Nationwide investment plan

komotion

Hi guys.
I'm contemplating investing 50,000 in an investment plan with the nationwide building society. It would be my first time investing and I'm going for a risk factor of level 2. I would be looking at leaving the money to grow for about 6 years before touching it. Any thoughts about the nationwide? I'm a very cautious investor I think!
There is an initial charge of 3.50% and an ongoing service charge of 0.75%
Cheers.

bigadaj

So you're immediately giving them nearly £2k for selling this l and g supplied product, I've not paid initial charge s ever and there certainly no reason to do so now.

If you have other savings, pensions and investments then it might be worth speaking to an ifa, you'll pay for their advice but at least it will be personal.

Alternatively do a bit of reading and research and you can save some more, monevator.com is a good place to start and a copy if Tim hales smarter investing book would be useful. Both those options are very passive biased, so if you choose to invest in active funds that's fine, it's a personal choice.

Do some reading and then come back with some ideas and people will critique them, also six year is at the short end of the investing spectrum, so will you need it then, could you leave it longer, is there a definite purpose for the sum?

nb0825

Since you've never invested before, you're the perfect sucker for someone at a bank/building society to sucker you into one of their investment plans. 3.5% charge before you've even begun? What a joke. Good job you've come here to ask for help.

1). Tell Nationwide to p*** off
2). Put all the money in an interest-bearing current account / savings account - See the various threads/post on this
3). Read thoroughly all the aspects of investing, stocks, shares, etc.
4). Once you're fully informed on how investing works, seek an independent financial advisor, NOT Nationwide and discuss your needs

dunstonh

I'm contemplating investing 50,000 in an investment plan with the nationwide building society.

Banks and building societies are the worst place to go for investment advice. So, what is it about their recommendation that appeals to you?

It would be my first time investing and I'm going for a risk factor of level 2.

Without context, that means nothing. However, on most scales, that would largely be pointless. You introduce risk but not enough to make any real return greater than cash.

There is an initial charge of 3.50% and an ongoing service charge of 0.75%

For a lower quality product where you seem to be doing the choosing rather than the adviser giving advice. It seems awful value in that respect.

The two options that should be considered are DIY or use an IFA. Not a restricted sales rep from a bank/building society.

komotion

Thanks guys. I shall pass up on Nationwide's product and read up on investments. Better to know what I really want before I go shopping.