Fees too high - investment ISA

Aminatidi

Might help if you could expand on why you don't feel confident?

I expect most of us on here started off in a similar position (I know I did) and whilst it's daunting at first I think it's fair to say it can be easier than it might seem once you get started

billy2shots

I know you said don't mention it but DIY really is the way to go. 

Literally a weekend of reading up and you will be fine with the basics. 

It looks daunting from the outside but once you grasp the jargon you will kick yourself you didn't do it earlier. 

[Deleted User]

I just can’t get my head round it all , read some on AJ BELL site  and the vanguard lifestyle funds but what next? I thought it would be enjoyable to invest but it’s not

tebbins

Deleted_User said:

I just can’t get my head round it all , read some on AJ BELL site  and the vanguard lifestyle funds but what next? I thought it would be enjoyable to invest but it’s not

Investing is like watching grass grow, I don't know where you got the idea it was supposed to be enjoyable.

For £30k I think bed & ISA (https://www.vanguardinvestor.co.uk/need-help/answer/whats-a-bed-and-isa-and-how-do-i-do-it) with a Lifestrategy fund (plenty other multi asset funds available: https://monevator.com/passive-fund-of-funds-the-rivals/) is a sensible, simple, cheap option. All you have to do is pick which fund. VLS20 and 40 won't do much more than cash for the next decade of so, if that. VLS60 is considered "balanced" and should be ok if you're confident you won't need this money for at least 5 years. If you're sure you won't need it for at least 10 years, you could look at VLS80 or 100.

Tell us specifically some things you're struggling to get your head around. They are probably (definitely) things we've all had to get our head round at some point.

Edit: instead of bed & ISA you could put £20k this tax year and the rest in after the 6th April 2022 (or however and whenever you want)

My statement regarding returns expectations is based on

A. Current savings rates, and

B. Returns expectations from Vanguard's mid year 2021 outlook - these figures change a fair bit all the time and can be fabulously inaccurate. I was digging through my parents' accumulated paperwork last year and found stuff from various investment products they took out in the 1990s quoting 13% as the expected return. These days that seems laughable.

[Deleted User]

If it won’t do better Than cash, might as well leave where it is, not worth the bother, that’s half the issue I know where I am with cash accounts, is it worth investing instead and having risking it going down, 

dunstonh

Deleted_User said:

I just can’t get my head round it all , read some on AJ BELL site  and the vanguard lifestyle funds but what next? I thought it would be enjoyable to invest but it’s not

It should not be enjoyable to invest.  Investing is an administration task.  Not a hobby.

HeyYeah

It is intimidating at first. Why don't you try a cheap DIY with a small amount of money then you'll learn and feel more confident with the bigger sum? Take it slowly and don't feel you have to commit everything at once. Also I wouldn't pay an IFA for £30K. 

eskbanker

tebbins said:

For £30k I think bed & ISA (https://www.vanguardinvestor.co.uk/need-help/answer/whats-a-bed-and-isa-and-how-do-i-do-it) with a Lifestrategy fund (plenty other multi asset funds available: https://monevator.com/passive-fund-of-funds-the-rivals/) is a sensible, simple, cheap option.

It'll definitely confuse OP further if you introduce terminology that isn't relevant - OP is starting from cash, so Bed & ISA doesn't come into the equation, as it only applies to wrapping previously unwrapped investments....

maxsteam

Deleted_User said:

Do fees get cheaper if you have less to invest? Percentage wise 

The IFA fees reduce to zero if you have the confidence to set things up yourself. There are plenty of platforms with low fees. There are plenty of people who have managed to set things up themselves.

masonic

Deleted_User said:

If it won’t do better Than cash, might as well leave where it is, not worth the bother, that’s half the issue I know where I am with cash accounts, is it worth investing instead and having risking it going down, 

With cash savings it is almost certain the spending power of your money will decrease over time, if you invest sensibly it is highly likely the spending power of your money will increase over the long term. I don't know where you got the idea that investments won't do better than cash.