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
    • dinono10
    • By dinono10 15th Aug 17, 12:46 PM
    • 26Posts
    • 4Thanks
    dinono10
    Complete Novice wanting to invest
    • #1
    • 15th Aug 17, 12:46 PM
    Complete Novice wanting to invest 15th Aug 17 at 12:46 PM
    Hi guys and girls,

    At the moment, I am in a position where I can invest £100-£150 per month. Not looking for any major returns just want to start investing for the long-term future. I know it is not an awful lot and I could invest more however bills/mortgage etc kind of limits this.

    I've done quite a bit of reading/watching videos on you-tube and I'm none the wiser. Alot of people on here recommend Vanguard. As a beginner and someone who doesn't want to be checking stocks daily,what is the best option? Is vanguard life strategy conservative growth fund a go option?

    I would appreciate any help or advice that you can give.

    Dean
Page 4
    • dinono10
    • By dinono10 22nd Aug 17, 1:39 PM
    • 26 Posts
    • 4 Thanks
    dinono10
    Is everyone assuming the OP has his fill of the 3%+ current accounts on offer, or do they consider such guaranteed returns too small?

    Do you realize that when you sell your flat, a proportion of any profit will be assessable for CGT even though it's the only property you own? Also, did you change your mortgage to a buy-to-let or gain the mortgagee's permission to let?
    Originally posted by Kernel Sanders
    I only do it maybe a few weekends a month as I am staying with my mum and at my flat. Kind of 50/50 so I haven't made them aware as of yet as I only have started doing it.
    • justme111
    • By justme111 22nd Aug 17, 5:14 PM
    • 2,856 Posts
    • 2,745 Thanks
    justme111
    Is everyone assuming the OP has his fill of the 3%+ current accounts on offer, or do they consider such guaranteed returns too small?

    Do you realize that when you sell your flat, a proportion of any profit will be assessable for CGT even though it's the only property you own? Also, did you change your mortgage to a buy-to-let or gain the mortgagee's permission to let?
    Originally posted by Kernel Sanders
    I do not think btl mortgage covers airb&b and it is his main residence anyway so not sure why he would pay CGT on it ; in any case even if it was calculated as due the anjual exemption would have more than covered it likely.
    • charoniv
    • By charoniv 22nd Aug 17, 5:37 PM
    • 86 Posts
    • 25 Thanks
    charoniv
    I just had a look and it looks like the minimum monthly DD with Vanguard LifeStrategy is £100 per month (minimum of £500 for single payments).
    Originally posted by Clive Woody
    That's why I suggested h-l so the OP is aware of this.
    Probably planning to wait until next year for the small regular investment with h-l or see whether the larger amount is available with Vanguard.
    Last edited by charoniv; 22-08-2017 at 5:40 PM.
    • bigadaj
    • By bigadaj 22nd Aug 17, 7:22 PM
    • 10,717 Posts
    • 7,008 Thanks
    bigadaj
    I do not think btl mortgage covers airb&b and it is his main residence anyway so not sure why he would pay CGT on it ; in any case even if it was calculated as due the anjual exemption would have more than covered it likely.
    Originally posted by justme111
    I'd be more worried about the insurance.
    • Malthusian
    • By Malthusian 23rd Aug 17, 10:25 AM
    • 3,316 Posts
    • 5,055 Thanks
    Malthusian
    Is everyone assuming the OP has his fill of the 3%+ current accounts on offer, or do they consider such guaranteed returns too small?
    Originally posted by Kernel Sanders
    For the 25+ year time horizon the OP mentioned, it is definitely too small.

    It's a good return for your short term emergency fund, assuming the time cost is not a problem.
    • dinono10
    • By dinono10 23rd Aug 17, 11:43 AM
    • 26 Posts
    • 4 Thanks
    dinono10
    For the 25+ year time horizon the OP mentioned, it is definitely too small.

    It's a good return for your short term emergency fund, assuming the time cost is not a problem.
    Originally posted by Malthusian

    Sorry being absolutely stupid, but what are you both talking about, in regards to the 3%?

    Again I apologise for being not clued up.
    • Audaxer
    • By Audaxer 23rd Aug 17, 12:09 PM
    • 582 Posts
    • 253 Thanks
    Audaxer
    Sorry being absolutely stupid, but what are you both talking about, in regards to the 3%?

    Again I apologise for being not clued up.
    Originally posted by dinono10
    They mean the various high-interest current accounts out there, where you could probably get approximately 3% interest on a large amount of cash by transferring money between them. As an example Nationwide have a Flex Direct Account where you can get 5% interest for a year on £2,500 where you pay in £1,000 pm - you can set up Standing Orders to pay that money in from another bank and then pay it straight back out again. If you have a wife/husband, you can both have sole accounts and one joint account - therefore a total of £7,500 at 5% with Nationwide alone. You can also have £20k in Sandander 123 currents accounts at 1.5%, so it can mount up and you could get 3% overall on quite a large sum if you add in a few others like Tesco current accounts.
    • dinono10
    • By dinono10 23rd Aug 17, 12:39 PM
    • 26 Posts
    • 4 Thanks
    dinono10
    They mean the various high-interest current accounts out there, where you could probably get approximately 3% interest on a large amount of cash by transferring money between them. As an example Nationwide have a Flex Direct Account where you can get 5% interest for a year on £2,500 where you pay in £1,000 pm - you can set up Standing Orders to pay that money in from another bank and then pay it straight back out again. If you have a wife/husband, you can both have sole accounts and one joint account - therefore a total of £7,500 at 5% with Nationwide alone. You can also have £20k in Sandander 123 currents accounts at 1.5%, so it can mount up and you could get 3% overall on quite a large sum if you add in a few others like Tesco current accounts.
    Originally posted by Audaxer
    Hi thank you for the detailed information. So, I am correct in thinking you mean I will money on the interest or they charge me interest? In regards, the Vanguard and transferring funds, I don't intend to transfer any money from it.

    I currently have 2 jobs and do a little btr of airbnb. All of the money goes into my Halifax current account. I then transfer it into my savings/ISA which is also with Halifax.
    • Audaxer
    • By Audaxer 23rd Aug 17, 1:27 PM
    • 582 Posts
    • 253 Thanks
    Audaxer
    Hi thank you for the detailed information. So, I am correct in thinking you mean I will money on the interest or they charge me interest?
    Originally posted by dinono10
    I mean you will receive that interest on these high interest current accounts. See link below:
    http://www.moneysavingexpert.com/savings/savings-loophole
    • dinono10
    • By dinono10 28th Aug 17, 12:22 AM
    • 26 Posts
    • 4 Thanks
    dinono10
    Thank you Audaxer
    • ozaz
    • By ozaz 29th Aug 17, 10:36 AM
    • 66 Posts
    • 16 Thanks
    ozaz
    Update: I have put in a lump sum of £500 for now into the Vanguard LS80 fund. I have done this through Vanguard themselves. I am under the impression that I don't have to do anything with it now. Just leave it and check on it every now and then? I don't intend to touch it for a very long time 20+ years, does this sound right to you guys?
    Originally posted by dinono10
    Did you open this as a Vanguard ISA (a S&S ISA) rather than a general account?
    https://www.vanguardinvestor.co.uk/investing-explained/stocks-shares-isa
    https://www.vanguardinvestor.co.uk/investing-explained/general-investment-account

    I only ask because reading through some of your posts on this thread gives me the impression you might not be aware that you can have a Cash ISA and a S&S ISA.

    Like others have recommended, you should aim to add regularly to your investment. If you can't afford the £100 minimum, open a second account with your bank and set up a £25/month payment (or whatever you can afford) into that. Then send money from there to Vanguard when it reaches £100.

    You could also consider transferring some of your cash ISA to Vanguard when/if you get a bit more confident that investing is for you. If you do this, make sure you use a transfer form rather than take the money out of the cash ISA yourself.
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

4,408Posts Today

9,046Users online

Martin's Twitter