Investment Advice??

Roger175

When you do add some money to your AJ Bell SIPP, be aware that the process for them to claim the tax relief from HMRC takes about 8 weeks. So if you added £800 tomorrow it would be early March before another £200 pops into your account

Macka09

Thank you. 

I did see something about an 8-12 week wait for the 20%. That’s fine though as it’s for the long term. 

dunstonh

A couple of family members have recently put there faith in a friend who works in finance and they’ve both lost £25k each in the first 3 months.

That is not necessarily a bad thing.  Although that assumes its not the last 3 months.   If it was over 2022/23 then it could easily have happened (context of how much £25k is relative to their total portfolio.

You are being encouraged, on this thread,  to invest in something that could lose 50% in 3 months.

Roger175

Dunstonh

You can be a right miserable git sometimes. This thread has been started by somebody who clearly didn't know where to start and didn't know the first thing about investments etc. Nobody has encouraged him to do anything other than take action to start a SIPP and buy some relatively sensible investments. Yes, we all know that in extreme market conditions all investments can be at risk of sever drops in value but please put some context on this for the benefit of this for the OP. I have explained that the value of investments are generally prone ups and downs and that there will be rises and falls along the way, but that the value should generally rise over the long time. To throw in a statement like your last one above without any further commentary or explanation, to an absolute beginner such as our OP, is almost irresponsible in my view. Surely it's better to encourage somebody rather than make unqualified comments likely to scare them off.

We all know it's possible to loose money investing, I know I have, but I have learnt the hard way, investing in things I didn't fully understand, particularly individual shares where some of the companies have disappeared, but with a sensible approach, as has generally been encouraged here, one should do OK in the long term. Certainly better than doing nothing or being frightened into cash which is what your comments could do if not explained properly.

You generally post a lot of sense on here and I have a huge admiration for your dedication to the site, but in this case I think your comments are ill advised.

AlanP_2

Macka09 said:

I really do appreciate all the advice guys. 

I did spend a couple of hours last night trying to learn a tad more about SIPPs and investments. It is a lot to take in but I’m trying my best. 

I’ve messaged both Nest and Standard life to ask to transfer my small amount but hopefully this can be done fairly quickly. As I’ve got no credit in the AJ Bell SIPP as yet I haven’t had to choose a fund. 

Small steps. 

You are going in the wrong direction there for the transfers.

A J Bell will have a "transfer your other pensions to us" option somewhere on their site. You use that process to give them the details of other pensions which they then "pull" across as opposed to asking Nest/SL to "push" them across..

dunstonh

 This thread has been started by somebody who clearly didn't know where to start and didn't know the first thing about investments etc. 

Exactly.   But look at what you said next

Yes, we all know that in extreme market conditions all investments can be at risk of sever drops in value but please put some context on this for the benefit of this for the OP. 

So, we all know but the OP doesn't know.

The OP also mentioned losses from family members. What the OP said lacked context but it did suggest that the OP is not really aware that negative periods are normal and to be expected.

Ok, lets have some context.  Since the start of the millennium, the top three loss periods are around 43%, 45% and 35%.   The first decade of the millennium, would have seen the OP have less than they paid in after 10 years.

 I have explained that the value of investments are generally prone ups and downs and that there will be rises and falls along the way, but that the value should generally rise over the long time.

Nothing wrong with that but it lacks context that the OP is likely to understand.      There is the potential of investor behaviour risk to consider here.   The OP is low knowledge and has no experience of investing.   Expectations of what is going to happen, even if we cannot say when, should be given.  

To throw in a statement like your last one above without any further commentary or explanation, to an absolute beginner such as our OP, is almost irresponsible in my view. Surely it's better to encourage somebody rather than make unqualified comments likely to scare them off.

And how irresponsible is it to not tell them the risks?

The average UK consumer is cautious.   That would be around 40% equities.    Ideally, with a bit of knowledge, you can build that to 60-80%.    You are jumping right in with 100% equities.   If the OP is in their 20s or 30s and its regular contributions only, then the higher the better.   But if they are in their 50s and there are going to be single premiums, then is 100% equities really a good option?
 
Where has the OP given any indication of what their risk tolerance is? or their capacity for loss (earlier comments suggest a highly variable income and limited savings as the OP said they spend what they earn)

We all know it's possible to loose money investing,

Do we?     That isn't clear with the OP's comments.

, I know I have, but I have learnt the hard way, investing in things I didn't fully understand

Do you think the OP understands what he is being told to invest in?

You generally post a lot of sense on here and I have a huge admiration for your dedication to the site, but in this case I think your comments are ill advised.

Failing to make a new investor, with limited knowledge of investing, aware of the risks is just a recipe for disaster.

You can be a right miserable git sometimes. 

No-one is unhappy when things go up.   What matters is what they are going to do when it goes down.  The focus needs to be on the negative just as much as the positive.
 

Roger175

Dunstonh

I stand by my last post, I suspect your post may just have put a new member off investing for good. Congratulations.

Bostonerimus1

Do a detailed budget and look for places to save, maybe cancel Netflix or Sky and turn the thermostat down a few degs.
Pay off all high interest debt like credit cards.
Save at least 6 months cash into your bank account for emergencies.
Contribute as much as you can to a pension; invest in a single multi-asset fund if you can or 3 or 4 index trackers (no more).
Contribute to an ISA, again keep things simple as you did with the pension.

Macka09

I’m very thankful for all the input here. 

The reason for original post was to try and gain some knowledge/understanding of what’s the best way of dealing with finances as I’m getting older. What’s the best way to move forward rather than getting to an age where it’s all to late, which I suspect is very close anyway. 

The more you guys can elaborate on the discussion, the better. I understand all of our circumstances are different. 

As I’ve previously mentioned, I’ve been very silly with how I’ve dealt with money to now and it’s something I’m wanting to change. 

I have no problem paying for the right advice but it seems as though I’m of a know interest with such a low standpoint. 

I understand the markets fluctuate, so anything my money is put into will also fluctuate. My goal would be to get 25 years down the line and have more than what I’ve put in. Whether that’s achievable is why I’m here. Hoping that people are willing to share a bit of wisdom. 

Again, thanks for the help so far. 

Albermarle

I’ve messaged both Nest and Standard life to ask to transfer my small amount but hopefully this can be done fairly quickly. As I’ve got no credit in the AJ Bell SIPP as yet I haven’t had to choose a fund. 

You might have caused some confusion here. Normally there is no need to contact the schemes you wish to transfer out of. It should all be done via AJ Bell. It is not a big issue but best to do it in this way.