Frustrated by all this investing lark

intowhere

Hi,
I am planning to start investing, I haven't done this before and all of my savings have been in cash. However, I am starting to find this whole process very frustrating and stressful, although I haven't made an investment.
There is so much information to read and understand and so many conflicting theory / advice.
Unit trust or IT or etf; what is the correct allocation, should I decrease my exposure to the US and increase my small cap Europe investments; should I hold index gilts or normal gilts; why not use a IT; is the ITs trading at - 5% NPV.
Whenever I have something sorted out in my head I read something that makes me doubt myself. Even this forum is starting to do my head in because of the sheer amount of information, and I feel I have to read as much as possible.
With a stressful job, 2 young children, etc I don't know when / where I will find the time. Part of me things just get an index tracker and be done with it but another part thinks time spent reading and researching will be time well spent if I can get an additional 2 - 3% return.


Any other people been in a similar situation?

Shashy

Have a read of this recent Monevator article:

http://monevator.com/weekend-reading-little-things-matter-less-than-getting-started/

If you're comfortable doing so, a multi-asset tracker fund (VLS seems to be everyone's favourite around here; others are available) is absolutely fine until you feel confident/comfortable enough to build yourself a bespoke portfolio.

For now, just get it in the market.

stoozie1

I dithered for ages, then just jumped based on advice I received here.

Now have 15k in sipp all in VLS 100.

I can always fiddle around with allocations later but the end of the last tax year was the urgent motivation.

chelseablue

I dithered too then decided to go for it.

I have just over 5k in the VLS 100

dunstonh

Unit trust or IT or etf; what is the correct allocation, should I decrease my exposure to the US and increase my small cap Europe investments; should I hold index gilts or normal gilts; why not use a IT; is the ITs trading at - 5% NPV.

Those things are more advanced options and points and the sort of thing experienced investors will look at. Newer investors tend to start with more basic options or use an IFA.

and I feel I have to read as much as possible.

I can assure you that you haven't. And that it will never end if you go with advanced options as they need continual knowledge updates.

Part of me things just get an index tracker

Which would be a bad way to invest unless you are talking about a global equity tracker and have the risk profile and behaviour to accept that roller coaster ride. (which the average UK consumer does not)

justme111

intowhere wrote: »

Hi,
Part of me things just get an index tracker and be done with it but another part thinks time spent reading and researching will be time well spent if I can get an additional 2 - 3% return.


Any other people been in a similar situation?

You probably are right. Fact is you will not have time to educate yourself to get those 2-3% so your choice is not to do it at all or do it simple and accept you will likely not get those additional %.
I dithered for 2 years:)

xylophone

http://www.which.co.uk/news/2017/05/has-vanguard-launched-the-cheapest-ever-way-to-invest/

https://www.vanguardinvestor.co.uk/need-help

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

Above might help.

ColdIron

What sums are we talking, £10K/£100K? What do you want it to do for you? If it's for retirement what about extra contributions to your pension?

username12345678

When it comes to investing It's easy to get frozen to a standstill by the volume of (often contradicting) advice on the net. And when you do start to gain a little understanding it takes you off down cul-de-sacs where you can find yourself over-engineering possible solutions to something that maybe isn't 'that' complicated.

I ended up establishing what my aims and tolerances for loss were and creating a basic asset allocation (equity v FI) that historically broadly met that tolerance. Researched the options in terms of OEIC's, IT's and ETF's to find a return, volatility & composition profile that best suited what I was looking for and then filled in round the edges with infrastructure, property, healthcare and gold.

I'm still nowhere near completing (or being totally happy) with it but that's fine because a WM is running my portfolio for the next few months at least so I can take my time - but I suspect if you wait until you're totally happy and confident in your choices you'll just end up with a large cash balance!

bostonerimus

intowhere wrote: »

Part of me things just get an index tracker and be done with it but another part thinks time spent reading and researching will be time well spent if I can get an additional 2 - 3% return.

You are in a very common situation....you can't see the "Woodford" the trees. But you have some good feelings as using a few index trackers or a single multi-asset fund is an efficient and low cost way to invest. In your situation I'd probably head over to vanguard.co.uk and learn about their LifeStrategy funds and start investing directly with Vanguard as it will be simple and inexpensive.

enthusiasticsaver

I spent 2 months reading everything I could about investing then went for low cost multi asset tracker. Now approaching retirement I look on my portfolio as two buckets. One with a high yield global income fund to supplement pension and one accumulation pot for later years. Both multi asset, global and moderate to cautious.