Best way to save over 20+ years?
Peon
Posts: 8 Forumite
I want to start saving for my one year old.
Looking for something I can pay into regularly and can maximise our return over 20+ years.
Preferably something low maintenance.
I don't mind taking some medium risk with the money.
Any suggestions?
I have no knowledge of investing money but willing to learn, as long as it's not too complex.
Looking for something I can pay into regularly and can maximise our return over 20+ years.
Preferably something low maintenance.
I don't mind taking some medium risk with the money.
Any suggestions?
I have no knowledge of investing money but willing to learn, as long as it's not too complex.
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Comments
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JISA. Tax free.
What stocks/funds to invest in is a matter for your own research... But as your knowledge is minimum, and you want low-maintenance, I would look in the direction of "passive investing".0 -
For my granddaughter I'm using Legal and General international index trust Class C Acc.
Low cost, global.
I'm saving on a regular plan so the monthly costs are relatively low. Make sure your JISA provider allows regular low cost payments and that whatever fund you want is allowed. I'm with Hargreaves Lansdown.0 -
AnotherJoe wrote: »For my granddaughter I'm using Legal and General international index trust Class C Acc.
Low cost, global.
I'm saving on a regular plan so the monthly costs are relatively low. Make sure your JISA provider allows regular low cost payments and that whatever fund you want is allowed. I'm with Hargreaves Lansdown.
Hargreaves Lansdown are very expensive for funds. sure there are cheaper platforms that offer this fund?0 -
Hargreaves Lansdown are very expensive for funds. sure there are cheaper platforms that offer this fund?AnotherJoe wrote: »For my granddaughter I'm using Legal and General international index trust Class C Acc.
Low cost, global.
I'm saving on a regular plan so the monthly costs are relatively low. Make sure your JISA provider allows regular low cost payments and that whatever fund you want is allowed. I'm with Hargreaves Lansdown.
I'm looking for something that allows low cost payments like you say, as a lot are £50 minimum which I might not be able to afford every month.
Looks like Hargreaves Lansdown charge 0.45%, is that a lot? Their minimum is £25 per month which is more affordable for me.0 -
Their %age is higher than most but it depends on the sums involvedLooks like Hargreaves Lansdown charge 0.45%, is that a lot? Their minimum is £25 per month which is more affordable for me.
£50 pcm would be £600 in year one, that's less than £2.70 in fees. Would you call that a lot?
Edit: bowlhead99's assumptions and maths are more accurate than mine. I apologise for grossly overstating the costs involved
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If you contribute £25 a month your balance will go up from £0 at the beginning of the year to £300 at the end, ignoring investment growth. On average over the course of the year your balance will be a bit over £150.Looks like Hargreaves Lansdown charge 0.45%, is that a lot? Their minimum is £25 per month which is more affordable for me.
0.45% of £150 is 68p. Obviously more the next year when your balance starts at £300 and goes up to £600. But still not crazy money.
Charles Stanley Direct is only 0.25% instead of 0.45%. So you'd save almost half the platform cost. But the platform fee on a small amount, is only a small amount. C.S.D.'s offering is "get started from as little as £50 a month", and if you don't have that, it's probably better paying a few pence extra a year on your investment than not bothering with an investment at all. Shop around when the amounts are larger.0 -
Hargreaves Lansdown are very expensive for funds. sure there are cheaper platforms that offer this fund?
I'm piggybacking an existing SIPP so the extra 25% uplift cancels out the .45% and I'll pay that for the simplicity plus that's the only cost, no other. So yes there may be better places, however some of those will have their own charges so overall, and IIRC for relatively small amounts up to £10-£20k HL actually come so out as a low cost provider IIRC.
As it's in my name should she turn out to be a spendthrift at 18 I have control of the timing of the payout, that is one if the dangers of. a JISA.0 -
Hargreaves Lansdown are very expensive for funds. sure there are cheaper platforms that offer this fund?
I wouldn't say they are "very" expensive for funds for small amounts in JISAs although there are cheaper options. They're also very good for inexperienced investors.Remember the saying: if it looks too good to be true it almost certainly is.0 -
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