Investing for a beginner

Billycock

Without knowing the details of your personal pension it's a little difficult to advise. Currently, you can access your pension from age 55 so from your given timescale for investing (7-10 years) you would be able to take monies from the pension after 9 years, 25% would be tax free the remaining sum would be taxable but given the governments addition contributions on any amounts you put into the pension it would still be more beneficial than saving in an ISA, scenario given as a basic rate taxpayer.
The ISA version would be altogether tax free but attracts no government contributions, so on the whole a pension would be the better of the two. However an ISA can be accessed at any point.

madlyn

With a pension I am in effect getting free money with the tax relief?
The minimum monthly deposit is £100, which due to other commitments is not doable right now.
I think the best thing to do is get registered on their and see what is available.

Albermarle

I have a personal pension and I also pay the max amount into my work pension.

It is unusual for work pensions to have a maximum amount you can pay in . Often it is easier just to increase the % contributions from your salary into the work pension.

madlyn

Albermarle said:

I have a personal pension and I also pay the max amount into my work pension.

It is unusual for work pensions to have a maximum amount you can pay in . Often it is easier just to increase the % contributions from your salary into the work pension.

Mine does, 7%.

Billycock

madlyn said:

With a pension I am in effect getting free money with the tax relief?
The minimum monthly deposit is £100, which due to other commitments is not doable right now.
I think the best thing to do is get registered on their and see what is available.

Yes you would be getting free money with the tax relief. 
No, the minimum amount to open the account is £500 lump sum or a minimum monthly direct debit of £100
Therefore it's probably better to save £500 then open the account rather than commit to a monthly direct debit minimum of £100.
As previously mentioned with the £500 opening option you can deposit any amount afterwards, therefore less than £100 if desired.

Billycock

cost-minimums

madlyn

This may be Female logik here, but could I open an pension and a s&s ISA?
£500 into each then put £40 a month away and every 6 months split that and deposit it into each account.
The pension is working for my retirement and the ISA is there if and when needed.

Eco_Miser

madlyn said:

The ready made funds have years in their title, does this mean anything? Do I choose a fund closest to my retirement age or when I want to start drawing on it?

If that's the Target Retirement funds, you choose the date nearest to when you want to start drawing on it.

The relevance is that the balance between the constituent funds is changed every year to lower the risk as you approch drawdown. This isn't necessarily a good thing, and you can also chose a LifeStrategy fund, in which the balance is adjusted to maintain a constant ratio of equity to bonds. as indicated in the names - LS20 is 20% equity, LS100 is 100% equity, etc.

madlyn

Eco_Miser said:

madlyn said:

The ready made funds have years in their title, does this mean anything? Do I choose a fund closest to my retirement age or when I want to start drawing on it?

If that's the Target Retirement funds, you choose the date nearest to when you want to start drawing on it.

The relevance is that the balance between the constituent funds is changed every year to lower the risk as you approch drawdown. This isn't necessarily a good thing, and you can also chose a LifeStrategy fund, in which the balance is adjusted to maintain a constant ratio of equity to bonds. as indicated in the names - LS20 is 20% equity, LS100 is 100% equity, etc.

Most pension funds to that I believe.
Need to think when I would want to start to draw on it or just go for a LS fund.

Billycock

madlyn said:

This may be Female logik here, but could I open an pension and a s&s ISA?
£500 into each then put £40 a month away and every 6 months split that and deposit it into each account.
The pension is working for my retirement and the ISA is there if and when needed.

You can do that if you foresee a need to access funds before age 55, ISA will allow access before 55 years old.
If you were to open both accounts with £500 then rather than have the £40 saved each month for 6 months then splitting and depositing why wouldn't you just put £20 in each account monthly since you can add any amounts with the £500 opening option.
Since you're new to investing then do be prepared to see downturns as well as upturns on your investments, time in the market plays a major role and the longer you remain invested the likelihood your perseverance will be rewarded.