Should I get into investing now? (Complete newbie)

kiwi_fruit

I'm very risk averse, so I've never invested, and really don't know much about it. But I've been mulling over opening a LISA in the last couple of months and was told S&S is the way to go, not the cash version.

So I'm reading about the market situation at the moment and thinking- I really should be getting into investing right now, right? I'm thinking about something like Vanguard LS 80 20, lump sum of 4k on a Hargreaves Lansdown platform.

 Am I correct in thinking I'll benefit from the current market crash if I buy into this fund now, or am I confusing it with day trading? I'm sorry if my question is daft, I'm a real dummy when it comes to investing. Thanks for any suggestions.

afis1904

What do you intend to use the LISA for and when? For Stocks and Shares to reliably pay off you'd need to be invested for at least 5 years

Alistair31

Very risk averse and Vanguard LS80 are not compatible. 

Thrugelmir

If you are risk adverse why are you now considering jumping into the water while all the markets are at their most volatile. Not as if there's a safe haven. Drip feeding is the often recommended route to put ones toe into the water initially. There's no immediate rush. The panic may yet come. If the situation turns out to be financially damaging for an extended period. Markets hate uncertainty. . 

Username999

afis1904 said:

For Stocks and Shares to reliably pay off you'd need to be invested for at least 5 years

Really?

kiwi_fruit

Alistair31 said:

Very risk averse and Vanguard LS80 are not compatible. 

Even when I'm planning not to touch it for 30 years? (I'm 32 now, so can't cash LISA until age 60 anyway) That's the one fund I keep seeing people recommend in various places..

afis1904, planning to use it for retirement, I'm 32 now

Thrugelmir

afis1904 said:

What do you intend to use the LISA for and when? For Stocks and Shares to reliably pay off you'd need to be invested for at least 5 years

12 years.......

Alistair31

kiwi_fruit said:

Alistair31 said:

Very risk averse and Vanguard LS80 are not compatible. 

Even when I'm planning not to touch it for 30 years? (I'm 32 now, so can't cash LISA until age 60 anyway) That's the one fund I keep seeing people recommend in various places..

So what you are now saying is that for the next 30 years you aren’t going to be “very risk averse” ? 

It’s one or the other really. 

kiwi_fruit

Alistair31 said:

kiwi_fruit said:

Alistair31 said:

Very risk averse and Vanguard LS80 are not compatible. 

Even when I'm planning not to touch it for 30 years? (I'm 32 now, so can't cash LISA until age 60 anyway) That's the one fund I keep seeing people recommend in various places..

So what you are now saying is that for the next 30 years you aren’t going to be “very risk averse” ? 

It’s one or the other really. 

Well, from what I've read so far- the likelihood of losing money in Vanguard LS 80/20 over 20-30 years is exceedingly low, so I guess that's why I thought it might be suitable.

kiwi_fruit

Thrugelmir said:

If you are risk adverse why are you now considering jumping into the water while all the markets are at their most volatile. Not as if there's a safe haven. Drip feeding is the often recommended route to put ones toe into the water initially. There's no immediate rush. The panic may yet come. If the situation turns out to be financially damaging for an extended period. Markets hate uncertainty. . 

Isn't the basic principle -buy low, sell high..? So it seems now (or in the next coming weeks) is the best time for buying, isn't it?

Alistair31

kiwi_fruit said:

Alistair31 said:

kiwi_fruit said:

Alistair31 said:

Very risk averse and Vanguard LS80 are not compatible. 

Even when I'm planning not to touch it for 30 years? (I'm 32 now, so can't cash LISA until age 60 anyway) That's the one fund I keep seeing people recommend in various places..

So what you are now saying is that for the next 30 years you aren’t going to be “very risk averse” ? 

It’s one or the other really. 

Well, from what I've read so far- the likelihood of losing money in Vanguard LS 80/20 over 20-30 years is exceedingly low, so I guess that's why I thought it might be suitable.

But as a very risk averse person how would you handle logging in to your account one day and seeing your £4K investment sitting at £2400, for example ? 

If you understand that is a very real risk and you are happy with that then that’s fine. I’m heavily invested in VLS80 myself and have a 30year view too, I however would never describe myself or my position as very risk averse.