Shares and Savings Query

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bloke91
bloke91 Posts: 77 Forumite
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in Savings & investments
Hi

I have a cash isa with about 6 months worth of salary, also have a managed stocks and shares isa with about 5k in it currently.

I don't know much about buying shares apart from what I have read on the web, I am considering if I should buy shares as my next investment for the future.

As I already have a managed stocks and shares ISA, I am not sure if I would be better ploughing all extra money into this and making full use of the tax free yearly allowance?

Alternatively keep my stocks and shares isa where it is and look at a managed investment account with some like Barclays and pay a set amount each month to create a managed portfolio of shares.

Any advice would be appreciated please.

Thanks

Comments

  • Money_Help
    Money_Help Posts: 63 Forumite
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    If you planning to save/invest for the long term (10yrs+) then an investment into the stock market is likely to grow more than a cash based saving product. However investing is more risky and there is no guarantee the amount in the future will be worth more than what you start with. It could be worth less.

    Making use of your ISA allowance is a good way to avoid taxes on income and future growth.

    If you are unsure on how to invest there are plenty of good online automated investment accounts that will take you through a set of questions to try and design an appropriate diversified portfolio for you.

    With investing it is crucial to keep your costs low. You can't control the markets but you can control what you pay!
    I'm a Chartered Financial Planner. Trying to be helpful without giving advice.
  • MallyGirl
    MallyGirl Posts: 6,627 Senior Ambassador
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    you haven't mentioned anything about a pension. If you are thinking long term - which you should be for any more of shares/investment - then the tax breaks that come with pensions are 'free money'.
    I can't see any reason to pay any more management fees than you already do (or even as many as you do) for those sums of money.
    Sort your pension and/or add to ISA
    I’m a Senior Forum Ambassador and I support the Forum Team on the Pensions, Annuities & Retirement Planning, Loans
    & Credit Cards boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com.
    All views are my own and not the official line of MoneySavingExpert.
  • cloud_dog
    cloud_dog Posts: 6,044 Forumite
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    Too little information I'm afraid.
    1. Age?
    2. Dependents?
    3. Employment status; employed, self employed, director and employee of Ltd company?
    4. Mortgage (outstanding / paying off date)?
    5. Pension situation?
    6. Current state pension situation (check here)?
    7. Likely plans for retirement, i.e. earlier than state pension age?
    8. Any financial goals (expensive cars / holidays etc)?
    Personal Responsibility - Sad but True :D

    Sometimes.... I am like a dog with a bone
  • bloke91
    bloke91 Posts: 77 Forumite
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    Some further information for you, hopefully this will lead to some further thoughts.

    I am really thinking of it as a long term investment for retirement and such like.


    Age - 33
    Dependents - None at the moment.
    Employment status; - Full time employed.
    Mortgage (outstanding / paying off date) - Yes will pay off by time I am 55
    Pension situation. Defined Contribution Pension total of 18% percent month paid by myself and employer.
    Aiming to retire around 65-67 etc.
  • Eco_Miser
    Eco_Miser Posts: 4,708 Forumite
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    You say shares, individual shares are highly risky (you could have bought Carillion for instance). Funds are less risky as the fund buys hundreds or thousands of different shares, which are not all going to fold at once.

    Use an ISA, either your current one or start a new one after April 6th.

    Have a read around Monevator for ideas on investment planning.
    Eco Miser
    Saving money for well over half a century
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