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    • Loan Saver
    • By Loan Saver 6th Jul 17, 3:01 PM
    • 1Posts
    • 0Thanks
    Loan Saver
    ISA or General Investing Apps?
    • #1
    • 6th Jul 17, 3:01 PM
    ISA or General Investing Apps? 6th Jul 17 at 3:01 PM
    Hi there,

    Looking for advice as I am completely inexperienced when it comes to the financial arena.

    I am self employed, under 30 and looking to put my savings somewhere where they can grow. I will be looking to initially put in about £2500-3000 with a top up every month between £100-250 depending on variable income. It's not a lot but I'm hoping that if I stick with it it will grow. I have had an ISA in the past and am considering another one however I have also looked in to general investing apps such as Moneyfarm. I like the option of being able to withdraw funds if necessary but am unaware of the benefits and negatives other than risking losing capital by investing.

    Can anyone advise me on that information on their experiences or what they might do in my situation. Be very grateful for any help and education you can give me.

    Thanks!
Page 1
    • bostonerimus
    • By bostonerimus 6th Jul 17, 3:15 PM
    • 879 Posts
    • 443 Thanks
    bostonerimus
    • #2
    • 6th Jul 17, 3:15 PM
    • #2
    • 6th Jul 17, 3:15 PM
    First of all I would educate yourself so you understand the basics of investing before you do anything. You need to be in charge of your money....nobody will take better care of it than you.

    Then I would search on various platforms......my personal favourite is Vanguard because I've used them for years in the USA. Right now they are expanding in the UK and offer an ISA where you can buy their low cost funds. You can't buy other funds, but frankly there's often too much choice on platforms. I imagine UK Vanguard will be adding things like SIPPs soon. Anyway take a look at their site along with others and pay particular attention to keeping your fees low.
    Misanthrope in search of similar for mutual loathing
    • eskbanker
    • By eskbanker 6th Jul 17, 3:15 PM
    • 5,465 Posts
    • 5,270 Thanks
    eskbanker
    • #3
    • 6th Jul 17, 3:15 PM
    • #3
    • 6th Jul 17, 3:15 PM
    The usual recommendation is to establish an emergency 'rainy day' fund of 3-6 months worth of outgoings in readily-accessible cash form, i.e. savings not investments.

    Also, making sure that you take advantage of the tax efficiencies of pension contributions should be a priority.

    Once you have both of these in place, and assuming your property needs are taken care of, then you could start to consider investing for long-term (5+ year) money. Using a S&S ISA is the most tax-advantageous way of doing this - you should bear in mind that there are then another couple of layers, namely platforms (e.g. Hargreaves Lansdown and many others, including Moneyfarm) and underlying investments that are held within these platforms (funds, equities, etc).

    Search this forum for threads about Moneyfarm, in which you'll see that many dismiss it as gimmicky and expensive (but others defend it to the hilt) versus the more mainstream platforms.

    Read up on the articles at http://www.moneysavingexpert.com/investments/ and sites like Monevator and Motley Fool to get up to speed with investing, but follow the above steps first....
    • luke623
    • By luke623 6th Jul 17, 6:32 PM
    • 49 Posts
    • 38 Thanks
    luke623
    • #4
    • 6th Jul 17, 6:32 PM
    • #4
    • 6th Jul 17, 6:32 PM
    This is what i done when i was in your situation:

    I watched a lot of you tube videos on how investing works and read many articles. I then compared many different investment platforms and came to the conclusion that Hargreaves and Lansdown was the best for me. I opened a Lifetime ISA as i am saving for a house. I can invest £4000 a year into funds/stocks and receive a 25% bonus on deposits but can only use the money for buying a house or retirement. This is just me and my situation but you can also open up a normal stocks and shares ISA.

    As i was limited to depositing £4000 a year (£333 per month) into my Lifetime ISA, i decided to look at other investment options as i had more money i wanted to save/invest. I cam across a peer 2 peer lending site called Funding Circle. You can invest as little as £20 into a business and receive high rates of interest back. I am currently receiving 8.9% interest but i believe the average is about 7%.

    This is how i save my money as the low interest rates offered by a lot of banks is low. Hope this helps!

    Luke
    • eskbanker
    • By eskbanker 6th Jul 17, 6:46 PM
    • 5,465 Posts
    • 5,270 Thanks
    eskbanker
    • #5
    • 6th Jul 17, 6:46 PM
    • #5
    • 6th Jul 17, 6:46 PM
    I watched a lot of you tube videos on how investing works and read many articles. I then compared many different investment platforms and came to the conclusion that Hargreaves and Lansdown was the best for me. I opened a Lifetime ISA as i am saving for a house. I can invest £4000 a year into funds/stocks and receive a 25% bonus on deposits but can only use the money for buying a house or retirement. This is just me and my situation but you can also open up a normal stocks and shares ISA.

    As i was limited to depositing £4000 a year (£333 per month) into my Lifetime ISA, i decided to look at other investment options as i had more money i wanted to save/invest. I cam across a peer 2 peer lending site called Funding Circle. You can invest as little as £20 into a business and receive high rates of interest back. I am currently receiving 8.9% interest but i believe the average is about 7%.

    This is how i save my money as the low interest rates offered by a lot of banks is low.
    Originally posted by luke623
    Seems very rash to me to invest (with capital at risk) simply because (capital-protected) savings rates are low! Are you in a position to defer your property purchase by a few years if/when your investments lose significant value?

    As you'll have seen in my previous post (and your YouTube videos no doubt), platform selection and investment selection are two entirely different processes and the latter is far more important - what is your HL LISA money actually invested in?

    Glad you mentioned P2P though, I neglected to include that earlier, although again it's not without risk.
    • bigadaj
    • By bigadaj 6th Jul 17, 9:38 PM
    • 10,009 Posts
    • 6,411 Thanks
    bigadaj
    • #6
    • 6th Jul 17, 9:38 PM
    • #6
    • 6th Jul 17, 9:38 PM
    This is what i done when i was in your situation:

    I watched a lot of you tube videos on how investing works and read many articles. I then compared many different investment platforms and came to the conclusion that Hargreaves and Lansdown was the best for me. I opened a Lifetime ISA as i am saving for a house. I can invest £4000 a year into funds/stocks and receive a 25% bonus on deposits but can only use the money for buying a house or retirement. This is just me and my situation but you can also open up a normal stocks and shares ISA.

    As i was limited to depositing £4000 a year (£333 per month) into my Lifetime ISA, i decided to look at other investment options as i had more money i wanted to save/invest. I cam across a peer 2 peer lending site called Funding Circle. You can invest as little as £20 into a business and receive high rates of interest back. I am currently receiving 8.9% interest but i believe the average is about 7%.

    This is how i save my money as the low interest rates offered by a lot of banks is low. Hope this helps!

    Luke
    Originally posted by luke623
    How much do you have in funding secure and what default rate are you experiencing?
    • luke623
    • By luke623 10th Jul 17, 1:53 PM
    • 49 Posts
    • 38 Thanks
    luke623
    • #7
    • 10th Jul 17, 1:53 PM
    • #7
    • 10th Jul 17, 1:53 PM
    Seems very rash to me to invest (with capital at risk) simply because (capital-protected) savings rates are low! Are you in a position to defer your property purchase by a few years if/when your investments lose significant value?

    As you'll have seen in my previous post (and your YouTube videos no doubt), platform selection and investment selection are two entirely different processes and the latter is far more important - what is your HL LISA money actually invested in?

    Glad you mentioned P2P though, I neglected to include that earlier, although again it's not without risk.
    Originally posted by eskbanker
    I am not in a rush to buy a property so i can wait an extra few years if the price of the fund did go down.I will be investing money into other things as i do not want all my money sitting in one fund.My money is currently in HL Multi-Manager Income & Growth Trust. The 25% bonus will also act as a buffer.

    This is just what i have done, perhaps my attitude to risk is more lax than others. I may be young and naive but i'm not rich or well off or what ever you want to call it by putting money into low interest banks.

    Luke
    • luke623
    • By luke623 10th Jul 17, 1:57 PM
    • 49 Posts
    • 38 Thanks
    luke623
    • #8
    • 10th Jul 17, 1:57 PM
    • #8
    • 10th Jul 17, 1:57 PM
    How much do you have in funding secure and what default rate are you experiencing?
    Originally posted by bigadaj
    I have a total of £269.08 in my funding circle account.
    My actual annualized return after fees and bad debts is 8.9%
    My estimated annual returns after fees and bad debts is 7.7%

    My net earnings so far have been £7.68. I have had it since around March and just invest the odd £20 when i see something appealing to invest in
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