Getting started with investing: S&S ISA?

kempiejon

Some funds can be safer than some individual shares. If one was investing £10k into equity or bond markets it wouldn't be a choice of either a share or a fund. I realised that holdings just one company isn't a suitable strategy for me. I hold dozens of companies directly.
I am of the opinion that long-term, on average, most funds underperform the market, investors are being charged a fee to invest and to hold. I also know that long term I am unlikely to beat the market but I am not paying a fee for on average underperformance. Fund managers will buy shares in the same companies investors can buy. I get investors who lack the motivation or inclination to invest directly in companies nd do the work so subcontract it out to fund managers but that's not inheritantly less risky than a DIY approach as I'm sure Woodford or other star manager devotees can attest.

I have the majority of my SIPP funds invested globally using index etfs so for sure have 1000s of holdings and expect average returns. I also have individual shares for example Mastercard, NatWest and Unilever for interest and potential and UK gilts.

LL_USS said:

fistfulofsteel said:

I opened an S&S ISA with T212 and put a couple of hundred pounds into VWRP to see what happened. It immediately lost value but has gradually recovered and is now slightly in profit. I'm planning to drip feed a bit more into it each month.

Lucky for me, someone who does not know much about investment, I don't have to deal with SIPP. My pension is with work, having a DB and I add in DC a sensible amount to be efficient on tax.
I have a smaller cash amount than yours to play with (still on the way as transferred from a cash LISA), and think I will just drip in over 4 loads rather all in one, perhaps just one week after another if I see the market is still too precarious. Good luck with your strategy and please share how you do it :-).

When I did a transfer amalgamating server pensions into my SIPP I was nervous about going all in even though I know the logic is in favour. I decided to drip feed in over 18 months buying every 3 months or so. Not totally unexpectedly my earlier puchases were generally at lower prices than latter but it helped me sleep at night and I doubt over the next decades the differeence will matter a jot.

Do let us know when you see a non precarious market coming up..

LHW99

I think a great start is to ask GPT about example of portfolio and it will create a decent one, then once you gain experience - and the novelty excitement goes away - 1 year - try changing.

I think I would prefer to trust Pensionbee, HL, etc platforms to offer a ready-made portfolio than chat GPT. AI is improving all the time, but it is still a case of it being only as good as what it has been trained in - which is unlikely to be detailed financial planning for GPT.

Also, if you are investing, changing a portfolio after one year is never likely to give you a good result - you need to think over 10 years or more. Better to go with a multiasset fund or global tracker and just let it run. Then after 10 years, you may feel you understand enough to think about a porfolio that suits your aims better - or you may decide to keep on exactly as you are.

dunstonh

I think I would prefer to trust Pensionbee, HL, etc platforms to offer a ready-made portfolio than chat GPT. AI is improving all the time, but it is still a case of it being only as good as what it has been trained in - which is unlikely to be detailed financial planning for GPT.

I would agree.  But I did give it a go myself.

First attempt gave me a portfolio that a USD investor may have.  I then asked it for a UK investor and it created a very home biased portfolio (a lot above the typical) and included an allocation to specialist investments and REITS.   It would have required about 10 funds to achieve that asset mix.

It did suggest some funds but they were not the most optimal for the various areas.  However, they were your typical fashion investing favourites that you see on various blogs.    I suppose that shouldn't be a surprise, given AI would learn from sites that are more likely to be biased towards fashion than necessarily what is best overall.

LL_USS

@Albermarle thank you for explaining about SIPP. With my lack of understanding, simpler choices (or no choice) like with workplace DC has been actually better. If I had had to work things out like with SIPP I would have not put volunteer contributions to pension over the last 8 years, whilst I have tempararily had some extra income that would take me well over to the high tax band, with high income charges on child benefits etc.

Even now I know (a tiny teensy bit) better, I think I should still stick to DC right? To have pension all in one place for now.

@kempiejon please don't laugh about "when non precarious market coming up" - it just helps me sleep at night, too, if I go in when I am a bit more ready (I know if it's not Trump, it'll be something else that makes the market up and down).

Albermarle

Even now I know (a tiny teensy bit) better, I think I should still stick to DC right? To have pension all in one place for now.

If you mean workplace DC, then it sounds like the best option for you.

With my lack of understanding, simpler choices (or no choice) like with workplace DC has been actually better. 

OK, but from time to time, still have a look at what it is invested in, how it is performing and what other investments are available in the pension in case you ever did want to change. Just for interest if nothing else. 

Eyeful

LL_USS said:

@Albermarle thank you for explaining about SIPP. With my lack of understanding, simpler choices (or no choice) like with workplace DC has been actually better. If I had had to work things out like with SIPP I would have not put volunteer contributions to pension over the last 8 years, whilst I have tempararily had some extra income that would take me well over to the high tax band, with high income charges on child benefits etc.

Even now I know (a tiny teensy bit) better, I think I should still stick to DC right? To have pension all in one place for now.

@kempiejon please don't laugh about "when non precarious market coming up" - it just helps me sleep at night, too, if I go in when I am a bit more ready (I know if it's not Trump, it'll be something else that makes the market up and down).

1. If you are investing at the right risk level ,you should be able to sleep at night and not worry about how your investments are doing.

2. Consider feeding your money into the market each month, say over one or two years, instead of investing a lump sum all at once.
That way might help you sleep at night.

LL_USS

@Albermarle yes I meant my workplace DC - and yes I will keep an eye on where they invest, performance, whether any change to make - for now I've only chose the Invest All option without looking any further into that.

@Eyeful thank you. I will need to balance between dripping method and putting all in (for longer time in the market for all) as this sum is already accumulated for a few years ready to invest. And yes I'll drip more in as I put in further each year,

Sovereign_Hunter_999

can anyone recommend a good starting investment ETF?

dunstonh

Sovereign_Hunter_999 said:

can anyone recommend a good starting investment ETF?

The board doesn't allow investment recommendations.    It i s just discussion and comment here only.

Also, without context, nobody could answer that question anyway.   Plus, you have spammed other threads telling people to go 100% into S&P500 trackers (which is not a good idea) but now you are changing track.    

dunstonh

Sovereign_Hunter_999 said:

can anyone recommend a good starting investment ETF?

Did you really need to spam so many threads?