£200 p/month over 3x different saving types

bjarvis2785

Hi all,

Just looking for some advice...
I'm 28 (soon to be 29) and have got to that point where I've realised i really need to look at the future.
I currently have no savings, and know pretty much nothing about savings/investments.

My plan is to start some savings, but splitting them up over different savings/investments.

I've been thinking along the lines of £200 p/month split in to each of the following:

• Cash Savings - £50 p/month
• Stocks & Shares - £100 p/month - 5 Years
• Stocks & Shares - £50 p/month - 20 Years

The idea is, i choose a long term higher risk profile for the 20 year investment, and also 5 year investment. But i can move the 5 year around more to react to market/personal circumstances.
The 20 year investment i would look to leave and essentially gamble a little with higher risk funds etc.
The 5 year i would start with higher risk but gradually move down the risk scale as i get older.

Cash savings is self explanatory.

Does that makes sense?
I'm also going to show my complete lack of knowledge here too... but could i wrap the 3x different investments in to an ISA (NISA)?
I've read you can split the £15k NISA allowance between cash and S&S but i'm not clear on how that works?

Sorry for the vagueness and probably daft question, but like i say, i'm just trying to learn everything at the moment

Thanks in advance.

Your_Hero

Sounds like a plan!

I'm also going to show my complete lack of knowledge here too... but could i wrap the 3x different investments in to an ISA (NISA)?
I've read you can split the £15k NISA allowance between cash and S&S but i'm not clear on how that works?

Very simple, just find a provider that offers a good Cash ISA rate and open an account then set up a direct debit/standing order for £50 per month. Then do the same for a Stocks and Shares ISA for £150 per month, split the £100 and £50 into different risk funds accordingly.

Theoretically you can wrap them with the same provider. In practice, they would most likely be different providers because not all providers offer good cash ISA rates and some may not do stocks and shares ISA and vice versa.

Generally speaking, the cash ISA rates for regular savings of this amount will be very small. You may be better off with a normal account (Taxable) that pays a higher interest for regular savings.

colsten

Don't bother with a cash ISA, put your cash into a TSB Plus account as this pays significantly more.

Your investments can / should both sit in the same S&S ISA. Figure out what you want to invest in, and then look for a platform with low cost yet reasonable service.

bjarvis2785

Your_Hero wrote: »

Sounds like a plan!

Very simple, just find a provider that offers a good Cash ISA rate and open an account then set up a direct debit/standing order for £50 per month. Then do the same for a Stocks and Shares ISA for £150 per month, split the £100 and £50 into different risk funds accordingly.

Theoretically you can wrap them with the same provider. In practice, they would most likely be different providers because not all providers offer good cash ISA rates and some may not do stocks and shares ISA and vice versa.

Generally speaking, the cash ISA rates for regular savings of this amount will be very small. You may be better off with a normal account (Taxable) that pays a higher interest for regular savings.

thanks for the reply.

So, the £15k allowance doesn't just apply to 1x ISA?
This is where i've been getting confused i think.
From what i'm reading in your reply i can have as many ISA's (of varying types) as long as the total of all doesn't exceed £15k?

I presume i could split an ISA in future?
For example, if i invested £150 p/month in a Growth focused fund, could i in say 5 years split to £100 growth and £50 income fund?

Hope that makes sense?

colsten

bjarvis2785 wrote: »

So, the £15k allowance doesn't just apply to 1x ISA?
This is where i've been getting confused i think.
From what i'm reading in your reply i can have as many ISA's (of varying types) as long as the total of all doesn't exceed £15k?

You can put new money into 1 cash ISA and 1 S&S ISA each year. The combined deposits must not exceed your annual allowance.
Each new tax year, the same applies again.

bjarvis2785 wrote: »

I presume i could split an ISA in future?
For example, if i invested £150 p/month in a Growth focused fund, could i in say 5 years split to £100 growth and £50 income fund?

Yes you could. You would sell your growth funds, and buy the income fund. All without your money leaving the ISA wrapper.