How would you invest £750 per month?

How would you invest £750 per month?

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Discussion

S9JTO

Original Poster:

1,913 posts

85 months

Tuesday 21st November 2017
quotequote all
Hi all,

Looking for some advice on what vehicle/s I should look in to. For some background; I'm 22, full-time employment, live at home and have no debts or dependents.

I currently work for an online investment platform so have become aware of various methods of investing, however none of it really suits my current situation. I am however planning on maxing out a LISA before the end of the tax year to receive the 25% cash bonus.

So; as mentioned in the title. I have roughly £750-£1000 per month which is disposable after bills, travel expenses, petrol (mainly), some car parts and general living expenses.

At the minute I only have one bank account with all of my savings in it, I don't split my money across multiple accounts as I like having it in one place. I'm currently with Santander in the 123 account which as far as I'm aware is still the best current account available. I have a very generous pension scheme so that isn't a worry. I have paid for my car in full now (I have just over £9k in savings left) so I'm looking for maximum growth with mid-high risk. However, the main drawback for me is that I would like to have access to my funds at relatively short notice 3-6 months therefore an ETF or fund could potentially be risky.

Could anyone help point me in the right direction?

Edited by S9JTO on Tuesday 21st November 10:47


Edited by S9JTO on Tuesday 21st November 10:49

Craikeybaby

10,369 posts

224 months

Tuesday 21st November 2017
quotequote all
LISA is obviously a good starting point, but I'd also look at a S&S ISA, but keep some in your existing account as a rainy day fund.

S9JTO

Original Poster:

1,913 posts

85 months

Tuesday 21st November 2017
quotequote all
Craikeybaby said:
LISA is obviously a good starting point, but I'd also look at a S&S ISA, but keep some in your existing account as a rainy day fund.
When you say 'some' is this something along the lines of 6 months of living expenses?

sidicks

25,218 posts

220 months

Tuesday 21st November 2017
quotequote all
S9JTO said:
Hi all,

Looking for some advice on what vehicle/s I should look in to. For some background; I'm 22, full-time employment, live at home and have no debts or dependents.

I currently work for an online investment platform so have become aware of various methods of investing, however none of it really suits my current situation. I am however planning on maxing out a LISA before the end of the tax year to receive the 25% cash bonus.

So; as mentioned in the title. I have roughly £750-£1000 per month which is disposable after bills, travel expenses, petrol (mainly), some car parts and general living expenses.

At the minute I only have one bank account with all of my savings in it, I don't split my money across multiple accounts as I like having it in one place. I'm currently with Santander in the 123 account which as far as I'm aware is still the best current account available. I have a very generous pension scheme so that isn't a worry. I have paid for my car in full now (I have just over £9k in savings left) so I'm looking for maximum growth with mid-high risk. However, the main drawback for me is that I would like to have access to my funds at relatively short notice 3-6 months therefore an ETF or fund could potentially be risky.

Could anyone help point me in the right direction?
If you potentially only have a 3-6 month investment horizon it’s hard to recommend equity investments unless you’re happy to take the risk of crystallising a significant mark-to-market loss?

S9JTO

Original Poster:

1,913 posts

85 months

Tuesday 21st November 2017
quotequote all
sidicks said:
If you potentially only have a 3-6 month investment horizon it’s hard to recommend equity investments unless you’re happy to take the risk of crystallising a significant mark-to-market loss?
That's my problem exactly as I'm not particularly comfortable risking my entire savings. I'm currently building my savings to a point where I can put X amount into a savings account and forget about it (rainy day fund) and then continually invest the £750-£1000 into Y

sidicks

25,218 posts

220 months

Tuesday 21st November 2017
quotequote all
S9JTO said:
sidicks said:
If you potentially only have a 3-6 month investment horizon it’s hard to recommend equity investments unless you’re happy to take the risk of crystallising a significant mark-to-market loss?
That's my problem exactly as I'm not particularly comfortable risking my entire savings. I'm currently building my savings to a point where I can put X amount into a savings account and forget about it (rainy day fund) and then continually invest the £750-£1000 into Y
I think Y should be a stocks and shares ISA if you have a high probability of not needing to access it for 5+ years.

S9JTO

Original Poster:

1,913 posts

85 months

Tuesday 21st November 2017
quotequote all
sidicks said:
I think Y should be a stocks and shares ISA if you have a high probability of not needing to access it for 5+ years.
Not a chance, I will need it before then! Unless I heavily reduced that £750-£1000 to say £250. Is there anything more accessible that's better than the 1.5% interest I'm getting currently that you know of?

wilwak

759 posts

169 months

Tuesday 21st November 2017
quotequote all
fundingsecure.com

Working well for me and generating 12% pa +

I do about £500 a month in to 5 investments of £100 each to spread risk.

Investments mature after 6 months so always rolling cash flow.

Quite interesting too!




Armitage.Shanks

2,250 posts

84 months

Tuesday 21st November 2017
quotequote all
wilwak said:
fundingsecure.co.uk

Working well for me and generating 12% pa +

I do about £500 a month in to 5 investments of £100 each to spread risk.

Investments mature after 6 months so always rolling cash flow.

Quite interesting too!
Somehow the following on their website never fills me with confidence.

Our aim is to allow investors the opportunity to participate in the above average returns associated with alternative finance and sub-prime lending. We say "sub-prime" because many of our borrowers come to us when they can't get finance from elsewhere: they may have a bad credit score, or an outstanding county court judgement, or previously been declared bankrupt. So long as the collateral on which the loan is secured is sufficient to cover the loan, and there is a convincing reason why the borrower is in the position they are, we will offer the loan to our investors.

However if you're not going to tie up a big wedge it might be worth a punt.

wilwak

759 posts

169 months

Tuesday 21st November 2017
quotequote all
Armitage.Shanks said:
wilwak said:
fundingsecure.co.uk

Working well for me and generating 12% pa +

I do about £500 a month in to 5 investments of £100 each to spread risk.

Investments mature after 6 months so always rolling cash flow.

Quite interesting too!
Somehow the following on their website never fills me with confidence.

Our aim is to allow investors the opportunity to participate in the above average returns associated with alternative finance and sub-prime lending. We say "sub-prime" because many of our borrowers come to us when they can't get finance from elsewhere: they may have a bad credit score, or an outstanding county court judgement, or previously been declared bankrupt. So long as the collateral on which the loan is secured is sufficient to cover the loan, and there is a convincing reason why the borrower is in the position they are, we will offer the loan to our investors.

However if you're not going to tie up a big wedge it might be worth a punt.
Everything they loan is secured against an asset and they only loan up to 70% of its value.

In many ways a lot safer than an unsecured loan.

Out of my entire portfolio with them I’ve only had two loans default and both were fully recovered within 12 months using the secured asset. They earned interest at the full 13% for the entire period of the debt recovery.

All the other loans have matured and paid out on maturity as expected.

They are in effect an online pawnbroker. They lend against assets an do no require high credit scores.

Craikeybaby

10,369 posts

224 months

Tuesday 21st November 2017
quotequote all
S9JTO said:
Craikeybaby said:
LISA is obviously a good starting point, but I'd also look at a S&S ISA, but keep some in your existing account as a rainy day fund.
When you say 'some' is this something along the lines of 6 months of living expenses?
Something like that.

Although if you need to access the whole lot in 3 to 6 months I would just carry on with what you are doing.

S9JTO

Original Poster:

1,913 posts

85 months

Wednesday 22nd November 2017
quotequote all
Craikeybaby said:
Something like that.

Although if you need to access the whole lot in 3 to 6 months I would just carry on with what you are doing.
Seems sensible, however I was hoping this wouldn't be the case!

jeff m2

2,060 posts

150 months

Wednesday 22nd November 2017
quotequote all
22 years old.....Equity ir really your only choice, no telling what a Pound will be worth down the road.
Sub 2% return with inflation starting to elevate etc etc.

But you don't need to go "all in".
Three 250s, one to a UK 250 index fund, next 250 to a global fund, last 250 , cash set aside for opportunity.

I'm not a contributing investor anymore, but I would always look at value when I was funding something.
I would look at the exchange rate on the day I was making a contribution, if the Dollar was strong I would stick that money in a foreign fund.
Dollar weak.... money would go into a US domestic fund. On the day it would perhaps only save me a few Dollars but over the years I'm sure it helped.

You could set maybe the Dollar Pound ratio of 1.315 as your "decision" for an investment on that day. Should you choose to invest manually.

Whatever you decide to do you will probably prosper in the long term. As starting when you still live at home is one of the two times you can amass some money. (the other being when the mortgage is paid off)

However you have chosen a time at which things are flying high to begin.
Emerging markets up 40% YTD as are many Asian funds (mostly on the back of tencentsmile) The US is doing very well and should consolidate those gains once the corp tax part of the new tax legislation is in.

Brexit and UK are really the unknowns. UK debt on the personal side is far too high and there is uncertainty as to how this will play out as int rates increase. It will undoubtedly squeeze overextended people and severely affect consumer spending. All you can do is, be aware of what will or could happen.

S9JTO

Original Poster:

1,913 posts

85 months

Thursday 23rd November 2017
quotequote all
jeff m2 said:
22 years old.....Equity ir really your only choice, no telling what a Pound will be worth down the road.
Sub 2% return with inflation starting to elevate etc etc.

But you don't need to go "all in".
Three 250s, one to a UK 250 index fund, next 250 to a global fund, last 250 , cash set aside for opportunity.

I'm not a contributing investor anymore, but I would always look at value when I was funding something.
I would look at the exchange rate on the day I was making a contribution, if the Dollar was strong I would stick that money in a foreign fund.
Dollar weak.... money would go into a US domestic fund. On the day it would perhaps only save me a few Dollars but over the years I'm sure it helped.

You could set maybe the Dollar Pound ratio of 1.315 as your "decision" for an investment on that day. Should you choose to invest manually.

Whatever you decide to do you will probably prosper in the long term. As starting when you still live at home is one of the two times you can amass some money. (the other being when the mortgage is paid off)

However you have chosen a time at which things are flying high to begin.
Emerging markets up 40% YTD as are many Asian funds (mostly on the back of tencentsmile) The US is doing very well and should consolidate those gains once the corp tax part of the new tax legislation is in.

Brexit and UK are really the unknowns. UK debt on the personal side is far too high and there is uncertainty as to how this will play out as int rates increase. It will undoubtedly squeeze overextended people and severely affect consumer spending. All you can do is, be aware of what will or could happen.
Thanks for your response Jeff, some interesting points in there that I will definitely consider. I have contemplated the 3 or 4 x £250 option or simply 2 x £500 for example.

I have never thought about the exchange rate before making an investment... It does make sense however.

I know what you mean re: Brexit/UK uncertainty as I have witnessed my SIPP's UK Smaller Companies fund fluctuate hugely!

VAGLover

918 posts

77 months

Thursday 23rd November 2017
quotequote all
S9JTO said:
Hi all,

Looking for some advice on what vehicle/s I should look in to. For some background; I'm 22, full-time employment, live at home and have no debts or dependents.

I currently work for an online investment platform so have become aware of various methods of investing, however none of it really suits my current situation. I am however planning on maxing out a LISA before the end of the tax year to receive the 25% cash bonus.

So; as mentioned in the title. I have roughly £750-£1000 per month which is disposable after bills, travel expenses, petrol (mainly), some car parts and general living expenses.

At the minute I only have one bank account with all of my savings in it, I don't split my money across multiple accounts as I like having it in one place. I'm currently with Santander in the 123 account which as far as I'm aware is still the best current account available. I have a very generous pension scheme so that isn't a worry. I have paid for my car in full now (I have just over £9k in savings left) so I'm looking for maximum growth with mid-high risk. However, the main drawback for me is that I would like to have access to my funds at relatively short notice 3-6 months therefore an ETF or fund could potentially be risky.

Could anyone help point me in the right direction?

Edited by S9JTO on Tuesday 21st November 10:47


Edited by S9JTO on Tuesday 21st November 10:49
A good meal out each month?

Yipper

5,964 posts

89 months

Thursday 23rd November 2017
quotequote all
Bitcoin.

vindaloo79

959 posts

79 months

Thursday 23rd November 2017
quotequote all
A mortgage once the zero stamp duty takes place, if it hasn't already?

Get friends as lodgers.

soad

32,829 posts

175 months

Thursday 23rd November 2017
quotequote all
Spend it on cars and wimmin.

S9JTO

Original Poster:

1,913 posts

85 months

Friday 24th November 2017
quotequote all
soad said:
Spend it on cars and wimmin.
I already do! However, there's always room for more I s'pose winklaugh

S9JTO

Original Poster:

1,913 posts

85 months

Friday 24th November 2017
quotequote all
vindaloo79 said:
A mortgage once the zero stamp duty takes place, if it hasn't already?

Get friends as lodgers.
That's the long-er term plan, as mentioned above I'm gunna max out my LISA contributions before the end of this tax year and then top it up monthly for a few years (my girlfriend is doing the same) - I don't want to move out yet! I've got it too good at home haha - However, if by mortgage you mean for a rental property then maybe.

I haven't looked in to the details of the new stamp duty stuff yet so I don't know whether or not it'll only be available to first time buyers who live in the house for X amount of time rather than buy to rent out as this applies for the LISA bonus. I'm sure someone here will quickly correct me.