Passive Investing

Mr_Curious

Hi,

All advice and ideas welcome. I have been looking into this for a little while now. I have 15k to play with and would like to take a punt on my money working for me. I get the idea to be put money into a selection of funds and sit back and evaluate periodically.

Any hints, tips, ideas, pit-falls with this type of investment? Any and all ideas welcome.

Thanks

innovate

You'll find most of what you need here: http://monevator.com/category/investing/passive-investing-investing/

£15K will be beyond your annual ISA allowance but if you are ready to open a S&S ISA now, you can put some £11K into it before April 6, and another lot on/after April 6. That is, if you are after an ISA - - which I assume you are since you posted on the ISA board.

Mr_Curious

Thanks for the response.

I have 15k in a cash ISA and was going to transfer it into a S&S ISA. I am aware that it cannot be changed back but this will then give me time to build up another cash pot in time.

Apart from possibly losing everything (worse case scenario!) is there anything in particular to watch out for?

redbuzzard

How long have you got ;-) ?

Use a stocks and shares ISA if you can - no reason not to, and as innovate says you can get £15,000 in using this year's and next year's allowances fairly soon, if you haven't already used this year's.

I only started using this forum last week, and already my recommending the book "Smarter Investing" by Tim Hale is getting repetitive.

It's a fairly accessible book unless you are very allergic to this sort of thing, and unlike some other sources it left me feeling I understood more than when I started, rather than less.

You will see that Hale is not only a fan of being fairly passive yourself, but also of passively managed investments.

Mr_Curious

Time frame is upto and including 8-10 years

innovate

redbuzzard wrote: »

You will see that Hale is not only a fan of being fairly passive yourself, but also of passively managed investments.

Agree with you there though I find monevator.com has it all in even more digestible, and - crucially - a lot more current from (e.g. funds to use, platforms to use).

BLB53

Vanguard LifeStrategy 80 may be a one-stop solution.

Perelandra

Agree with the previous comments- Monevator is an excellent place to learn about passive investing, learn about allocation, and to learn about risk.

Passive investing can be a relatively safer way to start in investing, as you're less likely to make a mistake than some of the other routes... see Monevator for details.

One question, though, do you have 6 months worth of expenses in cash remaining if you choose to start investing with that £15k? It's generally a good idea to keep a rainy day fund in case things don't work out in your favour.

Good luck.

bigfreddiel

open a free account with investors chronicle

then use their free portfolio service and test your investment strategy

you can back test by 'buying' your chosen funds 1, 2, 3 or more years ago

cheers

fj

BLB53

open a free account with investors chronicle

then use their free portfolio service and test your investment strategy

..or use the same thing on Monevator..http://monevator.com/know-your-own-risk-tolerance/

Mr_Curious

Thanks for the advice guys.

Yes I do have a pot of cash spare for that 'rainy day'