New Investor, ISA & JISA. Funds.

Evil_Skint

Good morning and thanks in advance for any advice.

Totally new to investing and seeking advice and knowledge in order to choose the right potential for long term growth suitable for both my own ISA and two Junior ISA`s for the two little ones.

I have chosen Hargreaves as my platform. I intend to learn by being slightly more hands-on approach as to just point and click, hoping it will be more fun this way. I like Hargreaves website and app, both user friendly and packed with plenty of reading for me to delve into.

My age: 44. Intention for the ISA approx. 10-16 years.
Only have a tiny pension with current employer, NEST.
May also start a HL SIPP ( if recommended also)
No debt apart from just over 20k on a mortgage which is currently on a property being leased out and comfortable pays more than the current tracker 1.75% interest. Home we live in mortgage free.

Basic Questions and points before I go into any personal complicated details:

(1) In the interest of fairness, it has been suggested ( by the better half ) that I choose exactly the same funds/shares for both of the JISA`s. Sensibly giving the same returns to both kids.
Is this a sensible thing to do, or would splitting funds and hedging bets slightly, having different setup in both ISA`s be logical?
Child (a) is 4yrs old.
Child (b) is 11 months.
So far after having funds in the accounts for a few days…they are losing money hehe 😊

(2) I intended to follow guidance from Hargreaves as to which funds to choose, looking firstly as their Wealth 50 guide. Researching and following various other sources, including these forums, I find a lot of the interesting funds to look into and those which appear highly recommended, don’t appear in the Hargreaves top 50 list…which concerns me a little. Question is: are there a set of funds which are more suitable for the kids JISA`a when comparing to my ISA?
Hoping I give them a decent head start.

(3) My ISA fund list so far contains 4 that I have chosen based on little research I have done already. Less than £1000 split between them, basically just so I can monitor what happens over the coming months, before I gain confidence and start drip feeding larger amounts into one. Intention to leave these for 10yrs minimum.
CFP SDL UK Buffettology
Fundsmith Equity
LF Blue Whale Growth
Lindsell Train Global Equity

Thinking of adding some global index trackers such as:
Vanguard Global All Cap Index or
Lifestrategy 80

Kids ISA
Only started the one kids so far: thousand quid split between these two. Recommendations for good additional ones?
Rathbone Global Opportunities
Class S - Accumulation (GBP)
Aviva Inv UK Listed Equity Income Class 2 - Accumulation (GBP)

(4) As briefly touched on above, I am interested in wether or not a SIPP at this point is also recommended? I don’t know enough about pensions/trading/stocks yet to put too many things into my head. I feel overwhelmed already!
Should I just start one and if so, which funds to pick and just leave alone?

I think that`s enough questions and info for now. Thanks again and hopefully I can learn enough to contribute one day….

Regards
Wayne

AnotherJoe

Evil_Skint wrote: »

Good morning and thanks in advance for any advice.

Totally new to investing and seeking advice and knowledge in order to choose the right potential for long term growth suitable for both my own ISA and two Junior ISA`s for the two little ones.

I have chosen Hargreaves as my platform. I intend to learn by being slightly more hands-on approach as to just point and click, hoping it will be more fun this way. I like Hargreaves website and app, both user friendly and packed with plenty of reading for me to delve into.

My age: 44. Intention for the ISA approx. 10-16 years.
Only have a tiny pension with current employer, NEST.
May also start a HL SIPP ( if recommended also)
Most likely you are better off putting money into your employers schem if they will atch yur contributions,

No debt apart from just over 20k on a mortgage which is currently on a property being leased out and comfortable pays more than the current tracker 1.75% interest. Home we live in mortgage free.

Basic Questions and points before I go into any personal complicated details:

(1) In the interest of fairness, it has been suggested ( by the better half ) that I choose exactly the same funds/shares for both of the JISA`s. Sensibly giving the same returns to both kids.





Yes. Good and IMO best strategy.



Is this a sensible thing to do, or would splitting funds and hedging bets slightly, having different setup in both ISA`s be logical?



Child (a) is 4yrs old.
Child (b) is 11 months.
So far after having funds in the accounts for a few days…they are losing money hehe 😊

(2) I intended to follow guidance from Hargreaves as to which funds to choose,



Nooooooooooooo ! :eek:



looking firstly as their Wealth 50 guide. Researching and following various other sources, including these forums, I find a lot of the interesting funds to look into and those which appear highly recommended, don’t appear in the Hargreaves top 50 list…which concerns me a little. Question is: are there a set of funds which are more suitable for the kids JISA`a when comparing to my ISA?
Hoping I give them a decent head start.


Hargreaves are clueless about what to pick. You may not be aware of past events regards their "w50" and the fiasco of Woodford, suffice to say they have less chance than a blindfolded monkey throwing darts in a dark room at a stainless steel dartboard of hitting the right target.


(3) My ISA fund list so far contains 4 that I have chosen based on little research I have done already. Less than £1000 split between them, basically just so I can monitor what happens over the coming months, before I gain confidence and start drip feeding larger amounts into one. Intention to leave these for 10yrs minimum.
CFP SDL UK Buffettology
Fundsmith Equity
LF Blue Whale Growth
Lindsell Train Global Equity

Thinking of adding some global index trackers such as:
Vanguard Global All Cap Index or
Lifestrategy 80


far far far FAR too many


Kids ISA
Only started the one kids so far: thousand quid split between these two. Recommendations for good additional ones?
Rathbone Global Opportunities
Class S - Accumulation (GBP)
Aviva Inv UK Listed Equity Income Class 2 - Accumulation (GBP)


Buy a bargepole on Amazon to avoid UK Income funds.


(4) As briefly touched on above, I am interested in wether or not a SIPP at this point is also recommended? I don’t know enough about pensions/trading/stocks yet to put too many things into my head. I feel overwhelmed already!
Should I just start one and if so, which funds to pick and just leave alone?
Dont start a SIPP for the kids. Its inflexible, they cant use it for thinsg like education, health, travel, housing, the money is locked away for perhaps 60 years,and being morbid theres about a 10% chance they wont live long enough to even use it.


I think that`s enough questions and info for now. Thanks again and hopefully I can learn enough to contribute one day….

Regards
Wayne

This is what my grandkids are getting their money invested in right now.

iShares II plc (INRG) 25%
HSBC ETFs Plc (HMWO) 75%


The former is a punt on renewable energy being a growing field over the next 10-20 years, seems like a no-brainer to me since renewals unsubsidised are now approaching the price where its actually cheaper to shut down existing coal and gas plants let alone build new ones, plus of course UK and Euro targets over the next 20 years imply thats where the investment will go anyway.
The latter is a punt that the world economy is the place to be.
Both are shares because in the ong term the costs of holding them with HL are much lower than with funds.

Evil_Skint

AnotherJoe

Thanks for the swift response.
Yes I was aware of the woodford fund and its evident !!!!-up, however did not think that this was a typical view of Hargreaves as a whole? Their wealth 50 seems to be varied and the majority recommended on most other platforms too... I will keep researching then before delving further

Thanks for the spock image...and the morbid death prior to 60 comment haha!
Wayne

AlanP_2

I think, like many newbie investors, you are trying to run before you can walk.

Starting with your ISA - If you want this to run for 10 - 16 years from Age 44 is the objective that it will for funding retrirement?

If it is higher pension contributions could well be a better option for you, particularly if you are (or expect to be) a Higher rate taxpayer or if your employer offers Salary Sacrifice for the contributions.

Alternatively, dependant on spouse / partner's employment / salary / pension situation making contributions in their name might be more profitable.

Be wary of HL Wealth 50 list, somebody is paying HL somehow to have their fund on that list. Until recently the Woodford Equity Income Fund was on there, it has now been suspended and is being closed down with investors likley to experience a 30-50% loss (depending on what price they bought in at).

As an inexpeienced investor selecting niche, active funds is a risky business and you may be better suited by a global tracker fund or even a multi-asset fund from companies like Vanguard, HSBC, L&G, Blackrock etc.

The low values you are talking about would also suggest the same type of investments being suitable.

Have a read through various threads on here re Trackers / Global Trackers / Multi-Asser funds and take a look at the monevator.com website.

Lars Krojer has written a book that is fairly easy to read and has a series of You Tube videos that are worth watching to help bring your knowledeg level up. The Edwards DIY series of books are also useful primers.

In summary start with YOUR OBJECTIVE, consider the "whole family unit", attitude to risk, income / tax levels and realistic expectations and use all these to develop a plan for getting to your goal.

Evil_Skint

AlanP Thank you

Running before walking is how it feels too, I have certainly fell into the newbie trap. But..no harm so far.

The global index trackers, would these count as a good starting point?
Vanguard Global All Cap Index or
Lifestrategy 80
I am currently reading all about blackrock too.

EDIT:
" Starting with your ISA - If you want this to run for 10 - 16 years from Age 44 is the objective that it will for funding retrirement?" I guess so. At the moment in life I seem to be generating spare funds which seem to sit boringly in a standard bank account...so thought it best I place the cash elsewhere with the hope of a nice pot at the end.

SonOf

Yes I was aware of the woodford fund and its evident !!!!-up, however did not think that this was a typical view of Hargreaves as a whole? Their wealth 50 seems to be varied and the majority recommended on most other platforms too... I will keep researching then before delving further

Do not consider marketing lists as recommendation lists.

No platform gives you recommendations. They may give you a list of funds that they wish to promote but that is not advice.

(3) My ISA fund list so far contains 4 that I have chosen based on little research I have done already. Less than £1000 split between them, basically just so I can monitor what happens over the coming months, before I gain confidence and start drip feeding larger amounts into one. Intention to leave these for 10yrs minimum.
CFP SDL UK Buffettology
Fundsmith Equity
LF Blue Whale Growth
Lindsell Train Global Equity

Thinking of adding some global index trackers such as:
Vanguard Global All Cap Index or
Lifestrategy 80

When you bake a cake, you use defined measurements of certain ingredients that will result in the desired outcome. You don't throw in random ingredients in random amounts. Investing is exactly the same.

At the moment, your selection is totally random and very high risk. A common mistake for a new DIY investor. You have no structure and it doesnt look like any thought has been given to diversification and risk levels.

Its not worth building a bespoke portfolio of single sector funds unless you have a higher amount. Smaller values are best suited with multi-asset funds instead. Combining multi-asset funds with single sector funds is used by some but mainly on a core and satellite approach. Personally, i wouldn't mix single sector funds with multi-asset funds but that is my choice.

The global index trackers, would these count as a good starting point?
Vanguard Global All Cap Index or
Lifestrategy 80
I am currently reading all about blackrock too.

VLS80 is not a global index tracker. It is a fettered fund of funds. That makes it a multi-asset fund.

Alexland

I endorse the above comments about avoiding the HL w50 list (as it's designed for their commercial interests not your financial wellbeing) and, if going DIY, looking at low cost mostly passive mixed asset fund on cheaper platforms.

However if you have excess income which you are happy to put aside for retirement then there is usually material tax advantage to understanding more about your existing workplace pension options.

Alex

Evil_Skint

OK...so, in a nutshell. I have oversubscribed to HL nonsense and I should instead whack smaller drip-fed amounts into a multi-asset such as VLS80?... at the same time putting lump sums into a Global index tracker is also a good plan?

Scrap the rest and re-set. :P

xylophone

If you intend to use Vanguard funds for the children, had you considered using Vanguard's own JISA for them? You could transfer from HL to Vanguard.

https://www.vanguardinvestor.co.uk/investing-explained/stocks-shares-junior-isa?cmpgn=PS0517UKPABJI0001&gclid=EAIaIQobChMI3oGw2P2t5wIVyrHtCh16EwTzEAAYASAAEgKG3fD_BwE&gclsrc=aw.ds

https://monevator.com/using-vanguard-lifestrategy-funds-life/

Evil_Skint

Secondly...

Would the aim of sticking to just one Global Tracker Fund and just one Multi Asset Fund be suitable for both an ISA based on 10-15 years aswell as the JISA`s. I assume so.

Evil_Skint

xylophone wrote: »

If you intend to use Vanguard finds for the children, had you considered using Vanguard's own JISA for them? you could transfer from HL to Vanguard.


Thank you xylophone

Yes this has absolutely crossed my mind and the simplicity of it appeals. I can use this fund via HL too, but assume HL take a fee. I just wanted to keep everything in the same portal for easy tracking.