely by Trump’s tariffs) has now fully reversed. I am also up by £2,583 or 8.90% since the start of August last year. All things considered, that’s not a bad result.

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). You are then crystallizing your losses rather than giving the markets time to recover. This is something I had cause to discuss recently in this blog post.

You can read my full Nutmeg review here. If you are looking for a home for your annual ISA allowance, based on my overall experience over the last eight 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 recent 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 £262.48 in revenue from rental income. I have made a small net loss of £0.71 on property disposals. Capital growth generally has slowed, in line with UK property values generally.

At the time of writing, 16 of ‘my’ properties are showing gains, 2 are breaking even, and the remaining 19 are showing losses. My portfolio of 37 properties is currently showing a net decrease in value of £60.06. That means that overall (rental income minus capital value decrease and loss on disposal) I am up by £201.71. That’s still a decent 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. I did, however, withdraw £50 from my earnings in June to assist my cashflow in what was an expensive month for me

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 full 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 £1,061.44, an overall increase of £173.08 or 19.48%.

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

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 7.26% it is nothing to write home about. My copy trading investment with Aukie2008 has been doing a lot better, with an overall 45.28% profit. 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 down a little this month. But they are still showing an overall profit of 172.32% 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!

eToro also offer the free eToro Money app. This allows you to deposit money to your eToro account without paying any currency conversion fees, saving you up to £5 for every £1,000 you deposit. You can also use the app to withdraw funds from your eToro account instantly to your bank account. I tried this myself and was impressed with how quickly and seamlessly it worked. You can read my blog post about eToro Money here. Note that it can also serve as a cryptocurrency wallet, allowing you to send and receive crypto from any other wallet address in the world.

If you would like more information about setting up an eToro account, please click on this no-obligation website link [affiliate]. Don’t forget that you also get a free $100,000 virtual portfolio, which you can use to experiment with trading and investing strategies. I have certainly earned a lot from mine.

As an experiment, I recently 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 £53.67, an increase of £3.67 or 7.3% over the four-month period. It has even accrued a grand total of 31p in dividends (which is still more than I’ve had from my Nutmeg income port so far!).

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 Nutmeg as well (see above).

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

As mentioned above, in Nutmeg Launches New Income Investing Portfolios I discussed this new option from robo-adviser platform Nutmeg (with whom I am a long-term investor myself). I revealed how the new income investing portfolios work, and revealed why I decided to switch a substantial portion of my Nutmeg investments into one.

How to Tow a Caravan With an Electric Car in the UK covers a subject relevant to growing numbers of motorists. With over 1.5 million EVs now on UK roads – and staycations more popular than ever – more people are pairing their electric cars with touring caravans. But while the idea is appealing, towing with an EV requires careful planning, especially when it comes to battery range and charging stops. I am grateful to my my friends at specialist caravan insurers Compass Insurance and European EV charging infrastructure company Fastned for their expert tips and information.

In How to Invest in Gold in the UK I looked at another subject attracting growing attention. Gold is shiny, timeless, and often seen as a financial “safe haven” – especially when inflation is rising or the stock market is shaky. The growing popularity of gold among investors in recent months is testimony to this. In this post, I covered the pros and cons of investing in gold, the main ways to invest (even if you’re a beginner), and how to get started easily in the UK

Finally, in Is Private Health Insurance Worthwhile for Over-50s? I looked at the pros and cons of private medical insurance (PMI) for older people, and set out some key questions to help decide whether it makes financial sense for you. The article also discusses health cash plans, a less costly alternative that may be more suitable for some.

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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July 29, 2025

Is Private Health Insurance Worthwhile for Over-50s?

Nick Pensions & Benefits, Investing, Everything Else reviews, health, insurance, families 0 Comments

As we get older, our health needs inevitably become more complex – and that’s when many of us (me included) start to wonder: Is private health insurance worthwhile?

In the UK, we’re fortunate to have the NHS, which offers free healthcare at the point of delivery to everyone. But with increasing waiting times and growing pressure on NHS services – not to mention strikes and other disruptions – growing numbers of older people are wondering whether it’s time to consider going private.

Let’s take a look at the pros and cons, and key questions to help you decide whether private medical insurance (PMI) makes financial sense for you.

✅ Why Consider Private Health Insurance?

1. Shorter Waiting Times

Waiting for an operation or diagnostic scan can be stressful—especially when you’re in pain or worried. One of the biggest attractions of private health insurance is the ability to skip long NHS queues for consultations, scans and treatments.

2. Access to Private Hospitals and Specialists

Private cover often gives you access to a broader network of consultants and hospitals. This can be particularly useful if you want to see a specific specialist or prefer the amenities of a private facility.

3. More Comfortable Experience

Private rooms, flexible appointment times, and continuity of care are common benefits of going private. If you value comfort and control in how you’re treated, insurance can help deliver that.

4. Extra Services

Many policies include extras like physiotherapy, mental health support, or complementary therapies—services that can be hard to access promptly (or at all) on the NHS.

⚠️ Things to Think About Before You Buy

💷 It Can Be Expensive

There’s no getting around it—health insurance becomes more expensive as you get older. If you’re in your 60s or 70s, you could be looking at £100 to £250+ per month, depending on your cover level and health history.

If you’re living on a pension or fixed income, it’s important to weigh up whether the cost is sustainable long term.

⚕️ Pre-existing Conditions May Not Be Covered

If you’ve had health issues in the past—as many of us over 50 have—be aware that these may be excluded from cover, at least initially. Some insurers offer “moratorium” or “full medical underwriting” policies, so be sure to understand the terms.

📜 Not All Treatments Are Included

Private insurance usually doesn’t cover emergency care, chronic disease management (like diabetes or heart failure), or maternity services. These are still handled by the NHS—so PMI should be seen as a complement, not a replacement.

🏥 You’ll Still Use the NHS

Even with private insurance, many people continue to rely on the NHS for things like A&E, cancer care, and follow-up treatment. The NHS remains an essential part of your healthcare safety net.

💡 Who Might Benefit Most?

Private medical insurance may be worth considering if:

You value fast access to treatment or want more choice in who treats you.
You have the financial means to comfortably afford the monthly premiums.
You have health concerns that may require ongoing monitoring or elective procedures.
You want the peace of mind that comes with having private options available if needed.

🏥 Comparing Health Insurance Providers

If you’re over 50 and considering private health insurance, choosing the right provider can feel overwhelming. Below is a comparison of five well-known UK insurers, focusing on how they stack up for older adults.

Provider	Pros	Cons
Bupa	– Trusted name with a wide hospital network – 24/7 GP appointments via phone or video – Tailored cover options, including cover for mental health and physiotherapy	– One of the more expensive providers – Some policies have strict limits on outpatient care
AXA Health	– Offers a 24/7 health helpline with nurses – Includes mental health cover and diagnostics – Often good for families and couples too	– Can be costly if you add multiple optional extras – Some treatments may require pre-authorisation
Vitality Health	– Rewards scheme offers discounts on fitness, gym, travel and health-related spending – Offers some cover for pre-existing conditions after a waiting period	– Complex rewards system can be hard to understand – Requires engagement (like activity tracking) to get maximum benefit
Aviva	– Competitive pricing, especially for older adults – Strong focus on modular plans—pay for what you need – Digital tools and fast claims process	– Fewer perks and extras compared to some rivals – Limited cover for some complementary therapies
Saga (underwritten by Bupa)	– Specifically designed for over-50s – No upper age limit on new policies – Includes access to private GPs and specialists	– Can be pricey, especially for comprehensive cover – May still require medical screening depending on age and conditions

Health Insurance Cost Estimator

As a rough guide, here is an online tool that will give you a ballpark estimate for how much health insurance might cost you, based on your age and type of cover required. It assumes you are a non-smoker with no chronic health conditions.

🧮 Private Health Insurance Cost Estimator

1. Your Age:

2. Level of Cover:

3. Add-ons:
Mental health cover
Physiotherapy
Rewards & Wellbeing Extras

Note that this tool gives an approximate cost only. Prices vary by insurer, health status, where you live in the UK, and exact policy terms (including the excess you’re willing to pay). Always get a personalized quote before purchasing cover.

See also this excellent article What is the Average Cost of Health Insurance in the UK?

👥 What Should Over-50s Look For in a Policy?

When comparing policies, keep these key factors in mind:

Outpatient limits – Do you get full cover for scans and consultations?
Excess options – Choosing a higher excess can lower your premium.
Cover for pre-existing conditions – Look closely at what’s included and excluded.
Hospital list – Make sure your preferred hospitals or clinics are included.
Added-value benefits – Think virtual GP access, helplines and therapy sessions.

💡 Extra Tip

Most insurers offer a cooling-off period (usually 14 days) after purchase, so you can change your mind. It’s also worth calling insurers directly to ask about over-50s discounts, flexible policies, or joint plans with your partner.

Private medical insurance is a personal investment—and choosing the right provider can make a big difference in both your care and your costs.

💷 What About Health Cash Plans?

If the cost of full private health insurance feels out of reach, health cash plans could be a more affordable alternative—especially for those in their 50s, 60s and beyond who want help covering everyday healthcare costs.

🩺 What Is a Health Cash Plan?

A health cash plan is not the same as private medical insurance. Instead of paying for private operations or hospital stays, cash plans reimburse you for routine healthcare expenses such as:

Dental check-ups and treatment
Eye tests and glasses
Physiotherapy and chiropractic care
Prescription costs
GP consultations and health screenings

You usually pay a fixed monthly fee—typically between £10 and £30 depending on your level of cover—and can claim back part or all of the cost of certain treatments or services.

🏥 Popular Health Cash Plan Providers

Provider	Typical Monthly Cost	Key Features
Benenden Health	£11.90 (flat rate)	– No age limit or exclusions for pre-existing conditions – Offers access to private GP, mental health support, and diagnostics – Not-for-profit mutual organisation
Medicash	From £7.50	– Cash back on dental, optical, and therapy treatments – Family cover available – App with virtual GP and health tools
Health Shield	From £10	– Offers wellbeing support, counselling, and claim-back options for everyday healthcare – No medical underwriting
Simplyhealth	From £10	– Long-standing provider with a range of plan levels – Can cover optical, dental, chiropody, physiotherapy, etc. – Optional extras for higher-level plans

👍 Pros of Health Cash Plans

✅ Much more affordable than private medical insurance
✅ Ideal for managing common or routine health costs
✅ Often no medical screening required
✅ Useful for retirees managing a fixed income
✅ Can offer peace of mind for dental, optical and therapies

⚠️ Things to Keep in Mind

❌ Cash plans won’t cover private operations or major surgery
❌ Most plans have maximum claim limits per benefit each year
❌ You usually have to pay upfront and claim back later

✅ Is a Health Cash Plan Right for You?

For many over-50s, particularly those without serious ongoing health issues, a health cash plan offers a practical and low-cost way to stay on top of everyday health needs.

If you’re happy using the NHS for major treatments but want support with dentist bills, eye care, and physiotherapy, this could be a smart middle-ground—especially when budgets are tight.

🧮 Closing Thoughts: Is PMI Worth the Money?

There’s no one-size-fits-all answer. Private medical insurance can offer convenience, faster access and a better experience—but it comes at a cost.

Ask yourself:

Can I afford this now and in 10 years’ time?
What do I want most from my healthcare—speed, choice, comfort?
Would I get peace of mind knowing I can go private if I need to?

For some, especially those with complex health needs or busy lifestyles, private insurance can be a good investment in their well-being. For others, the NHS may still offer all the care they need—at no additional cost.

You also have the option to self-fund one-off private treatments instead of paying monthly insurance premiums. You might also use the NHS for most care, but go private for specific issues—like orthopaedics or diagnostics—where waiting lists are longest.

If you’re considering private health insurance, it’s well worth using a comparison service like ActiveQuote, GoCompare, or Compare the Market to explore your options. You may also want to speak to an independent financial adviser to help decide if it’s the right move for your health and your wallet.

If you have any comments or questions about this article, as always, feel free to post them below. I’d also be interested to hear about your own experiences with health insurance and health cash plans, and whether you recommend them or not.

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July 16, 2025

How to Invest in Gold in the UK

Nick Investing 0 Comments

Gold has a reputation few other investments can match. It’s shiny, timeless, and often seen as a financial “safe haven” – especially when inflation is rising or the stock market is shaky. The growing popularity of gold among investors in recent months is testimony to this.

But is investing in gold the right move for you?

In this post, I’ll cover:

The pros and cons of investing in gold
The main ways to invest (even if you’re a beginner)
And how to get started easily in the UK

Why Invest in Gold?

For centuries, gold has been viewed as a store of value. Unlike cash, which can lose its buying power over time, gold tends to hold its worth – especially during times of economic uncertainty.

In 2025, with inflation still a concern and markets volatile and unpredictable, more UK savers and investors than ever are thinking about adding gold to their portfolios. But like any asset, it has both upsides and downsides.

✅ Pros of Investing in Gold

🔒 1. A Hedge Against Inflation

As prices rise and the pound’s purchasing power shrinks, gold often increases in value. That’s why many investors use it as a hedge against inflation.

🌍 2. A Safe Haven in Uncertain Times

Gold tends to perform well during economic turbulence, financial crises or geopolitical shocks. When confidence in markets wobbles, gold often shines.

📊 3. Portfolio Diversification

Gold doesn’t typically move in the same direction as stocks or bonds, so adding it to your portfolio can reduce overall risk.

💷 4. High Liquidity

Whether it’s gold coins, bars or gold ETFs, gold can usually be bought and sold easily in the UK through dealers or online investment platforms.

🧱 5. It’s a Physical, Tangible Asset

Physical gold appeals to those who like to see and touch what they own. It can feel more secure than digital investments.

❌ Cons of Investing in Gold

🚫 1. No Income

Gold doesn’t pay interest, dividends or rent. You only make money if the price rises and you sell at a profit.

🔐 2. Storage and Security Costs

If you buy physical gold, you’ll need to store it safely – at home, in a bank, or with a specialist provider. This can add ongoing costs.

📉 3. Short-Term Price Fluctuations

Gold prices can be volatile in the short term, reacting to interest rates, currency shifts and global events.

💰 4. Capital Gains Tax (CGT)

If you make a profit on gold, you might pay CGT – unless you buy UK legal tender coins like Britannias or Sovereigns, which are CGT-free.

💸 5. Premiums and Dealer Fees

When buying physical gold, you’ll usually pay a premium above the market (spot) price, plus delivery and possibly VAT (on some bars or non-investment gold).

🛠️ How to Start Investing in Gold

1. 🪙 Buy Physical Gold (Coins or Bars)

If you want to hold gold directly, coins and bars are your best bet.

Coins like Britannias and Sovereigns are CGT-exempt and easy to sell.
Bars are available in various weights (from 1g to 1kg) and may offer better value per gram.

Where to buy:

Tip: Don’t want to store gold yourself? Look for “allocated storage” options where your gold is securely held in your name.

2. 📈 Invest via Gold ETFs (Exchange-Traded Funds)

If you’d rather not deal with physical metal, gold ETFs are a low-cost, easy way to track the price of gold.

Popular UK-listed ETFs include:

iShares Physical Gold (SGLN)
WisdomTree Physical Gold (PHAU)

You can invest via platforms like:

✅ You can even hold gold ETFs in a Stocks and Shares ISA to shield your gains from tax. See also my recent blog post about ETFs and how to invest in them.

3. ⛏️ Buy Shares in Gold Mining Companies

Prefer businesses over bullion? Invest in gold miners like:

Fresnillo (listed on the London Stock Exchange)
Barrick Gold
Newmont Corporation

⚠️ These company shares are higher risk – they’re influenced by more than just the gold price, e.g. management performance, debt, and political factors.

4. 🖥️ Use a Digital Gold Account

Want exposure to gold without the hassle of storage? Try digital gold platforms.

Options include:

Royal Mint DigiGold
GoldCore
TallyMoney

You can invest with as little as £25 and buy/sell instantly.

5. ⚠️ Advanced: Trade Gold Derivatives (Futures & Options)

Gold futures and options allow speculation on gold price movements — but they’re complex, leveraged, and risky.

🛑 Definitely not suitable for beginners!

🧠 Closing Thoughts: Is Gold Right for You?

Gold can be a smart addition to your investment mix – especially if you’re worried about inflation, market crashes and/or want to diversify your portfolio.

But it’s not perfect. It doesn’t generate income, and short-term prices can be unpredictable.

A sensible approach? Treat gold as a long-term insurance policy, not a get-rich-quick plan. Many financial advisers recommend allocating around 5–10% (at most) of your portfolio to gold.

If you’re just getting started, two good options are:

Gold coins like Britannias or Sovereigns
A low-cost gold ETF inside a tax-exempt Stocks & Shares ISA

And remember: if you’re not sure, speak to a financial adviser before making any big investment decisions.

💬 Over to You

Have you invested in gold – or are you thinking about it?

Share your thoughts or questions in the comments below 👇

Disclaimer: I am not a qualified financial adviser and nothing in this article should be construed as personal financial advice. You should always do your own “due diligence” before investing and seek advice from a financial services professional if in any doubt before proceeding. All investing carries a risk of loss.

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July 11, 2025

Nutmeg Launches New Income Investing Portfolios

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Today I am looking at the new income investing option recently introduced by UK robo-adviser platform Nutmeg. This is designed for people who want to receive a regular monthly income while keeping their money invested (and hopefully still growing).

As a long-term Nutmeg investor myself (you can read my in-depth review here), I have already taken advantage of this opportunity. I will discuss my personal experience (so far) in more detail below. But first, here’s how it works in a nut(meg)shell, how it compares with Nutmeg’s traditional growth portfolios, and who might benefit the most.

How Nutmeg’s Income Portfolios Work

Powered by J.P. Morgan Asset Management (JPMAM)

Nutmeg has collaborated with JPMAM to construct five risk‑rated portfolios, built around actively managed income-focused ETFs – including the JP Morgan Equity Premium Income strategy – so you’re investing in income-optimized assets while staying diversified.

2. Five Risk Levels to Suit You

You can choose from five different risk levels, ranging from 1 (cautious) to 5 (adventurous), based on your circumstances, goals and appetite for risk. Each level offers a different blend of equity and bond exposure to balance income generation with capital stability.

Here’s a table describing Nutmeg’s five income portfolio risk levels in simple terms…

Risk Level	Description	Equity Exposure	Income Potential	Capital Risk
1 – Cautious	Prioritizes stability over returns	Low	Low	Very Low
2 – Conservative	Aims for modest, steady income with minimal volatility	Low to Moderate	Low to Medium	Low
3 – Balanced	Balanced mix of bonds and equities for moderate income and risk	Moderate	Medium	Moderate
4 – Growth-Oriented	Greater focus on equity income for higher payouts	Moderate to High	Medium to High	Moderate to High
5 – Adventurous	Maximizes income potential with higher risk tolerance	High	High	High

📌 Note: All portfolios are actively managed and diversified, but the mix of assets changes based on your selected risk level. Income smoothing and monthly payouts are available across all five.

3. Monthly Payouts with Optional Smoothing

One standout feature is income smoothing. This spreads out income across the year, so you receive consistent monthly payments – even if dividends or yields vary from month to month. This feature is optional, however – you can turn smoothing off if you’d rather receive income as it’s earned every month.

4. No Nutmeg Management Fee for 2025

These portfolios are available via ISA or General Investment Accounts (non-ISA) and have no Nutmeg management fee for the rest of 2025, though underlying ETF costs apply. A minimum investment of £10,000 is required.

5. Capital Remains Invested

Your core investment stays fully invested in the market – providing the potential for capital preservation or growth alongside the monthly income stream.

Income vs Growth – What’s the Difference?

The difference between the two approaches is summed up in the table below.

	Income Portfolio	Growth Portfolio
Objective	Provide regular monthly income	Maximize long‑term capital growth
Payouts	Paid out monthly, with optional smoothing	Reinvested automatically for compounding
Yield Focus	Uses dividend and income-focused ETFs	Focus on market growth; income secondary
Suitability	Later-stage savers, retirees, cash flow needs	Long-term goals like retirement, wealth accumulation

While Nutmeg’s growth-oriented portfolios reinvest dividends to compound, the income portfolios are specifically structured to generate ongoing monthly payments. This is ideal for those needing a regular income rather than capital appreciation (though some capital appreciation will hopefully occur as well).

Who Are These Portfolios Best For?

Retirees or near‑retirees needing a dependable income stream without selling assets.
Those reducing work hours or with varied income, using the monthly payouts to smooth out earnings.
Investors frustrated with traditional bond/dividend returns – Nutmeg’s own research shows 69% of UK investors prioritize income, yet many are unhappy with current options.
Investors seeking simplicity – You set your risk level once and Nutmeg then handles asset selection, portfolio rebalancing and (optional) income smoothing. As with all Nutmeg investments, you can change your risk level later if you wish (though some extra costs may be incurred when doing so).

Pros and Considerations

👍 Pros:

Monthly income stream without selling investments
Income smoothing for consistent payouts
Actively managed by experts at JPMAM
No Nutmeg fees until 2026

⚠️ Considerations:

Requires £10,000 minimum to start
Still carries investment risk – capital isn’t guaranteed
Fund fees apply for underlying ETFs
If you’re focused purely on capital growth, growth portfolios with reinvestment may outperform long-term

My Experience

As you will know if you read my July 2025 Investments Update, in June I transferred most of the money in my Nutmeg Fully Managed portfolio (just under £25,000) to a new Nutmeg Income Portfolio. As my money was already invested via a Stocks and Shares ISA, my new income portfolio will enjoy that status as well, meaning income payments will be made without any deductions for tax. Likewise, any capital appreciation will not be taxable.

I selected a risk level of 5 (the maximum). That aligns with the risk level of my other Nutmeg investments, which should make it easier to compare them. More importantly, though, I have other investments that are lower risk, including my Bestinvest SIPP (personal pension) and – of course – my state pension. With my Nutmeg investments I hope to maximize their income and growth potential and am comfortable taking a few more risks to this end. As I have other, less risky investments, any reversals with Nutmeg shouldn’t be disastrous. Obviously as I get older – or if my circumstances change – I may revisit this.

For similar reasons, I chose not to select the ‘smoothing’ option. The income from my Nutmeg income portfolio will be in addition to other regular income streams I already have, so I can’t see any particular reason to have these payments smoothed out. Obviously I will monitor this and might change my mind in future, but for now I quite like the idea of having a variable extra payment each month. If it’s large, I may allow myself a few extra treats that month. If it’s small, I will adjust my expenditure accordingly.

Of course, the above is solely my personal perspective and should not be construed as financial advice. Everyone’s circumstances are different. You should always do your own ‘due diligence’ before investing and seek professional advice if uncertain how best to proceed. All investing carries a risk of loss.

As the screenshot below shows, my Income portfolio is already showing a profit of over £400, which is obviously welcome. It hasn’t yet generated any income, but that is unsurprising. It can take a while for investments to qualify for dividend payments, so I am keeping my expectations modest, initially at least 🙂

I will update PAS readers on how my Nutmeg income portfolio performs in my future monthly investments updates.

Closing Thoughts

In my view, Nutmeg’s new Income Investing portfolios are a valuable addition for UK investors seeking a regular income, backed by diversified, actively managed ETFs. They offer monthly, optionally smoothed payouts, managed via Nutmeg’s simple, user-friendly interface. The fact that there is no initial Nutmeg management fee through 2025 is a further attraction.

If your priorities include current cash flow, retirement‑style income, or smoothing irregular income, this could be a good fit. If you’re younger or focused on maximizing long-term growth via compounding, however, Nutmeg’s established growth portfolios (e.g. Smart Alpha) remain compelling options.

If you have any comments or questions about this post – or Nutmeg more generally – please do leave them below. As always, bear in mind that I am not a qualified financial adviser and cannot offer personalized financial advice. As with all investments, your capital is at risk and there are no guarantees of profit. If in any doubt, consider speaking with a financial services professional.

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July 1, 2025

My Investments Update – July 2025

Nick Investing events, reviews 0 Comments

Here is my latest monthly update about my investments. You can read my June 2025 Investments Update here if you like.

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

A major change in June was that I transferred most of the money in my Nutmeg Fully Managed portfolio (£25,000) to the new Nutmeg Income Portfolio. I will talk more about this is in a separate post, but basically money in this portfolio is invested to generate an income from dividends and other sources. This is then paid monthly. Capital appreciation is targeted as well, but basically these portfolios are aimed at older people (and others) who want/need their investment to generate a regular cash income.

As the screenshot below shows, my Income portfolio has only just been set up, though it’s already showing a small profit. It hasn’t yet generated any income for me, but that is unsurprising. Income is due to be paid in cash to my bank account on the 24th of each month, so hopefully I may have some income accrued by then (check out next month’s Update to find out). Of course, it can take a while for an investor to qualify for dividend payments, so I am keeping my expectations modest, initially at least!

You do have the option to select a ‘smoothing’ option, where Nutmeg works out your likely monthly income from the size (and performance) of your investment and pays the same amount every month from then onward. For various reasons I have opted not to do this for now, however.

Finally, you can select a risk level from 1 to 5 for your Income Portfolio. After some thought I selected the maximum 5. Depending on how things go, I may reduce this in future.

I still have a smaller growth-oriented pot using Nutmeg’s Smart Alpha option. This is now worth £4,164 (rounded up) compared with ££4,059 a month ago, a rise of £105. Here is a screen capture showing performance for the year to date.

And at the start of December 2023 I invested £500 in one of Nutmeg’s thematic portfolios (Resource Transformation). In March 2024 I also invested a further £200 from referral bonuses. As you can see from the YTD screen capture below, this portfolio is now worth £827 compared with £804 last month, a rise of £23.

Finally, I still have a small amount left in my original Nutmeg Fully Managed portfolio. I have kept this largely for comparison purposes. Here’s a screen capture of how it stands now.

As you can see, June was another decent month for my Nutmeg investments. Overall I was up by £478 or 1.58%.

I am up by £236 since the start of 2025, so the April 2025 fall (caused largely by Trump’s tariffs) has now completely reversed. I am also up by £1,750 or 6.05% since the start of July last year. Considering the recent volatility of the markets (and world affairs generally) that’s not a bad result.

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). You are then crystallizing your losses rather than giving the markets time to recover. This is something I had cause to discuss recently in this blog post.

You can read my full Nutmeg review here. If you are looking for a home for your annual ISA allowance, based on my overall experience over the last eight 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 recent 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 £256.94 in revenue from rental income. I have also made a net profit of £0.57 on property disposals. Capital growth has slowed, though, in line with UK property values generally.

At the time of writing, 16 of ‘my’ properties are showing gains, 2 are breaking even, and the remaining 18 are showing losses. My portfolio of 36 properties is currently showing a net decrease in value of £53.93. That means that overall (rental income and profit on disposal minus capital value decrease) I am up by £203.58. That’s still a decent 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. I did, however, withdraw £50 from my earnings in June to assist my cashflow in what was an expensive month for me 😮

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 full 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 £1,020.09, an overall increase of £131.73 or 14.83%.

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

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 back in profit now. But my copy trading investment with Aukie2008 has been doing a lot better, with an overall 47.31% profit. To be fair, I have held this investment a little longer.

My Tesla shares, which I bought as an afterthought with some spare cash I had in my account, are down a bit this month. But they are still showing an overall profit of 186.32% 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!

eToro also offer the free eToro Money app. This allows you to deposit money to your eToro account without paying any currency conversion fees, saving you up to £5 for every £1,000 you deposit. You can also use the app to withdraw funds from your eToro account instantly to your bank account. I tried this myself and was impressed with how quickly and seamlessly it worked. You can read my blog post about eToro Money here. Note that it can also serve as a cryptocurrency wallet, allowing you to send and receive crypto from any other wallet address in the world.

If you would like more information about setting up an eToro account, please click on this no-obligation website link [affiliate]. Don’t forget that you also get a free $100,000 virtual portfolio, which you can use to experiment with trading and investing strategies. I have certainly earned a lot from mine.

As an experiment, I recently 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 £52.06, an increase of £2.06 or 4.12% (by my calculation) over the three-month period. It has even accrued a grand total of 18p in dividends!

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) and also because you need to have held shares for a certain period to qualify for dividend payments. 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 a dividend-focused portfolio with Nutmeg as well (see above).

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

Guest Post: Your Guide to Great Freebies in the UK is a sponsored post by my friend Carla on behalf of a popular freebies site. Please do check it out!

The Many Benefits of Learning a Musical Instrument in Later Life isn’t about personal finance. But as someone who has actually done this (ukulele) it’s a subject I feel quite passionate about. In this article I set out the many (sometimes surprising) benefits of learning to play an instrument as a senior, and offered a few tips based on my personal experience.

In What Are Bonds and How Can You Invest in Them, I explain what bonds are and their pros and cons compared with other investment vehicles. As I say in the article, bonds can play a key role in a well-rounded portfolio, especially for those – including many older people – who are seeking predictable, regular income and/or lower risk.

In How to Reduce Your Water Bills I discussed various ways you may be able to cut your water bill, including getting a water meter and (if you’re on a low income) applying for a reduced-rate social tariff. With water bills rising substantially in many parts of the country, it’s well worth checking what options you may have to cut them.

Is It Worth Getting Over 50 Life Insurance? is another sponsored post. It focuses on a type of life insurance specifically designed for people aged over 50. Such policies offer a guaranteed, fixed cash payout when the policyholder dies. Over 50 life insurance policies are generally “whole of life”, meaning they last until you pass away, as long as you keep up with premium payments. They’re often used to help cover funeral expenses, outstanding debts, or to leave a small inheritance.

Finally, How Social Tariffs Can Help You Reduce Your Household Bills looks at discounted tariffs that may be available for people on low incomes and/or certain means-tested benefits. Specifically, it covers broadband, water bills and energy bills. Do check this out if you are struggling with these bills at the moment.

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 will 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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June 11, 2025

What are Bonds and How Can You Invest in Them?

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When people think about investing, their minds often jump to stocks and shares. But bonds – a less glamorous but more stable option – can play a key role in a well-rounded investment portfolio, especially for those seeking predictable, regular income and/or lower risk.

In this article, I’ll reveal what bonds are, how to invest in them, and the main pros and cons to consider.

What Are Bonds?

A bond is essentially a loan from you to a government or company. In return, they pay you interest (known as the “coupon”) over a set period (typically annually or semi-annually). When the bond reaches the end of its term (maturity), you get your original investment back.

There are several types of bonds, including:

Government bonds (gilts) – issued by the UK government
Corporate bonds – issued by companies
Inflation-linked bonds – designed to rise with inflation
Foreign bonds – issued by overseas governments or companies

How to Invest in Bonds

There are a few ways you can invest in bonds:

1. Buy Individual Bonds

You can buy gilts or corporate bonds directly through:

The London Stock Exchange
Brokers such as Hargreaves Lansdown or AJ Bell
The UK Debt Management Office for new gilt issues

Buying individual bonds gives you control, but requires a higher initial investment and comes with more risk if the issuer defaults.

2. Bond Funds

Instead of picking individual bonds, you can invest in a fund that holds a basket of bonds:

Bond Unit Trusts and OEICs (Open-Ended Investment Companies)
Bond ETFs (Exchange Traded Funds) – such as iShares UK Gilts or Vanguard Global Bond ETF

These offer instant diversification and lower entry costs, and can be held in tax-efficient wrappers like Stocks & Shares ISAs or Self-Invested Personal Pensions (SIPPs).

3. Investment Platforms

Popular UK platforms for bond investing include:

4. Fractional Bond Platform

WiseAlpha is a UK fractional bond platform that allows retail investors to buy fractional corporate bonds – essentially, small slices of high-yield bonds that are normally only accessible to institutional investors. This opens up access to a wide range of corporate bonds from major companies (e.g. Travelodge, HSBC and Asda) without the need for thousands of pounds to get started. This can be a good middle ground if you want more control over your bond investments than is offered by a fund but don’t have the capital required to buy full bonds.

See also the comparison table of UK bond platforms at the end of this article. This also reveals which platforms allow you to buy bonds within a tax-efficient ISA

Pros of Investing in Bonds

1. Reliable Income
Most bonds pay regular interest, making them a good source of steady income, especially for retirees.

2. Lower Risk Than Shares
Bonds are generally less volatile than stocks, so they can act as a buffer during market downturns.

3. Capital Preservation
If held to maturity and the issuer doesn’t default, you’ll get your money back.

4. Tax Efficiency
UK government gilts are free from Capital Gains Tax, and interest from bonds can be tax-free if held within an ISA or pension.

Cons of Investing in Bonds

1. Inflation Risk
Fixed bond payments may lose value in real terms if inflation rises sharply.

2. Interest Rate Risk
When interest rates go up, bond prices usually go down. If you need to sell before maturity, you could get back less than you paid.

3. Credit Risk
With corporate bonds, there’s always a risk the company could default on payments.

4. Lower Returns Compared to Stocks
Over the long term, bonds typically offer lower returns than equities.

Who Are Bonds Suitable For?

Bonds can be a great choice if:

You’re approaching or in retirement and want regular income
You want to reduce your overall portfolio risk
You’re saving for the medium term and prefer more stability

Younger investors, or those with a higher risk appetite, may prefer a smaller bond allocation in favour of higher-growth assets like equities.

Bonds vs Dividend Investing: Which is Better?

Both bonds and dividend-paying shares (as discussed in this recent blog post) can provide regular income. But they do so in different ways, and each has its own risks and benefits.

Here’s how they compare:

Feature	Bonds	Dividend Stocks
Income Type	Fixed interest (coupon)	Variable dividend payments
Predictability	High – payments are usually fixed	Medium – dividends can fluctuate or be cut
Capital Risk	Lower if held to maturity	Higher – share prices can be volatile
Inflation Protection	Limited (unless using inflation-linked bonds)	Better – companies may increase dividends over time
Tax Treatment	Interest taxable outside ISA/SIPP	Subject to dividend tax outside ISA/SIPP*
Growth Potential	Very limited	Potential for capital gains and increasing income
Ease of Access	Widely accessible via funds or platforms	Also widely accessible via funds or direct shares

Note: *There is a tax-free personal allowance for dividend income of £500 a year (2025/26)

Which One Should You Choose?

Choose bonds if your priority is stability, capital preservation, and predictable income, especially in the short to medium term.
Choose dividend stocks if you’re comfortable with a bit more risk and want potential for both income and long-term growth.

Many investors choose to hold both as part of a diversified portfolio, using bonds for stability and equities for growth and rising income.

Final Thoughts

Investing in bonds can bring balance to your portfolio, reduce volatility and provide income. Whether you go for government gilts, corporate bonds, or a diversified bond fund, it’s important to understand the risks and benefits and how bonds fit with your investment goals.

And as always – consider holding your bonds in an ISA or pension for maximum tax efficiency.

Comparison Table: UK Bond Investment Platforms

Platform	Bond Types Available	Minimum Investment	Suitable For	ISA Available	Notes
Hargreaves Lansdown	Gilts, Corporate Bonds, Bond Funds, ETFs	£100+	Beginners to experienced investors	✅ Yes	Well-established platform with wide fund and bond choice
AJ Bell	Gilts, Corporate Bonds, Bond Funds, ETFs	£25+	Cost-conscious investors	✅ Yes	Low-cost regular investing options
Vanguard Investor	Bond Funds & ETFs only	£100 lump sum or £25/month	Long-term, low-cost investors	✅ Yes	Only offers Vanguard funds
Interactive Investor	Gilts, Corporate Bonds, Bond Funds, ETFs	£1,000+	Active investors managing larger portfolios	✅ Yes	Monthly flat fee may suit frequent traders
Trading 212	Bond ETFs only	£1 (fractional shares)	Casual investors, beginners	✅ Yes	App-based, commission-free investing
WiseAlpha	Fractional Corporate Bonds	£100	Income-seeking investors wanting corporate exposure	❌ No*	Unique access to high-yield bonds from major companies

Note: *As of now, WiseAlpha does not offer an ISA wrapper, so income and gains may be taxable depending on your personal circumstances.

Please bear in mind as always that I am not a registered financial adviser and cannot offer personal financial advice. You should always do your own ‘due diligence’ before investing and seek professional advice if in any doubt how best to proceed. All investing carries a risk of loss.

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June 2, 2025

My Investments Update – June 2025

Nick Investing events, reviews 0 Comments

Here is my latest monthly update about my investments. You can read my May 2025 Investments Update here if you like.

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

As the screenshot below for the year to date shows, my main Nutmeg portfolio is currently valued at £25,323. Last month it stood at £24,532, so that is a rise of £791.

Apart from my main portfolio, I also have a second, smaller pot using Nutmeg’s Smart Alpha option. This is now worth £4,059 (rounded up) compared with £3,934 a month ago, a rise of £125. Here is a screen capture showing performance for the year to date.

Finally, at the start of December 2023 I invested £500 in one of Nutmeg’s new thematic portfolios (Resource Transformation). In March 2024 I also invested a further £200 from referral bonuses. As you can see from the YTD screen capture below, this portfolio is now worth £804 compared with £770 last month, a rise of £34.

As you can see, May was a good month for my Nutmeg investments. Overall I was up by £950 or 3.25%.

I am still down slightly since the start of 2025, with the value of my investments decreasing by £242 or 0.08% since 1st January. On the other hand, their value has grown by £1,813 or 6.39% since the end of May last year. So, as I always say, the recent ups and downs do need to be taken in context. Some volatility is always to be expected with stock market investments, and over time they tend to even out. In general the worst thing you can do is panic and sell up when downturns occur (as happened in early April). You are then crystallizing your losses rather than giving the markets time to recover. This is something I had cause to discuss recently in this blog post.

You can read my full Nutmeg review here. If you are looking for a home for your annual ISA allowance, based on my overall experience over the last eight 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 recent post, the company recently 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 £251.16 in revenue from rental income. I have also made a net profit of £0.57 on property disposals. Capital growth has slowed, though, in line with UK property values generally.

At the time of writing, 16 of ‘my’ properties are showing gains, 3 are breaking even, and the remaining 18 are showing losses. My portfolio of 37 properties is currently showing a net decrease in value of £47.34. That means that overall (rental income and profit on disposal minus capital value decrease) I am up by £204.39. That’s still a decent 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 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 full 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 £996.80, an overall increase of £108.44 or 12.21%.

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

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 has recovered a bit since last time and is at least back in profit now, although it’s not exactly setting the world on fire (excuse the bad joke).

Thankfully my copy trading investment with Aukie2008 has been doing better, with an overall 39.64% profit. To be fair, I have held this investment a little longer.

My Tesla shares, which I bought as an afterthought with a bit of spare cash I had in my account, have done particularly well since I bought them, with an overall profit of 211.13%. If only I had put a bit more money into this! As a matter of interest, I do find it quite strange that my Tesla shares keep going up in value, despite all the stories in the press and social media about consumers boycotting Tesla. Go figure.

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!

eToro also offer the free eToro Money app. This allows you to deposit money to your eToro account without paying any currency conversion fees, saving you up to £5 for every £1,000 you deposit. You can also use the app to withdraw funds from your eToro account instantly to your bank account. I tried this myself and was impressed with how quickly and seamlessly it worked. You can read my blog post about eToro Money here. Note that it can also serve as a cryptocurrency wallet, allowing you to send and receive crypto from any other wallet address in the world.

If you would like more information about setting up an eToro account, please click on this no-obligation website link [affiliate]. Don’t forget that you also get a free $100,000 virtual portfolio, which you can use to experiment with trading and investing strategies. I have certainly earned a lot from mine.

As a bit of an experiment, I recently 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 £51.69, an increase of 3.3% over the two-month period. It has even accrued a grand total of 9p in dividends!

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) and also because you need to have held shares for a certain period to qualify for dividend payments. If I increased my investment I would almost certainly become eligible for more dividends, and would qualify for more the longer I remain invested. If I had any spare money at the moment, I would certainly consider doing this!

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

Why a Financial Remedy Order is Essential on Your Divorce is another guest post from my friends at HCR Law. If you are unfortunate enough to be in this position, this article contains important advice and information on how to ensure your personal financial security going forward.

Where to Get Pension Advice contains important information for anyone who may be coming up to retirement age, which of course includes many Pounds and Sense readers. This collaborative article includes details of six potential sources of pension advice, including the pros and cons of each.

Could You Benefit From Help to Save spotlights a lesser-known government scheme which, if you’re eligible, can give your finances a valuable boost. It’s an initiative aimed at helping people on low incomes (typically those receiving Universal Credit) build up their savings. Offering generous tax-free bonuses, this scheme can provide significant benefits for qualifying individuals.

How to Save Money on Rail Fares With Split Ticketing discusses a money-saving hack that savvy travellers can use to reduce their rail-fare costs – often by a substantial margin. Split ticketing involves breaking a journey into two or more smaller segments, purchasing separate tickets for each segment rather than one through-ticket. With the help of apps such as those discussed in the article, the process becomes simple and automated.

Finally, in What Are ETFs And How Can You Invest in Them? I shine a spotlight on these increasingly popular investment vehicles, explaining what they are, how you can invest in them, and how you can maximize the benefit by investing via tax-free ISAs.

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 will 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!

If you enjoyed this post, please link to it on your own blog or social media:

May 28, 2025

What Are ETFs and How Can You Invest in Them?

Nick Investing reviews, Tax, savings 2 Comments

Today I am focusing on Exchange Traded Funds, or ETFs for short. These have become increasingly popular among investors seeking a simple, low-cost way to build diversified portfolios. But what exactly are ETFs, and how can you invest in them, especially in a tax-efficient way?

What Is an ETF?

An ETF is a type of investment fund that holds a collection of assets – such as stocks, bonds, or commodities – and trades on stock exchanges much like individual shares.

Most ETFs are designed to track the performance of a specific index, such as the FTSE 100, S&P 500, or MSCI World Index.

Because they bundle together a broad range of assets, ETFs offer instant diversification. If you buy an ETF tracking the FTSE 100, for example, you’re essentially investing in the 100 largest companies listed on the London Stock Exchange.

Why Choose ETFs?

Low cost: ETFs usually have lower management fees than actively managed funds, because they typically follow a passive investment strategy.

Diversification: A single ETF can give you exposure to hundreds or even thousands of securities across sectors or regions.

Liquidity: As ETFs are traded on stock exchanges, they can be bought or sold during market hours just like individual shares.

Potential for dividends as well as capital appreciation: If the value of shares in an ETF goes up, so does the value of your holding. Likewise, if the underlying shares pay dividends, these are either distributed to ETF investors as cash or reinvested to boost the value of your holding.

Transparency: Most ETFs publish their holdings daily, so you always know what you’re investing in.

Are There Any Drawbacks to ETFs?

While ETFs offer many benefits, they’re not without potential downsides:

Market Risk: Like all investments, ETFs can go down in value. If the underlying assets perform poorly, so will the ETF.

Tracking Error: Some ETFs may not perfectly replicate the performance of their target index due to fees or imperfect replication strategies.

Liquidity Issues: While most ETFs are highly liquid, some niche or low-volume ETFs can have wider bid-ask spreads, making it more expensive to trade them.

Over-Diversification: While diversification is usually a strength, owning too many overlapping ETFs can lead to a diluted portfolio that mirrors the overall market without any clear investment direction.

Currency Risk: If you invest in ETFs that hold assets in foreign currencies, exchange rate fluctuations can impact your returns. Of course, this applies equally to other types of investment as well.

Understanding the risks and how they relate to your investment goals is key to making informed decisions.

How to Invest in ETFs

Choose a Platform: First, you’ll need to open an account with a brokerage or investment platform that offers access to ETFs. Popular UK platforms include Hargreaves Lansdown, AJ Bell and Interactive Investor. InvestEngine specializes in ETFs and offers commission-free trading in a wide range. Trading 212 and eToro are other popular platforms that offer commission-free ETF trading.

Select Your ETFs: Decide on the asset classes and regions you want exposure to. For example, you could choose a global equity ETF, a UK government bond ETF, or a sector-specific ETF (such as technology, healthcare or renewables).

Place Your Order: ETFs can be bought and sold like shares. You can place a market order (buy at the current price) or a limit order (buy only at a specific price).

Monitor and Rebalance: Over time, you may need to adjust your portfolio to maintain your desired level of risk and diversification.

Consider Automated Services: If you don’t want to pick your own ETFs, many platforms offer ready-made portfolios (though these may entail extra fees and charges). Robo-adviser platforms such as Nutmeg – which I use myself – invest your money in ETFs and offer fully managed and fixed allocation portfolios.

Using an ISA for Tax Efficiency

One of the most tax-effective ways to invest in ETFs in the UK is through a Stocks and Shares ISA.

An ISA (Individual Savings Account) allows you to invest up to £20,000 per tax year (as of 2025/26) without paying any tax on your investment returns. The benefits of investing in ETFs via an ISA include:

No Capital Gains Tax: Any profit you make from selling ETFs within an ISA is tax-free.

No Dividend Tax: Any dividends paid by ETFs held in an ISA are also tax-free.

No Income Tax: Likewise, no Income Tax is due on returns from your investments.

Simplicity: There is no need to declare ISA investments on your tax return.

Final Thoughts

ETFs are a powerful tool for building a diversified, cost-effective investment portfolio. Whether you’re a beginner or an experienced investor, they offer flexibility and efficiency. And by investing through an ISA, UK investors can enjoy significant tax advantages, maximizing their returns and helping their money go further

Always take into account your investment goals and tolerance for risk. And do your own ‘due diligence’ – or consult a financial adviser – before investing. All investments carry a risk of loss.

As ever, if you have any comments or questions about this article, please do post them below. Bear in mind that I am not a qualified financial adviser and cannot provide personalized financial advice.

If you enjoyed this post, please link to it on your own blog or social media:

May 5, 2025

My Investments Update – May 2025

Nick Investing events, reviews 0 Comments

Here is my latest monthly update about my investments. You can read my April 2025 Investments Update here if you like.

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

As the screenshot below for the year to date shows, my main Nutmeg portfolio is currently valued at £24,532. Last month it stood at £25,065, so that is a fall of £533.

Apart from my main portfolio, I also have a second, smaller pot using Nutmeg’s Smart Alpha option. This is now worth £3,934 compared with £4,027 a month ago, a fall of £93. Here is a screen capture showing performance for the year to date.

Finally, at the start of December 2023 I invested £500 in one of Nutmeg’s new thematic portfolios (Resource Transformation). In March I also invested a further £200 from referral bonuses. As you can see from the YTD screen capture below, this portfolio is now worth £770 compared with £783 last month, a fall of £13.

As you can see, April was a roller-coaster month for my Nutmeg investments. There were some big dips in the early part of the month, followed by a partial but nonetheless welcome recovery. Overall I am down by £639 over the month. This is mostly due to the continuing instability in world markets, caused by the trade tariffs imposed by US President Donald Trump and other economic factors.

Nonetheless, the value of my Nutmeg investments is still up £838 in the last twelve months. And their value has increased by £2,920 or 11.10% since the start of January 2024. So the recent falls do need to be taken in context. Ups and downs are always to be expected with stock market investments, and over time they tend to even themselves out. In general the worst thing you can do is panic and sell up when downturns occur, as you are then crystallizing your losses. This is something I had cause to discuss recently in this blog post.

You can read my full Nutmeg review here. If you are looking for a home for your annual ISA allowance, based on my overall experience over the last eight 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 recent post, the company recently 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 £245.97 in revenue from rental income. I have also made a profit of £4.78 on property disposals. Capital growth has slowed, though, in line with UK property values generally.

At the time of writing, 18 of ‘my’ properties are showing gains, 1 is breaking even, and the remaining 18 are showing losses. My portfolio of 37 properties is currently showing a net decrease in value of £54.67. That means that overall (rental income and profit on disposal minus capital value decrease) I am up by £196.08. That’s still a decent 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 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 full 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 £975.36, an overall increase of £87 or 9.79%.

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

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 has seen a downturn in April and is actually worth marginally less than when I invested. That’s clearly disappointing after last month’s improvement, but reflects the global economic turmoil caused largely by US President Trump’s tariffs.

Thankfully my copy trading investment with Aukie2008 has been doing better, with an overall 33.82% profit. To be fair, I have held this investment a little longer.

My Tesla shares, which I bought as an afterthought with a bit of spare cash I had in my account, have done particularly well since I bought them, with an overall profit of 158.24%. 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!

eToro also offer the free eToro Money app. This allows you to deposit money to your eToro account without paying any currency conversion fees, saving you up to £5 for every £1,000 you deposit. You can also use the app to withdraw funds from your eToro account instantly to your bank account. I tried this myself and was impressed with how quickly and seamlessly it worked. You can read my blog post about eToro Money here. Note that it can also serve as a cryptocurrency wallet, allowing you to send and receive crypto from any other wallet address in the world.

If you would like more information about setting up an eToro account, please click on this no-obligation website link [affiliate]. Don’t forget that you also get a free $100,000 virtual portfolio, which you can use to experiment with trading and investing strategies. I have certainly earned a lot from mine.

Finally, just for fun 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 account is already in profit, and has even accrued 2p in dividends!

Moving on, as I said last time, I am no longer writing for the Mouthy Money website, as they have decided to take their content creation in-house. From a personal perspective I am obviously disappointed about this, but I had a good run with them and wish them every success going forward. You can still read all the articles I contributed to Mouthy Money over the years by visiting my profile page on the website. How long they will keep this in place I really can’t say!

In April I did have a guest post on my friend Sally Jenkins’ writing blog. Sally asked me some questions about my writing career for a regular feature she runs on her blog. I enjoyed answering the questions, which included “What are the most important qualities required by a writer?” and “What writing resources have you found most useful?” If you have any interest in writing, hopefully you may find this of interest.

I also published several posts on Pounds and Sense in April. I have listed below those that are still relevant

In Why Now Could Be the Ideal Time to Take Advantage of Your New Tax-Free ISA Allowance, I pointed out that everyone received a new £20,000 ISA allowance from the start of the new tax year on 6 April 2025. My article sets out some good reasons for taking advantage of the new allowance sooner rather than later, especially in light of persistent rumours that the government plans to restrict the allowance (for cash ISAs at any rate) in the autumn budget.

Why Has My Bank Abandoned Me? is an opinion piece by a writer friend who has asked to be known at SD. In it she laments the changes at UK banks in recent years that have hit older customers (in particular) hard. I could certainly relate to some of the experiences she describes in her article. Take a look and see if you agree.

I’ve already mentioned my post about Why UK Retirees Shouldn’t Panic Over Trump’s Tariffs and Market Wobbles. In this I pointed out that whilst the recent downturn is disappointing for investors, the worst thing you can do is panic and sell up, as this will crystallize your losses. In this post I draw a parallel with the Covid crash and point out that this was followed by a sustained rise in stock market values. Of course, nobody knows how current events will play out, but hopefully the upward trend seen over the last couple of weeks will continue. In any event, historically stocks and shares have delivered better returns than savings accounts over most periods of five years or longer.

Tow Like a Pro – Caravan Safety Tips From the Experts was a guest post from my friends at Compass, who are specialist leisure and caravan insurers. The post reveals the most common causes of accidents with caravans and sets out some top tips for staying safe when towing one.

Finally, How to Publish Your Book (and Earn Royalties) was a guest post from my writing friend Sally Jenkins (as mentioned earlier I had a guest post published myself on Sally’s blog in April). In her article, which generated a lot of interest, Sally set out the main options for getting a book published and making money from it. She also revealed some resources she has used herself in her successful freelance writing career.

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. For the time being anyway, Twitter/X will remain my primary social media platform, but I will 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!

If you enjoyed this post, please link to it on your own blog or social media: