Stock & Shares 101
Discussion
Got a £100k in premium bonds that suits me at the moment, but as my circumstances change I would like to put this into S&S, for 5-10 years.
I don’t want to go full Wolf of Wall Street but somewhere that is reputable, reliable and managed. I might even carve a small lump off for individual investments.
Where to I need to be looking, best investment platform? Which are to best starting investments for a novice? Keep hearing of ‘Global Trackers’ and similar.
I’m ready to read and learn before putting my hard earned in, but a few pointers would be great.
I don’t want to go full Wolf of Wall Street but somewhere that is reputable, reliable and managed. I might even carve a small lump off for individual investments.
Where to I need to be looking, best investment platform? Which are to best starting investments for a novice? Keep hearing of ‘Global Trackers’ and similar.
I’m ready to read and learn before putting my hard earned in, but a few pointers would be great.
Yep vanguard would be a good place to start, direct via their own platform.
What to invest in, personal choice but they offer a lot of options. Even their high risk stuff isnt that high risk - so you are fairly safe in the grand scheme of things (i.e wont be another Woodford). Something like VUSA is good if you want S&P500. As above they offer a whole world ETF too.
If you wanted to hold cash short terms they even offer a UK MMF which just pays about 4.5%.
HTH.
What to invest in, personal choice but they offer a lot of options. Even their high risk stuff isnt that high risk - so you are fairly safe in the grand scheme of things (i.e wont be another Woodford). Something like VUSA is good if you want S&P500. As above they offer a whole world ETF too.
If you wanted to hold cash short terms they even offer a UK MMF which just pays about 4.5%.
HTH.
Heathwood said:
I agree with the advice of an all world tracker, but how have you got £100k in premium bonds? I thought the max was £50k?
Likely in a partner's account (I did similar at one point)Any low cost fund is a good place to start. I also have a vanguard stocks and shares ISA i have drip fed over the years. Don't panic when the arse falls out of the market, it's actually a good time to buy more.
butchstewie said:
Ham_and_Jam said:
Where to I need to be looking, best investment platform? Which are to best starting investments for a novice? Keep hearing of Global Trackers and similar.
What's your experience of investing and do you know what your appetite for risk is?Given your admitted novice status you are going to need time investment and the knowledge that comes with it.
Assuming the 100k is accumulated earned income, think about how long it's taken to build that and then consider how long you think it's worth spending on getting your knowledge base up to a point such that you can make sensible informed choices. (just as an example, I know nothing about you but even a decent salaried position could have 'cost' you 1000 hours plus of your life to earn it. Perhaps it's worth spending a good few hours learning to protect it now you've got it)
It might be a good idea to decide if you want to assume the investment of time required to enable informed choices. If not, set out to find a decent IFA. That said, even paying for good advice it still pays to have a decent knowledge base, that you might make more informed decisions and have the ability to challenge/interrogate any advice you get.
Of course you could take the easy route and feed money into one or more ETF's that you know nothing about, don't understand the risks of and feel like you're losing your shirt when the market tanks 20 or 30%, which at some point it will.
Educating yourself is the foundational step you should make. There are countless books on the topic, and thousands of hours of genuinely good stuff on youtube.
Hope this isn't too blunt/dumbed down.
You're on the right lines with a simple global index tracker. Pick a platform you like the look of then invest the money. I went for Vanguard lifestrategy earlier this year, no regrets so far.
If you're moving £100k then obviously it'll take a few years to get it into a tax free ISA. Presuming you hold the bonds for you and your partner you could invest £20k each per tax year. So depending when you start it'll take 2-3 years. I guess there are other investment opportunities available but any gains will be taxable unlike your PB winnings.
If you're moving £100k then obviously it'll take a few years to get it into a tax free ISA. Presuming you hold the bonds for you and your partner you could invest £20k each per tax year. So depending when you start it'll take 2-3 years. I guess there are other investment opportunities available but any gains will be taxable unlike your PB winnings.
WTRacer said:
These are two of the critical questions you need to understand and answer before you do anything.
Given your admitted novice status you are going to need time investment and the knowledge that comes with it.
Assuming the 100k is accumulated earned income, think about how long it's taken to build that and then consider how long you think it's worth spending on getting your knowledge base up to a point such that you can make sensible informed choices. (just as an example, I know nothing about you but even a decent salaried position could have 'cost' you 1000 hours plus of your life to earn it. Perhaps it's worth spending a good few hours learning to protect it now you've got it)
It might be a good idea to decide if you want to assume the investment of time required to enable informed choices. If not, set out to find a decent IFA. That said, even paying for good advice it still pays to have a decent knowledge base, that you might make more informed decisions and have the ability to challenge/interrogate any advice you get.
Of course you could take the easy route and feed money into one or more ETF's that you know nothing about, don't understand the risks of and feel like you're losing your shirt when the market tanks 20 or 30%, which at some point it will.
Educating yourself is the foundational step you should make. There are countless books on the topic, and thousands of hours of genuinely good stuff on youtube.
Hope this isn't too blunt/dumbed down.
^^ this too.Given your admitted novice status you are going to need time investment and the knowledge that comes with it.
Assuming the 100k is accumulated earned income, think about how long it's taken to build that and then consider how long you think it's worth spending on getting your knowledge base up to a point such that you can make sensible informed choices. (just as an example, I know nothing about you but even a decent salaried position could have 'cost' you 1000 hours plus of your life to earn it. Perhaps it's worth spending a good few hours learning to protect it now you've got it)
It might be a good idea to decide if you want to assume the investment of time required to enable informed choices. If not, set out to find a decent IFA. That said, even paying for good advice it still pays to have a decent knowledge base, that you might make more informed decisions and have the ability to challenge/interrogate any advice you get.
Of course you could take the easy route and feed money into one or more ETF's that you know nothing about, don't understand the risks of and feel like you're losing your shirt when the market tanks 20 or 30%, which at some point it will.
Educating yourself is the foundational step you should make. There are countless books on the topic, and thousands of hours of genuinely good stuff on youtube.
Hope this isn't too blunt/dumbed down.
There's a tendency on here for people to steam in with "S&P 500" or "Global Tracker".
We know nothing about Ham_and_Jam and his partner (assume there's a partner as £100K is two lots of premium bonds) and their overall financial picture.
Maybe £100K is a drop in the ocean but it isn't for most people.
Appetite for risk and capacity for loss usually comes into these decisions and we know nothing of that.
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