Where to put £500/month
Discussion
Financial noob here.
I'm looking to invest £500/month. I know nothing about investments, but I do already have an ISA that I'm using for personal savings.
I'm thinking of:
1) £250/month - Foreign & Colonial Investment Trust
2) £250/month - Berry Brothers & Rudd Investment Cellar Plan (I like this idea - diversify the portfolio/add eccentricity)
Is this a sensible place to start? I know nothing of risk etc, other than I don't want to see my money evaporate overnight, but would like to save enough to perhaps treat myself to a Lotus Exige when I'm 55-60yrs old. I'm 32.
Any ideas??
I'm looking to invest £500/month. I know nothing about investments, but I do already have an ISA that I'm using for personal savings.
I'm thinking of:
1) £250/month - Foreign & Colonial Investment Trust
2) £250/month - Berry Brothers & Rudd Investment Cellar Plan (I like this idea - diversify the portfolio/add eccentricity)
Is this a sensible place to start? I know nothing of risk etc, other than I don't want to see my money evaporate overnight, but would like to save enough to perhaps treat myself to a Lotus Exige when I'm 55-60yrs old. I'm 32.
Any ideas??
Hi Hugh,
If the funds you've mentioned are the engines, what's the best body? An estate (a pension), an investment ISA (sporty little coupe) or something else.. possibly building up a cash reserve, maybe? Maybe a blend of all three. Then, how much risk can you afford to take.. how much do you want to take? If you don't need to take much risk or need to make too too much to buy the Exige, then why take risk when you don't need to?
If the funds you've mentioned are the engines, what's the best body? An estate (a pension), an investment ISA (sporty little coupe) or something else.. possibly building up a cash reserve, maybe? Maybe a blend of all three. Then, how much risk can you afford to take.. how much do you want to take? If you don't need to take much risk or need to make too too much to buy the Exige, then why take risk when you don't need to?
Risk needs to be low/medium - I don't need the funds to do anything dramatic, just be a sensible growth on the amount put down for the future. Pension is covered by my job (NHS) and I'm hoping to put away small amounts of cash ontop of this. This is simply an idea of where to put £500 that means I can almost forget about it until the time is right so to speak.
Wine is no where close to being a med-low risk holding. It's out and out speculative.
As has been said timescale is the trump card.
When and what do you need the funds for?
For example, long term, but with some accessibility? ISA and equity is not a bad place to start. Long term, but no need for access until retirement? Pensions are potentially a more attractive option.
If you don't want to pay fees, which are worth it if you're a novice, for advice then those two main questions will at least give you some sense of where to start.
As has been said timescale is the trump card.
When and what do you need the funds for?
For example, long term, but with some accessibility? ISA and equity is not a bad place to start. Long term, but no need for access until retirement? Pensions are potentially a more attractive option.
If you don't want to pay fees, which are worth it if you're a novice, for advice then those two main questions will at least give you some sense of where to start.
Edited by ellroy on Saturday 25th February 09:09
You're the second person this week to mention that wine plan, was it touted in a motley fool email or something?
As a new investor, throwing 50% of your saving into that doesn't sound in any way sensible. Doesn't mean it won't pay off, but you may as well stick the same amount of money on red or black each month!
Take a look at Vanguard lifestrategy in an ISA with someone like Charles Stanley Direct or Hargreaves Lansdown
As a new investor, throwing 50% of your saving into that doesn't sound in any way sensible. Doesn't mean it won't pay off, but you may as well stick the same amount of money on red or black each month!
Take a look at Vanguard lifestrategy in an ISA with someone like Charles Stanley Direct or Hargreaves Lansdown
Edited by rsbmw on Saturday 25th February 07:12
rsbmw said:
Take a look at Vanguard lifestrategy in an ISA with someone like Charles Stanley Direct or Hargreaves Lansdown
This, and you can choose the % of equities to suit your attitude to risk Edited by rsbmw on Saturday 25th February 07:12
I spread my monthly "surplus I could afford to lose" money across a Vanguard Lifestrategy 100% Equity and a Legal & General US Index fund, low fees and its on auto-pilot with Hargreaves Lansdown so I don't even have to think about it.
Some really useful ideas here regarding different funds to look at - I'll have a look over the next few weeks and explore my options. The last couple of posts in particular have been helpful, so thank you!
Perhaps I need to take financial advice on my pension, as I really don't understand it other than being told it's an ok pension to pay into.
Regarding the wine scheme - I'll explore the other options over this, but for the uninitiated, we're not talking £10 a bottle and a stab in the dark, rather £1600 a half case (6) with proven second hand market history from the big producers - Latour, Margaux etc. Still doesn't remove the risk however!!
Thanks for all the advice!
Perhaps I need to take financial advice on my pension, as I really don't understand it other than being told it's an ok pension to pay into.
Regarding the wine scheme - I'll explore the other options over this, but for the uninitiated, we're not talking £10 a bottle and a stab in the dark, rather £1600 a half case (6) with proven second hand market history from the big producers - Latour, Margaux etc. Still doesn't remove the risk however!!
Thanks for all the advice!
If you're looking to invest across multiple funds, Fidelity has some of the lowest ISA wrapper charges at the moment at 0.25% p.a.
www.fidelity.co.uk
www.fidelity.co.uk
grahamm said:
Xaero said:
I put a lower amount monthly into a Fundsmith ISA, its up around 9% on what I've put in over the past year. I guess it's medium risk but the fund has only really gone up except for 1 month.
I have been doing this for a few years now and am very pleased so farI have been thinking of opening one to pay in around £300 per month. Is it instant access? Are there penalties for not maintaining regular payments?
Jimmy Recard said:
Is there any chance you could tell me a little about this?
I have been thinking of opening one to pay in around £300 per month. Is it instant access? Are there penalties for not maintaining regular payments?
I'm interested in these too, might only be looking at 150 a month tho.I have been thinking of opening one to pay in around £300 per month. Is it instant access? Are there penalties for not maintaining regular payments?
Not entirely sure I'm following anymore - If I already have an ISA, I though I'm not allowed a second, so where does that leave me with the fundsmith stuff etc? What sort of other products are out there that offer a fire-and-forget monthly d.debit type investment opportunity in the markets? bear in mind you're dealing with a complete financial beginner here...
You're allowed more than one ISA per year, but only one 'subscribing' ISA at any one time. As long as the total of your ISAs adds up to your limit or less, you are fine. For example, I could have £5k with TPInvestor from a few months ago and also £10k in Fundsmith active now.
If you have hit your limit for TY 16/17, you could always wait a month and start a new ISA with TPI or Fundsmith (I am in the Fundsmith fund on the TPI platform as I get the mobile app access to check values/make changes etc).
If you wanted an easy life and had a but of this TY's allowance left, you could just top up another £500 into your existing ISA and then start with a new provider as above for April onwards.
If you have hit your limit for TY 16/17, you could always wait a month and start a new ISA with TPI or Fundsmith (I am in the Fundsmith fund on the TPI platform as I get the mobile app access to check values/make changes etc).
If you wanted an easy life and had a but of this TY's allowance left, you could just top up another £500 into your existing ISA and then start with a new provider as above for April onwards.
PhantomPH said:
You're allowed more than one ISA per year, but only one 'subscribing' ISA at any one time. As long as the total of your ISAs adds up to your limit or less, you are fine. For example, I could have £5k with TPInvestor from a few months ago and also £10k in Fundsmith active now.
I don't believe this is true. As far as I am aware, you are only allowed to subscribe (contribute) to one of each type of ISA (cash/S&S) in any given tax year. You couldn't for example pay £5k into one cash ISA in May, then another 5K into a different cash ISA in December. You could however pay £5k into a cash ISA with Halifax, then £5k into a S&S ISA with HL.Any ISA's you have subscribed to in previous tax years can obviously be retained, so long as you don't pay new funds into them.
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