Diversifying investment help

Rose02

Hi there,  investing newbie here who has done as much research as I can at but still looking for some advice from people who have been in the game longer! I’ll try give as much info as poss but please forgive me if I omit anything.

Current situation:

£50k-ish in Shareworks as a result of ESPP and RSU’s from current company. These are all single threaded shares in my company and have been quite volatile the last year or so. The shares were double last year to what they are now, and the company trajectory looks promising so I would like to keep a fair amount of my portfolio here. I also have another £50k to vest across the next 3 years if I remain at the company.

My thought is to withdraw £5-10k (open to suggestions here - I’ve not withdrawn any of my £15k capital gains allowance this year) of my current £50k and start to diversify in S&S’s? How much would you suggest investing in a fund - all of it or a portion? What else should I be looking at?

I also have £20k sat in a savings account that myself and my husband (he has circa £30k) are looking at investing in a BTL in the London area. Is there a better option?

We are looking for long term growth. There is no main goal other than to maximise the money we have and hopefully move to a bigger house on the same mortgage in 10 years or so.

I am really looking for some guidance and (different!) opinions on what you’d invest the money in, and in what order. Am I missing something? I contribute to a pension so a LISA probably isn’t a good idea? Correct me if wrong.

I’ve been looking at funds but this is the area that does baffle me. I have identified a number of companies I am interested in but feel that with my first stint in this area I should probably stay away from individual shares. 

I currently have a S&S ISA with HL, and been looking at funds through them.

Appreciate any advice or guidance!

Thanks.

Linton

For the least effort and least chance of doing something foolish I suggest a single simple global fund invested in shares from across the world.  Your HL S&S ISA would be fine until you accumulate a serious amount of money by when you could save a lot in charges by moving elsewhere. Unlike buying shares directly you need no detailed knowledge and unlike a BTL you wont get a call in the middle of the night reporting a leak.

One aspect of both shares and funds is that prices can go up and down.  When they go down the worst thing you can do is to sell in a panic which guarantees a loss.  Just stay invested adding extra money each year and you should be fine.

As regards the shares in your employer, I think it would be prudent to sell most of them over time and invest elsewhere such as your global fund.  If your employer hits problems you dont want to lose both your job and your £50K+.  Also of course, with care you can avoid any risk of CGT.

Albermarle

contribute to a pension so a LISA probably isn’t a good idea? Correct me if wrong.

https://forums.moneysavingexpert.com/discussion/6222926/how-to-pick-a-s-s-lisa-for-a-beginner#latest

Read Alexlands post near the end of this thread for a pros and cons of LISA vs pension.

Alexland

Albermarle said:

Read Alexlands post near the end of this thread for a pros and cons of LISA vs pension.

Yup we almost need a wiki FAQ for refined answers to certain regular questions.

"All depends on circumstances. For higher rate income or to get matched employer contributions a pension would beat a LISA. For someone at basic rate and salary sacrifice (to save NI) it's about the same either way. But for someone at basic rate without access to salary sacrifice then having made sufficient pension contributions to get employer matching (if available) then anything extra would be better in a LISA as it's the same 25% uplift but no risk of tax on withdrawal."