Halifax investment isa advice

Snakey

Inexperienced investor here.

I stuck all of mine into Vanguard LS60, in an ISA, via the Halifax platform. I was intending to go for 80, which is higher risk but in theory likely to give better returns over the timescale I'm looking at, but I bottled it at the last minute and went for the slightly safer option.

The decision to pick Vanguard was because I wanted something I could buy and forget, and because I wanted to spread my investments over a fairly large part of the market, and because there seemed to be three main options for passive investing like this and they all seemed to be much of a muchness so why not this one? I chose Halifax because their fee structure suited my investing pattern (one lump sum followed by a monthly investment into the same thing each time).

I dithered for a long time before taking the plunge. I have found with me that once I make the decision and take the action, I'm absolutely fine with it - I was the same when I bought my flat. It's the build-up, looking at literally endless options and agonising over what if I picked one that wasn't the best... that's what brings out the wittering old woman in me.

I have concluded that as long as I pick one that's "good enough", I'll have done the right thing. There are no gold medals for having chosen the one that turns out to be the best, which would only be a matter of luck in any event. It just needs to given me a better outcome than whatever I would otherwise have done if I'd shied away from the idea altogether (in the case of home-buying: better than if I'd kept on renting - definitely. In the case of investments: better than if I'd left it in the bank paying me 2% - so far, yes also definitely, and hopefully that will continue to be true over the long term despite any bumps in the road).

So far, no regrets.

Heythere450

I think I have finally made a decision after much thought.

If I go with the vanguard life strategy 60, obviously I can't go direct, min investment is 100k I will need to go through a broker, any recommendations?

But before this I will need to create a stocks ans shares isa? I'm banking with Halifax now so would it be sensible to go with these?

After I do that then do I contact a broken and do it that way. Sorry just want to make it idiot proof

Thanks for the heads up on investment trusts I didn't realise they were not protected.

Thanks,

Linton

Heythere450 wrote: »

I think I have finally made a decision after much thought.

If I go with the vanguard life strategy 60, obviously I can't go direct, min investment is 100k I will need to go through a broker, any recommendations?

But before this I will need to create a stocks ans shares isa? I'm banking with Halifax now so would it be sensible to go with these?

After I do that then do I contact a broken and do it that way. Sorry just want to make it idiot proof

Thanks for the heads up on investment trusts I didn't realise they were not protected.

Thanks,

The provider of the S&S ISA is the broker. They will give you the facilities to buy and sell shares and/or funds.

Heythere450

And one last question. Income and accumulation, is there any significant advantages to either? I was thinking accumulation, as this would be better for the long term? Correct?

Heythere450

Ok understood, looking at cavendish or h&l

Thanks

Linton

Heythere450 wrote: »

And one last question. Income and accumulation, is there any significant advantages to either? I was thinking accumulation, as this would be better for the long term? Correct?

If you want the dividends as cash go for Inc, otherwise choose Acc. Dividends for Acc funds are reinvested within the fund so that its price increases.

Heythere450

Thanks, that's cleared it up.

Would you say it's safer to drip feed or make a one off deposit. I plan to invest 10k altogether. Would it be worth doing it in one or day 5k and then £100 pm after. Reason I ask is I want to try and do it all with Halifax is possible however they have a £2 charge with each scheduled investment.

sorry for the million questions, thanks

Linton

Heythere450 wrote: »

Thanks, that's cleared it up.

Would you say it's safer to drip feed or make a one off deposit. I plan to invest 10k altogether. Would it be worth doing it in one or day 5k and then £100 pm after. Reason I ask is I want to try and do it all with Halifax is possible however they have a £2 charge with each scheduled investment.

sorry for the million questions, thanks

The generally held view here is that it is better to invest as soon as you have the money. Neither you nor anyone else knows what is going to happen in the future and by investing immediately you are at least getting the dividends. On the other hand, for possibly illogical reasons, some people feel happier drip feeding.

dunstonh

Would you say it's safer to drip feed or make a one off deposit

Statistically, lump sums give better returns as growth periods outnumber negative. However, its not really a risk issue as you will be fully invested in the same assets once the phasing stops. So, there is only a short term difference.

Reason I ask is I want to try and do it all with Halifax is possible however they have a £2 charge with each scheduled investment.

Have you considered using a different platform then? You shouldnt constrain yourself with limitations of the platform (whether by functionality or passive blockers like price).

Snakey

Feeding in the second £5k at the rate of £100 a month will take you four years.

What will you be doing with it in the meantime, with the heyday of high-interest-paying current accounts apparently drawing to an end and the maximum rate on a cash ISA something atrocious like 1.4% (lower than inflation is likely to be)?

Remember you will already be losing value slowly but surely on the £5k you're not investing (returns below inflation being the cost of taking zero risk).

Have you also considered pensions?