Have I missed the boat!

Chelt_chap

Hello.

I am thinking about investing in unit trusts through an investment ISA for the first time, I have a relatively small sum of £4k to invest for a period of around 10 – 15 years. £4K represents around 10% of my cash savings. And 10% is what I would feel comfortable investing as I need some money in cash for a rainy day and I am planning on spending around £14K on a new (to me) car in about a years time. £40K also represents my annual salary.

I have obviously missed the boat on the market crashes as they seem to have recovered (for now). I was thinking about splitting my investment 75% in a FTSE 100 tracker fund and the remainder in a global tracker fund. Am I investing to small and have I missed the boat on the market crash?

Thanks

ColdIron

Forget the FTSE 100 tracker, it's a poor index on several levels

kinger101

If you have an investment period of 10-15 years, then there might be another 2, 3 or 4 boats in that time.  Nobody knows when they're leaving dock, or when they'll hit stormy or calm waters.  But history tells us investing sooner is better that waiting.  Personally, I think 75% in the UK is too high, and the FTSE 100 is too focused.  You'd probably be better with it all in a global tracker, or say 80% global tracker ex-UK and 20% UK FTSE all-index (or small cap).

What is your pension provision like?

Also, not what you asked, but you'd be surprised how decent a used you can get for £5K.  Particularly if you stick to models known for their reliability.

Chelt_chap

kinger101 said:

If you have an investment period of 10-15 years, then there might be another 2, 3 or 4 boats in that time.  Nobody knows when they're leaving dock, or when they'll hit stormy or calm waters.  But history tells us investing sooner is betting that waiting.  Personally, I think 75% in the UK is too high, and the FTSE 100 is too focused.  You'd probably be better with it all in a global tracker, or say 80% global tracker ex-UK and 20% UK FTSE all-index (or small cap).

What is your pension provision like?

Also, not what you asked, but you'd be surprised how decent a used you can get for £5K.  Particularly if you stick to models known for their reliability.

Thanks for that advice, in responce to your questions about pension, I am fairly lucky I am a Civil Servant and have been for around 15 years so I have a combindation of Final Salary and Average Salary pots which I have made additional contributions to over the year. 

Would you go for just one Global tracker or would you split betwen a couple? Blancing a bit of risk so not all the eggs are in the one funds basket. Weighed up against a relativly small amount invested. I am not planning to trade reguarly so I am planning to use one of the lowcost platforms recommended on this site. It may be in future I add a couple of thousand a year if I have a performance bonous. 

Swipe

For the sake of £4k, I'd just stick it all in a global all cap and forget about it.

doe808

agreed - one global.

Thrugelmir

Whatever you choose to invest in. Reduce your risk exposure as you draw closer to requiring the money.