Getting Started seems very complicated

tmsbry

I can only speak for what I have been doing with advice I got from my family members.

I opened a S&S ISA with Charles Stanley Direct.

I invest monthly into 4 of the following funds,
-Vanguard Lifestrategy 100
-Vanguard UK Government Bond Index Fund
-Axa Framlington Health Z Fund
-CF Woodford Equity Income C fund

All the funds are Acc and I'm investing/saving over a 10 year period. I'm 29 years old.

I'm quite new to Stock & Shares so wouldn't give any advice, but I do suggest to try & diversify,

bigadaj

tmsbry wrote: »

I can only speak for what I have been doing with advice I got from my family members.

I opened a S&S ISA with Charles Stanley Direct.

I invest monthly into 4 of the following funds,
-Vanguard Lifestrategy 100
-Vanguard UK Government Bond Index Fund
-Axa Framlington Health Z Fund
-CF Woodford Equity Income C fund

All the funds are Acc and I'm investing/saving over a 10 year period. I'm 29 years old.

I'm quite new to Stock & Shares so wouldn't give any advice, but I do suggest to try & diversify,

Investing is about opinion and is subjective and individual but that range of funds looks s little like fashion investing, combining single sector and multi asset funds, and to an extent following the latest trend. Diversification needs to have due regard to the actual underlining investments, I'd be popping your portfolio into trustnet or morningstar to get a full breakdown of geographic, sector and risk breakdown.

Not sure why you'd choose 100% equity life strategy and a UK government bond fund, why not a VLS 60 or 80 instead?

The Axa framlington health fund has had a stunning run, but is bery high risk and in future could continue to be strong or could tank and lose a lot in a short period of time.

Woodford equity is the fashion fund of the moment, nothing wrong with that but isn't necessarily obvious as a choice to combine this UK equity income fund with a global self balancing equity index fund, a U.K. Gilt fund, and a boom or bust biotech option.

redpete

Glen_Clark wrote: »

If you were to switch it into a different savings account would you call it 'spending'?

No, because I am storing the £400 somewhere different and I know that the £400 will be there whenever I want to take it out from storage plus a little bit extra that I am being paid to keep it there.

I just wonder if that word frightens some people off putting some of their eggs into other baskets?

That's a good thing if it makes them pause and think rather than deciding it's all too complicated and bunging it all in a FTSE100 tracker that drops by 20% because of a change in UK Government just as they need to get access to their investment as cash.
I am exchanging my £400 a month for an asset that will change in value over time, sometimes up, sometimes down. I no longer have easy access to the £400 but only to the asset that I will have to exchange for cash when I need it. Feels very much like 'spending' to me.

dunstonh

That's a good thing if it makes them pause and think rather than deciding it's all too complicated and bunging it all in a FTSE100 tracker that drops by 20% because of a change in UK Government just as they need to get access to their investment as cash.

The FTSE100 is an awful index to track. its one of the worst performing western stockmarkets for the last 20 years. Plus, its really bad investing as its 100% UK equity and the index itself has very poor diversification at asset level./

The simple option is the multi-asset fund. As already mentioned on the thread.

Feels very much like 'spending' to me.

You dont get back money spent.

Glen_Clark

bowlhead99 wrote: »

Calling it "spending" does help to focus the mind..

Of course its wise to have a good look at the basket before you put any eggs in it.
But does the word 'spending' their life savings put people off switching any eggs into another basket, so they keep 100% in Sterling cash, effectively all their eggs in one basket, under the delusion they can't lose money.?

redpete

dunstonh wrote: »

The FTSE100 is an awful index to track.

I hope you weren't thinking I was suggesting a FTSE100 tracker is a Good Thing.

You dont get back money spent.

Depending on the thing you spent money on you can get some of. all of, or more than the money you spent back when you sell the asset. (cars, houses, art, ...)

My original point was just that if you were using £400 a month on something it deserves a good deal of effort to make sure that that something is the right thing to use the money for.

enthusiasticsaver

I was like you initially and read up for about 3 months before deciding to invest in stocks and shares and put a lump sum in the Vanguard LS60 and am paying in £250 per month to it at the moment.


As you say you need to decide your appetite for risk and research as much as you can. I read many threads on this forum, some great advice, and monevator articles and anything I could find aimed at a novice investor.


Many on this forum are advised when new to investing to go for passive investing or "trackers" mainly because the fees are lower than actively managed funds. I chose this option but went for the Vanguard LS as it is well diversified across regions and sectors. I would not look just at UK as that assumes that the UK economy will outperform all other regions which is unlikely all the time. Other multi asset funds are around as others have said, Legal and General and Blackrock Consensus so I read around all of these initially.


It can be complicated and there is a lot to learn about investing but I do not see that long term cash isas offer decent returns and I did not want to keep all our readies in current accounts when we could afford to stick some away long term.

Pincher

A woman who got a good divorce settlement once asked me to fill out a fact find form for a firm of legal/financial managers she was recommended. She was stumped, and asked "What is Ethical Considerations?"

After I explained, it was a resoundingly positive NO to Ethical Considerations. :rotfl:

Another material girl was shopping for eggs, and I said that they have proved that laying bigger eggs is more painful and stressful for the hen. She still picked the largest eggs she can find.

It is a true test of character to know that you are willing to forego higher return for a good conscience.