Newbie Investor

Onlybeginning

As the title suggests I have started researching the wonderful world of investment.

I have just started my first graduate job and would like to start investing.

After calculating my income and expenditure, it appears as though I will be able to put aside Atleast £600-£700 every month towards investing. Also I have no dependents, and I aim to have a diverse investment portfolio with the view to invest for 10, 20+ years etc (I’m in my mid 20’s).

I’ve looked into the buy to let market however it just seems like a headache.

I currently have an investment pot of £1,000 to start of with and I have no idea where to invest? Should I invest DIY shares? Funds? Vanguard etc? Please help!! I feel so overwhelmed with the amount of information out there!

ColdIron

How is your pension? Do you plan on a mortgage or a family?

Onlybeginning

I have a pretty decent company pension and I don’t have a mortgage. I will be inheriting parents house.

tacpot12

Don't buy individual shares; buy a well diversified global fund (with low charges) such as Vanguard LifeStrategy 100. Invest your £1000 in this sort of fund and set up a regular investment into the same fund while you learn more about why you might want to invest in something other than a well-diversified global fund with low charges.

BLB53

I currently have an investment pot of £1,000 to start of with and I have no idea where to invest? Should I invest DIY shares? Funds? Vanguard etc? Please help!! I feel so overwhelmed with the amount of information out there!

I would suggest keep things as simple as possible and do not get into anything you do not understand.

If you feel OK to go DIY then I recommend the articles on DIY Investor basics
http://diyinvestoruk.blogspot.com/p/basics.html

It could be simply a case of a multi asset global fund such as Vanguard Lifestrategy with a low cost ISA provider.

Thrugelmir

Onlybeginning wrote: »

I will be inheriting parents house.

How long are you going to have to wait?

TheShape

Onlybeginning wrote: »

I will be inheriting parents house.

Thrugelmir wrote: »

How long are you going to have to wait?

Until mum and dad next take the car out:money:

Onlybeginning

Thank you all for your comments, appreciate it! I am hopefully going to invest in the Vanguard Life Strategy to get the ball rolling! Looking into DIY shares aswell but I am wary about the costs....

With regard to the comments about my housing situation, my parents are in the process of gifting the house to me. They have moved abroad for retirement and they have other houses in the UK.

ColdIron

Onlybeginning wrote: »

I am hopefully going to invest in the Vanguard Life Strategy to get the ball rolling!

A good idea

Looking into DIY shares aswell

An awful idea

dharm999

Are you maxing out pension contributions so that you get the maximum employer contribution? Have you factored student loan repayments in to your figures, assuming that's relevant?

What are your long terms financial goals, e.g. do you want to retire early, say 55?

Is the house you are going to be gifted in the right part of the country for you, if not, what will you do with it? Have you factored in to your budget costs to maintain the house, pay council tax, insure it, etc..?

I would max out pension, build up a 6 month pot of cash savings and then into a tracker of some sort, and that would be after doing a new budget, to work out exactly how much money I had spare.

kidmugsy

I'd start building up an emergency cash fund using regular savers that pay 5% AER. Houses can present you with mighty bills.

If you are planning to live in your parents' former house, do you plan to have lodgers? If so read up on the Rent a Room allowance.

Contribute enough into your pension to get max employer's contribution. Perhaps contribute more if you use salary sacrifice. Certainly contribute more if you find yourself paying higher rate tax.