First Time S&S ISA advice

Stolas

After building up a good amount of savings in cash ISAs and regular savings, I’m intending to start dipping my toe into investing with a S&S ISA. I’m pretty sure I know what I need to, but think a bit of a sanity check from people more knowledgeable than myself wouldn’t hurt. 

I’m aware that I should be looking to invest for a minimum of  5 - 10 years to account for any market fluctuations.

To begin with I will invest no more than 2k in the 25 - 26 tax year. Beyond that, I intend to allocate progressively larger amounts to a S&S ISA each year. 

Doddle from AJ Bell currently looks like the best platform for me - low fees, and has the funds I’m interested in: Vanguard Life Strategy 60 / 80. Of which I’m leaning more towards the 80.

Some questions: 

* Is there an alternative to LS80 that should be considered? 

* Perhaps there’s a cheaper platform I’ve missed? Bearing in mind my limited experience, and preference for a ready made, diversified fund. 

* Finally, as I understand it, it’s better to make smaller, regular investments over the course of a year instead of one lump sum. So I’ll be investing a little bit each month - unless this is a fallacy. 

Any help much appreciated 

dunstonh

* Finally, as I understand it, it’s better to make smaller, regular investments over the course of a year instead of one lump sum. So I’ll be investing a little bit each month - unless this is a fallacy. 

Statistically, lump sums are better in most periods (usually 2/3rd to 3/4 based on timescales of phasing).  So, not sure why you believe phasing is a better option.    Some people like phasing because it makes them feel better.   However, financially, the odds are against it.

* Is there an alternative to LS80 that should be considered? 

VLS has home bias as a management decision.  If you think that is a good thing, then great. If you don't then it isn't.   There are cheaper options available as well as ones that do not have home bias.   So, it really boils down to which management decisions you like.

Tonski

Invest engine or Trading 212 are the best platforms in my opinion. No fees and super easy to use.

The life strategies have a massive over weighting to the UK. The UK only makes up ~4% of the global market but the LS have ~20-25% UK stocks. I would just go for a simple market weighted ETF. Something like
Vanguard FTSE Developed World (VHVG) is a safe choice

Albermarle

Stolas said:

After building up a good amount of savings in cash ISAs and regular savings, I’m intending to start dipping my toe into investing with a S&S ISA. I’m pretty sure I know what I need to, but think a bit of a sanity check from people more knowledgeable than myself wouldn’t hurt. 

I’m aware that I should be looking to invest for a minimum of  5 - 10 years to account for any market fluctuations. Despite what people say I think 5 years is too short, the odds start to really improve in your favour after more like 7 or 8 years, and that means you will most likely be able to ride out any prolonged downtime in the market.

To begin with I will invest no more than 2k in the 25 - 26 tax year. Beyond that, I intend to allocate progressively larger amounts to a S&S ISA each year. Remember if you start in 2025, money added later should also be left for longer.

Doddle from AJ Bell currently looks like the best platform for me - low fees, and has the funds I’m interested in: Vanguard Life Strategy 60 / 80. Of which I’m leaning more towards the 80.

Some questions: 

* Is there an alternative to LS80 that should be considered? 
You could look at the HSBC Global strategy range of funds. Slightly cheaper and no UK bias. Past performance has been a bit better than VLS.

* Perhaps there’s a cheaper platform I’ve missed? Bearing in mind my limited experience, and preference for a ready made, diversified fund. Small differences in platform costs tend to matter more when your funds are larger. Dodl is competitively priced and owned by AJ Bell, so should be no issue with long term security and stability.

* Finally, as I understand it, it’s better to make smaller, regular investments over the course of a year instead of one lump sum. So I’ll be investing a little bit each month - unless this is a fallacy. 
As in the long term, markets go up, then statistically it has to be better to invest as much as you can as soon as you can. However you might be unlucky and just dive in at the wrong time, so drip feeding avoids this scenario. An alternative is to invest every 3 months.

Any help much appreciated 

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