£250 a month to save/invest

Ebe_Scrooge

jimjames wrote: »

Yes.

You're investing in real companies and share in their success. If you don't believe in capitalism then maybe not for you but investing across hundreds of companies is certainly not a gamble.

With gambling you are almost certain to lose your stake, invest properly and that is highly unlikely.

OK, sorry, hold my hands up as regards that web-site - I'm just cynical deep down

But the stock market is still a gamble. Who would have thought that a well-respected household name like Tesco would have "suspicious" profit-reporting practices, resulting in a huge drop in their share price ? Who would have forseen a long-standing company like Comet going bust ? Who would have predicted global giants like Lehman Brothers or Barings going bankrupt ?

Ebe_Scrooge

Archi_Bald wrote: »

Have you ever heard of inflation? Have you read up about likely returns from Premium Bonds? Even interest paying current accounts would statistically beat them.



Funny that, coming from somebody who recommends Premium Bonds as a zero-risk investment option.

Yes, I know, which is why I said they're potentially zero-gain, and suggested interest-paying current accounts as an alternative. But they are as near as dammit zero-risk as you can get - inasmuch as you won't lose your capital.

This whole game is about risk vs reward. Just the same as when you make your pension investment options - do you want a potentially higher gain, or do you prefer a safer investment strategy with lower, but safer ( though not guaranteed ) returns ?

Archi_Bald

waggaroo wrote: »

Is this a realistic option and if so, how do I go about doing that? I have looked at monevator and a couple of investment companies (charles stanley & TD Direct) but wanted to get some advice here as I'm not 100% sure about it all

Deciding on investments is essentially a 3-step process

1. decide what to invest in
2. decide how you want to invest - unwrapped, or wrapped in an ISA or a SIPP or other pension instrument, or a combination of these
3. decide who to place the investment with

You decide on 3 after you decided on 1 and 2, on the basis of who offers you the best value for money for the investment you have chosen to make.

Charles Stanley and TD Direct are possible "whos", from the list on http://monevator.com/compare-uk-cheapest-online-brokers/. You can also check the MSE thread on low-cost ISA providers.

But you first need to decide on your investment portfolio, which might be a single fund (probably best for the amount of money you want to start with) or a more elaborate set of investments. Monevator can be a great help with this, and/or there are other places you can read up: https://forums.moneysavingexpert.com/discussion/5043692

waggaroo

I've kind of ruled out premium bonds as I don't see them as a long term gain. Didn't mean to start an argument, just wanted some advice!!

Ebe_Scrooge

waggaroo wrote: »

I've kind of ruled out premium bonds as I don't see them as a long term gain. Didn't mean to start an argument, just wanted some advice!!

I didn't intend to start an argument either Premium bonds were just thrown in there as an option - you probably won't get any return, but you might, and your capital is - as much as can be ! - guaranteed.

Back to my first reply - do you have a mortgage ? If so, it's well worth doing the calculations as to what overpayments ( if allowed ) will offer you. This can be a safe and pretty rewarding option if you have spare cash. The obvious downside is that you can't easily "withdraw" the cash, but long-term it can reap big rewards.

Kendall80

waggaroo wrote: »

I've kind of ruled out premium bonds as I don't see them as a long term gain. Didn't mean to start an argument, just wanted some advice!!

Another vote for Monevator from me. Also, Under the Money Tree is a good, informative read too. Set aside a few hours and have a trawl through. You'll find it really useful im sure.

waggaroo

Ebe_Scrooge wrote: »

Back to my first reply - do you have a mortgage ? If so, it's well worth doing the calculations as to what overpayments ( if allowed ) will offer you. This can be a safe and pretty rewarding option if you have spare cash. The obvious downside is that you can't easily "withdraw" the cash, but long-term it can reap big rewards.

We have a mortgage but hope to make overpayments from our joint account. The money I plan to invest with is 'my' money that I've got from other investments. I hope to entice my wife to stay with me with the promise of a big payout in 20 years or so!!

waggaroo

Kendall80 wrote: »

Another vote for Monevator from me. Also, Under the Money Tree is a good, informative read too. Set aside a few hours and have a trawl through. You'll find it really useful im sure.

Thanks for your answer, and all the answers to my post. I really appreciate it!! :T

planteria

i use the HSBC version of the First Direct Regular Saver referred to above...with a specific purpose.
but as long waggaroo is certainly happy to leave the money alone for 5+years, i think Investment is the best idea.
perhaps invest in a Stocks & Shares ISA, into a Pension, or into another investment. i use a S&SISA with iii (there are a couple of long threads re. them here...ref. lots of problems), a SIPP with iii, and a Regular Savings Plan into which i pay, as it happens, £250/month.

jimjames

Ebe_Scrooge wrote: »

OK, sorry, hold my hands up as regards that web-site - I'm just cynical deep down

But the stock market is still a gamble. Who would have thought that a well-respected household name like Tesco would have "suspicious" profit-reporting practices, resulting in a huge drop in their share price ? Who would have forseen a long-standing company like Comet going bust ? Who would have predicted global giants like Lehman Brothers or Barings going bankrupt ?

I'll repeat what I said before. It isn't a gamble if you invest correctly.

Yes there is risk involved as the value can go down as well as up but gambling involves the high chance of losing everything against the odds of winning big.

Invest correctly and it's a get rich slowly scheme. There isn't any magic or secret to it, invest long term, reinvest the dividends and you should be able to build up a substantial sum.

Along the way an individual company can run into trouble and even some will go bust but if you have invested in funds across many different companies then this won't wipe out your portfolio.

If you are investing in a penny share and putting all your money on the one high risk company then I certainly agree that it is gambling. But that isn't what a well constructed portfolio should be.