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  • FIRST POST
    • KAJM
    • By KAJM 2nd Dec 17, 5:00 PM
    • 2Posts
    • 0Thanks
    KAJM
    Standard Newbie Help
    • #1
    • 2nd Dec 17, 5:00 PM
    Standard Newbie Help 2nd Dec 17 at 5:00 PM
    Hello!

    Sorry, this is going to be a very boring question..

    I have c. £25k that I wish to invest. I have trawled through this website and others, as well as reading Tony Robbins "Unshakeable" but was hoping for some advice.

    I don't have an investment background at all. I'm in my mid-20's and I have a student loan (although think it's better to invest then pay off as my interest rate is fixed at 1.6%) and although I don't own a house, my objective is for long term income. Could anybody recommend which Stocks and Shares ISA would be best (I currently don't have an ISA)?
    • From what I've read all the advice seems to be pointed to a Vanguard Life strategy Index linked fund - is this the most sensible option?

    Please can I have some constructive advice.

    Many thanks!
Page 1
    • badger09
    • By badger09 2nd Dec 17, 5:10 PM
    • 5,596 Posts
    • 4,908 Thanks
    badger09
    • #2
    • 2nd Dec 17, 5:10 PM
    • #2
    • 2nd Dec 17, 5:10 PM
    Hello!

    Sorry, this is going to be a very boring question..

    I have c. £25k that I wish to invest. I have trawled through this website and others, as well as reading Tony Robbins "Unshakeable" but was hoping for some advice.

    I don't have an investment background at all. I'm in my mid-20's and I have a student loan (although think it's better to invest then pay off as my interest rate is fixed at 1.6%) and although I don't own a house, my objective is for long term income. Could anybody recommend which Stocks and Shares ISA would be best (I currently don't have an ISA)?
    • From what I've read all the advice seems to be pointed to a Vanguard Life strategy Index linked fund - is this the most sensible option?

    Please can I have some constructive advice.

    Many thanks!
    Originally posted by KAJM
    A S&S ISA is simply a tax wrapper, or envelope, in which you hold investments.

    You should first decide what investments you want to hold, and then decide who you would like to look after your envelope for you

    Have a read around this website. Heavily biased towards passive investing, but IMHO that's not a bad thing for a novice investor.

    http://monevator.com/category/investing/passive-investing-investing/

    Also, have a think about your pension provision. This is a very tax efficient wrapper/envelope for some of your investments
    I'm a supporter of dunstonh
    • KAJM
    • By KAJM 2nd Dec 17, 5:27 PM
    • 2 Posts
    • 0 Thanks
    KAJM
    • #3
    • 2nd Dec 17, 5:27 PM
    • #3
    • 2nd Dec 17, 5:27 PM
    Thanks for your speedy response!

    From everything I've read passive investing definitely makes sense for me, I don't really want to play the market.

    In terms of pension, I have just moved jobs and get to choose where I invest my pension. Previously I was auto-enrolled into a Standard Life scheme.

    A friend has suggested I should try a SIPP and look at tracker funds. Would anybody have any advice on what would be best?

    Thanks again,

    Kate
    • badger09
    • By badger09 2nd Dec 17, 5:31 PM
    • 5,596 Posts
    • 4,908 Thanks
    badger09
    • #4
    • 2nd Dec 17, 5:31 PM
    • #4
    • 2nd Dec 17, 5:31 PM
    Thanks for your speedy response!

    From everything I've read passive investing definitely makes sense for me, I don't really want to play the market.

    In terms of pension, I have just moved jobs and get to choose where I invest my pension. Previously I was auto-enrolled into a Standard Life scheme.

    A friend has suggested I should try a SIPP and look at tracker funds. Would anybody have any advice on what would be best?

    Thanks again,

    Kate
    Originally posted by KAJM
    The website to which I provided a link in my previous post covers that as well.

    The starting point is knowing what investments will suit your risk profile and objectives. The next step is choosing which S&S ISA and SIPP provider suit a) the investments you want to hold and b) the way you want to invest.

    Have a read, then come back with some more specific questions
    I'm a supporter of dunstonh
    • xylophone
    • By xylophone 2nd Dec 17, 5:32 PM
    • 23,695 Posts
    • 13,810 Thanks
    xylophone
    • #5
    • 2nd Dec 17, 5:32 PM
    • #5
    • 2nd Dec 17, 5:32 PM
    You will be a first time buyer?
    Have you looked at LISA?

    https://www.moneysavingexpert.com/savings/lifetime-ISAs
    • MallyGirl
    • By MallyGirl 2nd Dec 17, 5:33 PM
    • 2,102 Posts
    • 6,975 Thanks
    MallyGirl
    • #6
    • 2nd Dec 17, 5:33 PM
    • #6
    • 2nd Dec 17, 5:33 PM
    A SIPP is also just a wrapper to hold shares/funds etc. You could choose to hold Vanguard in a SIPP for example.
    There are a few comparison tools that will show the costs of different providers- some are fixed fee which tends to work better once the holding gets larger and some are percentage based which is usually better for smaller amounts.
    • Eco Miser
    • By Eco Miser 2nd Dec 17, 5:35 PM
    • 3,230 Posts
    • 2,989 Thanks
    Eco Miser
    • #7
    • 2nd Dec 17, 5:35 PM
    • #7
    • 2nd Dec 17, 5:35 PM
    Do you really want income (to live off), or would growth (becoming more valuable by rather more than inflation as time goes by) followed by income in the future when you retire early, be a more appropriate target?

    I echo badger09's advice, plus check you have sufficient spare cash (or cheap credit) in addition to this £25k to cover seasonal expenditures and emergencies.

    I also approve the other advice that got posted while I was typing.
    Last edited by Eco Miser; 02-12-2017 at 5:38 PM. Reason: Final comment added
    Eco Miser
    Saving money for well over half a century
    • BLB53
    • By BLB53 2nd Dec 17, 6:02 PM
    • 1,180 Posts
    • 970 Thanks
    BLB53
    • #8
    • 2nd Dec 17, 6:02 PM
    • #8
    • 2nd Dec 17, 6:02 PM
    From what I've read all the advice seems to be pointed to a Vanguard Life strategy Index linked fund - is this the most sensible option?
    Yep, VLS is a good choice so it's just a matter of selecting the most suitable level of equities and then choosing a platform to open your S&S ISA.

    I Hold my VLS 60 as a one off lump sum with Halifax Sharedealing as the charges (after purchase) are just £12.50 p.a.

    The Lifestrategy index fund is used as an example of a one-stop investing strategy in the 'DIY Simple Investing' book by Edwards so that may be worth a read to get a better idea of whether it may be a good option for you.
    If you choose index funds you can never outperform the market.
    If you choose managed funds there's a high probability you will underperform index funds.
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