Buying shares, for a newbie
Discussion
I'm starting to buy shares, to hopefully see a return for later on in life.
Because of commitments in my earlier life, I don't really have much of a pension coming up to my 40s, so i'd like to financially act now, rather than later.
However, i have no idea about the different options on how i can buy shares, or where to put them, so that i am the most efficient with tax.
At present i have about £8k in shares that I've recently bought, in both Trading 212 (small buys, of up to about £1500) and Hargraves Lansdown (for the more substantial buys). But they are just in my basic 212 INV, and Funds & Share Account.
I'm not looking to sell anytime soon, but i'm under the impressions that as soon as the invested amount starts to grow, i need to place it in certain accounts.
So, as a newbie, where is the best place i can turn to, so i can learn more about what i can or cannot do, and do it as efficiently as possible.
The last thing i want, is for the share price to rocket in a short amount of time, i want to cash in on some of the profit, but i'm going to be smashed by Capital Gains Tax or some other wonderful penalty.
Because of commitments in my earlier life, I don't really have much of a pension coming up to my 40s, so i'd like to financially act now, rather than later.
However, i have no idea about the different options on how i can buy shares, or where to put them, so that i am the most efficient with tax.
At present i have about £8k in shares that I've recently bought, in both Trading 212 (small buys, of up to about £1500) and Hargraves Lansdown (for the more substantial buys). But they are just in my basic 212 INV, and Funds & Share Account.
I'm not looking to sell anytime soon, but i'm under the impressions that as soon as the invested amount starts to grow, i need to place it in certain accounts.
So, as a newbie, where is the best place i can turn to, so i can learn more about what i can or cannot do, and do it as efficiently as possible.
The last thing i want, is for the share price to rocket in a short amount of time, i want to cash in on some of the profit, but i'm going to be smashed by Capital Gains Tax or some other wonderful penalty.
bunchofkeys said:
I'm starting to buy shares, to hopefully see a return for later on in life.
Because of commitments in my earlier life, I don't really have much of a pension coming up to my 40s, so i'd like to financially act now, rather than later.
However, i have no idea about the different options on how i can buy shares, or where to put them, so that i am the most efficient with tax.
At present i have about £8k in shares that I've recently bought, in both Trading 212 (small buys, of up to about £1500) and Hargraves Lansdown (for the more substantial buys). But they are just in my basic 212 INV, and Funds & Share Account.
I'm not looking to sell anytime soon, but i'm under the impressions that as soon as the invested amount starts to grow, i need to place it in certain accounts.
So, as a newbie, where is the best place i can turn to, so i can learn more about what i can or cannot do, and do it as efficiently as possible.
The last thing i want, is for the share price to rocket in a short amount of time, i want to cash in on some of the profit, but i'm going to be smashed by Capital Gains Tax or some other wonderful penalty.
What are you buying shares & not funds? Are you a good share picker?Because of commitments in my earlier life, I don't really have much of a pension coming up to my 40s, so i'd like to financially act now, rather than later.
However, i have no idea about the different options on how i can buy shares, or where to put them, so that i am the most efficient with tax.
At present i have about £8k in shares that I've recently bought, in both Trading 212 (small buys, of up to about £1500) and Hargraves Lansdown (for the more substantial buys). But they are just in my basic 212 INV, and Funds & Share Account.
I'm not looking to sell anytime soon, but i'm under the impressions that as soon as the invested amount starts to grow, i need to place it in certain accounts.
So, as a newbie, where is the best place i can turn to, so i can learn more about what i can or cannot do, and do it as efficiently as possible.
The last thing i want, is for the share price to rocket in a short amount of time, i want to cash in on some of the profit, but i'm going to be smashed by Capital Gains Tax or some other wonderful penalty.
One element is to try and minimise your ongoing costs for the shares/funds as they eat into your compound growth over many years. Whilst HL have a great platform, they also charge a higher annual platform cost than some competitors.
As av185 says above, you will want to put them in a SIPP or ISA to shield yourself from potential tax implications in the future.
If you were looking to set and 'forget' on funds, you could potentially use intelligent money (stickied at top of finance board) who have good feedback from PH's who use them. I'd recommend reading some/all of the thread as I'd do them a dis-service by trying to explain everything they offer. There are also other providers like Vanguard with their lifestrategy funds. Blackrock, Legal and General have similar funds to these etc. I currently have a Vanguard ISA with lifestrategy funds but may potentially look to use intelligent money in the future.
Best of luck, I was in a similar position last year and took my time deciding the best approach. It worked out well as I didn't get in before the massive drop from Coronavirus! There are some good books to read around this all, e.g. 'how to own the world' or 'investing demystified' are two I've read so far. Although, my current dabbling in shares goes against a lot of what they teach but wanted to have a play whilst I felt markets were slightly undervalued... will revert the money to funds in time.
As av185 says above, you will want to put them in a SIPP or ISA to shield yourself from potential tax implications in the future.
If you were looking to set and 'forget' on funds, you could potentially use intelligent money (stickied at top of finance board) who have good feedback from PH's who use them. I'd recommend reading some/all of the thread as I'd do them a dis-service by trying to explain everything they offer. There are also other providers like Vanguard with their lifestrategy funds. Blackrock, Legal and General have similar funds to these etc. I currently have a Vanguard ISA with lifestrategy funds but may potentially look to use intelligent money in the future.
Best of luck, I was in a similar position last year and took my time deciding the best approach. It worked out well as I didn't get in before the massive drop from Coronavirus! There are some good books to read around this all, e.g. 'how to own the world' or 'investing demystified' are two I've read so far. Although, my current dabbling in shares goes against a lot of what they teach but wanted to have a play whilst I felt markets were slightly undervalued... will revert the money to funds in time.
Personally I would get as much as possible into my ISA's and SIPP.
The bulk of my money will go into funds (Mostly low cost Vanguard Index funds)
I only buy individual shares with smaller amounts of "spare" cash that I can afford to lose.
I wouldn't have thought a few random individual shares, in a standard account would be a good recipe for security in your old age.
The bulk of my money will go into funds (Mostly low cost Vanguard Index funds)
I only buy individual shares with smaller amounts of "spare" cash that I can afford to lose.
I wouldn't have thought a few random individual shares, in a standard account would be a good recipe for security in your old age.
Edited by BlackG7R on Tuesday 6th October 18:09
Simpo Two said:
But every adviser would have told you they were very high risk and not to touch them...
Performance before you invested is sadly worthless.
Oh of course.Performance before you invested is sadly worthless.
I guess my point was all we know is the OP has a pot of "some shares".
Personally I doubt I could pick 100-bagger's without the benefit of hindsight so I stick with collective investments.
b
hstewie said:
hstewie said: HL are a really cheap place to hold shares but if you're buying in small amounts and often their dealing fees soon add up.
I'd echo the suggestion to consider investment trusts or funds but I'm sure we all wish we'd had a few quid in Tesla or Amazon.
Worth pointing out HL do not charge fund dealing fees.I'd echo the suggestion to consider investment trusts or funds but I'm sure we all wish we'd had a few quid in Tesla or Amazon.
Most global funds such as Rathbone Global hold major positions in tech stocks such as Tesla Amazon Microsoft Google Alphabet Netflix Facebook etc. and have made stellar returns overall especially since March.
For even more tech focus Baillie Gifford Global and North America worth a look and up 100% since March 2020 nadir.
What I do and I’m not suggesting it’s right or wrong is drip feed a certain amount into a S&S isa in some solid funds (fundsmith being one) and forget about it for 10 years. Then have a gamble pot with T212 to see how great I am at picking shares with an amount that I’m happy to loose just in case I pick a dud that plummets before I can sell it.
av185 said:
Worth pointing out HL do not charge fund dealing fees.
Most global funds such as Rathbone Global hold major positions in tech stocks such as Tesla Amazon Microsoft Google Alphabet Netflix Facebook etc. and have made stellar returns overall especially since March.
For even more tech focus Baillie Gifford Global and North America worth a look and up 100% since March 2020 nadir.
Just unfortunate about the platform charge though in fairness you have to build up quite a pot before it becomes noticeably nasty.Most global funds such as Rathbone Global hold major positions in tech stocks such as Tesla Amazon Microsoft Google Alphabet Netflix Facebook etc. and have made stellar returns overall especially since March.
For even more tech focus Baillie Gifford Global and North America worth a look and up 100% since March 2020 nadir.
I have a few quid in a Baillie Gifford trust myself and it scares the s
t out of me seeing how well it's performed this year 
I'd be interested to know what shares the OP has purchased.
Main thing with individual shares purely IMHO is whether you can hold your nerve when the inevitable happens which I think can be a bit easier with collective investments.
Joys of psychology!
If this is for retirement saving I’d wrap it in a pension product and then select a low cost tracker fund. Why? The 20% the government gives you, or 40% if a higher rate tax payer - this makes any ISA alternatives very expensive in comparison. Yes it is locked away until you are at least 56/7, but that is the sort of time you will need to start seeing a decent return.
Durovigutum said:
If this is for retirement saving I’d wrap it in a pension product and then select a low cost tracker fund. Why? The 20% the government gives you, or 40% if a higher rate tax payer - this makes any ISA alternatives very expensive in comparison. Yes it is locked away until you are at least 56/7, but that is the sort of time you will need to start seeing a decent return.
You can always take it out before that age - but you lose the tax advantage. Jiebo said:
Why is nobody recommending trading 212?
Unless you’re buying a mutual fund to hold for years, then t212 is the best choice by far. Why on earth would anyone pay to buy shares anymore.
T212 also has an isa account, which I’d recommend.
Are they a U.K. licensed “bank” whereby if your funds are between trades you’ve up to £85k safety net or is it a case if it goes bust mid trade you lose the lot or after you’ve sold and it’s in your client account. Unless you’re buying a mutual fund to hold for years, then t212 is the best choice by far. Why on earth would anyone pay to buy shares anymore.
T212 also has an isa account, which I’d recommend.
Welshbeef said:
Are they a U.K. licensed “bank” whereby if your funds are between trades you’ve up to £85k safety net or is it a case if it goes bust mid trade you lose the lot or after you’ve sold and it’s in your client account.
Looking at T212's site for the first time, and with Welshbeef's comment in mind, I found the 'safety and security page which states.[i]'Your funds are protected
For your safety and in compliance with our regulations, all clients’ funds are kept separately in segregated bank accounts and are covered by the Financial Services Compensation Scheme, FSCS (Trading 212 UK Ltd.).
In this case investors will be able to claim under the Financial Services Compensation Scheme (FSCS), which can pay up to £85 000 to each investor.[/i]
Maybe someone who knows where to look, could check that T212 have done the necessary compliance for this to be true?
Finance Magnets - Trading 212
Companies House Trading 212 UK Ltd
I'm a bit surprised that there are only two two company officers registered with Companies House for a Limited company with 700,000 customers. Should I be?
Looking at the Financial Conduct Authority website, they mention that there is a clone company Trading212 which is unauthorised and attempting to mislead people that they are Trading 212 UK Ltd. Trading212-Clone Company
Edited by GliderRider on Tuesday 6th October 22:12
Edited by GliderRider on Wednesday 7th October 11:26
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