Regular investment of £500 per month. Who to invest with?

Rowbo

Hi all, thanks to a pay rise, we are in a position to invest £500 per month. 

Which company would it make sense to invest through? I’m reading lots about fees and I see that Trading 212 is mentioned a bit. Would they be ok for this regular amount?

I currently have a ISA with Vanguard which is just £8000 so I will also be looking to move this.

I am happy to keep investing in vanguard funds (currently with Vanguard Lifestrategy 80%) unless there is a better all rounder?

thank you!

FlorayG

Short term you can put £300 a month into a First Direct saver and get 7% at the end of 12 months if you don't withdraw

Albermarle

AFAIK, VLS 80 is not available on the T212 platform, as I think they only offer ETF's and shares.

So you need a S&S ISA provider who offers a wide range of OEIC funds ( like VLS80) . Most do.
Also one that does not charge for regularly buying of funds.

Probably the Vanguard platform itself is quite suitable, although they now have a minimum charge.

Have you considered investing the £500 a month into a pension, due to the tax advantage?

Rowbo

Thanks FlorayG! We are specifically looking for an investment at this time but that 7% regular saver might be useful for another savings pot we are building.

Thanks Albermarle. I didn’t realise that about T212. The other one I have seen people mention is Invest Engine. Maybe I will have a look at them instead. From what I can see (looking at monevators comparison table), it seems to be fee free.

I would have happily just added this amount to our current Vanguard ISA but with the new fund costs, I thing it’s worth finding somewhere better value. The comment about the pension is interesting. We already pay a lot into my husbands pension through work because of the 40% take relief. We pay the max into a LISA for me but maybe it’s now worth also opening myself a pension. I don’t earn much (self employed earning a small amount irregularly) but I think I could pay £2400 a year in? Thank you, I hadn’t really thought that one through.

InvesterJones

For a small investment in VLS80 something like DODL is a cheaper way to do it than Vanguard itself.

wmb194

Albermarle said:

AFAIK, VLS 80 is not available on the T212 platform, as I think they only offer ETF's and shares.

So you need a S&S ISA provider who offers a wide range of OEIC funds ( like VLS80) . Most do.
Also one that does not charge for regularly buying of funds.

Probably the Vanguard platform itself is quite suitable, although they now have a minimum charge.

Have you considered investing the £500 a month into a pension, due to the tax advantage?

It offers the VLS80 ETF (MIL:VNGA80) but it's listed in Milan, so in euros, and this ETF has some differences compared to the UK OEIC. IIRC less exposure to the UK and more to the continent.

Albermarle

Rowbo said:

Thanks FlorayG! We are specifically looking for an investment at this time but that 7% regular saver might be useful for another savings pot we are building.

Thanks Albermarle. I didn’t realise that about T212. The other one I have seen people mention is Invest Engine. Maybe I will have a look at them instead. From what I can see (looking at monevators comparison table), it seems to be fee free.

I would have happily just added this amount to our current Vanguard ISA but with the new fund costs, I thing it’s worth finding somewhere better value. The comment about the pension is interesting. We already pay a lot into my husbands pension through work because of the 40% take relief. We pay the max into a LISA for me but maybe it’s now worth also opening myself a pension. I don’t earn much (self employed earning a small amount irregularly) but I think I could pay £2400 a year in? Thank you, I hadn’t really thought that one through.

Your husband getting 40% tax relief makes sense.
You investing in a LISA also makes sense.
Should you invest more in a pension? It depends on what your objectives for the money is.
If it is for retirement than pension makes more sense. If you will need it before your late Fifties, then it does not.

If you did add to a pension you can add up to a max of your earnings gross. So if you earned £5K, you could add £4K and £1K tax relief would be added.
If you have no/small earnings you can still add £3600 gross ( £2880 + £720 tax relief)

AFAIK Invest engine do not offer VLS80 either.