S&S Isa

Dan83

Hi,
I used to gamble a lot on money in P2P and after losing nearly all of it, I’m ready to gamble a bit more.

my question really about a sticks snd shares ISA is really, do I put money in and leave it at that, or do I have to find shares to buy? Are there fee’s? Is it worth it with a small amount (£1000).

looking for growth for at least the next 13 year (mortgage ends in 13 years) or possibly 20 years (when I’m 60) . It would be nice to grow some money for either (possibly both) help by daughter get on the Housing ladder (she is on young so plenty of time) or to provide a bit of an income from dividends when I hopefully (buy probably not) retire.

I know £1000 won’t get me all this, but when I’m feeling more comfortable, I will risk more.

Thanks,
Dan.

Dazed_and_C0nfused

Dan83 said:

Hi,
I used to gamble a lot on money in P2P and after losing nearly all of it, I’m ready to gamble a bit more.

my question really about a sticks snd shares ISA is really, do I put money in and leave it at that, or do I have to find shares to buy? Are there fee’s? Is it worth it with a small amount (£1000).

looking for growth for at least the next 13 year (mortgage ends in 13 years) or possibly 20 years (when I’m 60) . It would be nice to grow some money for either (possibly both) help by daughter get on the Housing ladder (she is on young so plenty of time) or to provide a bit of an income from dividends when I hopefully (buy probably not) retire.

I know £1000 won’t get me all this, but when I’m feeling more comfortable, I will risk more.

Thanks,
Dan.

I don't know the figures for this but I suspect most people don't buy shares in a S&S ISA, they invest in funds, often global trackers.

There will be fees, although you should be able to keep these to <1% if you pick the right platform/company for your level of investment.

El_Torro

Dan83 said:

my question really about a sticks snd shares ISA is really, do I put money in and leave it at that, or do I have to find shares to buy? Are there fee’s? Is it worth it with a small amount (£1000).

Yes, you need to decide what your ISA invests in. Depending on which ISA provider you go with you could have limited choice of what to invest in, or you could have a choice of thousands of different funds and individual shares. 

I would say it is worth it with £1,000, though of course the more you invest the bigger the long term returns will be. 

If you're investing for 13 years or more you should experience very good returns, better than holding the money in cash. However there will be volatility along the way, you will lose money some years.

I would stick to global trackers or multi asset funds for investing, you don't need anything more exotic than that.

Albermarle

my question really about a sticks snd shares ISA is really, do I put money in and leave it at that, or do I have to find shares to buy? Are there fee’s? Is it worth it with a small amount (£1000).

Typically there is a charge for the ISA and a charge for the investments you pick. Sometimes there is just one charge. You should aim for around 0.5% in total, or less.

I used to gamble a lot on money in P2P and after losing nearly all of it, I’m ready to gamble a bit more.

If you buy mainstream funds and keep them long term it is not really gambling, or if it is then the odds are greatly stacked in your favour.

How to invest in a stocks and shares Isa: The quick and easy guide | This is Money

wmb194

Have a look at Trading212's Isa. No account fees, no dealing commissions* and a wide range of company shares, Investment Trusts and ETFs, although no unit trusts/OEICs. If you do feel the urge to buy shares listed abroad its FX fee is just 0.15%.

In the coming tax year, so for deposits on and after 06/04/24, it has a 1% cashback offer. If you Google around you might be able to find a referral offer as well.

https://www.trading212.com/isa

*Where relevant, you still have to pay stamp duty or the foreign equivalent.

Dan83

Thanks for all the replies.
Thanks for the links and info, I’ll read up on that.

How is money made?
sounds stupid but is any money paid into my account and I need to reinvest or is it simply, I buy something for £1000 and in years to come sell it for £2000?

Albermarle

Dan83 said:

Thanks for all the replies.
Thanks for the links and info, I’ll read up on that.

How is money made?
sounds stupid but is any money paid into my account and I need to reinvest or is it simply, I buy something for £1000 and in years to come sell it for £2000?

Firstly there are two ways that money can be gained.
The price of the investment goes up and usually regular dividends are paid.

Depending on the type of investment, you may have to arrange to for dividend payments to be reinvested.

Any actual gain in the value of the investments would only be realised when you sold them down the line.

Dan83

I’ve read the link article posted above and had a look at the trading 212 site but not downloaded the app or registered.

Is a fund and ETF the same thing?
why do Vanguard have so many different options to choose from.

There is a sentence in that article that hits the nail on the head, most people aren’t bothered about picking a good thing, they just don’t want to pick a bad thing. That is me, I would hate to see my £1000 investment shrink over the years due to fee’s. What is a good mid-risk fund that I should look in to, what should I be looking for and what should I be looking for with trading platforms?

can I have both a S&S ISA and normal ISA at the same time?

Albermarle

Dan83 said:

I’ve read the link article posted above and had a look at the trading 212 site but not downloaded the app or registered.

Is a fund and ETF the same thing?
ETFs vs. Mutual Funds: Which To Choose | Vanguard
( mutual fund is a US name ) 
why do Vanguard have so many different options to choose from.
They have a limited range compared to some.

There is a sentence in that article that hits the nail on the head, most people aren’t bothered about picking a good thing, they just don’t want to pick a bad thing. That is me, I would hate to see my £1000 investment shrink over the years due to fee’s. It is unlikely that this would happen but it might shrink if markets go down for a significant period.
 What is a good mid-risk fund that I should look in to, what should I be looking for and what should I be looking for with trading platforms? As you have been looking at Vanguard did you look at the Life Strategy Funds?

can I have both a S&S ISA and normal ISA at the same time?

On the final point a S&S ISA is a normal ISA .
If you mean can you have a S&S ISA and a Cash ISA at the same time, then yes you can.

Dan83

I didn’t look at life strategy funds. I didn’t look into vanguard to much, I seen their name pop up often and They all seemed to be higher up the risk scale. 

I am now going to look at life strategy and will probably come back with more questions.

Dan83

I seen the Vanguard fund names on the Trading 212 website when it was showing what was available to buy in to. 

I didn’t realise life strategy was the name of a vanguard fund, looking on the website and have a quick look through, life strategy 60.

would it be best to buy through Vanguard themselves? 

If I pay in direct from my wage, can I count as a pension investment and save me some tax? If I could make a one off payment from my next wage.