Beginner investing advice

AdmanPea

Hi all

So I have been immersing myself in some reading/videos on the topic of investing and it's something I want to try. However, in 'true to me' form I've inundated myself in info to the point I can't decide what and how to do it. 

So I'm thinking about investing 1-2k right now in something that I will allow to sit for a minimum 10 years (possibly around 15 or so) but I also want to put in around £100 a month on top of this (if possible). I'm not too keen on going high risk but it would seem something like an index fund might be a good idea. My aims are to ultimately try and pay off mortgage early (I'm overpaying already) and mature a nest egg of money to draw out and rebalance my work/home life well before retirement age. 

Would the above seem a reasonable idea? From my reading, it seems going through Vanguard could be an idea. My main gaps in knowledge are: what am I doing once on the site and can I add the monthly payments into the same pot or would it be better (or only possible) to do this as a separate investment? 

Any help much appreciated. 

Alistair31

How early is early ? At what age and how many years from now?
 That will help determine what type of wrapper your investment should be in, as a starting point, i.e ISA, SIPP, LISA.

Vanguard is often suggested as an appropriate provider for people looking to make a start on investing with a small lump sum and regular small payments thereafter. 

AdmanPea

I am 33 now and I would like to have mortgage done and dusted by 53. So I guess 20 years at most. Thing is, I may move before then but the same would still apply on any new property I move into. I kind of just want to have something there ready to be able to have freedom of choice over how I spend all of my time. 

Alistair31

In that case you are looking at a S&S ISA. 

You could read in to Vanguards multi-asset offering, LifeStrategy. Others will be along soon with their own suggestions but from what little you have said, the above could be a suitable starter for 10. You just need to consider your tolerance to risk before deciding what exposure to equities you want. 

AdmanPea

Is now seen as a typically good time to buy in given the financial issues? Or is this irrelevant in this sort of scenario?

Alistair31

AdmanPea said:

Is now seen as a typically good time to buy in given the financial issues? Or is this irrelevant in this sort of scenario?

As you are talking about a 20 year investment with a not life changing initial sum, then I think in this case it’s as good a time as any to enter the markets. 

People can sit waiting on a better time that never comes as the market moves upwards. If you have a healthy emergency fund set aside and definitely won’t need the cash then go for it, IMO.

ruperts

How's the private pension looking? You need to make sure that's adequate to bridge the gap between private pension and state pension age, and also adequate enough to top up the state pension to your desired level of spending, before thinking about how to fund earlier retirement.

Albermarle

As above , except I would presume you have a workplace pension rather than a separate one. In any case how much is going into it now each month from you and your employer. Are you working in the private or public sector or self employed maybe ?

AdmanPea

I work as a trade union official and pay into a workplace pension. Currently 66 retirement age (new policy soon could lower to 65). I pay about 7-8% of salary in through sacrifice scheme and employer currently pays around 19%. It's currently final salary but by time I retire I'm sure it'll be career average. The yearly contributions are at 66ths at the minute. 

I've seen a lot of stuff around pensions and I have always assumed that with a company scheme I don't need to look at funding another one somehow?

I also spent 7 years as a teacher so have a small amount that is sitting in the TPS scheme. 

Albermarle

I've seen a lot of stuff around pensions and I have always assumed that with a company scheme I don't need to look at funding another one somehow?

As you are lucky enough to be a member of a final salary scheme , then you are right, it is less necessary to worry about pensions so much .

Most company schemes are not final salary nowadays and employers typically  pay in between 3% and 7% ( not 19%) 

Most final salary schemes are nowadays only in the public sector.