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  • FIRST POST
    • cjv
    • By cjv 8th Jul 17, 3:13 AM
    • 106Posts
    • 57Thanks
    cjv
    Looking for further investment options
    • #1
    • 8th Jul 17, 3:13 AM
    Looking for further investment options 8th Jul 17 at 3:13 AM
    Hello, I am looking around for an additional regular investment opportunity but feel like I have exhausted the obvious options.

    I know nothing about investing, other than what I have googled over the past couple of months so please forgive me if I make mistakes when explaining what I have done so far. The MSE site has been really helpful to me in learning the very basics (I hope) and I have tried to do as much research as possible so that I am comfortable with my choices.

    I decided in April that I would start a five year plan and save as big a deposit as possible for a property (I have never saved before this time).

    I am 36 years old and after discussing my plans with my parents they have kindly let me move in with them to help me reach my goal. This will allow me to save around £800-£950 per month if I am very careful with my budgeting.

    I am happy to accept some risk for the chance of better returns. I am also open to cashing in my investments if they are performing well after 4 years, or extending my five year plan if I need to ride out some downturns. Access to my money is also quite important to me, just in case circumstances change.

    My current plans are as follows:

    1.TSB and TESCO current accounts, to fill these up to the limits asap for the 3% interest.
    2.Nutmeg S&S LISA opened with £500. Plan to pay in the full £4000 per year
    3.Funding Circle, opened with £1000 and aiming to add another £1000 so I can spread my loans across 100 businesses (no more than 1% per business)
    4.Vanguard S&S ISA, currently £800 in a Life Strategy 60 and have just set up £300 per month regular payment (£100 into the LS60, £100 into FTSE Developed World ex-U.K. Equity Index Fund, £100 into FTSE U.K. All Share Index Unit Trust)

    I have tried to spread my money out to diversify, which I read on many sites is a good thing to do and am looking for one more investment. I would like to fund this investment with around £100 per month.

    Initially I was going to add another fund to my Vanguard ISA, but I think it would be more fun to have another type of investment in my portfolio.

    Any suggestions are most welcome, also why does typing "my portfolio" make me feel intelligent?

    Many thanks,
Page 2
    • Eco Miser
    • By Eco Miser 8th Jul 17, 10:07 PM
    • 3,181 Posts
    • 2,947 Thanks
    Eco Miser
    Keep things simple......a bank saving account, a work place pension and an S&S ISA and long term saving will be just fine for most people.
    Originally posted by bostonerimus
    In the UK, bank savings accounts pay rubbish interest (e.g. 0.05%) compared to other forms of bank account (e.g. 5.00%), so naturally those who have worked this out maximise the high interest accounts (which only pay on a few thousand pounds each).
    Eco Miser
    Saving money for well over half a century
    • Eco Miser
    • By Eco Miser 8th Jul 17, 10:15 PM
    • 3,181 Posts
    • 2,947 Thanks
    Eco Miser
    Get paid in my TSB account, then make a faster payment to TESCO>Nationwide etc. manually each month. Once they are all full, open and pay out the extra funds to the regular savers.
    Originally posted by cjv
    NO. Open a regular saver each month, starting now with the Nationwide Flexclusive 5%. This helps even out your cash flows when they mature.
    Don't wait to fill the current accounts first. Start with the higher rates and work down.
    After four years, don't reopen any savers that you can't close early.
    Eco Miser
    Saving money for well over half a century
    • AnotherJoe
    • By AnotherJoe 9th Jul 17, 5:02 PM
    • 7,600 Posts
    • 8,201 Thanks
    AnotherJoe

    I plan to save as big a deposit as possible over the next 5 years, the dream is to get around £60,000 in that time giving me opportunity for a great mortgage rate, and the ability to be mortgage free sooner.
    Originally posted by cjv
    In general house prices have risen faster than the interest you are getting on savings, so statistically you'd be better off going for say a 10% deposit, which gets a decent mortgage rate rather than the very best, but once you are in your apt/house then you are riding house price inflation upwards without needing to save to do that.

    Obviously if there's a dip in prices as you save then you can wait a while but setting an arbitrary target without looking at what prices are doing could leave you stranded.
    • cjv
    • By cjv 9th Jul 17, 7:14 PM
    • 106 Posts
    • 57 Thanks
    cjv
    Thanks for that, I had not even considered it. I could potentially just max out my LISA for 4 or 5 years to get the bonus and use that for my deposit.

    Then the rest of my savings can stay invested as an emergency fund or be used to make overpayments or house improvements.

    Something else for me to think about
    • cjv
    • By cjv 9th Jul 17, 7:18 PM
    • 106 Posts
    • 57 Thanks
    cjv
    sorry double post
    • cjv
    • By cjv 9th Jul 17, 7:19 PM
    • 106 Posts
    • 57 Thanks
    cjv
    Thank you EcoMiser, I was a bit confused at the process. The Nationwide current account for example only pays 5% for 12 months so I assumed it would be best to wait until I have enough funds to fill that up before opening it and then using the linked regular saver so I get the interest for the full 12 months.

    This thread has been an education

    Now I just need to learn how to use the quote function
    • Eco Miser
    • By Eco Miser 9th Jul 17, 11:25 PM
    • 3,181 Posts
    • 2,947 Thanks
    Eco Miser
    Now I just need to learn how to use the quote function
    Originally posted by cjv
    Click the quote button and type below the text in the box that appears.
    Thank you EcoMiser, I was a bit confused at the process. The Nationwide current account for example only pays 5% for 12 months so I assumed it would be best to wait until I have enough funds to fill that up before opening it and then using the linked regular saver so I get the interest for the full 12 months.
    Originally posted by cjv
    You may be right, but you don't need a FlexDirect to open a Flexclusive RS. (and you get another bite at the cherry after a further 12 months)
    Also what are you doing with the money while you are saving enough to take full advantage of the interest?

    I was assuming you had an emergency fund in cash (which is best kept in a high interest current account alongside your savings). Re-reading your OP, you don't which makes investing in S&S even more risky.
    Eco Miser
    Saving money for well over half a century
    • cjv
    • By cjv 9th Jul 17, 11:50 PM
    • 106 Posts
    • 57 Thanks
    cjv
    I was assuming you had an emergency fund in cash (which is best kept in a high interest current account alongside your savings). Re-reading your OP, you don't which makes investing in S&S even more risky.
    Originally posted by Eco Miser
    Thanks again.

    After considering everyone's advice over the past couple of days I have decided now to focus entirely on building up my Cash in high interest current accounts/regular savers alongside making sure I have the full £4000 in my S&S LISA each year. If we ever get a decent Cash LISA rate on the market I will think about transferring into that for a bit more security.

    A Nationwide account and saver is now on the top of my to do list. Once I have built up a large amount of Cash savings over the next year or so, I will then revisit the other options.

    Thanks again to you all for taking the time to help me out.
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