Investing £10,000 at 18 years old.
Discussion
Hello everybody, this is my first post.
I’m an 18-year-old with £10,000 currently sitting in a savings account. After a lot of research and discussion, I’ve come to realise that this money would be better off invested rather than slowly losing value to inflation. I’m currently on a gap year and will be starting a Master’s degree next year, so I know I won’t need access to this money for at least 7–8 years. With the intention of working part-time during my studies, I may not need to touch it for even longer — and I might even be able to add to it over time.
With that in mind, I’ve decided to invest through the Trading 212 app, which seems to offer a solid platform for beginners like myself. The plan I’ve put together is based on a mix of personal research and AI-assisted analysis. I’ve aimed to balance long-term growth potential with some downside protection, given my age and time horizon.
Here’s the current breakdown of my investment pie:
- 20% in disruptive innovation ETFs
(ARKK 6%, BOTZ 4%, BLOK 4%, IDNA 3%, SKYY 3%)
- 30% in volatile growth stocks
(NVIDIA, Tesla, Palantir, CRISPR Therapeutics, SoFi — 6% each)
- 15% in global small-cap ETFs
(WSML and EMIM at 7.5% each)
- 15% in dividend ETFs
(VHYL and IUKD at 7.5% each)
- 20% in defensive assets
(IGLN and AGGG at 10% each — gold and global bonds)
All ETFs are UCITS-compliant and, where possible, London-listed to ensure ISA compatibility and reduce FX exposure.
I feel very fortunate to be in this position and want to make the most of this opportunity. That said, I’m still young and relatively inexperienced, so I’d really appreciate any feedback or suggestions from those with more investing experience.
A few specific questions I’d love input on:
- Should I be taking on more risk (e.g. increasing my allocation to disruptive innovation)?
- Are there any investments listed above that you think I should avoid — and if so, what would you recommend instead, and why?
- Are there any tax implications I should be aware of when investing through Trading 212 outside of an ISA — particularly around capital gains or dividends?
Thanks in advance for your time and advice!
I’m an 18-year-old with £10,000 currently sitting in a savings account. After a lot of research and discussion, I’ve come to realise that this money would be better off invested rather than slowly losing value to inflation. I’m currently on a gap year and will be starting a Master’s degree next year, so I know I won’t need access to this money for at least 7–8 years. With the intention of working part-time during my studies, I may not need to touch it for even longer — and I might even be able to add to it over time.
With that in mind, I’ve decided to invest through the Trading 212 app, which seems to offer a solid platform for beginners like myself. The plan I’ve put together is based on a mix of personal research and AI-assisted analysis. I’ve aimed to balance long-term growth potential with some downside protection, given my age and time horizon.
Here’s the current breakdown of my investment pie:
- 20% in disruptive innovation ETFs
(ARKK 6%, BOTZ 4%, BLOK 4%, IDNA 3%, SKYY 3%)
- 30% in volatile growth stocks
(NVIDIA, Tesla, Palantir, CRISPR Therapeutics, SoFi — 6% each)
- 15% in global small-cap ETFs
(WSML and EMIM at 7.5% each)
- 15% in dividend ETFs
(VHYL and IUKD at 7.5% each)
- 20% in defensive assets
(IGLN and AGGG at 10% each — gold and global bonds)
All ETFs are UCITS-compliant and, where possible, London-listed to ensure ISA compatibility and reduce FX exposure.
I feel very fortunate to be in this position and want to make the most of this opportunity. That said, I’m still young and relatively inexperienced, so I’d really appreciate any feedback or suggestions from those with more investing experience.
A few specific questions I’d love input on:
- Should I be taking on more risk (e.g. increasing my allocation to disruptive innovation)?
- Are there any investments listed above that you think I should avoid — and if so, what would you recommend instead, and why?
- Are there any tax implications I should be aware of when investing through Trading 212 outside of an ISA — particularly around capital gains or dividends?
Thanks in advance for your time and advice!
Nathann said:
Hello everybody, this is my first post.
I'm an 18-year-old with £10,000 currently sitting in a savings account. After a lot of research and discussion, I've come to realise that this money would be better off invested, rather than slowly losing value to inflation. ...
I'm an 18-year-old with £10,000 currently sitting in a savings account. After a lot of research and discussion, I've come to realise that this money would be better off invested, rather than slowly losing value to inflation. ...
Well done for begining your investments at a young age.
I managed to stop working for an employer at age 53, but only started serious investing when I was 10 years older than you.
Cars seemed more fun than shares, when I was 18.
Compared to my strategy, your selection seems quite complex, but that does not mean it will not be successful, just a different perspective.
What can I tell you that might be helpful?
1. Expect you have everything recorded on a spreadsheet. Keep an eye on your overall percentage growth figure from 1 Jan each year.
Compare that to a suitable benchmark. I use the FTSE All-Share Index, but that won't be right for your holdings.
The reason for doing this, is to know exactly how you are doing compared to the average. If you tend to be beating the market more than losing, during good times and market crashes, then you know everything is going to plan. Don't become fixated on the individual holdings, it is the overall that is important.
2. You are bound to encounter market crashes. You might even experience a drop of 20% in a week. Don't panic. If you are holding the right investments (select a few defensive businesses, where products or services are always in steady demand), you can view a widespread market crash as an opportunity.
During the Pandemic crash, I bought into just three businesses for my grandchildren. They don't know anything about that gift, but it has more than doubled since purchase and their dividends are growing.
3. Long-term patience and compounding are your friends. Instead of trying to time the market (gambling), time in the market is a more certain method.
There is lots to learn, but you have made a good start.
What will you need the money for when you do need it? - the assumption given your age would be a house deposit.
If this is the case then I'd be thinking of something that will track the price of property, so if it goes up in value then you'll still be able to afford a deposit (and if it goes down then it doesn't matter if the investment loses some value).
Perhaps something like shares in builders.
If this is the case then I'd be thinking of something that will track the price of property, so if it goes up in value then you'll still be able to afford a deposit (and if it goes down then it doesn't matter if the investment loses some value).
Perhaps something like shares in builders.
ferret50 said:
I would suggest that you use T212's ISA wrapper.
Further, I would have eaxh section in a single 'pie', easy to manage and balance.
Thanks for the suggestions — really appreciate it! Just to confirm, am I right in thinking that as long as I create my pies within a Stocks & Shares ISA on Trading 212, the ISA wrapper automatically applies to all investments inside it? Also, I really like the idea of separating the portfolio into multiple pies — I’ll definitely be using that approach. Thanks again!Further, I would have eaxh section in a single 'pie', easy to manage and balance.
Jon39 said:
1. Expect you have everything recorded on a spreadsheet. Keep an eye on your overall percentage growth figure from 1 Jan each year.
Compare that to a suitable benchmark. I use the FTSE All-Share Index, but that won't be right for your holdings.
The reason for doing this, is to know exactly how you are doing compared to the average. If you tend to be beating the market more than losing, during good times and market crashes, then you know everything is going to plan. Don't become fixated on the individual holdings, it is the overall that is important.
3. Long-term patience and compounding are your friends. Instead of trying to time the market (gambling), time in the market is a more certain method.
Hi Jon, thanks so much for the advice! The spreadsheet tracking idea sounds brilliant — I’ll definitely be implementing that. I also completely agree about avoiding the temptation to time the market.Compare that to a suitable benchmark. I use the FTSE All-Share Index, but that won't be right for your holdings.
The reason for doing this, is to know exactly how you are doing compared to the average. If you tend to be beating the market more than losing, during good times and market crashes, then you know everything is going to plan. Don't become fixated on the individual holdings, it is the overall that is important.
3. Long-term patience and compounding are your friends. Instead of trying to time the market (gambling), time in the market is a more certain method.
When it comes to monitoring growth, am I right in thinking that if my investments are underperforming by the end of the year, I should reassess my overall strategy? Or is it better to simply replace the weaker performers with more promising alternatives while keeping the broader plan intact?
Retiring at 53 sounds incredible — would love to hear how you got started with investing and what strategies helped you along the way. Thanks again for the guidance, I’ll be keeping it in mind as I move forward!
purplepolarbear said:
What will you need the money for when you do need it? - the assumption given your age would be a house deposit.
If this is the case then I'd be thinking of something that will track the price of property, so if it goes up in value then you'll still be able to afford a deposit (and if it goes down then it doesn't matter if the investment loses some value).
Perhaps something like shares in builders.
Hi, thanks again for the suggestions! I can definitely see the money going towards a first home or car in the future, but it’s hard to predict exactly how things will look at that point. Since I’ll be working part-time, I like the idea of leaving the £10,000 untouched and using income from the job to cover those kinds of expenses.If this is the case then I'd be thinking of something that will track the price of property, so if it goes up in value then you'll still be able to afford a deposit (and if it goes down then it doesn't matter if the investment loses some value).
Perhaps something like shares in builders.
I hadn’t considered builder shares before, so I really appreciate you bringing them to my attention — I’ll be looking into them further!
It feels too complex? Each fund will have it's own fees and there's bound to be overlap; that said there are many more experienced people on here than me to advise....!
Why don't you just dump it into two Vanguard funds?
I'm investing for my kids, and have done 40% into Vanguard Glb-Small Cap Index Acc and 60% into Lifestrategy 100% equity. Felt like a fire and forget type of setup and one I can drip into when I can.
I wouldn't pick single-stocks, it feels like you're spreading too thin with only £10k to invest.
Do you really need dividend stocks now? I'd pick accumulation funds to build assets, the dividend income would be so small.
Why don't you just dump it into two Vanguard funds?
I'm investing for my kids, and have done 40% into Vanguard Glb-Small Cap Index Acc and 60% into Lifestrategy 100% equity. Felt like a fire and forget type of setup and one I can drip into when I can.
I wouldn't pick single-stocks, it feels like you're spreading too thin with only £10k to invest.
Do you really need dividend stocks now? I'd pick accumulation funds to build assets, the dividend income would be so small.
Nathann said:
Hi, thanks again for the suggestions! I can definitely see the money going towards a first home or car in the future,
I would stick £4K in a LISA now, £4K in the best 1 year fix savings account you can find, and £2K in the best 2 years fix you can find. In a year move the other £4K into your LISA and in 2 years the remaining £2K into it. That £10K will then, in 2 years, automatically be worth £12500 with the govt top up, plus any interest. Providing it's eventually used to buy a house. You can pay up to £4K a year in and get a 25% bonus from the govt. My lad paid £32K in over 8 years and has just recouped £41K (£8K bonus and £3k interest) towards his new flat.
Money for old rope and no stress or worry, or even work.
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