Standard Newbie Help

KAJM

Hello!

Sorry, this is going to be a very boring question..

I have c. £25k that I wish to invest. I have trawled through this website and others, as well as reading Tony Robbins "Unshakeable" but was hoping for some advice.

I don't have an investment background at all. I'm in my mid-20's and I have a student loan (although think it's better to invest then pay off as my interest rate is fixed at 1.6%) and although I don't own a house, my objective is for long term income.

Could anybody recommend which Stocks and Shares ISA would be best (I currently don't have an ISA)?

From what I've read all the advice seems to be pointed to a Vanguard Life strategy Index linked fund - is this the most sensible option?

Please can I have some constructive advice.

Many thanks!

badger09

KAJM wrote: »

Hello!

Sorry, this is going to be a very boring question..

I have c. £25k that I wish to invest. I have trawled through this website and others, as well as reading Tony Robbins "Unshakeable" but was hoping for some advice.

I don't have an investment background at all. I'm in my mid-20's and I have a student loan (although think it's better to invest then pay off as my interest rate is fixed at 1.6%) and although I don't own a house, my objective is for long term income.

Could anybody recommend which Stocks and Shares ISA would be best (I currently don't have an ISA)?

From what I've read all the advice seems to be pointed to a Vanguard Life strategy Index linked fund - is this the most sensible option?

Please can I have some constructive advice.

Many thanks!

A S&S ISA is simply a tax wrapper, or envelope, in which you hold investments.

You should first decide what investments you want to hold, and then decide who you would like to look after your envelope for you:)

Have a read around this website. Heavily biased towards passive investing, but IMHO that's not a bad thing for a novice investor.

http://monevator.com/category/investing/passive-investing-investing/

Also, have a think about your pension provision. This is a very tax efficient wrapper/envelope for some of your investments;)

KAJM

Thanks for your speedy response!

From everything I've read passive investing definitely makes sense for me, I don't really want to play the market.

In terms of pension, I have just moved jobs and get to choose where I invest my pension. Previously I was auto-enrolled into a Standard Life scheme.

A friend has suggested I should try a SIPP and look at tracker funds. Would anybody have any advice on what would be best?

Thanks again,

Kate

badger09

KAJM wrote: »

Thanks for your speedy response!

From everything I've read passive investing definitely makes sense for me, I don't really want to play the market.

In terms of pension, I have just moved jobs and get to choose where I invest my pension. Previously I was auto-enrolled into a Standard Life scheme.

A friend has suggested I should try a SIPP and look at tracker funds. Would anybody have any advice on what would be best?

Thanks again,

Kate

The website to which I provided a link in my previous post covers that as well.

The starting point is knowing what investments will suit your risk profile and objectives. The next step is choosing which S&S ISA and SIPP provider suit a) the investments you want to hold and b) the way you want to invest.

Have a read, then come back with some more specific questions;)

xylophone

You will be a first time buyer?

Have you looked at LISA?

https://www.moneysavingexpert.com/savings/lifetime-ISAs

MallyGirl

A SIPP is also just a wrapper to hold shares/funds etc. You could choose to hold Vanguard in a SIPP for example.
There are a few comparison tools that will show the costs of different providers- some are fixed fee which tends to work better once the holding gets larger and some are percentage based which is usually better for smaller amounts.

Eco_Miser

Do you really want income (to live off), or would growth (becoming more valuable by rather more than inflation as time goes by) followed by income in the future when you retire early, be a more appropriate target?

I echo badger09's advice, plus check you have sufficient spare cash (or cheap credit) in addition to this £25k to cover seasonal expenditures and emergencies.

I also approve the other advice that got posted while I was typing.

BLB53

From what I've read all the advice seems to be pointed to a Vanguard Life strategy Index linked fund - is this the most sensible option?

Yep, VLS is a good choice so it's just a matter of selecting the most suitable level of equities and then choosing a platform to open your S&S ISA.

I Hold my VLS 60 as a one off lump sum with Halifax Sharedealing as the charges (after purchase) are just £12.50 p.a.

The Lifestrategy index fund is used as an example of a one-stop investing strategy in the 'DIY Simple Investing' book by Edwards so that may be worth a read to get a better idea of whether it may be a good option for you.