Investment ISA's and the Coronavirus

Remmington

Hello,

Bit of background
So if you read my previous thread (regarding debts), I was going to receive a significant sum of money from a relative. This money was my share from a house sale. My aim for this was to clear all my debts (I received a CCJ from one of my debts in November - which I am disputing) but that isn't the point of this thread. For info, all debts were agreed to be paid at the settlement level (debt - 10%). But I haven't arranged payment.


I got paid today and recieved a notification from my bank regarding an "Investment ISA". I have been thinking about this for a while and watching the markets gaining a familiarity on how it all works and I think I'm ready to invest.
My question is... Should I?
Now, the market is always volatile at the best of times and in the current climate, most stocks and shares are at an all time low. For reasons most of you would probably know better than I would. 
But you know the old cliché "Buy low, Sell High"
So to reiterate my previous question. Should I invest? or wait?

masonic

Choosing to invest through your bank is probably not a good idea. Investment products offered by banks are generally high cost and low quality, though there are some exceptions. There are plenty of low cost providers offering a good service and choice of investments.

Markets are currently up 20-30% from their recent lows, but are still down 20-30% from their all time highs, so this is not a bad time to start investing. In the short term there could be further losses, but over 10-20 years what happens in the short term will pale into insignificance.

I presume you are still planning to clear your debts with some of the money.

afis1904

Now might be a good or now might be a bad time to invest, to know that for certain you'd need a crystal ball as we don't know if the markets will go up or down from here.
Just a couple of things:

Make an emergency fund first

What are you investing the money for?

When will you need the money again?

Also your bank is most likely not going to be the best place to invest given that most banks charge high fees but that would also depend on which bank it is and how much you want to invest.

Remmington

Thanks for the replies
@masonic:
I presume you are still planning to clear your debts with some of the money
Yes I am looking to clear all of my debts. I've delayed the day that I decide to do this however, until there is light at the end of the corona virus tunnel.


@afis1904:
Make an emergency fund first
Already have one. I have spare cash lying around that is going straight into an instant savings account. This has been going on for a while since before the corona virus pandemic. Every bit of spare cash that is unused goes into that account.
What are you investing the money for?
It's an idea I've never looked into before. Something I have been considering for a while however. But the aim is, as per all investments to make money. End goal I guess is to feed back into a savings account to work towards a house.
When will you need the money again?
I have a CCJ from November 2019 which will take 6 years to clear. Now, assuming (and looking at the bright side) that I will still be working during this Pandemic. I won't need it for 6 years, at that point I will invest in my first property.

afis1904

If you want to buy your first house in about 5 years and you're under 40, you should be looking at a Cash LISA. Stocks and shares aren't a great idea saving for a specific purchase, especially if that is within the next 5-10 years. 

Remmington

afis1904 said:

If you want to buy your first house in about 5 years and you're under 40, you should be looking at a Cash LISA. Stocks and shares aren't a great idea saving for a specific purchase, especially if that is within the next 5-10 years. 

I've just found out the quote button is a thing. 
Thats good information Thank you. I already have an Instant ISA with my bank at the moment which is holding the money. Is a Cash LISA the same?

afis1904

Remmington said:

afis1904 said:

If you want to buy your first house in about 5 years and you're under 40, you should be looking at a Cash LISA. Stocks and shares aren't a great idea saving for a specific purchase, especially if that is within the next 5-10 years. 

I've just found out the quote button is a thing. 
Thats good information Thank you. I already have an Instant ISA with my bank at the moment which is holding the money. Is a Cash LISA the same?

No it's something different where the government gives you money but you can only use it for specific circumstances. Have a read https://www.moneysavingexpert.com/savings/lifetime-isas/