investing/saving

grumiofoundation

cloud_dog said:

Yes but, statistically, you'll lose 50% of the time and you'll gain 50% of the time 

Surely as markets go up more than they go down you will make a loss (ie market gains when you are uninvested) more than half the time.

[Deleted User]

So much to think about. Thankyou. A friend mentioned Indexed Funds tonight. Is this something which I can buy through S & S ISAs or is it something completely separate and different? I have googled but it does feel a little as if I’m reading Chinese 🙄

ColdIron

Yes, you can buy them in ISAs, SIPPs and unwrapped accounts. They are a very popular way of investing. They are available as funds (unit trusts/OEICs) and ETFs. Chances are that over half of the investments mentioned on this board are index trackers in one form or another

[Deleted User]

Good morning all. Its me (again!).   Would it be better to put the £5000.00 into my AE pension as a lump sum? Or open a new S & S ISA with AJ Bell? I've asked Scottish Widows and they say I can add money to my AE pension (other than through my salary) but they seem to charge about £2.57 a month which seems a lot!

dunstonh

Deleted_User said:

So much to think about. Thankyou. A friend mentioned Indexed Funds tonight. Is this something which I can buy through S & S ISAs or is it something completely separate and different? I have googled but it does feel a little as if I’m reading Chinese 🙄

This will require a whole new level of knowledge.  To invest in a portfolio of index funds (or managed single sector funds - it doesn't really matter) requires you to understand the risks of all the different areas and the rewards potential and how to build the portfolio with a structure and process.   you don't just put 10% into 10 different funds as that would be poor quality investing.

However, there are ways to simplify it and that would mean not using index trackers (or single sector managed funds) but instead use a multi-asset fund.   So, of the most popular multi-asset funds have index tracking funds as their underlying investments.  Except you do not pick them. The fund house/fund manager picks them and they run the strategy/process.

Would it be better to put the £5000.00 into my AE pension as a lump sum? Or open a new S & S ISA with AJ Bell? 

9 times out of 10, pension beats ISA when the objective is to have funds for use in retirement.

 I've asked Scottish Widows and they say I can add money to my AE pension (other than through my salary) but they seem to charge about £2.57 a month which seems a lot!

That is not a lot at all.  Its probably less than the S&S ISA (or same ballpark) and less than a savings account.      It is about 0.6% p.a.

Yes, less than a savings account.   You may think a savings account has no charges.  However, the difference with investments and savings is that investments have explicit charges that you can see.  Savings have implicit charges that you cannot see.  You get the interest rate set after hidden charges.  Whereas investments you are told the charges.

[Deleted User]

Thank you. Scottish Widows are now saying that I need to make sure that my £5000.00 does not exceed the annual
allowance. 🤪 Jeez. I just want to invest some money 🙄😝

dunstonh

Deleted_User said:

Thank you. Scottish Widows are now saying that I need to make sure that my £5000.00 does not exceed the annual
allowance. 🤪 Jeez. I just want to invest some money 🙄😝

When you bypass the normal distribution channels to DIY, there is an expectation that you know what you are doing.   SW normally retail via intermediaries.   So, when you bypass them, they are not really as geared for direct to consumer as a firm that normally retails direct to consumer would be.

Albermarle

Deleted_User said:

Thank you. Scottish Widows are now saying that I need to make sure that my £5000.00 does not exceed the annual
allowance. 🤪 Jeez. I just want to invest some money 🙄😝

The annual allowance for a pension is £40K in a tax year  . That includes your workplace payments + your employer + the £5K + the tax relief on it ( £1250) . If this is not close to £40K then just tell them that .

Chelsea1955

WARNING FOR PRINCIPALITY  BS INVESTORS.
Hello
I have just joined the forum today and want to post information about Principality Building Society. I have been a regular saver with this company over the years with no complaints until now. To try and get ahead of the possible negative interest rates looming, I searched for fixed rate deposits and opened a 1 Year Fixed Rate Bond with a rate of 1%. I transferred £500 as an initial deposit. The terms state that "You have 5 business days from the account opening date in which to make your INITIAL deposit". "You can keep making deposits while the Bond remains on sale". This latter term is misleading because it doesn't
say how long its going to be on sale. In my experience I tried to make a deposit within days of opening the account and was refused because the Bond was closed.  The same terms apply to their fixd rate ISA's.  So beware.

eskbanker

Chelsea1955 said:

I have just joined the forum today and want to post information about Principality Building Society.

....in which case, familiarise yourself with the etiquette, and start your own thread (or post on a relevant existing one) rather than hijacking one on an unrelated subject.