MFW Diary - Take 1!

Calfuray

edinburgher wrote: »

An ISA is just a wrapper/holder to put the funds into.

Open an ISA, buy some funds (lump sum using a debit card/set up a DD and a regular purchase), they're now effectively protected from the ravages of the taxman.

If you know where you plan to invest, you can be up and running in about 30 minutes

30 minutes! Or I would have been if I wasn't watching Sherlock!

To be honest, I'm not sure yet. I'm torn between Vanguard and the other funds Monevator was talking about, unsure how it all works yet, what mix of assets to have and if I should do a lump sum or monthly drip-feeding or both!

SuperSecretSquirrel

Vanguard looks to be the perfect choice, but it's not yet available through cavendish. If it ever becomes available, I will probably move to a 80/20 lifestrategy vanguard fund for simplicity (a lot like the budget portfolio in my earlier monevator link, just a bit heavier on stocks and a lighter on bonds). I will maybe spend some time in the coming weeks looking for a good deal from a provider that does offer vanguard funds, but honestly, with such a low expense ratio on such a small holding, there's no rush.

I've read some very good posts on not letting things like making the absolute optimal choice freeze you into inaction. There's a good chance that when you first start you'll make a few little mistakes (there's a good chance I'm making them, maybe ed is too), it's part of the process. If you start off with something sub-optimal, you can always correct that later. I'm happy that the TER (total expense ratio, i.e. cost) of my funds is around 0.5% and my platform fee (how cavendish make their money) is 0.25%, and there are no other costs. This might not be totally optimal, but it's pretty good, and pretty good is far better than doing nothing. So long as you're not paying silly amounts in fees, you open an isa to invest in, you use low cost index funds as opposed to trying to pick individual stocks, and you can hold your nerve during the ups and downs, I reckon this investing lark will be a doddle for you

I had been meaning to open a S&S ISA for about five years, seemingly never getting round to it. A year after opening one, I don't know what was holding me back. I feel more at ease with it all now that I'm actually giving it a go! Had I bought at bargain basement 2008/2009 prices I'd be quite pleased with myself right now...

Anyway, not aiming to derail your MFW diary with talk of investing, but if you can find a spare £50 per month you could consider starting sooner rather than later. Of course maybe you'd prefer to focus on the mortgage for now and look at S&S after you get the megabucks job. Only you know what is best for you

Calfuray

SuperSecretSquirrel wrote: »

Vanguard looks to be the perfect choice, but it's not yet available through cavendish. If it ever becomes available, I will probably move to a 80/20 lifestrategy vanguard fund for simplicity (a lot like the budget portfolio in my earlier monevator link, just a bit heavier on stocks and a lighter on bonds). I will maybe spend some time in the coming weeks looking for a good deal from a provider that does offer vanguard funds, but honestly, with such a low expense ratio on such a small holding, there's no rush.

I've read some very good posts on not letting things like making the absolute optimal choice freeze you into inaction. There's a good chance that when you first start you'll make a few little mistakes (there's a good chance I'm making them, maybe ed is too), it's part of the process. If you start off with something sub-optimal, you can always correct that later. I'm happy that the TER (total expense ratio, i.e. cost) of my funds is around 0.5% and my platform fee (how cavendish make their money) is 0.25%, and there are no other costs. This might not be totally optimal, but it's pretty good, and pretty good is far better than doing nothing. So long as you're not paying silly amounts in fees, you open an isa to invest in, you use low cost index funds as opposed to trying to pick individual stocks, and you can hold your nerve during the ups and downs, I reckon this investing lark will be a doddle for you

I had been meaning to open a S&S ISA for about five years, seemingly never getting round to it. A year after opening one, I don't know what was holding me back. I feel more at ease with it all now that I'm actually giving it a go! Had I bought at bargain basement 2008/2009 prices I'd be quite pleased with myself right now...

Anyway, not aiming to derail your MFW diary with talk of investing, but if you can find a spare £50 per month you could consider starting sooner rather than later. Of course maybe you'd prefer to focus on the mortgage for now and look at S&S after you get the megabucks job. Only you know what is best for you

Honestly, you're not derailing! It's something I've always wanted to look into, but like you said, paralysed with fear of something going wrong and losing all my money etc. These index funds sounds like the perfect solution, and the budget post like a perfect starting point.
Since I'm relatively young too, I have the advantage of more time to invest etc, which should only be good from what I see. I think if I can do OPs and put aside a small amount just now that would be ideal, and (as long as I stay off the coffees!) I have enough spare money to do both.
I have my inheritance money going through a big money shuffle just now which is barely keeping it above inflation, so maybe once I dip my toes in the water I can look at branching out in future.

Thank you for all the help, it's given me a lot to think about.

Today's jobs:
- Finish database homework. - Done!
- Cut internship list down to shortlist - Done! Down to shortlist of 5, need to apply to 3.
- Research companies on shortlist
- Decide which ones I am applying for
- Start writing cover letters!
- Research Cavendish

Karmacat

Loving that I've found diaries where people talk to one another about investing! Thank you!

<subscribes>

edinburgher

There's a good chance I'm making them, maybe ed is too

Nah - my only mistake is not investing more :rotfl:

Over the last few years, I suppose I've made the same mistakes of listening to provider blurb/advertising that anyone else makes. Since 'seeing the light' re. index investing I've been a good little investor, with 'boring' regular payments into diversified funds, a focus on cutting costs and no sudden movements

For new investors, Charles Stanley Direct also have a platform fee of 0.25%, but have all the Vanguard funds available. I like Vanguard, they've actually cut costs on the Lifestrategy funds since their inception :money:

*Edit: I'm also impatient, hopefully on the road to recovery.

Calfuray

Weight loss: -4.8lb

I have opened up an ISA with Charles Stanley Direct! It is done! Now I just need to figure out how to invest in it monthly :rotfl:

Calfuray

Joined 0nePoll, did a bunch of surveys (including a hilarious "Have you had Scottish money rejected in England" one), and did a few on ValuedOpinion$ (including a webcam one :eek:). Nothing at payout yet. Sick of being screened out because I'm a student with no children -_-

Emailed Charles Stanley a question since I can't figure it out.
Done about half of my homework due in for next Tuesday, just cracking on with it now.

Cinema and food tomorrow, excited

skint_spice

Ooo what you off to see at cinema?

I am plodding along behind you on this stocks and shares isa thing - still more research to do before committing myself but thanks to all who posted with info.

Calfuray

skint_spice wrote: »

Ooo what you off to see at cinema?

I am plodding along behind you on this stocks and shares isa thing - still more research to do before committing myself but thanks to all who posted with info.

Cinema - ah well, funny story there Was all ramped up for the emotional train wreck of 12 Years a Slave last week, walked in, and it wasn't out at my local cinema for another week. Doh!
So rescheduled for this week, really looking forward to it

I'm glad we can talk about it on this board too, I like this board, nice supportive bubble

Impressed, CSD emailed me back within 4 hours. I was trying to set up a monthly investment, it was causing an error but it's a known technical fault and they've offered to do it for me without any additional charges. :T

edinburgher

CSD have great customer service (no affiliation other than happy customer, looking forward to the 2014 tax year starting for a lump sum).

I should point out that once you've set up a DD, you also need to set up a monthly payment/purchase. I sat around for about a fortnight until they emailed me to explain

If you haven't decided on asset allocation yet, Monevator just covered it with a bit of humour.