Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@. Skimlinks & other affiliated links are turned on

Search
  • FIRST POST
    • Peon
    • By Peon 14th Mar 17, 7:59 PM
    • 8Posts
    • 0Thanks
    Peon
    Best way to save over 20+ years?
    • #1
    • 14th Mar 17, 7:59 PM
    Best way to save over 20+ years? 14th Mar 17 at 7:59 PM
    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.
Page 1
    • jdw2000
    • By jdw2000 14th Mar 17, 8:05 PM
    • 415 Posts
    • 108 Thanks
    jdw2000
    • #2
    • 14th Mar 17, 8:05 PM
    • #2
    • 14th Mar 17, 8:05 PM
    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".
    • Peon
    • By Peon 14th Mar 17, 8:06 PM
    • 8 Posts
    • 0 Thanks
    Peon
    • #3
    • 14th Mar 17, 8:06 PM
    • #3
    • 14th Mar 17, 8:06 PM
    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".
    Originally posted by jdw2000
    Thanks. Any particular ones you recommend?
    • AnotherJoe
    • By AnotherJoe 14th Mar 17, 8:41 PM
    • 6,526 Posts
    • 6,943 Thanks
    AnotherJoe
    • #4
    • 14th Mar 17, 8:41 PM
    • #4
    • 14th Mar 17, 8:41 PM
    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.
    • economic
    • By economic 14th Mar 17, 8:43 PM
    • 1,498 Posts
    • 695 Thanks
    economic
    • #5
    • 14th Mar 17, 8:43 PM
    • #5
    • 14th Mar 17, 8:43 PM
    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.
    Originally posted by AnotherJoe
    Hargreaves Lansdown are very expensive for funds. sure there are cheaper platforms that offer this fund?
    • Peon
    • By Peon 14th Mar 17, 9:06 PM
    • 8 Posts
    • 0 Thanks
    Peon
    • #6
    • 14th Mar 17, 9:06 PM
    • #6
    • 14th Mar 17, 9:06 PM
    Hargreaves Lansdown are very expensive for funds. sure there are cheaper platforms that offer this fund?
    Originally posted by economic
    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.
    Originally posted by AnotherJoe
    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.
    • ColdIron
    • By ColdIron 14th Mar 17, 9:34 PM
    • 3,157 Posts
    • 3,595 Thanks
    ColdIron
    • #7
    • 14th Mar 17, 9:34 PM
    • #7
    • 14th Mar 17, 9:34 PM
    Looks like Hargreaves Lansdown charge 0.45%, is that a lot? Their minimum is £25 per month which is more affordable for me.
    Originally posted by Peon
    Their %age is higher than most but it depends on the sums involved

    £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
    Last edited by ColdIron; 14-03-2017 at 9:46 PM.
    • bowlhead99
    • By bowlhead99 14th Mar 17, 9:38 PM
    • 6,408 Posts
    • 11,339 Thanks
    bowlhead99
    • #8
    • 14th Mar 17, 9:38 PM
    • #8
    • 14th Mar 17, 9:38 PM
    Looks like Hargreaves Lansdown charge 0.45%, is that a lot? Their minimum is £25 per month which is more affordable for me.
    Originally posted by Peon
    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.

    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.
    • AnotherJoe
    • By AnotherJoe 14th Mar 17, 9:44 PM
    • 6,526 Posts
    • 6,943 Thanks
    AnotherJoe
    • #9
    • 14th Mar 17, 9:44 PM
    • #9
    • 14th Mar 17, 9:44 PM
    Hargreaves Lansdown are very expensive for funds. sure there are cheaper platforms that offer this fund?
    Originally posted by economic
    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.
    • jimjames
    • By jimjames 14th Mar 17, 9:47 PM
    • 11,829 Posts
    • 10,194 Thanks
    jimjames
    Hargreaves Lansdown are very expensive for funds. sure there are cheaper platforms that offer this fund?
    Originally posted by economic
    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.
    • jdw2000
    • By jdw2000 14th Mar 17, 10:06 PM
    • 415 Posts
    • 108 Thanks
    jdw2000
    Thanks. Any particular ones you recommend?
    Originally posted by Peon
    What you're after is a "low-cost, global fund of funds". There are many out there.

    It is very important you do your own research and make your own mind up.


    The main things at this stage are that it's low cost, and tax free (JISA).
    • Eco Miser
    • By Eco Miser 15th Mar 17, 4:23 PM
    • 2,838 Posts
    • 2,632 Thanks
    Eco Miser
    JISA. Tax free.
    Originally posted by jdw2000
    As good as that may be, it does not meet the OP's requirement for "20+ years", since it will come under the child's control in less than 17 years. Of course the child may decide to continue the investment as the OP wishes.
    Eco Miser
    Saving money for well over half a century
    • Peon
    • By Peon 15th Mar 17, 11:03 PM
    • 8 Posts
    • 0 Thanks
    Peon
    As good as that may be, it does not meet the OP's requirement for "20+ years", since it will come under the child's control in less than 17 years. Of course the child may decide to continue the investment as the OP wishes.
    Originally posted by Eco Miser
    This seems like a good length of time to me, the 20+ years was just a rough figure to be honest.
    • Eco Miser
    • By Eco Miser 16th Mar 17, 12:16 AM
    • 2,838 Posts
    • 2,632 Thanks
    Eco Miser
    Fair enough so long as you're aware of what happens on your child's 18th birthday.
    Some posters on here are horrified at the thought of a teenager taking control of the money that's been saved for them, and with you specifying 20+ years, I thought you may be one of them.
    Eco Miser
    Saving money for well over half a century
    • kidmugsy
    • By kidmugsy 16th Mar 17, 12:35 AM
    • 9,321 Posts
    • 6,112 Thanks
    kidmugsy
    Fair enough so long as you're aware of what happens on your child's 18th birthday.
    Some posters on here are horrified at the thought of a teenager taking control of the money that's been saved for them, and with you specifying 20+ years, I thought you may be one of them.
    Originally posted by Eco Miser
    Pah! I was a saver as a boy so I bought a motorbike at 18. Wonderful fun and a way to get to jobs that I couldn't have reached by public transport. To use the technical term it increased my "personal capital" i.e. my earning potential.
    • cashbackproblems
    • By cashbackproblems 16th Mar 17, 12:28 PM
    • 1,639 Posts
    • 628 Thanks
    cashbackproblems
    Their %age is higher than most but it depends on the sums involved

    £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
    Originally posted by ColdIron

    £27 per year you mean


    I am aware there are cheaper platforms but whenever I look at comparison tables theres always some extra fee with another broker e.g. buying/selling or minimum monthly fee which doesn't make HL too bad. Plus you get one of the easiest to use and research sites possibly out there.


    I currently have 30k so should be paying 1.3k per year...but when I look at my statement there only take out c£10 pm for their fees which Is odd.
    • vacheron
    • By vacheron 16th Mar 17, 12:32 PM
    • 676 Posts
    • 549 Thanks
    vacheron
    Fair enough so long as you're aware of what happens on your child's 18th birthday.
    Some posters on here are horrified at the thought of a teenager taking control of the money that's been saved for them, and with you specifying 20+ years, I thought you may be one of them.
    Originally posted by Eco Miser
    That would be me!

    I am looking for the exact same criteria but under my control!!!
    • The rich buy assets.
    • The poor only have expenses.
    • The middle class buy liabilities they think are assets.
    Robert T. Kiyosaki
    • xylophone
    • By xylophone 16th Mar 17, 1:04 PM
    • 21,626 Posts
    • 12,435 Thanks
    xylophone
    I am looking for the exact same criteria but under my control!!!
    And there is no problem with this - you can use your own ISA for tax efficiency and then make gifts as and when you wish.

    Or if you have other plans for your ISA, you could consider a "designated"(not bare trust) savings scheme - the money remains yours, remains part of your estate and is taxed as yours.

    If you went down either of the above routes, you would need to make a specific bequest in your will if you wished the money to go to the child if you died before making any gifts.

    Butif you should need means tested benefits, the money in both the ISA and the designated account would be taken into account because they remain your assets.

    And there could be IHT considerations.....

    Should relatives make specific gifts to the child, they would belong to the child absolutely whether inside or outside a JISA - the child would have the right to control a JISA at 16 and access it at 18.

    Outside an ISA, if held in bare trust, the child would have the right to access at 18 (16 in Scotland).
    • ColdIron
    • By ColdIron 16th Mar 17, 1:28 PM
    • 3,157 Posts
    • 3,595 Thanks
    ColdIron
    £27 per year you mean
    .
    Originally posted by cashbackproblems
    No, I meant £2.70 per year

    £600 * 0.45% = £2.70

    I currently have 30k so should be paying 1.3k per year...but when I look at my statement there only take out c£10 pm for their fees which Is odd
    That's because you have made the same mistake you made above
    £30,000 * 0.45% = £135 which is roughly what you are being charged

    theres always some extra fee with another broker e.g. buying/selling or minimum monthly fee which doesn't make HL too bad
    You think HL aren't too bad when you think they are charging 4.5%? Blimey
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

155Posts Today

1,255Users online

Martin's Twitter