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    • ratters
    • By ratters 11th Jul 17, 2:42 PM
    • 3Posts
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    ratters
    S&S ISA for Beginner - Saving £250 pm
    • #1
    • 11th Jul 17, 2:42 PM
    S&S ISA for Beginner - Saving £250 pm 11th Jul 17 at 2:42 PM
    Hi everyone

    I'm keen to set up a S&S ISA to help me start getting into investments. I want something that is easy to set up and allows me to invest about £250pm.

    I've heard about platforms such as Cavendish Online (Fidelity) and Hargreaves Lansdown but don't really know much more than that.

    I can't see at this stage I'd want to do anything more sophisticated as picking a medium risk fund (what type - index/tracker?), and if that's presented in a web environment that makes it easy to pick and set up that would be fantastic.

    If anyone can offer me some starter tips to get me going, I'd most appreciate it.

    P.S. I would also have the option of putting down an initial lump sum (Up to £5k), is that worth doing, or is it better to drip feed?
Page 1
    • eskbanker
    • By eskbanker 11th Jul 17, 5:02 PM
    • 5,788 Posts
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    eskbanker
    • #2
    • 11th Jul 17, 5:02 PM
    • #2
    • 11th Jul 17, 5:02 PM
    There are a few 'starting investment' threads on the go at the moment, worth reading through these as they overlap quite heavily and feature the main articles and sites to get you going....

    http://forums.moneysavingexpert.com/showthread.php?t=5677395
    http://forums.moneysavingexpert.com/showthread.php?t=5677658
    http://forums.moneysavingexpert.com/showthread.php?t=5677871

    On the subject of lump sum v drip-feeding, as the general long-term trend of equities is upwards, the prevailing recommendation is to get the lump sum in at the earliest opportunity, on the basis of 'time in the market, not timing the market'.
    • Alexland
    • By Alexland 13th Jul 17, 10:09 PM
    • 649 Posts
    • 406 Thanks
    Alexland
    • #3
    • 13th Jul 17, 10:09 PM
    • #3
    • 13th Jul 17, 10:09 PM
    If you want to keep it simple then probably best to avoid the DIY platforms and go with a direct fund manager platform. For example Vanguard run a fairly simple platform and charge a 0.15% annual fee with no transaction charges which is very competitive.

    Your fund choice depends on why you are investing. Do you want to draw income or accumulate reinvested capital growth? Will you withdraw gradually over a long period (eg in retirement) or do you have a target lump sum withdrawal date (eg university costs) in which case you might need a fund that moderates down risk over time.

    Try looking at the Vanguard Life Strategy 60% equities (40% bonds) or for a longer time period the Life Strategy 80% equities. Or maybe allocate 50% of the ISA value in each fund for 70% equities exposure? These funds have 0.22% annual fees which is competitive for the global diversification they provide but there is still a slight US bias in the weightings.

    If you are targeting a lump sum withdrawal then look at the Target Retirement funds. These funds reduce risk and volatility as the target date (there's a fund for every 5 years) approaches. These are 0.24% per annum.

    Drip feeding over long periods of ups and downs is mathematicaly better (search dollar cost averaging) and in periods of decline maintain the psychological feeling of progress as the ISA value grows and you buy cheaper units.

    However when the markets are low I often stick a bit extra in as a lump sum to get some extra growth.

    Alex.
    • ratters
    • By ratters 24th Jul 17, 11:03 AM
    • 3 Posts
    • 1 Thanks
    ratters
    • #4
    • 24th Jul 17, 11:03 AM
    • #4
    • 24th Jul 17, 11:03 AM
    Many thanks for your advice, I really appreciate it. I'll read through these to get me started.

    Good point made about how I want to access the money in the future Alexland...I'm completely unsure at the moment as my son is only 3, but thinking ahead for university fees could be a good option.
    • Alexland
    • By Alexland 25th Jul 17, 6:15 AM
    • 649 Posts
    • 406 Thanks
    Alexland
    • #5
    • 25th Jul 17, 6:15 AM
    • #5
    • 25th Jul 17, 6:15 AM
    I am saving for my 1 year old son in an Orbis Access junior ISA. Although I am usually a passive investor returns from the Orbis team investment strategy have been very strong. The real bonus is there are no fees for money invested in the first 12 months (which can cover 2 tax years ) until the child is 18.
    • Alexland
    • By Alexland 25th Jul 17, 6:18 AM
    • 649 Posts
    • 406 Thanks
    Alexland
    • #6
    • 25th Jul 17, 6:18 AM
    • #6
    • 25th Jul 17, 6:18 AM
    ... although I will probably moderate down the risk an move to Vanguard 60/40 funds in the 5-7 years leading up to him starting university.
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