Shares - help needed for beginner please

[Deleted User]

I know this is probably a really stupid question so please have patience ...

For the first time, I’m considering buying some shares. Have read Martin’s article and as many posts about shares on the Forum as my brain can take in (there are hundreds) and have just ended up confused.

I’m in my 50s and have been trying to sort out my finances for the past couple of years. I now have a small private pension, and an ISA (which now has a 6 months “emergency saving” buffer in it). Having got those things set up, I want to take a bit more of a risk. I would like to buy some shares whenever I can save a bit of spare cash. I’m looking at this as a long term thing – to buy shares for the dividends to provide more income in my retirement and perhaps to sell some of them at a later date (when necessary).

In my situation – what would be the best way for me to buy shares? I’ve read through a lot of the information on this site, but it does seem to be more geared to those who want to be more actively involved in managing their portfolio - buying and selling shares on a regular basis.

Also – the advice seems to be to buy and hold them electronically (as paper copies are much more expensive to sell) which then involves paying an ongoing fee to a company to hold them for you. But if I’m planning to hang onto them for the long term is this really the best way of doing it?

Also, if the shares are held in nominee accounts, I wouldn't technically own them - and wouldn't be entitled to any perks normally offered to their shareholders (and I'm also wondering about voting rights?)

Can anyone advise me on the best way for me to buy shares (ie. The cheapest) bearing in mind that I’m doing so for the long term (only selling them when necessary – which could be in, say, 10 years time).

Thanks in advance for any help. (An Idiot’s Guide would be appreciated).

cashbackproblems

The cheapest is with www.iii.co.uk if you set trade the day before it only costs 1.50 and theres no monthly/annual charges that is it! As your prepared to hold for long term you can have a risk of safe and risky shares in the S+S ISA and firms like vodaphone, aviva, tesco, gsk, rsa etc etc who pay good dividends you can automatically reinvest.

Some people might suggest investing in funds but its much more profitable and exciting to pick you own stock..

Annisele

Partly it depends on how much money you're going to be investing. If it's, say, £50 a month, then there's absolutely no point in holding paper certificates because the dealing charges will wipe out huge amounts of your gains (and amplify your losses).

If your total portfolio is 'small' (with 'small' defined however you wish), you might be better off using funds than individual shares - because you don't have enough money to diversify properly. If you're interested in investing then you can certainly make money out of buying smaller amounts of shares - but then you need to be sure what you mean by selling when "necessary".

sabretoothtigger

which then involves paying an ongoing fee to a company to hold them for you. But if I’m planning to hang onto them for the long term is this really the best way of doing it?

Also, if the shares are held in nominee accounts, I wouldn't technically own them - and wouldn't be entitled to any perks normally offered to their shareholders (and I'm also wondering about voting rights?)

There is no fee with most. Its very cheap, paper serves little purpose unless you buy 10k of each share dont worry


Perks again are mostly pointless, just browse these forums if you want money off something. You get voting rights but again below 10k you are a minnow in a shark pool.

I think disney shareholders get perks even without paper shares. The daily telegraph covered share perks recently and they do tips and information generally