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How to invest £40 a month?
Comments
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Maddy25 I think you would be wise to educate yourself a little about investing my dear.
In particular I'm talking about risk.
You use the term risk free. The reason that there is no such thing is inflation. In short, it eats up the value of your investments.
If you can afford to save for 5 years you should consider saving in investments that are exposed to the stock market.
the reason for this is over time stock markets always go up. They always have.
Over the short term they go up and down but the direction of travel is much like an escalator in that it's always up, but it's unlike an escalator it's never straight up.
Have you heard about an investment trust savings plan? I would go for that.
I saw someone else post on this forum that Scottish investment Trust has increased its dividend every year for the past 29 years in a row and by an average of 7% per year - that's well ahead of inflation.
Does that fit with your risk profile?
I can't post links because I just registered and I'm not allowed to do so but theie is a post on Moneysavingexpert about it that links to the which investment trust.com website or just Google it.
Yeah I'm don't have much info in investments and that sort!
I'll google the Scottish Investment Trust, thanks.Oooookay. A signature you say? :think:............
Don't forget to thank me if you think it's useful:T0 -
Oooookay. A signature you say? :think:............
Don't forget to thank me if you think it's useful:T0 -
Have you heard about an investment trust savings plan? I would go for that.
I saw someone else post on this forum that Scottish investment Trust has increased its dividend every year for the past 29 years in a row and by an average of 7% per year - that's well ahead of inflation.
Does that fit with your risk profile?
If you're talking about Scottish Mortgage the yield is currently about 1.6%, that's not even close to keeping pace with inflation, unless you believe the govt. of course. An average 7% p.a. increase on 1.6% isn't going to offer anything in terms of income over 5 years that can't be obtained elsewhere with much less risk to capital.
It's a long term capital growth trust anyway, holding it for just 5 years is a gamble given where markets are currently at (and why)'We don't need to be smarter than the rest; we need to be more disciplined than the rest.' - WB0 -
This is shockingly bad advice and I would suggest you ignore itMaddy25 I think you would be wise to educate yourself a little about investing my dear.
In particular I'm talking about risk.
You use the term risk free. The reason that there is no such thing is inflation. In short, it eats up the value of your investments.
If you can afford to save for 5 years you should consider saving in investments that are exposed to the stock market.
the reason for this is over time stock markets always go up. They always have.
Over the short term they go up and down but the direction of travel is much like an escalator in that it's always up, but it's unlike an escalator it's never straight up.
Have you heard about an investment trust savings plan? I would go for that.
I saw someone else post on this forum that Scottish investment Trust has increased its dividend every year for the past 29 years in a row and by an average of 7% per year - that's well ahead of inflation.
Does that fit with your risk profile?
If you want to get involved in investing you have a lot of reading and research ahead of you before you even consider parting with your money but as I say your objectives are not obviously suitable for investing. Be aware that you would also have instant access to your money when its value may be up to half of what you have invested0 -
If you're talking about Scottish Mortgage the yield is currently about 1.6%, that's not even close to keeping pace with inflation, unless you believe the govt. of course. An average 7% p.a. increase on 1.6% isn't going to offer anything in terms of income over 5 years that can't be obtained elsewhere with much less risk.
It's a long term capital growth trust anyway, holding it for just 5 years is a gamble given where markets are currently at (and why)
I've scrapped the 5 year thing now, instead focusing on a more long term invesment of 10 years.Oooookay. A signature you say? :think:............
Don't forget to thank me if you think it's useful:T0 -
If you're talking about Scottish Mortgage the yield is currently about 1.6%, that's not even close to keeping pace with inflation, unless you believe the govt. of course. An average 7% p.a. increase on 1.6% isn't going to offer anything in terms of income over 5 years that can't be obtained elsewhere with much less risk to capital.
It's a long term capital growth trust anyway, holding it for just 5 years is a gamble given where markets are currently at (and why)This is shockingly bad advice and I would suggest you ignore it
If you want to get involved in investing you have a lot of reading and research ahead of you before you even consider parting with your money but as I say your objectives are not obviously suitable for investing. Be aware that you would also have instant access to your money when its value may be up to half of what you have invested
Okay I am really confused:huh: now
Is this any good or not:
http://www.sit.co.uk/products/stockplan/Oooookay. A signature you say? :think:............
Don't forget to thank me if you think it's useful:T0 -
It has no entry charges, annual charges or admin charges so yes it is a good option as you will only pay stamp duty and what ever the trust you choose charges as an AMC.
Other options that accept £40 a month:
http://www.invescoperpetual.co.uk/portal/site/ip/home/resources/guides-and-tutorials/how-to-invest-in-investment-trusts/
http://www.bailliegifford.com/individual-investor/how-to-invest/share-plan.aspx0 -
Okay I am really confused:huh: now
You want to put some money away for the next 5 years, risk free, does not allow early withdrawals and you don't know about 'investments and stuff'
The sort of thing you are looking at carries significant risk, let's you get at your money at any time and requires considerably more knowledge than you have now
I would suggest you sit back and decide what you really want0 -
It has no entry charges, annual charges or admin charges so yes it is a good option as you will only pay stamp duty and what ever the trust you choose charges as an AMC.
Other options that accept £40 a month:
http://www.invescoperpetual.co.uk/portal/site/ip/home/resources/guides-and-tutorials/how-to-invest-in-investment-trusts/
http://www.bailliegifford.com/individual-investor/how-to-invest/share-plan.aspx
So are these investment plans, like the Scottish one, 10 years long or do I have to somehow close them myself after 10 years?Oooookay. A signature you say? :think:............
Don't forget to thank me if you think it's useful:T0 -
Well SIT sits on a nice discount, that's the good news. Then again the performance probably explains why. It's not something I'd look at putting £40 a month into over ten years plus. Not that that means anything.
http://www.trustnet.com/Tools/Charting.aspx?typeCode=T_FITSCIN,XT:IG'We don't need to be smarter than the rest; we need to be more disciplined than the rest.' - WB0
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