Best way to invest into Vanguard?

muffinek

Hello
I would like to start investigating, I am still torn between LS100 and Global All Cap Index. I think I will go with All Cap.
I intend to put £1000 on the opening of the account and then to pay in £200 monthly hopefully increasing this amount in the future. It is long term investment for me, about 25yrs.

Am I right saying that best way to approach it for me would be to open S&S ISA with Vanguard and then select my fund  and then keep paying monthly into ISA? I currently do have ISA at all.

btcp

That’s exactly what I did, opened an ISA and bought funds inside of it. It’s tax efficient. You can then set up a direct debit for buying a fund of your choice. 

Alexland

btcp said:

It’s tax efficient.

It may not be as efficient as making contributions to a workplace pension, Lifetime ISA or SIPP depending on the OPs circumstances and objectives.
No mention if the OP has enough spare cash for emergencies, etc to avoid needing to withdraw when markets are low?

muffinek

I have emergency fund in place and I also contribute already to work pension. I am high earner too it that makes difference. In terms of objective don't have any specific this investment will be used to support pension or to leave as a inheritance depending on what's the future holds for me. 

btcp

Alexland said:

btcp said:

It’s tax efficient.

It may not be as efficient as making contributions to a workplace pension, Lifetime ISA or SIPP depending on the OPs circumstances and objectives.
No mention if the OP has enough spare cash for emergencies, etc to avoid needing to withdraw when markets are low?

I don’t t think you can invest to Vanguard via a workplace pension. SIPP would be more tax efficient you are right - provided OP doesn’t have other pension and exhausted the allowance there. 

No comment on emergency cash as they didn’t ask for advice there.  

Alexland

btcp said:

I don’t t think you can invest to Vanguard via a workplace pension. SIPP would be more tax efficient you are right - provided OP doesn’t have other pension and exhausted the allowance there. 

Depends on the workplace pension as some offer Vanguard not that the fund manager really matters that much.
It sounds like it would be more tax advantageous for the OP to increase their pension contributions if they are comfortable locking the money away for a while. If the employer operates salary sacrifice (to save the national insurance) then this would be more efficient than a SIPP.

btcp

Alexland said

It sounds like it would be more tax advantageous for the OP to increase their pension contributions if they are comfortable locking the money away for a while. 

Provided there is still room, ie they have not contributed 40k in the tax year. 

Alexland

btcp said:

Provided there is still room, ie they have not contributed 40k in the tax year. 

Yes although there is always carry forward of unused allowance from previous tax years if your relevant earnings from the current tax year are high enough to support the bumper contribution etc