Long term investment

Nabberuk

I'm currently 33, married and with a mortgage. We both get a decent pension (education) and have decent wages.
I'm looking at potential long term investment for retirement, but I would like to only commit between £50 to £100 a month. I've been looking at an investment trust (Scottish Mortgage Investment) but I'm a little unsure drip feeding would work with these low amounts and associated charges.

Does anyone have any advice? Is my above silly?

Alexland

If you really want to drip feed small amounts into SMT then the cheapest way would be via an unwrapped BG Share Plan (under their ISA on the below page).

https://www.bailliegifford.com/en/uk/individual-investors/how-to-invest/investment-trust-share-planisa/

Just keep an eye on your dividends and capital gains to stay within the annual allowances.

Alex

Voyager2002

Scottish Mortgage is a fine product, but you should have a portfolio rather than a single highly concentrated investment trust.

poppy10_2

Alexland wrote: »

the cheapest way would be via an unwrapped BG Share Plan (under their ISA on the below page).

Just keep an eye on your dividends and capital gains to stay within the annual allowances.

There's no annual allowance for dividends or capital gains for investments held in an ISA.

Prism

Some platforms offer a regular investment service which discounts the transaction fee

Alexland

poppy10 wrote: »

There's no annual allowance for dividends or capital gains for investments held in an ISA.

Yes but my point is the unwrapped BG Share Plan is cheaper than their ISA as there is no annual fee. The details are on the same webpage so the OP would need to scroll down.

Growth investments don't produce high dividends and if there are eventually sufficient capital gains then the OP could sell across multiple tax years.

Prism wrote: »

Some platforms offer a regular investment service which discounts the transaction fee

But with the BG Share Plan there are no trade fees or platform charges - just a modest £22 withdrawal charge at the end (which they partially rebated by giving me a £10 M&S voucher for completing their leavers questionnaire). Other than that you just pay the normal 0.5% stamp duty and costs relating to the trust you choose.

Full details below

https://www.bailliegifford.com/en/uk/individual-investors/literature-library/individualintermediary-non-fund/investment-trust/investment-trust-share-plan-application-pack/

These plans are very good but before the latest correction I lost confidence in their investment style.

Personally with the OPs retirement objective I would invest in the Blackrock Consensus 85 or 100 funds via a HL Lifetime ISA (overall slightly more expensive but 25% government bonus which would need reinvesting manually) or if a higher rate taxpayer consider additional pension contributions (for the additional tax relief via your payroll or self assessment).

Alex

A_T

With sums of £50 and £100 at a time fees are going to eat into your investment. You'd be better off investing in the OEIC equivalent to SMT: Baillie Gifford Long Term Global Growth.

aroominyork

A_T wrote: »

With sums of £50 and £100 at a time fees are going to eat into your investment. You'd be better off investing in the OEIC equivalent to SMT: Baillie Gifford Long Term Global Growth.

Yes, assuming you are on a platform with no transaction fees. HL fits that bill and, while you have a relatively small amount invested, their annual fee of 0.45% will be cheaper than a platform with a fixed fee.

A_T

aroominyork wrote: »

Yes, assuming you are on a platform with no transaction fees. HL fits that bill and, while you have a relatively small amount invested, their annual fee of 0.45% will be cheaper than a platform with a fixed fee.

Better still go with a Cavendish ISA with 0.25% platform fee. Even when you've accrued 20K you'll still only be paying a fee of 50 quid a year with no fees to withdraw.

Thrugelmir

Voyager2002 wrote: »

Scottish Mortgage is a fine product, but you should have a portfolio rather than a single highly concentrated investment trust.

With a secure DB pension in place. A relatively small monthly sum is worth taking some risk with. Portfolios can be added to over the years.

Alexland

A_T wrote: »

With sums of £50 and £100 at a time fees are going to eat into your investment. You'd be better off investing in the OEIC equivalent to SMT: Baillie Gifford Long Term Global Growth.

Not if you go with the unwrapped BG Share Plan which has no trade fees or ongoing platform fees.....

Alex