S&S ISA - for investing newbie

xmillyx

Hi all,

I'd like to invest £50 a month in a stocks and shares ISA I appreciate that this may be tiny for most of you but I'm also saving up for a house desposit for around 18 months time, (so ploughing most of my savings into that) andmy S&S ISA would be a long term (10 years plus) investment potentially until I retire (I'm 24 now!). This will help diversify my savings, I have a medium/low attitude to risk. Can anyone explain to me how it works? I've tried reading martins guide but I still don't quite understand!!

Thanks!

dunstonh

I have a medium/low attitude to risk.

Can you put that in context? i.e. how much loss could you accept in 12 months. e.g. if your value was £10,000, how much could it fall to before you got cold feet?

ColdIron

If this really is for retirement have you already made sufficient pension provision?

xmillyx

Hello thank you for responding - I think if it reduced by over a 1/3 that would make me nervous. However this is a long term investment and I appreciate that the market has peaks and troughs so would possibly wait it out.

xmillyx

ColdIron wrote: »

If this really is for retirement have you already made sufficient pension provision?

I have paid into my workplace pension for 3 years now and will continue to do so. This would be a 'top-up' investment. I'm only 24 and retirement is a long way off - but I wanted another long term investment as well as my pension.

DrSyn

1. What specifically is it about martin's guide that you do not understand? It does seem to me to be reasonably clear.

2. Also to get any meaningful help, you need to give more detailed info, such as:-

What rate tax do you pay?

Do you have a cash ISA

Have you money in a interest paying current account?

Are you single or do you have a family?

Do you have an emergency fund for a rainy day? If so how large?

dunstonh

xmillyx wrote: »

I have paid into my workplace pension for 3 years now and will continue to do so. This would be a 'top-up' investment. I'm only 24 and retirement is a long way off - but I wanted another long term investment as well as my pension.

So, why are you choosing ISA instead of Pension? Pension is more tax efficient than ISA.

xmillyx

dunstonh wrote: »

So, why are you choosing ISA instead of Pension? Pension is more tax efficient than ISA.

As I want to diversify my investments - and I may want access before I retire

ViolaLass

xmillyx wrote: »

As I want to diversify my investments - and I may want access before I retire

They're different wrappers for the same thing.

pjcox2005

If it helps, when I started I did the following:

Selected a platform to invest with of which you'll see various lists. I went with Hargreaves Landsdowne, which charges slightly higher rates than others but seemed easy to navigate around. Has a good app and plenty of investment articles.

On there I opened a stocks and shares ISA by investing into a fund, my pick being vanguard life strategy (worth a google) 80:20 as it effectively allows me to passive invest and they effectively pick investments within the fund from around the world and had ok reviews. Allows a regular monthly payment so once set up would sort itself.

From there I have acquired some individual shares mainly for fun as well as a return but it would only be worthwhile on larger amounts because there will be buying and selling fees.

xmillyx

To give you some more info:

24 year old full time worker £33k per annum lower rate tax payer

No dependents but live with boyfriend (will be buying house together)

£70,000 in savings as house deposit (split over various current accounts to get the best rate)

£10,000 in a rainy day fun - to pay for fees/survey furniture when new house happens. Hope to increase this to £25,000 after 18 months so we're in a good position with the house purchase.

I don't have a cash isa.