19 and have £500pm to invest, what to do?

Kylet63b

Hi i am quite young and am currently working full time and able to put away £500 a month that I hope to invest. I’m not entirely sure what to do? I want to explore different avenues and different ways I can invest but not sure what companies or what ways to do this effectively and also to minimise charges, any advice would be greatly appreciated. Thanks

kinger101

What are your goals. Buying a house? Pension?

I'd do the following anyway as it's free money

(a) make sure you're maxing out the contribution you get from your employer's pension.
(b) stick up to £4,000 pa into a lifetime ISA - government will add another £1,000

Other than that, aim for 3-6 months take home pay as a cash buffer in your bank account.

ValiantSon

If you are happy locking it away until retirement then put it into a pension (maximise employer contribution matching and then explore SIPPs) to benefit from the tax relief. If you don't want to lock it up for that long, then use an S&S ISA.

AN S&S LISA is also worth considering, but be aware that you can only access the money for a first house purchase or at 60.

Look at multi -asset index funds like Vanguard LifeStrategy; HSBC Global Strategy; Blackrock Consensus; or L&G Multi Index. These will give you good diversification at low cost. You should still be looking at a minimum of 10 years, and longer would be better.

Platform costs vary, so have a look here: http://www.monevator.com/compare-cheapest-uk-brokerswhich compares them all.

Terry_Towelling

You say you are 'currently' working full-time; does that mean it is only a temporary thing and may change soon?

Do you mean 'invest' or just 'save'?

Do you live at home, in a rented place or what? Do you plan to buy a house at some point? If you live in your own place you should make sure you have an emergency fund (6 months bills covered minimum) before doing anything else.

Are you allowing yourself some cash to enjoy life?

As Kinger101 said it may be a good idea to establish some goals in life before you can know the best way to save/invest your cash.

Thrugelmir

Your objectives should be the overriding factor when saving/investing money. What's the best use of the money at the current time.

macman

I'd second the LISA: nothing else is paying 25% tax-free at present!

AndyPK

you could get a couple of 5% regular savers.
Won't make you a fortune, but good if you want the money in 12 months time

swindiff

macman wrote: »

I'd second the LISA: nothing else is paying 25% tax-free at present!

Salary sacrifice pension contributions are, 47% :T

atush

kinger101 wrote: »

What are your goals. Buying a house? Pension?

I'd do the following anyway as it's free money

(a) make sure you're maxing out the contribution you get from your employer's pension.
(b) stick up to £4,000 pa into a lifetime ISA - government will add another £1,000

Other than that, aim for 3-6 months take home pay as a cash buffer in your bank account.

What he said

Kylet63b

I’m permanently working full time, I would like to save for a house just now, I’m currently still living at home so I don’t have a lot of costs per month so I am able to put £500 away while still having some money aside for myself

Kylet63b

Look at multi -asset index funds like Vanguard LifeStrategy; HSBC Global Strategy; Blackrock Consensus; or L&G Multi Index.