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How would you save spare 1.5k per month🤔

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  • Jami74
    Jami74 Posts: 1,296 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    I'm a novice investor and try to keep things really simple. If I had a spare £1500 a month after my pension was taken care of them I'd stick half in my flexible cash ISA and half in my S&S Global All Cap. 
    Debt Free: 01/01/2020
    Mortgage: 11/09/2024
  • MX5huggy
    MX5huggy Posts: 7,168 Forumite
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    I wouldn’t be putting anything extra over whatever the employer will match in to a nest pension due to the frankly ridiculous 1.8% fee for new deposits. Find a cheaper provider. 
  • samps1973
    samps1973 Posts: 125 Forumite
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    edited 2 January at 12:27AM
    Thanks guys,

    a lot think about there.

    @Albermarle
    Yes, that’s a good question 😂
    from what I’ve learned so far, if your putting money into something like the S&P or a world fund it’s something you have to do long term to see the gains. The ride will be up and down but I have to focus long term I guess. I know I said pull out at 5% but that would be if it gradually went down. If it did drop 25% that would be a killer. I think the S&P has produced average 15% per year over the last 10 years and 10% since the 70’s and is well established and hold America’s best 500 companies. 
    Another thing is, with the world the way it is, everyone is striving to be the best. In these times of technology I think growth will go through the roof. But only my opinion. In the first 4 decades of the S&P things have been slow. Look how far we’ve come sinse the first mobile phone and things are growing quickly in every sector. Sorry, went off on a bit of a tangent. I have also considered the all world fund vwrl but have noticed that all it does is follow the S&P but about 7% below. 

    It just annoys me that banks sit there giving you pennies for your hard earned money while they take the pounds.
    Sorry for waffling 😂

    @mr._prude 
    I thought about putting maybe putting 20% in the cash isa for dips and I guess it would also be a bit of a safety net,  could have used it over the last few days, I put a few £’s on kulr I think it’s called in the 25% dip and it went up 10%🤞

    @400ixl I have about 70k in my nest pension so far and from what I put in over the threshold and my works contributions it’s about just under 1k per month contributions.

    @jimjames
    To be honest, the 10 shares in the pie are a bit of a side hustle or gamble on companies I like, especially Nvidia and Apple. I think to make it worthwhile I would have to, like the S&P look long term and ride the dips. I just can’t see how these big companies can fail in modern times but if they did I’d have to take it on the chin. 

    I mentioned about pulling out of the S&P at 5% because it would make sense to put it In a cash isa which wouldn’t have the risk but in the future the balance will get quite large I’d have to think about what to do with the extra money or just ride it out but is easier said than done with 100k when it gets to that amount eventually. I’m hoping it would grow enough to to ride out the dips. 

    If I got an average of 10% per year the difference long term would be massive with the compounding compared to 4.9 % in a cash isa. 

    Still plenty to think about🤔

    Thanks👍




  • MX5huggy
    MX5huggy Posts: 7,168 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    There’s a warning from history for you. 

    Research the Nikkei 225 and in particular what happened in 1989 and when it returned to its 1989 level?
  • Eco_Miser
    Eco_Miser Posts: 4,873 Forumite
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    samps1973 said:
     In the unlikely event that the S&P 500 was to drop to below 5% in a year, pull out then put the 20k isa limit into the cash isa and return the rest to my bank account and re asses my choices.🤔
    Apart from the dubiousness of pulling out when the S&P drops (it's on sale - buy more) you should ISA TRANSFER the whole of your S&S ISA (or that part you don't want to invest any more) into a cash ISA, thereby keeping it all free from UK Income Tax. The 20k isa limit is on subscriptions of new money, not on totals or transfers.


    Eco Miser
    Saving money for well over half a century
  • samps1973
    samps1973 Posts: 125 Forumite
    Part of the Furniture 100 Posts Name Dropper Combo Breaker
    edited 2 January at 7:02AM
    @Eco_Miser

    Thank you, I didn’t know that. It’s good to know in case of an emergency. I would only transfer as a last resort. Like you say, buy more. I might put aside 10-20% of the 1.5 k into the cash isa for dips, like the one that happened over the Christmas period because of people selling stocks and for tax reasons at the end of the year I think, although the dip wasn’t that bad on the S&P 500 only on some individual stocks.

    Thank you 👍
  • jimjames
    jimjames Posts: 18,737 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    edited 2 January at 10:58AM
    samps1973 said:
     think the S&P has produced average 15% per year over the last 10 years and 10% since the 70’s and is well established and hold America’s best 500 companies. 

     have also considered the all world fund vwrl but have noticed that all it does is follow the S&P but about 7% below. 

    The key word here is average, it's not a straight line. Can you cope with 50% drop followed by 20% gains? Mention of 5% or 25% drop makes me think that would be an panic situation. The last few years have been very benign for investing and given a false sense of security. For the 2000-2010 period the S&P didn't feature in top markets at all so your world tracker would have done better. The charts in this thread give an idea of the annual returns, -32% to +34% is quite a wide range.

    https://forums.moneysavingexpert.com/discussion/comment/81184812#Comment_81184812
    Remember the saying: if it looks too good to be true it almost certainly is.
  • Martico
    Martico Posts: 1,176 Forumite
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    Also worth bearing in mind that S&P500 funds already have heavy weightings of those companies (Nvidia, etc) that you're considering separate investments in. So if one tumbles, the other is also likely to. The opposite is true as well, of course, as happened in 2024. It would be a risk too far for me (a novice)
  • samps1973
    samps1973 Posts: 125 Forumite
    Part of the Furniture 100 Posts Name Dropper Combo Breaker
    Thank you all for your help. I’m starting to think along the lines of an all world fund like Vanguard vwrp acc. Over the past year it has risen by roughly 17% which is still good. It is also diversified between 3600 or so companies. But is still 65% US. The only thing that put me off the all world is that if you compare the graphs between the all world and S&P they are almost mirror images. The only difference is that the S&P is always above the all world on the yearly %.

    I was thinking maybe

    £1000 all world vwrl
    £200 Bitcoin
    £200 Top 10 us or possibly add this tho the all world.
    and £100 for any dips throughout the year.

    I have read and will re-read all of the comments. I know now what is maybe too risky and what not to do. My question is what would you do?

    It would be good to see different ideas and hopefully I can come up with a plan by the end of the month.

    Thanks guys 👍
  • MX5huggy
    MX5huggy Posts: 7,168 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    VWRP is a good choice, however I use VHVG (which is the accumulation version of VEVE). This is cheaper (0.12% vs 0.22%) because it does not include emerging markets (hence it’s called developed world). If you plot VWRP and VHVG on a graph you will see that the EM component makes very little difference to performance (because it’s such a small % of the fund), this is all I hold in my ISA, keep it simple invest all my spare cash and hold on tight. 
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