Which Vanguard product is the best for me to invest long term ?

onlyfoolsandparking

With your posts I definitely am confused lol. Why did you edit out 'you are confused?'

bowlhead99

IloveElephants said:

I have 30k but this is for my house deposit and currently sitting in a tsb account with no interest. 

For the 30k, fix that straight away by moving it to an account with NS&I where your expectation would be about 1.2% a year with a chance of more or less (premium bonds) or a little less than that paying definite monthly interest (income bonds) - both can be opened online once you've registered with nsandi.com 

DrEskimo

The difference between investing £3,000 over 10 years and getting ~5% on average net return, and 1% from a savings account is about £1,500...or an extra £150 per year on average.

Whilst you could add to it, I think with no job, little pension provisions and a house move in the near future you have far greater priorities.

IMHO investing in a S&S ISA comes after an emergency fund, after investing in a job/career, after buying a house, after properly funding a pension and after setting aside cash savings for short to medium term purchases (cars, holidays, renovations, etc.). Then if you have any surplus that you want for long-term spending (but before retirement) then you can consider a S&S ISA.

Just my 2 cents...

ColdIron

IloveElephants said:

ColdIron said:

What happened to:

Just to note im not a gambling person so dont want to invest in stocks shares etc... because I just want my money to grow and go 1 way

Capital at risk products do not go 1 way, so you could get back less than you put in

Your posts appear to make no sense. How long are you prepared to leave you money untouched?

Thanks for your comment, Yes but someone said to me before covid that if I invest 3k over 10 years it will increase? What do you think about that? sorry for the confusion. I am 36 and have lost my 20s on not investing so now Im thinking maybe I have to take a small risk with 3k out of 30k 

If you are now looking at longer term investing and only putting £50 into your pension I think you might consider substantially increasing your contributions. £600 pa won't provide for a comfortable retirement. Pensions are investments as well and the big attraction is that the tax man will add 25% to your contributions so £100 becomes £125. If you're not careful you will lose your 30s, 40s and 50s through not investing as well

IloveElephants

DrEskimo said:

The difference between investing £3,000 over 10 years and getting ~5% on average net return, and 1% from a savings account is about £1,500...or an extra £150 per year on average.

Whilst you could add to it, I think with no job, little pension provisions and a house move in the near future you have far greater priorities.

IMHO investing in a S&S ISA comes after an emergency fund, after investing in a job/career, after buying a house, after properly funding a pension and after setting aside cash savings for short to medium term purchases (cars, holidays, renovations, etc.). Then if you have any surplus that you want for long-term spending (but before retirement) then you can consider a S&S ISA.

Just my 2 cents...

Thank you Very much Eskimo, That is good advice, the plan is to get a job/career and start because I have to begin somewhere, but your right I have to secure my job house set aside money to holidays then consider stocks and share isa and investments. I understand what you mean 

bowlhead99

IloveElephants said:

bowlhead99 said:

IloveElephants said:

I have 30k but this is for my house deposit and currently sitting in a tsb account with no interest. 

For the 30k, fix that straight away by moving it to an account with NS&I where your expectation would be about 1.2% a year with a chance of more or less (premium bonds) or a little less than that paying definite monthly interest (income bonds) - both can be opened online once you've registered with nsandi.com 

Thanks bowlhead, if I deposit 27k in NS&I after year year if I dont touch the money do I receive 1.2% extra? if that is the case thank you for the kind suggestion, how about 3k into an investment fund/stocks etc.. ? Thank you

The interest rate on nsandi's income bond account is 1.16% per year AER and they would send it to your bank account monthly so you would get about £29 a month for £345 over the course of the year (unless they change the interest rate). The minimum deposit is £500 so you couldn't practically put the interest back into the income bonds account unless you also happened to be making a larger deposit of your own at the same time.

The premium bonds account does not pay fixed interest but monthly prizes shared between all the people using the product. With 30,000 invested you would win about 14 prizes over the course of the year if you had average luck, and nearly all the prizes are prizes are £25, so it's about £350, but it could be more or less depending on whether you're lucky or not - you might win more or less than the 14 prizes and some of them might or might not be more than £25. You can elect for the prizes to be paid to your bank account as they happen or be automatically used to buy more premium bonds for your account giving you a slightly higher chance to win, and then withdraw it later whenever you like.

if that is the case thank you for the kind suggestion, how about 3k into an investment fund/stocks etc.. ? Thank you

I already gave an answer on that and you read it and replied to it:

Vanguard offer some funds that are quite volatile (could lose half their value in a year) such as LifeStrategy 100% Equity or the Global All Cap as mentioned by someone else up the thread. Or they offer other funds which blend together equities (shares) and bonds to get a return that is lower but less volatile (e.g. 40% equity or 60% equity). So it depends whether the 3k is money you can really afford to leave for a couple of decades and hope to get great gains, or whether you would get nervous and want to take it back if it drops temporarily to 2k, in which case you should use a more 'cautious' investment fund and not put yourself in that position.

dunstonh

Because Im out of a job so far I will have to use my savings to live from which is a priority for me. 

Then you should not be investing in risk based assets.

IloveElephants

bowlhead99 said:

IloveElephants said:

bowlhead99 said:

IloveElephants said:

I have 30k but this is for my house deposit and currently sitting in a tsb account with no interest. 

For the 30k, fix that straight away by moving it to an account with NS&I where your expectation would be about 1.2% a year with a chance of more or less (premium bonds) or a little less than that paying definite monthly interest (income bonds) - both can be opened online once you've registered with nsandi.com 

Thanks bowlhead, if I deposit 27k in NS&I after year year if I dont touch the money do I receive 1.2% extra? if that is the case thank you for the kind suggestion, how about 3k into an investment fund/stocks etc.. ? Thank you

The interest rate on nsandi's income bond account is 1.16% per year AER and they would send it to your bank account monthly so you would get about £29 a month for £345 over the course of the year (unless they change the interest rate). The minimum deposit is £500 so you couldn't practically put the interest back into the income bonds account unless you also happened to be making a larger deposit of your own at the same time.

The premium bonds account does not pay fixed interest but monthly prizes shared between all the people using the product. With 30,000 invested you would win about 14 prizes over the course of the year if you had average luck, and nearly all the prizes are prizes are £25, so it's about £350, but it could be more or less depending on whether you're lucky or not - you might win more or less than the 14 prizes and some of them might or might not be more than £25. You can elect for the prizes to be paid to your bank account as they happen or be automatically used to buy more premium bonds for your account giving you a slightly higher chance to win, and then withdraw it later whenever you like.

if that is the case thank you for the kind suggestion, how about 3k into an investment fund/stocks etc.. ? Thank you

I already gave an answer on that and you read it and replied to it:

Vanguard offer some funds that are quite volatile (could lose half their value in a year) such as LifeStrategy 100% Equity or the Global All Cap as mentioned by someone else up the thread. Or they offer other funds which blend together equities (shares) and bonds to get a return that is lower but less volatile (e.g. 40% equity or 60% equity). So it depends whether the 3k is money you can really afford to leave for a couple of decades and hope to get great gains, or whether you would get nervous and want to take it back if it drops temporarily to 2k, in which case you should use a more 'cautious' investment fund and not put yourself in that position.

bowlhead99 said:

IloveElephants said:

bowlhead99 said:

IloveElephants said:

I have 30k but this is for my house deposit and currently sitting in a tsb account with no interest. 

For the 30k, fix that straight away by moving it to an account with NS&I where your expectation would be about 1.2% a year with a chance of more or less (premium bonds) or a little less than that paying definite monthly interest (income bonds) - both can be opened online once you've registered with nsandi.com 

Thanks bowlhead, if I deposit 27k in NS&I after year year if I dont touch the money do I receive 1.2% extra? if that is the case thank you for the kind suggestion, how about 3k into an investment fund/stocks etc.. ? Thank you

The interest rate on nsandi's income bond account is 1.16% per year AER and they would send it to your bank account monthly so you would get about £29 a month for £345 over the course of the year (unless they change the interest rate). The minimum deposit is £500 so you couldn't practically put the interest back into the income bonds account unless you also happened to be making a larger deposit of your own at the same time.

The premium bonds account does not pay fixed interest but monthly prizes shared between all the people using the product. With 30,000 invested you would win about 14 prizes over the course of the year if you had average luck, and nearly all the prizes are prizes are £25, so it's about £350, but it could be more or less depending on whether you're lucky or not - you might win more or less than the 14 prizes and some of them might or might not be more than £25. You can elect for the prizes to be paid to your bank account as they happen or be automatically used to buy more premium bonds for your account giving you a slightly higher chance to win, and then withdraw it later whenever you like.

if that is the case thank you for the kind suggestion, how about 3k into an investment fund/stocks etc.. ? Thank you

I already gave an answer on that and you read it and replied to it:

Vanguard offer some funds that are quite volatile (could lose half their value in a year) such as LifeStrategy 100% Equity or the Global All Cap as mentioned by someone else up the thread. Or they offer other funds which blend together equities (shares) and bonds to get a return that is lower but less volatile (e.g. 40% equity or 60% equity). So it depends whether the 3k is money you can really afford to leave for a couple of decades and hope to get great gains, or whether you would get nervous and want to take it back if it drops temporarily to 2k, in which case you should use a more 'cautious' investment fund and not put yourself in that position.

Bowlhead, you have been a great help to me, I really appreciate you educating me on this subject, the premium bond idea sounds good and maybe I can give it a go with a smaller amount like £4k and see if I win any prizes.  Thank you for your kind work and sharing this knowledge with me. 

IloveElephants

dunstonh said:

Because Im out of a job so far I will have to use my savings to live from which is a priority for me. 

Then you should not be investing in risk based assets.

Thank you, Yes I agree, the whole idea is not be out of a job and soon to get a job paying well, Thank you

Durban

When are you looking to buy a house?

If it is NOT within the next 12 months , then the maximum allowable of your house deposit money should be put in a LISA so you can take advantage of the 25% the government will top it up by.

I think that you can put in a maximum of £4000 per year and the government will top that up by £1000.  You certainly won't get that from an ordinary savings or investment account in one year.

You can do this each year until you are ready to buy but you must have it open a year before you can buy.