Where to put £500/month

[dogz]

I'd look at ETF's with a low TOR (total expense ratio). Something like a FTSE100 or 250 is where I'd pop my money

You could also look at using Halifax share building to keep dealing costs low

[number2]

HughS47 said:

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...

rsbbmw is correct.

If you want to contribute to more than one fund within an ISA wrapper, in a single tax year, then you will need invest with one of the many providers that will enable you to do this - Hargreaves Lansdown, Fidelity, and many others.

If you open a stocks and shares ISA directly with Fundsmith, for example, then you are only able to contribute to this stocks and shares ISA in the single tax year. You can contribute to Fundsmith funds within an ISA wrapper through the providers mentioned above; all via lump sum/regular monthly contributions. These providers do levy an additional charge above the funds annual management charge in order to provide their services though.

[PhantomPH]

rsbmw said:

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.

Certainly what I was told by a financial services compliance officer...which on hearing myself say that, doesn't always mean it's accurate! ha ha

The thing being that in my example, the first ISA becomes non-subscribing. The rule is you are only allowed one subscribing ISA in a tax year.

[Chicken Chaser]

I'm also interested in this. I have no idea about what to do other than to stick money into a current account/ISA (Where it earns buttons) so definitely some food for thought here.

[PhantomPH]

Whatever you do, don't do that unless you absolutely have to or think you will need the money at a moments' notice.

You're supposed to have 3xnet monthly income as a cash reserve and then the rest you really should be putting into a vehicle such as an ISA (or other if you are in a position where you will be maxing your ISA every year or have specific circumstances where pensions or LISAs etc are better - in which case speak to an IFA...they will charge you, but they exist for a reason).

My personal preference is www.tpinvestor.com because it's easy to do on your own, you get a mobile app to check your value, the TCO (total (annual) cost of ownership) is really clear, they do a discretionary managed portfolio selection at no extra cost and if you want your money out it's about 5 days from request to bank account. That being said, there are others. You could go direct with FundSmith, or choose someone like Hargreaves Lansdown or (vomits a little) Nutmeg...there are so many direct offerings springing up, this really is not as complex as it used to be.

Make sure the TCO is clear, look at things like past performance (not a guarantee of future performance, but a reasonable marker) investment risk (in fairness, if you are investing for a long term there is nothing wrong with 'aggressive' ATR as the increased volatility effects should play out to a higher return over time).

The truth is that IFAs will charge you money (it's that simple), but if you really are stuck, speak to one. Financial advisers tend to know what they are talking about.

ETA: Another reason I have been happy to be with TPI as above, is the performance you will see halfway down this page....: https://www.tpinvestor.com/portfolios/

Edited by PhantomPH on Monday 27th February 15:07

[Chicken Chaser]

OP, sorry to hijack this thread, but as it was relevant, I was interested in finding out whether its just better off going into the mortgage as an overpayment? We can pay in any amount on our mortgage and get it back out when we wish to, so in time that its in the mortgage, it appears to act like an offset product? Currently £81k at 2.25% on that part of the mortgage. I have the 3xnet salary reserve built up but might just throw that into the overpayment too whilst I dont need it. If some of these other investment ideas are a better bet, then I may just be tempted to start putting in small amounts now i have that built up.