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
    • Cameron1590
    • By Cameron1590 17th Apr 17, 10:14 PM
    • 95Posts
    • 15Thanks
    Cameron1590
    Should I open a S&S ISA?
    • #1
    • 17th Apr 17, 10:14 PM
    Should I open a S&S ISA? 17th Apr 17 at 10:14 PM
    Hi All,

    I'm after some advice. I am looking to start putting some money aside for a little nest egg in the future. No particular plans or wishes that I want the money for just something to fall back on in the future.

    I am in my 20s and have a mortgaged property, I have around 2k saved in high interest savings/current accounts. I was thinking about putting a very nominal amount into a s&s isa, around £100 to start with followed by a monthly top up of £50. I don't have any plans to draw the money anytime soon and understand that investing is a long term plan and not short term.

    Is it worth me doing? Or am I bet putting the cash in a savings account for the time being until I can commit more money to a s&s isa?

    Thanks
Page 1
    • george4064
    • By george4064 17th Apr 17, 10:22 PM
    • 819 Posts
    • 865 Thanks
    george4064
    • #2
    • 17th Apr 17, 10:22 PM
    • #2
    • 17th Apr 17, 10:22 PM
    The earlier you start, the better.
    "If you aren’t willing to own a stock for ten years, don’t even think about owning it for ten minutes” Warren Buffett

    Save £12k in 2016 - #045 £10,358.81/£12,000 (86%)
    Save £12k in 2017 - #003 £9,136.98/£12,000 (76%)
    • jimjames
    • By jimjames 17th Apr 17, 11:07 PM
    • 12,009 Posts
    • 10,449 Thanks
    jimjames
    • #3
    • 17th Apr 17, 11:07 PM
    • #3
    • 17th Apr 17, 11:07 PM
    I agree with George, worth starting as soon as you have some money spare. Also means you get to see how markets work and the impact of rises and falls so you're aware of it and understand before your pot gets too big.
    Remember the saying: if it looks too good to be true it almost certainly is.
    • eskbanker
    • By eskbanker 18th Apr 17, 12:12 AM
    • 5,466 Posts
    • 5,270 Thanks
    eskbanker
    • #4
    • 18th Apr 17, 12:12 AM
    • #4
    • 18th Apr 17, 12:12 AM
    Is it worth me doing? Or am I bet putting the cash in a savings account for the time being until I can commit more money to a s&s isa?
    Originally posted by Cameron1590
    The usual advice on here is to build an emergency rainy day fund of 3-6 months worth of income (or outgoings) in readily-accessible cash form, to cover for unexpected events such as job loss, ill health, family crisis, major premature spend on cars, boilers, white goods, etc.

    It is only a rule of thumb when all is said and done, and we have no idea how the rest of your finances stack up, but £2K of savings does seem a bit light before starting to go down the investment route....
    • TheShape
    • By TheShape 18th Apr 17, 12:22 AM
    • 1,017 Posts
    • 772 Thanks
    TheShape
    • #5
    • 18th Apr 17, 12:22 AM
    • #5
    • 18th Apr 17, 12:22 AM
    I too think that investing £50 a month is worthwhile. It gets you started, helps you 'get a feel' for investing and gets you into a regular habit.

    However, I'm going to suggest spending some time building your cash savings. £2k isn't a huge savings pot and an unexpected event (loss of income, boiler packs-up, car repairs) could wipe out most of that in no time. 5% in a current account/regular saver combo could see you grow that significantly over the next 12 months or so. Having a decent cash/emergency fund has given me a lot of confidence to invest going forward.
    • gt94sss2
    • By gt94sss2 18th Apr 17, 12:25 AM
    • 3,976 Posts
    • 1,837 Thanks
    gt94sss2
    • #6
    • 18th Apr 17, 12:25 AM
    • #6
    • 18th Apr 17, 12:25 AM
    eskbanker's advice is sound. Make sure you have a sufficient rainy day fund before you start to invest in an S&S though its good you are thinking about this early.

    You also don't mention if you have a pension but definitely worth getting one asap if not especially if your employer contributes to it..
    • Bravepants
    • By Bravepants 18th Apr 17, 8:23 AM
    • 246 Posts
    • 270 Thanks
    Bravepants
    • #7
    • 18th Apr 17, 8:23 AM
    • #7
    • 18th Apr 17, 8:23 AM
    Yes, I wish I had started investing properly in my 20s. Even £50 to £100 is a good start in something simple and passive, until you know the ropes. Don't get worried about falls and rises in the market, just keep paying in monthly!

    Check out the passive investing section of monevator.com, and the cover page is particularly worth reading at the moment.

    As your career progresses and once you get above the 40% tax threshold, think about adding extra into your pension. You may want to do that anyway, to make sure you have extra stashed for your future, and if you want to retire from age 55. With good investment performance you could even find yourself able to retire much earlier - need S&S ISA or other investments for that though. But don't sweat it, don't forget to enjoy life.

    I agree however that you should have an emergency cash fund established as mentioned above.
    Good luck!
    Last edited by Bravepants; 18-04-2017 at 8:27 AM.
    • AnotherJoe
    • By AnotherJoe 18th Apr 17, 10:14 AM
    • 7,228 Posts
    • 7,741 Thanks
    AnotherJoe
    • #8
    • 18th Apr 17, 10:14 AM
    • #8
    • 18th Apr 17, 10:14 AM
    Things to do, in order;

    1 Rainy day fund (More than £2k. £5K as a minimum and you can still get good interest on that)
    2 Start pension and pay enough to get maximum employers contribution as a minimum
    3 Save for house in a LISA (if you are planning to buy one of course )
    4 Start investing in an ISA.

    You appear to be around half way to point 1.
    • TheShape
    • By TheShape 18th Apr 17, 10:28 AM
    • 1,017 Posts
    • 772 Thanks
    TheShape
    • #9
    • 18th Apr 17, 10:28 AM
    • #9
    • 18th Apr 17, 10:28 AM
    Things to do, in order;

    1 Rainy day fund (More than £2k. £5K as a minimum and you can still get good interest on that)
    2 Start pension and pay enough to get maximum employers contribution as a minimum
    3 Save for house in a LISA (if you are planning to buy one of course )
    4 Start investing in an ISA.

    You appear to be around half way to point 1.
    Originally posted by AnotherJoe
    And OP already has a property so can skip step 3
    • AnotherJoe
    • By AnotherJoe 18th Apr 17, 1:33 PM
    • 7,228 Posts
    • 7,741 Thanks
    AnotherJoe
    I missed that, thanks TS. (and with a house to care for£2k is definitely inadequate as a rainy day fund)
    • Cameron1590
    • By Cameron1590 18th Apr 17, 8:03 PM
    • 95 Posts
    • 15 Thanks
    Cameron1590
    Thanks all for the positive input.

    All advice taken and noted, having not long purchased my first house (two years ago). We are still in the process of fitting a new kitchen etc.

    I do have other savings for this work however I completely agree my emergency fund needs to be much greater than it currently is. I will continue to top this up and hopefully start a S&S fund shortly once I have around 5k saved.

    Thanks
    Cameron
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

237Posts Today

1,226Users online

Martin's Twitter
  • Shana tova umetuka - a sweet Jewish New Year to all celebrating. I won't be online the rest of t'week, as I take the time to be with family

  • Dear Steve. Please note doing a poll to ask people's opinion does not in itself imply an opinion! https://t.co/UGvWlMURxy

  • Luciana is on the advisory board of @mmhpi (we have MPs from most parties) https://t.co/n99NAxGAAQ

  • Follow Martin