Choosing S&S ISA Investments
Discussion
Hi all,
For a few years I've had a S&S ISA but hand picked various individual shares - it's performed well but I'd like to put some money into funds as well. Does anyone have any good advice or links to advice? Or even specific funds I could look at before making a choice. I'm struggling to know which to go with!
As a bit of background:
- Late 20's
- £5,000 initial investment with £1,500/month going forward
Thanks!
For a few years I've had a S&S ISA but hand picked various individual shares - it's performed well but I'd like to put some money into funds as well. Does anyone have any good advice or links to advice? Or even specific funds I could look at before making a choice. I'm struggling to know which to go with!
As a bit of background:
- Late 20's
- £5,000 initial investment with £1,500/month going forward
Thanks!
Other useful piece of information would be what your time horizon is - when do you expect to need the money?
Given a long enough timeframe I'd start on the basis of buying an accumulating world equity tracker (e.g. vwrp) and then decide how I wanted to bias my decision away from that default. What do you think will do better than the market as a whole expects?
Given a long enough timeframe I'd start on the basis of buying an accumulating world equity tracker (e.g. vwrp) and then decide how I wanted to bias my decision away from that default. What do you think will do better than the market as a whole expects?
Great - thanks for the reply!
This is very much a long term future investment that I don't anticipate needing anytime soon (10+ years but ideally longer). I have other money set aside for emergency/house moves etc in Premium Bonds and also a healthy monthly income so can build up savings without needed money out of the ISA.
I assume an accumulating world equity tracker like the WVRP would be ideal for my situation/plans?
This is very much a long term future investment that I don't anticipate needing anytime soon (10+ years but ideally longer). I have other money set aside for emergency/house moves etc in Premium Bonds and also a healthy monthly income so can build up savings without needed money out of the ISA.
I assume an accumulating world equity tracker like the WVRP would be ideal for my situation/plans?
Earl of Hazzard said:
Who’s the vlogger? I’ve put the kids Junior ISA’s and Mrs’s pension in Vanguard FTSE Global All Cap.
https://www.vanguardinvestor.co.uk/investments/van...
https://www.vanguardinvestor.co.uk/investments/van...
Welshbeef said:
Earl of Hazzard said:
Who’s the vlogger? As per the above, I'd be putting it in whatever global equity tracker I could access with the lowest fees.
As an aside, you've got a decent chunk to save on a regular basis and don't need it any time soon so I've got to ask - are you making pension contributions? That's where I'd be shovelling my spare cash, particularly if you're a higher rate taxpayer.
As an aside, you've got a decent chunk to save on a regular basis and don't need it any time soon so I've got to ask - are you making pension contributions? That's where I'd be shovelling my spare cash, particularly if you're a higher rate taxpayer.
Earl of Hazzard said:
Welshbeef said:
Earl of Hazzard said:
Who’s the vlogger? Plenty of very helpful advice and bits to look into - thanks everyone! Will do some research/reading around the Vanguard funds.
@ Roger Irrelevant - I'm a higher rate taxpayer and contributing 20% of salary (10% employer, 10% me) - I could increase this a couple of % before hitting the £40k annual allowance however was trying to build up some non-pension savings.
@ Roger Irrelevant - I'm a higher rate taxpayer and contributing 20% of salary (10% employer, 10% me) - I could increase this a couple of % before hitting the £40k annual allowance however was trying to build up some non-pension savings.
jjcd said:
Perhaps a stupid question but is there any reason to go for the VWRL over the VWRP? I would want to reinvest any dividends so the latter would be better?
It would be as it would be less hassle for one, note that VWRP is not available on Vanguards own website (only VWRL) but is available on other providers.jjcd said:
For a few years I've had a S&S ISA but hand picked various individual shares - it's performed well but I'd like to put some money into funds as well.
You mention, 'it's performed well', but are you monitoring your performance properly against the market average, to really know what 'well' really means. Hopefully your performance might be better, than the funds which you want to buy.
I don't know many people who bother to do monitoring, even though it is so easy to do, especially now that we all have computers.
I work on a simple calendar year basis, just doing one league table valuation at the end of each business week. Only 10 minutes work and I then know precisely how things are progressing. Last Friday the two important YTD percentage figures were; Portfolio +13.23% (including dividends received so far this year), FTSE All-Share Index -1.01% (excluding dividends). No, I have never owned any index funds, because I have always hoped to do better than just average.
If your ISA holdings are performing better than the market average, you probably have some good businesses already.
To have started by selecting businesses yourself, shows that you must have an interest in asset allocation. Keep going if your results so far look good and don't panic during market crashes. Would you believe that the pensions industry tend to invest heavily in equities when markets are booming, but less heavily when a crash occurs. Human nature at play!
Jon39 said:
You mention, 'it's performed well', but are you monitoring your performance properly against the market average, to really know what 'well' really means. Hopefully your performance might be better, than the funds which you want to buy.
I don't know many people who bother to do monitoring, even though it is so easy to do, especially now that we all have computers.
I work on a simple calendar year basis, just doing one league table valuation at the end of each business week. Only 10 minutes work and I then know precisely how things are progressing. Last Friday the two important YTD percentage figures were; Portfolio +13.23% (including dividends received so far this year), FTSE All-Share Index -1.01% (excluding dividends). No, I have never owned any index funds, because I have always hoped to do better than just average.
If your ISA holdings are performing better than the market average, you probably have some good businesses already.
To have started by selecting businesses yourself, shows that you must have an interest in asset allocation. Keep going if your results so far look good and don't panic during market crashes. Would you believe that the pensions industry tend to invest heavily in equities when markets are booming, but less heavily when a crash occurs. Human nature at play!
Welshbeef said:
Jon39 said:
You mention, 'it's performed well', but are you monitoring your performance properly against the market average, to really know what 'well' really means. Hopefully your performance might be better, than the funds which you want to buy.
I don't know many people who bother to do monitoring, even though it is so easy to do, especially now that we all have computers.
I work on a simple calendar year basis, just doing one league table valuation at the end of each business week. Only 10 minutes work and I then know precisely how things are progressing. Last Friday the two important YTD percentage figures were; Portfolio +13.23% (including dividends received so far this year), FTSE All-Share Index -1.01% (excluding dividends). No, I have never owned any index funds, because I have always hoped to do better than just average.
If your ISA holdings are performing better than the market average, you probably have some good businesses already.
To have started by selecting businesses yourself, shows that you must have an interest in asset allocation. Keep going if your results so far look good and don't panic during market crashes. Would you believe that the pensions industry tend to invest heavily in equities when markets are booming, but less heavily when a crash occurs. Human nature at play!
Going to the other extreme, I know people who are so worried about financial risk, that they will only trust putting all of their spare money in savings accounts. That is fine if it suits their temperament, but wonder whether they know that cash comes with a guarantee of losing value?
You might remember when a brand new Jaguar E-Type cost £2,000. That amount of cash, could not even buy the cheapest new car now.
Still called Pounds, but certainly not the same Pounds. The first challenge, before trying to beat the market, is attempting to get ahead of inflation. Not difficult since 2009, with historically low interest rates, low inflation and increasing asset values, but that is all beginning to change now.
Edited by Jon39 on Tuesday 29th March 09:08
Earl of Hazzard said:
When he says the S&P 500 has proven itself time and time again, does that exclude 2000-2010?https://twitter.com/ServoWealth/status/15095457086...
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