New to investing advice required

[Deleted User]

I'd say, scrap your investment strategy completely, just forget about it. Instead go back to post #4, watch the movie first and then read Lars Kroijer book. Then come back here, it will be the best financial decision you can make at this point.

eskbanker

patch9495 wrote: »

Being new to investing you could say that I am unsure myself of my strategy/objectives other than trying to beat the rates offered by savings accounts


I have opened up the S&S ISA to try and offer a gain on the poor rates currently given by savings whilst saving for the long term. This is why I have opened with a small amount.


Although I could live if worse case scenario all of the money were to be lost I would place myself between low and medium on the risk scale

Please understand that nobody here is criticising for the sake of it but it genuinely isn't clear what you're trying to achieve.

Aiming to beat savings interest rates is a legitimate high-level generic intention, but you have clearly made a number of very specific low-level decisions regarding active v passive and income v growth, and made some purchases accordingly, and only now want to stop and think about what to do next.

Reverting to another analogy, it's a bit like setting off from London on the M1 and pausing after 100 miles to ask for directions. If you're heading for Leeds then great, you're heading in the right direction, but if you actually want to get to Portsmouth or Paris, then the answer is unfortunately going to be to go back to where you began and start again.

That's not to say that there's necessarily anything inherently wrong with what you're doing, just that it's not clear what the question is if the answer is "2 passively managed dividend and capital growth balanced funds and 2 actively managed dividend focussed funds consisting of shares bonds cash and property" [with £1K], so, unless there's a good reason for what you've done so far, it sounds like there are more suitable diversified options available that take care of their own (re)balancing and which are therefore highly appropriate for those starting out....

cogito

I'm surprised that no one has asked the OP his age and what his objectives are.

DrSyn

You say you are unsure of your strategy/objectives.

As I suggested in post 4 look at :-

http://www.kroijer.com/

https://www.ifa.com/indexfundsthemovie/

Both are a useful reality check, whatever strategy/objectives you finally decide upon.

You can make investing as simple or as complicated as you like. I again suggest starting with the simple approach first. Later with more knowledge and money, you can always make it more complicated if you like.

patch9495

Thanks for all of the responses everybody,


I think it is clear here that I have ran before I can walk.


I will revert back to post 4 and reassess my strategy from there.


Thanks again

boomsmitty

I was in a similar situation to you a few months ago and was unsure of where to begin. I just wanted to invest a lump sum and deposit a monthly amount for the next 15 to 20 years and watch it grow.

I was given some great advice on here and subsequently read "Investing Demystified" by Lars Kroijer and that was that. The understanding of how charges have a very real impact on your overall investing return as well as investing in low cost global index trackers (for a novice and passive investor like me) was a complete revelation.

AnotherJoe

patch9495 wrote: »

Although I could live if worse case scenario all of the money were to be lost I would place myself between low and medium on the risk scale

That is not going to happen but at present you seem, if I have understood correctly, to be 100% equities in which case you should be looking at a multi asset fund that is around 40-50% equities and the rest in bonds.
Examples of such funds have been mentioned in posts above.

eskbanker

AnotherJoe wrote: »

That is not going to happen but at present you seem, if I have understood correctly, to be 100% equities in which case you should be looking at a multi asset fund that is around 40-50% equities and the rest in bonds.

See post #7 (that you quoted in post #8!):

patch9495 wrote: »

I have purchased 4 multi asset funds 2 passively managed dividend and capital growth balanced funds and 2 actively managed dividend focussed funds consisting of shares bonds cash and property.

patch9495

Having watched the videos mentioned above I have decided to de invest my investments currently made and invest in 2 funds


1 world equity tracker fund (70%)
1 UK bond tracker fund (30%)


Can anyone recommend any suggestions for the above 2 mentioned funds? For the equity fund I have viewed the 100% equity fund operated by Vanguard as it gives a good split for equities in each region of the world

ColdIron

So why not use Vanguard's Lifestrategy 80 and have the whole thing, including rebalancing, handled under one roof? At £1,000 or so it's not that important. I doubt that only a 'VLS70' will do and a VLS80 is unacceptable