Advice re: best way to save

Eco_Miser

BrookMan68 wrote: »

How does the passive investing work?

In short, you buy a fund that buys all the publicly traded companies in the world, in proportion to their size, and sit back and watch your pot grow.

Monevator has rather better explanations and how-tos. Invest within tax-privileged accounts (JISA, ISA, LISA, pension, each has restrictions and disadvantages as well as advantages) to avoid tax.
I'm not sure whether 16-year-olds can invest on their own, or need an adult trustee to do some of the paperwork.

BrookMan68

Thanks for all your suggestions! :beer:

I've been flicking through the forum and have thought about this; what would this be like for a start:

- Hargreaves and Lansdown S&S ISA in my mothers name (until I turn 18), she hasn't subscribed to S&S and isn't planning to do so
- Monthly direct debit - I was thinking around £25 but what would be recommended?
- Vanguard fund, however I'm unsure which split to take I.e the 40, 60, 80

Would this be a good way to start off? I'd be doing this for at least 5 years and hope to be able to pay into it every month.

Any suggestions more than welcome...

Thanks

darkidoe

BrookMan68 wrote: »

Thanks for all your suggestions! :beer:

I've been flicking through the forum and have thought about this; what would this be like for a start:

- Hargreaves and Lansdown S&S ISA in my mothers name (until I turn 18), she hasn't subscribed to S&S and isn't planning to do so
- Monthly direct debit - I was thinking around £25 but what would be recommended?
- Vanguard fund, however I'm unsure which split to take I.e the 40, 60, 80

Would this be a good way to start off? I'd be doing this for at least 5 years and hope to be able to pay into it every month.

Any suggestions more than welcome...

Thanks

16 16. You still qualify for JISAs I suppose. Would be a good start.

Well done for thinking ahead and starting to build up a savings habit! It's always a good idea to be involved in a bit of financial planning for yourself and be right in the thick of it.

The big question if I were 16 would be whether I need accessible cash or am I financially secure enough (Living with parents, most expenses covered by parents etc) to invest for the long term future. Everyone needs a bit of a cash pool for day to day spending and a bit more for 'emergencies' (might not apply if you are 16 and dependant on parents), so deciding how much you need to hold in cash is probably the first step. Be mindful that this can change as you become more independent financially and take more fiscal responsibility.

Investing is a life long journey and learning process and should fit around your short (Education, Uni), medium (part time work, renting, deposit for house) and long term goals (Retirement, building wealth) in Life. You want to be in it for the long-haul and not to make a quick buck. So take your time to read all the articles and join in the discussions to learn more about it. No rush I would say especially when you are 16. Once you are comfortable with the cash side of things, then perhaps you should start investing.

Good luck.