Please help me stop over thinking and start investing

Dammi

Hi,

I've been wanting to start investing for a while now and all last year I was too indecisive about what funds and platform to pick that I ended up not acting. I really don't want that to happen anymore, please help me look over my plan. Please help to give me pointers anywhere you can.

I'm in my early 30's, no kids, not married and wanting to buy a house in the later part of this year. I have £30,000 in various basic saving accounts which can go towards a house deposit.
Additionally £10,000 in a cash LISA which I can get access to in April, by May this will be £15,000 and will all go towards the deposit (afterwards I might move to a S&S LISA). My salary isn't amazing but hopefully £45,000 should be enough for my first property.

In an old cash ISA is £24,000 that I want to move to a stocks and shares ISA and make regular payments to it. I'm thinking of splitting it between 2 multi asset funds to start (eventually I might add an ETF), Vanguard LS80 and HSBC Global Strategy Balanced. Although I could also go VLS60 and HSBC GS Dynamic?

The platforms I'm considering are either Halifax Share Dealing or Interactive Investor (ii is giving £100 if you transfer £25k but I've heard many complaints about them), another thought is just to put it all in the Vanguard platform and only do the VLS80, I think that might save costs and do I really need to split it? Although I think it'll mean better diversification?

One thing I'm confused on is the Halifax charges if I make regular payments, is it £12.50 pa plus £12.50 per fund plus £2? I used the compare platform calculators and am not sure how they worked it out.

I have long time investing in mind with the S&S ISA but it does also make me think that maybe it should go to a SIPP but that would mean leaving my ISA which I'm not sure I want to do.

Please help, does this sound like a sensible plan? Thank you!

masonic

I would have thought the Vanguard option would have been more appealing to you. There really isn't any need to hold more than one fund if it is a multi-asset fund. iWeb is another platform you could consider.

If you are planning to buy this year, wouldn't it make the most sense to stay in cash until you know exactly how much money you will need?

Dammi

masonic wrote: »

I would have thought the Vanguard option would have been more appealing to you. There really isn't any need to hold more than one fund if it is a multi-asset fund. iWeb is another platform you could consider.

If you are planning to buy this year, wouldn't it make the most sense to stay in cash until you know exactly how much money you will need?

Thank you for the reply! Yes, I have considered keeping the cash for now but as I have been dawdling about it so much I just want to make a start. I had thought of just doing £10,000, maybe I should put that in Vanguard for now until after I purchase a property. Even if that turns out to be the end of this year/early next year.

p00hsticks

Dammi wrote: »

Thank you for the reply! Yes, I have considered keeping the cash for now but as I have been dawdling about it so much I just want to make a start. I had thought of just doing £10,000, maybe I should put that in Vanguard for now until after I purchase a property. Even if that turns out to be the end of this year/early next year.

Investing in stocks and shares is generally for medium/long term - typically for at least five years. Although the general trend for funds/equities is upwards, there are regular dips in the market which means if you need to cash out early or at a specific time you could end up losing a sunstantial amount of money.

It is really not sensible to invest if you will need to cash it all in within twelve months to buy a house. I'd wait until you have done that and then once you have got a six month safetly net of cash back in place, if you have any spare cash in your monthly budget at that point that is not required short term, start then.

bostonerimus

Keep the money to buy the house in cash.

Contribute as much as you can to your workplace pension to get the max employer matching contributions and the tax benefit. If you have a pension you are probably already investing in stocks and shares, so make sure understand how you are invested.

Put money into a stocks and shares ISA if you can as it gives you some flexibility

Dammi

p00hsticks wrote: »

Investing in stocks and shares is generally for medium/long term - typically for at least five years. Although the general trend for funds/equities is upwards, there are regular dips in the market which means if you need to cash out early or at a specific time you could end up losing a sunstantial amount of money.

It is really not sensible to invest if you will need to cash it all in within twelve months to buy a house. I'd wait until you have done that and then once you have got a six month safetly net of cash back in place, if you have any spare cash in your monthly budget at that point that is not required short term, start then.

I really don't think I'll need anymore than £50,000 for the house so that still leaves me with £19,000. I do understand how it might be best to keep that in cash but I do still want to invest at least £10,000.

newatc

Dammi wrote: »

Hi,


One thing I'm confused on is the Halifax charges if I make regular payments, is it £12.50 pa plus £12.50 per fund plus £2? I used the compare platform calculators and am not sure how they worked it out.

I have a monthly regular ISA with Halifax Sharedealing buying just one fund. My costs are £12.50 per annum and £2 per month.

Thrugelmir

On the basis that you are maximising your pension options. Start by drip feeding money into a broad based fund or investment trust every month. Small amounts to begin with. Don't over commit. Build your confidence and experience.

Investing is akin to riding a roller coaster. Just when you think everything is going well. The rug will be pulled away from underneath. Markets can flip direction at the flick of a switch. You'll be questioning why you ever invested!

Zero_Sum

Dammi wrote: »

I really don't think I'll need anymore than £50,000 for the house so that still leaves me with £19,000. I do understand how it might be best to keep that in cash but I do still want to invest at least £10,000.

How much is the house you're buying?
It does sound like you're a bit risk adverse so opting for smaller mortgage may be other option, and just start of small in investing.

Ive just started dipping my toes into this & have just put in a couple of grand them drip feeding a small amount each week

DiggerUK

Dammi wrote:

.....I've been wanting to start investing for a while now........

Stop fannying about, buy a damned house. That is investing in your future betterment. Everything else you have suggested, and been encouraged to do by the usual kob heads here, is nonsense.

Get the property now, and you have security for the rest of your life. You seem to have about 70k in liquid assets, and * edit45k p.a.......what's your problem. Get real for christ's sake..._

Edit, I may have misread....what is your salary?

Dammi

Thrugelmir wrote: »

On the basis that you are maximising your pension options. Start by drip feeding money into a broad based fund or investment trust every month. Small amounts to begin with. Don't over commit. Build your confidence and experience.

Investing is akin to riding a roller coaster. Just when you think everything is going well. The rug will be pulled away from underneath. Markets can flip direction at the flick of a switch. You'll be questioning why you ever invested!

Thank you, I'll look into this but please can you give me a couple of examples of broad based funds and investment trusts. Are the VLS80 and HSBC Global Strategy different?