Looking to start investing, any advice on my situation?

Newtoallthis_2

Hello there, I need a little advice and was hoping that I could pick the brains of those with the experience.
I’ve just hit 30 and am dead chuffed that I’ve finally managed to clear all of my debts. I’m now looking to start investing about £200-£300pm, with a view to long term growth rather than income, but am generally finding things more than a little confusing. I’ve started on an old copy of the FT guide to investing but I get the idea that things will only become a lot clearer to me as I start putting funds aside. I’d just like to feel a little more confident though that I’m heading in the right direction.

My current situation before the extra funds is as follows:

• Work pension contributions of £70pm matched by £110pm from employer invested in a managed scheme (85% held in shares and 15% in fixed interest and indexed linked securities.) I’ve only held a pension for two years now, a very late start.
• £50pm investing in employer share options scheme with another 2.5yrs to run.
• About £1000 cash building no interest in a current account.

What I’m thinking along the lines of:

• SIPP with 2/3 funds/oiec’s of £50 to £100pm each
• S+S isa investing £100 pm in bonds/gilts

Bleuch. Is this too thinly spread? I mean it’s not a huge amount each month. And what about a share trading account instead of the ISA? Is this too safe, after all having spent years throwing money away at creditors I’d consider the money gone as soon as it leaves my account so I’d be happy to take a few risks for more growth, or is it too risky?

With all of your experience, if you were starting again in my position what advice would you give? Many thanks for any help in advance .

Newtoallthis_2

Shame, I was hoping that there would be lots of folks happy to share the benefits of their wisdom and help by picking my clueless plan apart or boosting my confidence, depending upon what they felt.

I'm not sure if it's a bit too specific a question I asked, so would anyone be able to point me in the direction of a more specific site that might be able to help me find some answers?

Thankyou in advance.

CLAPTON

whats you income?
do you own a house
if so how much is it worth and what is the mortgage

Linton

Newtoallthis wrote: »

Hello there, I need a little advice and was hoping that I could pick the brains of those with the experience.
I’ve just hit 30 and am dead chuffed that I’ve finally managed to clear all of my debts. I’m now looking to start investing about £200-£300pm, with a view to long term growth rather than income, but am generally finding things more than a little confusing. I’ve started on an old copy of the FT guide to investing but I get the idea that things will only become a lot clearer to me as I start putting funds aside. I’d just like to feel a little more confident though that I’m heading in the right direction.

My current situation before the extra funds is as follows:

• Work pension contributions of £70pm matched by £110pm from employer invested in a managed scheme (85% held in shares and 15% in fixed interest and indexed linked securities.) I’ve only held a pension for two years now, a very late start.
• £50pm investing in employer share options scheme with another 2.5yrs to run.
• About £1000 cash building no interest in a current account.

What I’m thinking along the lines of:

• SIPP with 2/3 funds/oiec’s of £50 to £100pm each
• S+S isa investing £100 pm in bonds/gilts

Bleuch. Is this too thinly spread? I mean it’s not a huge amount each month. And what about a share trading account instead of the ISA? Is this too safe, after all having spent years throwing money away at creditors I’d consider the money gone as soon as it leaves my account so I’d be happy to take a few risks for more growth, or is it too risky?

With all of your experience, if you were starting again in my position what advice would you give? Many thanks for any help in advance .

Some random points...

I dont see the point of a SIPP unless you are paying higher rate tax.

Dont think about share trading until you know what you are doings and have a good solid investment base.

I think you need a larger pot of emergency cash - say enough to last you 6 months should you lose your job.

Once you have a few thousand in emergency cash I suggest you build up a range of medium risk funds in an ISA.

DiggerUK

Newtoallthis wrote: »

Hello there, I need a little advice........

OK, you seem to want everything at once.
Quite normal, relax, get what you have in as safe a place as you can for now, and DYOR.
Go for highest net paying A/C's as you can for now and find out what's what.

Debt free, top marks, great place to start. Keep it like that.

Private Pension...Yuck!!, shock horror from me, how the hell do you know what your pot will be worth in 30+ years time? All that talk of "free money" has turned your brain. Free money!! have you ever heard the one about "if it sounds to good to be true......guess what"
Do some research before you go any further in that direction.

Bonds and Gilts, again a bad bet, but do your own research on that one.

Bottom line of my advice is.. don't be in a rush. Get rich slow, or get poor quick.
Best of fortune.

Newtoallthis_2

Thankyou for the feedback!! :j

I really don't understand this stuff at all so again thanks.

Thing is though that me and hubby are DINKY, and have proved in the past that we're both able to fully support the other in the case of sole unemployment. And I'm probably tempting fate but unless I muck things up totally my job is about 99.99% secure for the forseeable.
Because of this at the moment my contributions towards the household pot are totally superfluous so these are being added to his extra to build up the safety net of funds that is suggested, after which the mortgage is going to take a beating but due to a potential move and mtg change this is being stashed at present.

So it is really how to start looking at investing my own happy leftovers that I'm still a little clueless how to start, so yes reseach has to be a must. I guess I ought to be a bit more sensible and boost those higher interest cash accounts further up my priorities. But in the long run I'm not sure how much they're going to give for my future retirement.

Still I guess a Sipp is a bad idea then? For the horrified reactions alone I'm glad that I asked.

DiggerUK

Newtoallthis wrote: »

.......... Still I guess a Sipp is a bad idea then? For the horrified reactions alone I'm glad that I asked.

Many here will tell you that Private Pensions (PP) will save the planet, not I.
Just promise me that if you do go down the route of a PP it will be a SIPP heavily involved in gold and anything associated with gold. At least a SIPP gives you maximum control.

Come to think of it, stuff the SIPP, buy some gold.

Best of fortune.

lisyloo

If your employer is giving you free money, you'd be mad to turn it down.