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    • henryandmay
    • By henryandmay 14th Mar 18, 1:58 PM
    • 2Posts
    • 0Thanks
    Advice on investing £1000 pm
    • #1
    • 14th Mar 18, 1:58 PM
    Advice on investing £1000 pm 14th Mar 18 at 1:58 PM
    Firstly, itís my first time posting but I have been reading and picking up a lot of useful information from the forum, so a big thanks to all the regular contributors and especially the ones who send quite detailed replies to peoples posts.

    Iím 35 and finally, after being reckless with money through my late teens and 20ís and accumulating over £30,000 of debt; Iím debt free.

    Iíve spent the last two years well and truly in the black and have manged to save £10,000. It feels great and I now really want to build on my newly gained saving addiction with a view to amassing a sizable pot for enjoying later on in life c.55 years old.

    I earn £32,000 pa and after all my outgoings, I have £1000 pm to play with. I plan on leaving the £10,000 in my isa as an emergency slush fund.

    Iíve read a lot about Vanguard on this form and in particular their Life Strategy fund, which seems very popular among many who comment on here but it just seemsÖwell a bit obvious to me and I do, wonder how many people have just ploughed money into these funds based on very limited research and on the basis of following the masses and their recent good performance.

    After spending hours researching online and reading two recommended books, I think my options are as follows;

    ē Invest a sizable chunk of the £1000pm in a total world equity tracker. Forget and leave it. This gives me exposure to markets in all four corners of the globe and low fees
    ē Invest in a LISA £4000 pa + £1000pa bonus
    ē Put together a portfolio perhaps based William Bernsteinís No Brainer Portfolio and rebalance accordingly. Use cheap platform to keep fees down.

    The above is not an exhausted list, just some ideas I have picked up over last 6 months of researching.

    Any advice or pointers would be much appreciated and I have considered paying for financial advice but itís always good to have as much knowledge as possible before seeking such advice.

    On a separate matter; had I been taught about being money aware and financial savvy in school, Iíd of had so much more to show for the last 15 years of workingÖ If only this was taught on the curriculum, kids would benefit hugely.

    Last edited by henryandmay; 14-03-2018 at 2:49 PM. Reason: grammer
Page 1
    • Linton
    • By Linton 14th Mar 18, 3:15 PM
    • 9,164 Posts
    • 9,264 Thanks
    • #2
    • 14th Mar 18, 3:15 PM
    • #2
    • 14th Mar 18, 3:15 PM
    Do you own a house?

    Are you paying into your employer's pension? If not why not? If you are, would your employer contribute more if you did?

    If you own a house, or dont intend to buy one for 5-10 years......
    1) World tracker
    A reasonable strategy, certainly very sensible whilst your investments are below £25K-£50K. However you must be prepared at some stage for the investments to fall perhaps 40%. If 40% scares you look at a multi-asset fund.Vanguard LifeStrategy 60 is an option though there are several others with possible advantages.
    2) Lisa - dont know
    3) William Bernstein Portfolio
    He was writing perhaps 20 years ago for a US audience in a very different economic situation. The world has changed and we arent in the US.

    For the amount you have to invest I dont believe professional advice would be justified.
    • henryandmay
    • By henryandmay 14th Mar 18, 3:38 PM
    • 2 Posts
    • 0 Thanks
    • #3
    • 14th Mar 18, 3:38 PM
    • #3
    • 14th Mar 18, 3:38 PM
    Do you own a house?
    I own the modest terrace house I live in with approx 79,000 outstanding on the mortgage at 2% fixed for next 5 years.
    I don't plan on up sizing at any point in the next 10 years and any work based bonus or windfall will go on mortgage over payments.
    Are you paying into your employer's pension? If not why not? If you are, would your employer contribute more if you did?
    Yes I have a work based pension with Aviva and pay in 5% and my employer matches that.
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