Thanks for the supportive comments John.
Your question regarding HYPs vs. FTSE100 tracker requires an answer that would be personal financial advice but I am not permitted by financial services legislation to provide that to individual readers.
What I can say generally is that I designed HYPs to be a long term income strategy and not a total return strategy. That remains the case even where the income is reinvested by those HYPers not needing the dividends immediately, with the aim of boosting the eventual income when required. In contrast, I’d say that an index tracker fund is specifically about long term total return and not an income approach.
I have nothing against trackers, they suit many people and there is no doubt that they are a lot easier to manage than individual share portfolios, requiring almost no input from the investor whereas HYPs do demand more involvement, especially where dividends are being reinvested and perhaps new money is being added.
So it’s down to the personal attitudes and situation of the investor which will vary greatly between people.
As for motivating children about particular investment methods, I have no tips. From my own experience with mine, all well into adulthood now, I think this has to come from them. I don’t think it’s a good idea though to try and push them into an investment approach which you know will not suit them for whatever reason.
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