Investing - Funds, Stocks, Shares - starting out
Discussion
So I have money in the bank, doing nothing.
I don’t have an ISA. I know I know.
So I’ve reached out to IM (PH Sponsor)
But in the meanwhile where the heck do I start?
I presume a S&S ISA - but with who? InvestEngine, IM via PH, AJ Bell…
I don’t know where to start so any advice is welcome
I don’t have an ISA. I know I know.
So I’ve reached out to IM (PH Sponsor)
But in the meanwhile where the heck do I start?
I presume a S&S ISA - but with who? InvestEngine, IM via PH, AJ Bell…
I don’t know where to start so any advice is welcome
I’m also a fan of Vanguard - low cost, easy to use, good returns based on my experience.
You should probably talk to an IFA. A lot of what is appropriate to you will depend on your life objectives and your attitude to risk. For example, are you looking to retire early? Do you have a financial outlay, such as a house deposit, that you need to save for?
Personally, I’m transitioning towards a barbell strategy - For me, this is 80% - 90% in low cost, highly diversified, low risk investments. 10%-20% in ultra high risk investments aiming for a big return. This may not be appropriate to you of course!
Cheers,
UV
You should probably talk to an IFA. A lot of what is appropriate to you will depend on your life objectives and your attitude to risk. For example, are you looking to retire early? Do you have a financial outlay, such as a house deposit, that you need to save for?
Personally, I’m transitioning towards a barbell strategy - For me, this is 80% - 90% in low cost, highly diversified, low risk investments. 10%-20% in ultra high risk investments aiming for a big return. This may not be appropriate to you of course!
Cheers,
UV
Things to think about in no particular order.
These websites are really useful.
https://monevator.com
https://www.vanguardinvestor.co.uk
- What sort of rough amount are you talking about as respectfully £500K is massively different to £5K.
- The amount also impacts whether you're worth an IFA's time (the "advice gap").
- Are you expecting to add to it regularly or occasionally?
- What's your timeline for accessing it?
- Make sure you understand the difference between saving and investing and that with investing it's very likely that at some point you'll see a balance that is less than you started off with.
- Try and understand your appetite for risk so that when this happens you don't panic and sell and crystallise a loss.
- You most likely not smart (in investing terms) so don't fool yourself that you are and try to pick individual stocks or active funds. Passive investments that track indexes are a really simple sensible low cost place to start.
- Fees matter. A lot.
These websites are really useful.
https://monevator.com
https://www.vanguardinvestor.co.uk
Which broker you use needs to suit how you'll invest - some charge a joining fee and then a recurring fee (note: funds/ETFs etc you invest in on top of that will also have a fee), others charge for transactions so it'll depend on how often you want to add funds. Have a look here https://monevator.com/compare-uk-cheapest-online-b...
Also, keep in mind that not all brokers are the same - Vanguard for example don't offer stocks or in fact any funds that aren't theirs. So if you want to dabble / day trade probably not the best. If you want to just set & forget in funds/ETfs that may not matter as much.
There's a big post on fundsmith somewhere here - IIRC more expensive but appeared to give slightly higher return.
Is there a plan for the money (e.g. house move in future years, children etc), that might change what you do too.
Depending on how much you have you might need ot do a couple of different things as you can only put 20k a year in to an ISA. Xhase do a 1.5% savings account, needs to be linked to a current account, I think virgin have something similar.
Also, keep in mind that not all brokers are the same - Vanguard for example don't offer stocks or in fact any funds that aren't theirs. So if you want to dabble / day trade probably not the best. If you want to just set & forget in funds/ETfs that may not matter as much.
There's a big post on fundsmith somewhere here - IIRC more expensive but appeared to give slightly higher return.
Is there a plan for the money (e.g. house move in future years, children etc), that might change what you do too.
Depending on how much you have you might need ot do a couple of different things as you can only put 20k a year in to an ISA. Xhase do a 1.5% savings account, needs to be linked to a current account, I think virgin have something similar.
I'm also looking at investing in a S&S ISA. I was looking into a LISA but decided they are too restrictive. I may need access to my funds at short notice.
I've been looking at Vanguard. Has anyone else started out with something like £1000 in a S&S ISA? I want to dip my toe in the water and then add to as and when.
I've been looking at Vanguard. Has anyone else started out with something like £1000 in a S&S ISA? I want to dip my toe in the water and then add to as and when.
If I recall when you set up an account they want you to set up a direct debit to regularly feed in money, but you can cancel that right away and just do a bank transfer when you wish to add funds.
Note that if you want to buy a fund/ETF at a specified time (so you know the exact price) they charge £7.50, but there is also the option to buy at the next opportunity (IIRC this is twice a day) and get whatever the price is at that moment.
Note that if you want to buy a fund/ETF at a specified time (so you know the exact price) they charge £7.50, but there is also the option to buy at the next opportunity (IIRC this is twice a day) and get whatever the price is at that moment.
We use Vanguard. Its dead easy to set up and register, add funds etc and if you have the slightest issue they answer the phone pronto. They charge 0.15% which is pretty good.
We're both invested in VLS60 which is 60% equities 40% bonds, you can get riskier with a VLS80 ie more equities etc or go more risk averse with a VLS 40..more bonds, less equities.
Performance wise we all took a hit lately ( but its creeping back) but are still massively up since we started our investment journey.
It's recommend to invest for ten years minimum, I wish I'd started 30 years ago.
We're both invested in VLS60 which is 60% equities 40% bonds, you can get riskier with a VLS80 ie more equities etc or go more risk averse with a VLS 40..more bonds, less equities.
Performance wise we all took a hit lately ( but its creeping back) but are still massively up since we started our investment journey.
It's recommend to invest for ten years minimum, I wish I'd started 30 years ago.
Just understand you are entering a market at the height of the longest bull run in history winter is going to hurt and we are in no man's land with what happens next. Only put away what you are willing to or not need for next 5-10 years time frame.
Main thing set a goal and stick to it don't go chasing speculative options you may find you get lucky once or twice but greed will take over and that soon end badly.
Index funds are your friends leave and forget just drop feed over time. Other option is dividend investing so the total of share prices isn't the gains it's the pay outs over time with reinvesting will snowball over time.
Main thing set a goal and stick to it don't go chasing speculative options you may find you get lucky once or twice but greed will take over and that soon end badly.
Index funds are your friends leave and forget just drop feed over time. Other option is dividend investing so the total of share prices isn't the gains it's the pay outs over time with reinvesting will snowball over time.
Thin White Duke said:
I'm also looking at investing in a S&S ISA. I was looking into a LISA but decided they are too restrictive. I may need access to my funds at short notice.
I've been looking at Vanguard. Has anyone else started out with something like £1000 in a S&S ISA? I want to dip my toe in the water and then add to as and when.
If you need access to any investment at short notice perhaps you should re-consider whether an investment is suitable.I've been looking at Vanguard. Has anyone else started out with something like £1000 in a S&S ISA? I want to dip my toe in the water and then add to as and when.
I say that simply because they can and do go down as well as up.
With Vanguard or most other investment platforms it's as simple as that and you can usually start out with less than that and add in in much smaller chunks (usually £25 upwards).
Both me and my wife opened S&S ISAs with Vanguard in November 2021, so less than a year ago. Both invested in Lifestrategy 80 to dip our toes in the investment market.
Drip feeding money in, we've both put around £10k in so far, but have both lost money (c. £250 each). At its worst, we were down about £900 each (£1800 total), but things have recovered a bit recently. Of course, we've never crystallised the loss, as we continue to be invested.
We continued, and still continue, to pay in each month, as it's intended as a long term investment, but I wanted to make the point that it's not a guaranteed win, especially not in the short term. However, I've no doubt at all, long term, it's the best option.
Drip feeding money in, we've both put around £10k in so far, but have both lost money (c. £250 each). At its worst, we were down about £900 each (£1800 total), but things have recovered a bit recently. Of course, we've never crystallised the loss, as we continue to be invested.
We continued, and still continue, to pay in each month, as it's intended as a long term investment, but I wanted to make the point that it's not a guaranteed win, especially not in the short term. However, I've no doubt at all, long term, it's the best option.
MG CHRIS said:
Just understand you are entering a market at the height of the longest bull run in history winter is going to hurt and we are in no man's land with what happens next.
The question for me is whether markets are going to start recovering from here, or carry on in a slump through the winter and beyond.I'm no analyst but it seems to me that energy prices are the biggest factor because they affect so many things. It may be that Western sanctions against Russia backfired somewhat. The Russian people are used to hardship, the West isn't.
Thank you all. Some very useful info.
I’ve been recommended to use Trading 212 for S&S and HL for stocks and shares.
I will investigate Vanguard and also have a chat with IM.
Understand the risk with investments and also the fact I may be entering the market as certain are due to see some drops over the coming months and winter so may go very slow and steady.
No real / immediate need to access the cash and intend to see out any losses rather than crystallise them!
Will read some of the links posted above too! Thanks again PH!
I’ve been recommended to use Trading 212 for S&S and HL for stocks and shares.
I will investigate Vanguard and also have a chat with IM.
Understand the risk with investments and also the fact I may be entering the market as certain are due to see some drops over the coming months and winter so may go very slow and steady.
No real / immediate need to access the cash and intend to see out any losses rather than crystallise them!
Will read some of the links posted above too! Thanks again PH!
Simpo Two said:
MG CHRIS said:
Just understand you are entering a market at the height of the longest bull run in history winter is going to hurt and we are in no man's land with what happens next.
The question for me is whether markets are going to start recovering from here, or carry on in a slump through the winter and beyond.I'm no analyst but it seems to me that energy prices are the biggest factor because they affect so many things. It may be that Western sanctions against Russia backfired somewhat. The Russian people are used to hardship, the West isn't.
My advice is to start with regularly investing a relatively small amount into any of the platforms / funds stated above. They are all broadly similar, give or take, but the main thing is to get started and to start to accumulate.
You may find you’ll move things around a few times once you’re more experienced, which is easily done. With a relatively small starting amount you won’t lose much in terms of possible gains of not being in the “perfect” fund compared with if you hadn’t started at all.
Get started. So much easier to understand and learn once you’ve got a little skin in the game and have been through the process.
You may find you’ll move things around a few times once you’re more experienced, which is easily done. With a relatively small starting amount you won’t lose much in terms of possible gains of not being in the “perfect” fund compared with if you hadn’t started at all.
Get started. So much easier to understand and learn once you’ve got a little skin in the game and have been through the process.
Panamax said:
Remember, this is PH-land
Vanguard = Mazda MX5 (the automatic answer to every question.)
IM = site sponsor (the automatic answer to every question.)
There are many others out there.
Any other platforms you can suggest?Vanguard = Mazda MX5 (the automatic answer to every question.)
IM = site sponsor (the automatic answer to every question.)
There are many others out there.
I’ve had Trading 212 (S&S) and HL (Funds) suggested to me.
Choosing a platform is usually a combination of what you intend to invest in and how often and the amounts involved.
Some platforms are cheap (or even free) but personally I wouldn't be happy holding a large amount of money on them.
Other platforms are expensive if you hold the "wrong" combination of products or buy and sell too often.
Some platforms are cheap (or even free) but personally I wouldn't be happy holding a large amount of money on them.
Other platforms are expensive if you hold the "wrong" combination of products or buy and sell too often.
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