21, Need direction/help with money.
Comments
-
Do you have access to a workplace pension and if so are you paying in enough to maximise your employers contributions? If not you're turning down free money!0
-
Do you have access to a workplace pension and if so are you paying in enough to maximise your employers contributions? If not you're turning down free money!
No unfortunately im on a temporary contract so have not started building a pension.
I have been doing some research this morning and im very interested in investing some money in a VLS fund perhaps VLS60 would this be soemthing i should think about as I already have an emergancy fund sorted?0 -
For someone your age a VLS 60 is quite a conservative (that's not to say low risk) choice imo, assuming that you're in it for the long haul and that you won't lose sleep or composure over what could (and probably will be at some point) double digit percentage losses.
If you're likely to start panicking and sell out to preserve what's left when stock markets inevitably crashes, which would be the very worst outcome without years worth of gains to offset it, then you need to look at the potential losses of your chosen fund and just be honest with yourself about how you'd handle that scenario because it'll be too late to find out you can't when it's already happening.
The problem is we've had years of almost uninterrupted year on year gains and there's a lot of over confidence and complacency imo which is understandable when almost every performance chart you look at resembles a climb to the top of Everest.
That said, personally I'd be looking at something a little higher on the risk scale, 80 or even 100 given that you're going to be holding it for well over a decade. Ultimately you have to do what feels right for you and be comfortable with the decision.'We don't need to be smarter than the rest; we need to be more disciplined than the rest.' - WB0 -
For someone your age a VLS 60 is quite a conservative (that's not to say low risk) choice imo, assuming that you're in it for the long haul and that you won't lose sleep or composure over what could (and probably will be at some point) double digit percentage losses.
If you're likely to start panicking and sell out to preserve what's left when stock markets inevitably crashes, which would be the very worst outcome without years worth of gains to offset it, then you need to look at the potential losses of your chosen fund and just be honest with yourself about how you'd handle that scenario because it'll be too late to find out you can't when it's already happening.
The problem is we've had years of almost uninterrupted year on year gains and there's a lot of over confidence and complacency imo which is understandable when almost every performance chart you look at resembles a climb to the top of Everest.
That said, personally I'd be looking at something a little higher on the risk scale, 80 or even 100 given that you're going to be holding it for well over a decade. Ultimately you have to do what feels right for you and be comfortable with the decision.
I personally was thinking of leaving it/building it for around ten years and see where I am in life then. It seems pretty easy to add to it if im so inclined and seems like with leaving it in for that length of time I should see decent returns unless i suffer from poor timing. The only questions I have are the account fees.... how do these work? I assume the account fees are taken anually out of my sum of money, vanguards seem very reasonable at 0.15%?
Im also correct in believing i can still open one even though i have a Instant Access ISA with nationwide and a Help To Buy ISA?0 -
No unfortunately im on a temporary contract so have not started building a pension.
I have been doing some research this morning and im very interested in investing some money in a VLS fund perhaps VLS60 would this be soemthing i should think about as I already have an emergancy fund sorted?
Do you have a particular goal for this £1000 you want to invest? Once you establish what you want to use it for, it gives it a timeline. Once you have a timeline, you can work out the best place for it to achieve that goal.
Personally speaking, I am probably more in line with Sarastro....I would be throwing everything I have at getting the deposit for a house. Don't forget, a house can be a very worthwhile investment too...!
Whilst I appreciate it's more risky than a well diversified portfolio invested over 20/30years, it is about the only typical asset that can not only serve as something extremely useful (i.e. gives you somewhere to live...!), but also has the ability to give extremely good returns on your money. As ever, solid research into where and what to buy will help you make a more informed (and hopefully less risky) decision.
I think it's always worth bearing in mind that getting on the ladder as quick as possible is a very wise idea, as house prices continue to rise and out-compete wage growth. As an example, me and my partner bought our first property in 2012, and it sold it for about 50% more in 3yrs. If we were earning roughly the same salary and had the same deposit at the time we sold it (accounting for inflation), we wouldn't actually have been able to buy it...!
As ever, past performance is not necessarily indicative of future trends, so it's up to you what you think is the best approach for you
From what I've read of your posts, it would seem to me your immediate goals are to:- Increase your income by securing better employment
- Saving for a deposit for a house
Perhaps I would focus on these by making full use of the various government schemes (H2B ISA, LISA, etc.), and then think about longer term investment decisions with S&S ISA, pensions, etc.
I'm afraid I don't know much about the H2B or LISA schemes, but maybe it's worth doing the necessary research and see if you would benefit from using that £1000 to maximise your benefits from these before thinking about S&S ISA's?
Of course this was just my approach when I was your age. You do what you think is best for you 0 -
Do you have a particular goal for this £1000 you want to invest? Once you establish what you want to use it for, it gives it a timeline. Once you have a timeline, you can work out the best place for it to achieve that goal.
Personally speaking, I am probably more in line with Sarastro....I would be throwing everything I have at getting the deposit for a house. Don't forget, a house can be a very worthwhile investment too...!
Whilst I appreciate it's more risky than a well diversified portfolio invested over 20/30years, it is about the only typical asset that can not only serve as something extremely useful (i.e. gives you somewhere to live...!), but also has the ability to give extremely good returns on your money. As ever, solid research into where and what to buy will help you make a more informed (and hopefully less risky) decision.
I think it's always worth bearing in mind that getting on the ladder as quick as possible is a very wise idea, as house prices continue to rise and out-compete wage growth. As an example, me and my partner bought our first property in 2012, and it sold it for about 50% more in 3yrs. If we were earning roughly the same salary and had the same deposit at the time we sold it (accounting for inflation), we wouldn't actually have been able to buy it...!
As ever, past performance is not necessarily indicative of future trends, so it's up to you what you think is the best approach for you
From what I've read of your posts, it would seem to me your immediate goals are to:- Increase your income by securing better employment
- Saving for a deposit for a house
Perhaps I would focus on these by making full use of the various government schemes (H2B ISA, LISA, etc.), and then think about longer term investment decisions with S&S ISA, pensions, etc.
I'm afraid I don't know much about the H2B or LISA schemes, but maybe it's worth doing the necessary research and see if you would benefit from using that £1000 to maximise your benefits from these before thinking about S&S ISA's?
Of course this was just my approach when I was your age. You do what you think is best for you
Thanks for your advice!
Those are definitely my two immiediate goals, i'm glad now i know to focus on adding to my Help To Buy ISA as I already have an established emergancy fund.
I think my reasoning for wanting to invest £1000 is the length of time it'll take to reach a sizeable house deposit maximising the use of the Help To Buy ISA. I cant help but feel i have an oppurtunity for something else to be running in the background given that im in a strong position of already having an emergancy fund. I can add to my Help To Buy ISA for the next year using spare money from my Instant Access ISA/ emergancy fund therefore leaving me with a spare £1k+ i could do somthing with in the meantime for my long term future and therefore I have become interested in a S&S ISA.Touch wood i should also have money coming in from employment obviousily.0 -
The only questions I have are the account fees.... how do these work? I assume the account fees are taken anually out of my sum of money, vanguards seem very reasonable at 0.15%?
Im also correct in believing i can still open one even though i have a Instant Access ISA with nationwide and a Help To Buy ISA?
I think most take fees quarterly. Vanguards platform certainly does and is likely to be the cheapest for you with a small sum. It has a limited number of funds available, which may or may not appeal to you.
Yes you can have a S&S ISA too. You can put max £20K total in this year across all types of ISA.0 -
Thanks for your advice!
Those are definitely my two immiediate goals, i'm glad now i know to focus on adding to my Help To Buy ISA as I already have an established emergancy fund.
I think my reasoning for wanting to invest £1000 is the length of time it'll take to reach a sizeable house deposit maximising the use of the Help To Buy ISA. I cant help but feel i have an oppurtunity for something else to be running in the background given that im in a strong position of already having an emergancy fund. I can add to my Help To Buy ISA for the next year using spare money from my Instant Access ISA/ emergancy fund therefore leaving me with a spare £1k+ i could do somthing with in the meantime for my long term future and therefore I have become interested in a S&S ISA.Touch wood i should also have money coming in from employment obviousily.
Yup that makes total sense!
Sorry I wasn't sure with all the figures flying around (and not being that clued up on the various ISA's for FTB's) whether you were comfortably maximising all those schemes or not. That was really what I was getting at. Sounds as if you are so I see no harm in starting a S&S ISA with other spare cash if that's what you are interested in.
As above, just be sure you know exactly what it entails (and whether it might impact on your yearly ISA allowance too!).0 -
I personally was thinking of leaving it/building it for around ten years and see where I am in life then. It seems pretty easy to add to it if im so inclined and seems like with leaving it in for that length of time I should see decent returns unless i suffer from poor timing. The only questions I have are the account fees.... how do these work? I assume the account fees are taken anually out of my sum of money, vanguards seem very reasonable at 0.15%?
Vanguard will work out as the cheapest platform for you at 0.15% platform fee, but don't forget that there is also an OCF for the fund, which is 0.22%, so the total cost is 0.37%.
Vanguard charge you quarterly for the fees. You can pay out of the investments in the account, but this isn't a great idea because it means selling some of the units you hold in the fund to do so. Instead, Vanguard allow you to set up a direct debit from your current account to pay the fees (a much better option). They will notify you in advance what the fees are for the quarter, and when they will be debited.0 -
While you're so relatively young cut back on spends (don't live like the pope mind) but cut down on your spends and save as much as you can.
As the higher your deposit (a few keep saying house prices are going up - not sure where you all are but they aren't going up much in the vast majority of the country) the lower mortgage you'll have and the better mortgage rate you'll have. I know it might be a while off but it's worth thinking of it now as the savings now makes a huge difference when you move in.
When I was saving I maxed out all the yearly savers (you can get upto 5% with some I think by putting upto £250 a month for a year into them - they will be under the banking and saving drop down menu). Then at the end of the year move them to a different savings. That can make a bit (bear in mind savings doesn't make loads, but it's better in your pocket)
I don't have shares myself as I don't want the risk.
make your 6 months money work for you too. If you're at home it's highly unlikely you're going to suddenly need it for something and even so in a lot of accounts it doesn't take that long to get it out:T:T :beer: :beer::beer::beer: to the lil one :beer::beer::beer:0
This discussion has been closed.
Categories
- All Categories
- 343.2K Banking & Borrowing
- 250.1K Reduce Debt & Boost Income
- 449.7K Spending & Discounts
- 235.3K Work, Benefits & Business
- 608K Mortgages, Homes & Bills
- 173.1K Life & Family
- 247.9K Travel & Transport
- 1.5M Hobbies & Leisure
- 15.9K Discuss & Feedback
- 15.1K Coronavirus Support Boards