Long term savings 1k a year

casslass

Hi, I'm looking to save 1 k a year for a minimum of 12 years.

I'm considering a stocks and shares isa 
I am late 30's married with 3 children under 6.
Combined income 90k.
We already have savings in cash isa for emergencies. 

I see vanguard getting mentioned alot. I'm probably more inclined to just deposit money and leave it rather than switch funds all the time. 

Do other people find it easy to use or any other ideas. 

Swoosh84

Followed - I'm currently looking at Vangaurd, do you have the 1k cash on you at this moment to deposit. Reason I ask is because they have a minimum deposit of £500 or £100pm. So if you looking to pay in monthly you would need to budget for £1.2k per year.

J

Nurse2047

I believe its £100 minimum if its a direct debit however if you pay by card anytime there is no minimum?

casslass

I would probably start with around 2k and then deposit yearly.

Swoosh84

MFW2026 said:

I believe its £100 minimum if its a direct debit however if you pay by card anytime there is no minimum?

That makes sense and I may be wrong, I'm just early days in my invetigation. The only thing thats putting me off just now is the fact that the markets have grown massivly recently. Thinking what goes up must come down. So by my logic depositing now while they are high is not the right time. Again, complete amatuer with all this so might be wrong here!

J

Nurse2047

Just sent you a msg @Swoosh84

casslass

Are they high just now?

Swoosh84

casslass said:

Are they high just now?

I'd probably wait from advice from someone more in the know. Based on my logic and only my logic, I'm leaning towards investing in their  LifeStrategy® 80% Equity Fund. At 36 years of age, I don't need any money back in the short term so seems like a good bet for me.

But looking at the performance listed here https://www.vanguardinvestor.co.uk/investments/9244?intcmpgn=ls80_findmore_link, its the highest its been in the last 18 months. Naturally the best time to invest would have been last year.

I'm definitley going to start sticking £100 away each month for the foreseable future, its an amount I won't miss so I am thinking I perhaps just start off with the LifeStrategy® 20% which is mainly bonds (performance here: )https://www.vanguardinvestor.co.uk/investments/9235?intcmpgn=ls20_findmore_link). Then when the next big drop occurs switch to the Lifestyle 80% fund.

Again, I must stress, the above is only my logic!!! I'm actually hoping someone comes along and tells me I'm wrong and I am better doing something else!

J

jimjames

casslass said:

Are they high just now?

If you believe that equities grow over time then they will often be high or you'd never see an increase in value.

You can certainly do what you are aiming with Vanguard but the minimum is £100 for monthly DD so you'll either need to increase to £1200 per year or pay in £500 chunks. Vanguard is pretty easy to use, I just opened an ISA with them a few days ago.

Are you paying into other savings or pension? On a £90k salary I'd probably be looking to put away more than £1k but that really depends on other savings etc.

pphillips

Do you want to access the investment before you are 60?

If not then you should consider opening a LISA.

Thrugelmir

casslass said:

Hi, I'm looking to save 1 k a year for a minimum of 12 years.

What's the significance of 12 years?