Best way to save?

redpete

Mike12421 wrote: »

Regarding increasing my pension contributions, unfortunately that is not possible as my provider won't allow it.

But you can make additional payments to an additional provider.

However I think I can only make a one time deposit, and not a monthly contribution.
...
Ideally I would like to continue paying £150 each month.

Maybe it's me not being able to understand - but are you looking for lump sum investment or regular drip-feed?

jimjames

Mike12421 wrote: »

Thanks for all of your suggestions.

Regarding increasing my pension contributions, unfortunately that is not possible as my provider won't allow it.

In regards to investing, I hadn't really given it much thought. I have had a look round and round this;
http://www.fairinvestment.co.uk/investec_FTSE_100_defensive_kick_out_Plan_affiliate.aspx?affid=226826405
However I think I can only make a one time deposit, and not a monthly contribution. Does anyone have any suggestions for investing as I haven't got a clue. Ideally I would like to continue paying £150 each month. I don't mind being locked in, longer the better as a matter of fact.

Thanks again.

The link you provided is to a structured product.

If you're looking for money to have in 20 years time then completely pointless to have something that expires in 6 years. You'll also be paying for the privilege of having that guarantee.

If a pension is no good then you'd be far better off looking at S&S ISAs. Even if you just put it in a fund like Vanguard LS60 you should do far better than cash over that time.

Mike12421

After your suggestion of a S&S ISA I did some research and have to admit, I'm excited about the idea. I looked around and "Hargreaves Lansdown" seems to be a good provider and relatively cheap.

It's still quite the minefield as it's all new to me, but HL seems to take a lot of the complexity out of it.

I want to know what your thoughts are about a FTSE All Share Tracker? Any recommendations?

I don't want to run before I can walk, but I don't want to be overcharged or short-changed either.

xylophone

http://monevator.com/how-to-buy-index-trackers/

http://monevator.com/compare-uk-cheapest-online-brokers/

jimjames

HL is a very easy to use provider but is at the higher end of the cost spectrum.

I do think as a new investor you may well find it worth paying that extra because it is so much simpler to use. Ive used a few other sites and none have been as straightforward as HL for basic transactions and monitoring.

UK trackers are fine but only cover UK so you also have rest of the world to consider.

Mike12421

Thanks for the advice. I think I'll be going with HL, as I just need the ease and convenience that they offer. However what are people's thoughts on a FTSE tracker? I chose this as I simply want to invest £2000 now, and continue with £150 each month by direct debit, and with a tracker the consensus seems to be that I will get a good return over time, 10/20 years. Anyone recommend any particular product on HL for a S&S ISA?

Or maybe;
http://www.hl.co.uk/funds/wealth-150

Thanks again.

Archi_Bald

T

Mike12421 wrote: »

However what are people's thoughts on a FTSE tracker?

Depending on which one you have in mind, it could be very high risk. What is your risk acceptance level at?

Mike12421 wrote: »

Anyone recommend any particular product on HL for a S&S ISA?

There are literally thousands to choose from. Have you read http://monevator.com/category/investing/passive-investing-investing/? It should help you to narrow down your preferences, and to understand why you chose what you chose. It takes a while to get through this but it's better to choose what you know you want than blindly throwing your money at something someone mentioned on the Internet or in the paper.

Mike12421

Hello everyone, I just wanted to say thank you for all of your advice and patience. I've finally opened my S&S ISA account with HL and I've just placed my first order of "Legal & General UK Index Class C". I also setup a direct debit each month.

Thanks again everyone.

richyg

Mike,

If you want something outside of your UK tracker - there is always Legal & General International Index Trust (C) Accumulation which is the World outside of the UK. Combining the two may be complimentary in giving you some diversification or exposure to other countries economic growth or otherwise if you wanted to. You could always adjust percentages as you saw fit.

Most importantly you have a long timespan so don't freak out as the numbers see saw up and down.

Best of Luck.

Mike12421

Richyg,

Thank you for the advice, I think I'll do just that. I was going to let my savings get to £2000 then invest in something new, and your suggestion sounds like just the ticket. Do you think it's a good idea, every £2000 investing in something else / fund / tracker etc. I've read that most people aim for around 15/20 funds in their portfolio. I know it'll take me a while to get there, but that's my aim.

As for checking the shares, I must have looked 30 times today. :-) It's certainly exciting, even if my investment ended £1.27 down for the day. As you said, I'm in it for the long haul.....10.....20 years.