Halifax investment isa advice

Heythere450

Hi guys after a little advice on my savings

I have 15k saved up and want to invest or do something with it so it's not just sitting there.

I have been looking at the Halifax investment isa, as I bank with Halifax already. They are categorised 2,4,6 in terms of risk. I would go for the 2. But is now a good time to invest, with brexit and all the un stability of everything. Or should I wait until after?

Or if there are another other investment isa to be aware of?

I don't really fancy splitting my money up into several banks just to get a half decent rate.

Thanks in advance

dunstonh

But is now a good time to invest, with brexit and all the un stability of everything.

There is always instability. So, if you wait another 10 years until Brexit is sorted there will be another thing around the corner. The investment houses are already looking at the 2017 elections and Italian debt as the incoming concerns (and Greece as that is still not resolved).

I don't really fancy splitting my money up into several banks just to get a half decent rate.

Typically, you dont use the investment products of banks are they are usually expensive and poor quality. (caveats apply)

Most people should use whole of market platforms allowing whole of market access within a single account.

bigfreddiel

Banks and building societies are the worst place to use for any investment portfolio.

Check out passive investing and read more on the monevator site

Good luck fj

bigadaj

Halifax share dealing is actually a good option, straightforward and basic but low cost.

This is separate to the straight bank product which is expensive.

Do some reading on monevator and post back with thoughts to receive some comment and opinion.

Heythere450

Thanks for the help so far.

I am genuinely overwhelmed by the options I have. I have been looking into this for the last 3-4 months but can't get my head round what would be the best bet for me.

I have read all relevant websites, good info may I add however can't help me decide.

The investment isa seemed appealing to me as I don't know enough to buy shares etc, read the market and predict what's going to happen. I'm just good at saving!

I have also read about ETFS, and seen th fidelity investment isa, would this be particularly better than the Halifax isa?

The share dealing seems appealing, how straight forward is straight forward? Could I do it if I don't know the markets inside out? Would it be worth doing with anything less that 15k, say if I put 5k forward?


So if you guys had 15k. At 25 years old, I want to invest, and save for the future. I don't mind if my money is Locked up for 10 years plus. What would you do with it?


Thanks again

dunstonh

I am genuinely overwhelmed by the options I have

About 30,000 with infinite number of variations.

I have also read about ETFS, and seen th fidelity investment isa, would this be particularly better than the Halifax isa?

ETFs are a more advanced investment option requiring a greater knowledge of understanding. There is no FSCS protection on them. Do you feel they are right for your knowledge and understanding?

For example would you pick replicated or synthetic? Would you go with sampled methodology?

The share dealing seems appealing, how straight forward is straight forward? Could I do it if I don't know the markets inside out? Would it be worth doing with anything less that 15k, say if I put 5k forward?

Would you avoided Lloyds Bank, Tesco, BP etc before their bad days? probably not
Would you have held enough shares across that if one did a Polly Peck or Marconi that losing x% of your holding wouldnt be a concern to you?
Is it worth doing all that for just £15k?

So if you guys had 15k. At 25 years old, I want to invest, and save for the future. I don't mind if my money is Locked up for 10 years plus. What would you do with it?

At 25, i was already investment qualified. So, what I would do wouldnt match what you should do. Other 25 year olds would have different levels of knowledge and understanding and different objectives. So, it isnt so much what they would do. it is about what you should do which is right for you.

Given the very limited info you have given, I would probably be looking at a decent multi-asset fund.

xylophone

http://monevator.com/using-vanguard-lifestrategy-funds-life/

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

Heythere450

Fair comments. Yes I have very limited knowledge in this field.

I will do my research on multi asset funds.

How do people feel about trusts funds, I have seen witan, schroder and city of London all highly spoke about? I feel this would be more down my path.

Sorry for my lack of understanding but it's great that you guys can give me good advice. Thanks

greenglide

Investment Trusts such as Witan, City of London etc are regarded as really aimed at more experienced investors. They can be brilliant in their place but are not, generally, a product that replaces a reliable multi asset fund.

Ignore the background noise!

darkidoe

Heythere450 wrote: »

Fair comments. Yes I have very limited knowledge in this field.

I will do my research on multi asset funds.

How do people feel about trusts funds, I have seen witan, schroder and city of London all highly spoke about? I feel this would be more down my path.

Sorry for my lack of understanding but it's great that you guys can give me good advice. Thanks

It seems that you have started looking into this for some time. I think what you need to work on is your philosophy of investing rather than which funds/product is good for you. The 'why' are you investing and 'how' much performance you are looking for or 'how' much risks for the amount of return? Then you have a better ideal of how you should build your portfolio.

To be fair there are too much uncertainties and coping with those uncertainties is part of the investing journey and also in life as well. Make sure you have an emergency cash fund as a first priority and then look into multi-asset funds as Duntonsh suggested and evaluate the pros and cons to see if it will work for you!

Good luck in your research!

dunstonh

How do people feel about trusts funds, I have seen witan, schroder and city of London all highly spoke about? I feel this would be more down my path.

These are investment trusts. These are more advanced investment options. No FSCS protection and a number of issues to be aware of that do not exist with unit trust/OEICs. Generally speaking, they are higher risk than the equivalent unit trust/oeic because of the differences.

They are viable options for an experienced investor who can understand the risks and differences but not for an inexperienced investor.