Follow on from the miffed at 6% thread. Help me invest.
Discussion
Following on from the miffed at 6% thread which made me think “I would take that” it got me thinking.
I’ve never really invested money but just put it in a savings account when I had some. Most of it I have spent on cars and holidays each year (not a bad thing) or overpaying my mortgage but I am now in a position to start being a bit more savvy.
I am 50, live with my girlfriend (both divorced and new house all paid for), no debts and now can save about 4k per month.
The question is where do I put it? I have a decent pension with my job which I can top up more and a decent amount of cash in the house (equity not under the bed) and paid the mortgage off last year.
I have about 40k in savings and now it s going up by 4k per month. It s all sitting in a nationwide 3% savings account and has only started to build since last March.
I know I could do the isa route but am not hugely up for a risky strategy but as it s going to grow where should I go, by next Xmas I should have nearly 100k.
Whilst it s nice just seeing it go up monthly it s probably not the smartest move. What s the best with low-med risk for someone who knows nothing about investing?
I’ve never really invested money but just put it in a savings account when I had some. Most of it I have spent on cars and holidays each year (not a bad thing) or overpaying my mortgage but I am now in a position to start being a bit more savvy.
I am 50, live with my girlfriend (both divorced and new house all paid for), no debts and now can save about 4k per month.
The question is where do I put it? I have a decent pension with my job which I can top up more and a decent amount of cash in the house (equity not under the bed) and paid the mortgage off last year.
I have about 40k in savings and now it s going up by 4k per month. It s all sitting in a nationwide 3% savings account and has only started to build since last March.
I know I could do the isa route but am not hugely up for a risky strategy but as it s going to grow where should I go, by next Xmas I should have nearly 100k.
Whilst it s nice just seeing it go up monthly it s probably not the smartest move. What s the best with low-med risk for someone who knows nothing about investing?
Edited by interstellar on Saturday 27th December 16:38
interstellar said:
What s the best with low-med risk for someone who knows nothing about investing?
Buy or borrow a copy of "Smarter Investing" 4th edition and read it. While you're reading it, make use of this year's ISA allowance, even as cash, so you don't lose it. You can always take it out again if for example you conclude you're best off putting some of that money in a pension.Edited by xeny on Saturday 27th December 16:46
markiii said:
first thing get it into cash isas, you can always transfer to S&S isas when you have more idea, but use this years allowance before the April expiry
This is a good starting point.Trading 212, I'm a bit of a fan boi, offer a selection box of accounts...
Invest
Cash
Stocks and shares ISA
Cash ISA
They also offer a 'training' account so that you can play at being a trader without actually buying anything.
So firstly, transfer in £20k for yourself into a cash ISA, same for your partner....in their name of course...
Then 'play' at investing that £20k in shares.
How?
Select twenty equities for £1k each.
How?
You a smoker?
British American Tobacco or Imperial Brands
Buy petrol/diesel?
Shell/BP/Total
Buy soap?
Unilever
And so on, I'm sure you get the idea, think of things that you use daily and buy in, banks are another Good Idea.
When you see your selections start to rise on your play account, you can start buying for real.
Of course, not all will go up, some will fall, and it is identifying why they fall.
Consider sectors where you my have a bit of inside knowledge, are you a civil engineer?
Look at builders, Taylor Whimpy and Barratts.
The American markets are, mostly, leading the AI revolution, all sorts of stuff there. semiconducters, chip builders et all.
But most of all, have fun whilst learning!
Don't do that ^^
If you want to do something sensible look at an ISA, pension, and even a general investment account as paying tax on gains is still better than not making gains in the first place.
Look on Monevator and as mentioned buy a copy of Tim Hales smarter investing as the amounts you've mentioned aren't play money.
Broadly speaking you can't go wrong with low cost multi-asset funds from the likes of Vanguard or HSBC and similar big names.
If you want to do something sensible look at an ISA, pension, and even a general investment account as paying tax on gains is still better than not making gains in the first place.
Look on Monevator and as mentioned buy a copy of Tim Hales smarter investing as the amounts you've mentioned aren't play money.
Broadly speaking you can't go wrong with low cost multi-asset funds from the likes of Vanguard or HSBC and similar big names.
ferret50 said:
This is a good starting point.
Trading 212, I'm a bit of a fan boi, offer a selection box of accounts...
Invest
Cash
Stocks and shares ISA
Cash ISA
They also offer a 'training' account so that you can play at being a trader without actually buying anything.
So firstly, transfer in £20k for yourself into a cash ISA, same for your partner....in their name of course...
Then 'play' at investing that £20k in shares.
How?
Select twenty equities for £1k each.
How?
You a smoker?
British American Tobacco or Imperial Brands
Buy petrol/diesel?
Shell/BP/Total
Buy soap?
Unilever
And so on, I'm sure you get the idea, think of things that you use daily and buy in, banks are another Good Idea.
When you see your selections start to rise on your play account, you can start buying for real.
Of course, not all will go up, some will fall, and it is identifying why they fall.
Consider sectors where you my have a bit of inside knowledge, are you a civil engineer?
Look at builders, Taylor Whimpy and Barratts.
The American markets are, mostly, leading the AI revolution, all sorts of stuff there. semiconducters, chip builders et all.
But most of all, have fun whilst learning!
Basically whatever you do don t do this Trading 212, I'm a bit of a fan boi, offer a selection box of accounts...
Invest
Cash
Stocks and shares ISA
Cash ISA
They also offer a 'training' account so that you can play at being a trader without actually buying anything.
So firstly, transfer in £20k for yourself into a cash ISA, same for your partner....in their name of course...
Then 'play' at investing that £20k in shares.
How?
Select twenty equities for £1k each.
How?
You a smoker?
British American Tobacco or Imperial Brands
Buy petrol/diesel?
Shell/BP/Total
Buy soap?
Unilever
And so on, I'm sure you get the idea, think of things that you use daily and buy in, banks are another Good Idea.
When you see your selections start to rise on your play account, you can start buying for real.
Of course, not all will go up, some will fall, and it is identifying why they fall.
Consider sectors where you my have a bit of inside knowledge, are you a civil engineer?
Look at builders, Taylor Whimpy and Barratts.
The American markets are, mostly, leading the AI revolution, all sorts of stuff there. semiconducters, chip builders et all.
But most of all, have fun whilst learning!
OP is interested in investing, not gambling
A sensible multi asset fund of funds is the answer.
https://monevator.com/passive-fund-of-funds-the-ri...
butchstewie said:
Don't do that ^^
If you want to do something sensible look at an ISA, pension, and even a general investment account as paying tax on gains is still better than not making gains in the first place.
Look on Monevator and as mentioned buy a copy of Tim Hales smarter investing as the amounts you've mentioned aren't play money.
Broadly speaking you can't go wrong with low cost multi-asset funds from the likes of Vanguard or HSBC and similar big names.
Did you and Simon fail to read and comprehend this line?If you want to do something sensible look at an ISA, pension, and even a general investment account as paying tax on gains is still better than not making gains in the first place.
Look on Monevator and as mentioned buy a copy of Tim Hales smarter investing as the amounts you've mentioned aren't play money.
Broadly speaking you can't go wrong with low cost multi-asset funds from the likes of Vanguard or HSBC and similar big names.
They also offer a 'training' account so that you can play at being a trader without actually buying anything.
In future, the pair of you, please read other's posts carefully and understand them!
I have read it.
Interstellar asked What's the best with low-med risk for someone who knows nothing about investing?
Do you really think the right answer to that is a trading account at Trading 212 and then go buy a bunch of individual shares?
A low cost multi-asset fund is the sensible thing to be doing here all day long.
Interstellar asked What's the best with low-med risk for someone who knows nothing about investing?
Do you really think the right answer to that is a trading account at Trading 212 and then go buy a bunch of individual shares?
A low cost multi-asset fund is the sensible thing to be doing here all day long.
ferret50 said:
Did you and Simon fail to read and comprehend this line?
They also offer a 'training' account so that you can play at being a trader without actually buying anything.
In future, the pair of you, please read other's posts carefully and understand them!
They also offer a 'training' account so that you can play at being a trader without actually buying anything.
In future, the pair of you, please read other's posts carefully and understand them!
indeed! Do you understand the difference between trading and investing? interstellar said:
That s only 20k of it and 1% more than my savings. I kind of thought to tie it up and not be able to get it, It s not worth the extra 1% but maybe I m looking at this all wrong?
20K this year, 20K next, and you can ignore it for the purpose of tax forms. I'd argue you always try to avoid tying money up if you can avoid it, the future can always offer surprises.As someone who missed a couple of year's of ISA allowances and has to pay tax on investment returns each year, I'd suggest you take every opportunity to minimise your future tax liability. Look on it as learning from my mistake.
Inflation is ~3%. Let's say you get 7% in a reasonably low risk investment. That's 4% after inflation. Pay some tax on your investment returns and that can easily become 5% before inflation, or 2% after inflation.
Edited by xeny on Saturday 27th December 18:21
If your companies do share schemes get in on those. SIP schemes come out of your gross salary, companies often also contribute and if you hold them for 5 years you don't pay tax when you sell them.
It's only £1800 a year but with the tax savings and being a trickle investment can build up nicely.
It's only £1800 a year but with the tax savings and being a trickle investment can build up nicely.
butchstewie said:
I have read it.
Interstellar asked What's the best with low-med risk for someone who knows nothing about investing?
Do you really think the right answer to that is a trading account at Trading 212 and then go buy a bunch of individual shares?
A low cost multi-asset fund is the sensible thing to be doing here all day long.
I did NOT write that, go back and read my post carefully!Interstellar asked What's the best with low-med risk for someone who knows nothing about investing?
Do you really think the right answer to that is a trading account at Trading 212 and then go buy a bunch of individual shares?
A low cost multi-asset fund is the sensible thing to be doing here all day long.
I suggested using T212's PRACTICE ACCOUNT WHERE YOU DO NOT USE REAL MONEY!
Idiot!
ferret50 said:
butchstewie said:
I have read it.
Interstellar asked What's the best with low-med risk for someone who knows nothing about investing?
Do you really think the right answer to that is a trading account at Trading 212 and then go buy a bunch of individual shares?
A low cost multi-asset fund is the sensible thing to be doing here all day long.
I did NOT write that, go back and read my post carefully!Interstellar asked What's the best with low-med risk for someone who knows nothing about investing?
Do you really think the right answer to that is a trading account at Trading 212 and then go buy a bunch of individual shares?
A low cost multi-asset fund is the sensible thing to be doing here all day long.
I suggested using T212's PRACTICE ACCOUNT WHERE YOU DO NOT USE REAL MONEY!
Idiot!
However, what’s the point in practicing something the OP is never going to want to do?
My recommendation for a good read is ‘The Millionaire Teacher’.
ferret50 said:
butchstewie said:
I have read it.
Interstellar asked What's the best with low-med risk for someone who knows nothing about investing?
Do you really think the right answer to that is a trading account at Trading 212 and then go buy a bunch of individual shares?
A low cost multi-asset fund is the sensible thing to be doing here all day long.
I did NOT write that, go back and read my post carefully!Interstellar asked What's the best with low-med risk for someone who knows nothing about investing?
Do you really think the right answer to that is a trading account at Trading 212 and then go buy a bunch of individual shares?
A low cost multi-asset fund is the sensible thing to be doing here all day long.
I suggested using T212's PRACTICE ACCOUNT WHERE YOU DO NOT USE REAL MONEY!
Idiot!
Not good advice……….
My take FWIW.
Start with an idea of what you might have - not in 1 year bit 'x' years, from savings/investments and pension. Add in when you might retire, and how you might take monies out of various 'pots' ( pension/isa/savings) etc to minimize tax and to give you flexibility.
(Apols if i missed refernece to existing pension) - but to me ending up with a shedload in a pension where you can't access it without paying a boatload of tax is a bugbear. I don't like paying CGT on monies in the GIA either - but that works out at less. As has been said, stuff the ISA's full every year and make sure that if you do decide to have some exposure to stocks via maybe an ETF that it is not a direct replication/overlap of what you might already have in any pension.
As to 'what' / how, maybe it's worth spending a while contemplating what risk means to you, for each of us its different. Not advocating single stocks, but purely as a thought provoker - would you consider that a company in the oil sector that's been around for 100 years is likely to last another 10? or proctor/gamble or similar lasting another 10?
So in many cases risk may be more likely from external events - again, down to an individual to interpret their tolerance & timeframe.
Plenty of folks i know always have 15% or more cash on hand to buy dips, which for them worked out well in April this year as since then many key stocks/sectors have rebounded by 50-100%
Start with an idea of what you might have - not in 1 year bit 'x' years, from savings/investments and pension. Add in when you might retire, and how you might take monies out of various 'pots' ( pension/isa/savings) etc to minimize tax and to give you flexibility.
(Apols if i missed refernece to existing pension) - but to me ending up with a shedload in a pension where you can't access it without paying a boatload of tax is a bugbear. I don't like paying CGT on monies in the GIA either - but that works out at less. As has been said, stuff the ISA's full every year and make sure that if you do decide to have some exposure to stocks via maybe an ETF that it is not a direct replication/overlap of what you might already have in any pension.
As to 'what' / how, maybe it's worth spending a while contemplating what risk means to you, for each of us its different. Not advocating single stocks, but purely as a thought provoker - would you consider that a company in the oil sector that's been around for 100 years is likely to last another 10? or proctor/gamble or similar lasting another 10?
So in many cases risk may be more likely from external events - again, down to an individual to interpret their tolerance & timeframe.
Plenty of folks i know always have 15% or more cash on hand to buy dips, which for them worked out well in April this year as since then many key stocks/sectors have rebounded by 50-100%
What I wouldn’t do today. Pile in deep with both balls into equity markets whilst they’re expensive and volatile, and without at least a basic plan in place.
What I would do. Dip one ball in. Choose a reputable platform (Vanguard for example) and allocate 50% of monies into a world index etf like VWRL. Keep the other 50% as cash and every time your etf (VWRL) dips 5% or more, purchase the equivalent with the cash pot.
^^It’s just one strategy of many that 1/ keeps it interesting, and 2/ learns you some of the basics of investing without too much stress.
(And definitely do NOT do what Ferret suggests - that’s gambling blind)
What I would do. Dip one ball in. Choose a reputable platform (Vanguard for example) and allocate 50% of monies into a world index etf like VWRL. Keep the other 50% as cash and every time your etf (VWRL) dips 5% or more, purchase the equivalent with the cash pot.
^^It’s just one strategy of many that 1/ keeps it interesting, and 2/ learns you some of the basics of investing without too much stress.
(And definitely do NOT do what Ferret suggests - that’s gambling blind)
ferret50 said:
I did NOT write that, go back and read my post carefully!
I suggested using T212's PRACTICE ACCOUNT WHERE YOU DO NOT USE REAL MONEY!
Idiot!
Just checking, did you also write this?I suggested using T212's PRACTICE ACCOUNT WHERE YOU DO NOT USE REAL MONEY!
Idiot!
ferret50 said:
When you see your selections start to rise on your play account, you can start buying for real.
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