Advice with First-Time Investing

justme8786

thunderroad88 said:

justme8786 said:

kempiejon said:j

justme8786 said:

The SIPP I plan to transfer into my name and leave untouched for my pension. I have doubts about the individual funds though, I've received paperwork and it looks like some aren't doing so well. Maybe I just leave it anyway. 

Regarding the ISA, there is just so much I've read about it being wise not to have actively managed funds due to the high fees and unlikeliness of 'beating the market', which is why I am considering selling. 

But you're right maybe I just leave it all where it is and if I want to try the All World Index passive investment I do it with money I will earn myself. But I'm worried that this way I'd be diluting potential cumulative gains.

Did your mum know more about stocks and funds than you do? She might have been investing for her own needs which will be different to your own but you won't be far wrong by hanging on.
If you're interested in the opinion of faceless idiots online post a list of all the funds and percentages in each in the ISA and the SIPP I'm sure they'll be opinions.
I agree though, an all world passive tracker will collect just under market return after fees and is easy and generally actively managed funds long term don't do better than that for a larger fee.

I think she did some digging around and asking on here haha but by no means an expert, and she told me she's sure I could do more thorough research and potentially move things around.

Yes I have been toying with that idea, maybe I will. Any opinion no matter how idiotic could be of use.

Do you think there could be a benefit to having two s&s ISAs, one for actively managed funds and one for a passive All World Index investment?

And, I was thinking an 80/20 equity/bond split, I read somewhere that the general rule for % in equities is 100 - your age, but someone commented that at my age it would be wiser to just go for 100% equities. Would you agree? I have some savings too so it is not like I'd be without cash, but it is not a ton. Although I am planning to earn, and earn well.

It was I who suggested 100% equities. But let me clarify, I meant for you to only put what you wish to invest only into equities. You should always have an amount of easy accessible savings in a good, interest bearing high street account that can cover all your immediate expenses (anything you might need in the next year)

 Ideally I think you should also hold an amount of cash in a mixture of fixed interest vehicles like mmfs, gilts or fixed term high street deposit accounts, probably laddered from 1-5 years, so you aren’t tying up all your cash for too long.

 The remainder which is money you are pretty sure you won’t want for 5 years, what I’d call your investable cash, I’d put in a a global tracker. HSBC Ftse All World C is my personal favourite. You could just leave it at that for the utmost simplicity. My son who is only a few years older than you has done that, although he’s also added a slight tilt towards big tech by holding a bit in L&G Global Technology. He invests any spare cash monthly, 90% into HSBC and 10% L&G. He also has a LISA in which he holds only Royal London Short Term Fixed Income, but he is adamant he will be buying a property in the next few years, that may not be of any relevance to you. Good luck whatever path you take.

Ah, so you still do think more stable options such as gilts should be in the picture. That's already not 100% equities then, no? Why not then just have one account with the highest proportion in the HSBC All World and a little in gilts, instead of separate locations for the two?
And thank you:)

thunderroad88

justme8786 said:

thunderroad88 said:

justme8786 said:

kempiejon said:j

justme8786 said:

The SIPP I plan to transfer into my name and leave untouched for my pension. I have doubts about the individual funds though, I've received paperwork and it looks like some aren't doing so well. Maybe I just leave it anyway. 

Regarding the ISA, there is just so much I've read about it being wise not to have actively managed funds due to the high fees and unlikeliness of 'beating the market', which is why I am considering selling. 

But you're right maybe I just leave it all where it is and if I want to try the All World Index passive investment I do it with money I will earn myself. But I'm worried that this way I'd be diluting potential cumulative gains.

Did your mum know more about stocks and funds than you do? She might have been investing for her own needs which will be different to your own but you won't be far wrong by hanging on.
If you're interested in the opinion of faceless idiots online post a list of all the funds and percentages in each in the ISA and the SIPP I'm sure they'll be opinions.
I agree though, an all world passive tracker will collect just under market return after fees and is easy and generally actively managed funds long term don't do better than that for a larger fee.

I think she did some digging around and asking on here haha but by no means an expert, and she told me she's sure I could do more thorough research and potentially move things around.

Yes I have been toying with that idea, maybe I will. Any opinion no matter how idiotic could be of use.

Do you think there could be a benefit to having two s&s ISAs, one for actively managed funds and one for a passive All World Index investment?

And, I was thinking an 80/20 equity/bond split, I read somewhere that the general rule for % in equities is 100 - your age, but someone commented that at my age it would be wiser to just go for 100% equities. Would you agree? I have some savings too so it is not like I'd be without cash, but it is not a ton. Although I am planning to earn, and earn well.

It was I who suggested 100% equities. But let me clarify, I meant for you to only put what you wish to invest only into equities. You should always have an amount of easy accessible savings in a good, interest bearing high street account that can cover all your immediate expenses (anything you might need in the next year)

 Ideally I think you should also hold an amount of cash in a mixture of fixed interest vehicles like mmfs, gilts or fixed term high street deposit accounts, probably laddered from 1-5 years, so you aren’t tying up all your cash for too long.

 The remainder which is money you are pretty sure you won’t want for 5 years, what I’d call your investable cash, I’d put in a a global tracker. HSBC Ftse All World C is my personal favourite. You could just leave it at that for the utmost simplicity. My son who is only a few years older than you has done that, although he’s also added a slight tilt towards big tech by holding a bit in L&G Global Technology. He invests any spare cash monthly, 90% into HSBC and 10% L&G. He also has a LISA in which he holds only Royal London Short Term Fixed Income, but he is adamant he will be buying a property in the next few years, that may not be of any relevance to you. Good luck whatever path you take.

Ah, so you still do think more stable options such as gilts should be in the picture. That's already not 100% equities then, no? Why not then just have one account with the highest proportion in the HSBC All World and a little in gilts, instead of separate locations for the two?
And thank you:)

You should definitely not sink every penny you have or earn into equities..you do need even at your age to have some safe cash reserves (not bonds), but the vast majority of your savings should be in equities imo. When I was your age I just used savings accounts earning the best interest for my cash reserves to keep things simple, but now you have the option of gilts if you want, but I’d still prefer mmfs or bank deposit accounts. If you’re talking about using an ISA then absolutely just use one account to hold both the global index fund and any mmfs. I don’t buy gilts myself so someone else would be best to advise you on how to buy them…

justme8786

thunderroad88 said:

justme8786 said:

thunderroad88 said:

justme8786 said:

kempiejon said:j

justme8786 said:

The SIPP I plan to transfer into my name and leave untouched for my pension. I have doubts about the individual funds though, I've received paperwork and it looks like some aren't doing so well. Maybe I just leave it anyway. 

Regarding the ISA, there is just so much I've read about it being wise not to have actively managed funds due to the high fees and unlikeliness of 'beating the market', which is why I am considering selling. 

But you're right maybe I just leave it all where it is and if I want to try the All World Index passive investment I do it with money I will earn myself. But I'm worried that this way I'd be diluting potential cumulative gains.

Did your mum know more about stocks and funds than you do? She might have been investing for her own needs which will be different to your own but you won't be far wrong by hanging on.
If you're interested in the opinion of faceless idiots online post a list of all the funds and percentages in each in the ISA and the SIPP I'm sure they'll be opinions.
I agree though, an all world passive tracker will collect just under market return after fees and is easy and generally actively managed funds long term don't do better than that for a larger fee.

I think she did some digging around and asking on here haha but by no means an expert, and she told me she's sure I could do more thorough research and potentially move things around.

Yes I have been toying with that idea, maybe I will. Any opinion no matter how idiotic could be of use.

Do you think there could be a benefit to having two s&s ISAs, one for actively managed funds and one for a passive All World Index investment?

And, I was thinking an 80/20 equity/bond split, I read somewhere that the general rule for % in equities is 100 - your age, but someone commented that at my age it would be wiser to just go for 100% equities. Would you agree? I have some savings too so it is not like I'd be without cash, but it is not a ton. Although I am planning to earn, and earn well.

It was I who suggested 100% equities. But let me clarify, I meant for you to only put what you wish to invest only into equities. You should always have an amount of easy accessible savings in a good, interest bearing high street account that can cover all your immediate expenses (anything you might need in the next year)

 Ideally I think you should also hold an amount of cash in a mixture of fixed interest vehicles like mmfs, gilts or fixed term high street deposit accounts, probably laddered from 1-5 years, so you aren’t tying up all your cash for too long.

 The remainder which is money you are pretty sure you won’t want for 5 years, what I’d call your investable cash, I’d put in a a global tracker. HSBC Ftse All World C is my personal favourite. You could just leave it at that for the utmost simplicity. My son who is only a few years older than you has done that, although he’s also added a slight tilt towards big tech by holding a bit in L&G Global Technology. He invests any spare cash monthly, 90% into HSBC and 10% L&G. He also has a LISA in which he holds only Royal London Short Term Fixed Income, but he is adamant he will be buying a property in the next few years, that may not be of any relevance to you. Good luck whatever path you take.

Ah, so you still do think more stable options such as gilts should be in the picture. That's already not 100% equities then, no? Why not then just have one account with the highest proportion in the HSBC All World and a little in gilts, instead of separate locations for the two?
And thank you:)

You should definitely not sink every penny you have or earn into equities..you do need even at your age to have some safe cash reserves (not bonds), but the vast majority of your savings should be in equities imo. When I was your age I just used savings accounts earning the best interest for my cash reserves to keep things simple, but now you have the option of gilts if you want, but I’d still prefer mmfs or bank deposit accounts. If you’re talking about using an ISA then absolutely just use one account to hold both the global index fund and any mmfs. I don’t buy gilts myself so someone else would be best to advise you on how to buy them…

Oh I see. So if I would have other accounts such as a Cash ISA, premium bonds, savings account etc. then you would say that gov bonds, at least at my age, wouldn't be necessary? I heard they can give good protection in case of financial crises though, more than the other money storage places. And that when equities fall they can rise.

thunderroad88

justme8786 said:

thunderroad88 said:

justme8786 said:

thunderroad88 said:

justme8786 said:

kempiejon said:j

justme8786 said:

The SIPP I plan to transfer into my name and leave untouched for my pension. I have doubts about the individual funds though, I've received paperwork and it looks like some aren't doing so well. Maybe I just leave it anyway. 

Regarding the ISA, there is just so much I've read about it being wise not to have actively managed funds due to the high fees and unlikeliness of 'beating the market', which is why I am considering selling. 

But you're right maybe I just leave it all where it is and if I want to try the All World Index passive investment I do it with money I will earn myself. But I'm worried that this way I'd be diluting potential cumulative gains.

Did your mum know more about stocks and funds than you do? She might have been investing for her own needs which will be different to your own but you won't be far wrong by hanging on.
If you're interested in the opinion of faceless idiots online post a list of all the funds and percentages in each in the ISA and the SIPP I'm sure they'll be opinions.
I agree though, an all world passive tracker will collect just under market return after fees and is easy and generally actively managed funds long term don't do better than that for a larger fee.

I think she did some digging around and asking on here haha but by no means an expert, and she told me she's sure I could do more thorough research and potentially move things around.

Yes I have been toying with that idea, maybe I will. Any opinion no matter how idiotic could be of use.

Do you think there could be a benefit to having two s&s ISAs, one for actively managed funds and one for a passive All World Index investment?

And, I was thinking an 80/20 equity/bond split, I read somewhere that the general rule for % in equities is 100 - your age, but someone commented that at my age it would be wiser to just go for 100% equities. Would you agree? I have some savings too so it is not like I'd be without cash, but it is not a ton. Although I am planning to earn, and earn well.

It was I who suggested 100% equities. But let me clarify, I meant for you to only put what you wish to invest only into equities. You should always have an amount of easy accessible savings in a good, interest bearing high street account that can cover all your immediate expenses (anything you might need in the next year)

 Ideally I think you should also hold an amount of cash in a mixture of fixed interest vehicles like mmfs, gilts or fixed term high street deposit accounts, probably laddered from 1-5 years, so you aren’t tying up all your cash for too long.

 The remainder which is money you are pretty sure you won’t want for 5 years, what I’d call your investable cash, I’d put in a a global tracker. HSBC Ftse All World C is my personal favourite. You could just leave it at that for the utmost simplicity. My son who is only a few years older than you has done that, although he’s also added a slight tilt towards big tech by holding a bit in L&G Global Technology. He invests any spare cash monthly, 90% into HSBC and 10% L&G. He also has a LISA in which he holds only Royal London Short Term Fixed Income, but he is adamant he will be buying a property in the next few years, that may not be of any relevance to you. Good luck whatever path you take.

Ah, so you still do think more stable options such as gilts should be in the picture. That's already not 100% equities then, no? Why not then just have one account with the highest proportion in the HSBC All World and a little in gilts, instead of separate locations for the two?
And thank you:)

You should definitely not sink every penny you have or earn into equities..you do need even at your age to have some safe cash reserves (not bonds), but the vast majority of your savings should be in equities imo. When I was your age I just used savings accounts earning the best interest for my cash reserves to keep things simple, but now you have the option of gilts if you want, but I’d still prefer mmfs or bank deposit accounts. If you’re talking about using an ISA then absolutely just use one account to hold both the global index fund and any mmfs. I don’t buy gilts myself so someone else would be best to advise you on how to buy them…

Oh I see. So if I would have other accounts such as a Cash ISA, premium bonds, savings account etc. then you would say that gov bonds, at least at my age, wouldn't be necessary? I heard they can give good protection in case of financial crises though, more than the other money storage places. And that when equities fall they can rise.

Bonds don’t always correlate with equity falls like that, they can fall too, but generally they should preserve your capital and even offer modest growth. You can get similar returns by using fixed term savings accounts and mmfs. You shouldn’t be too concerned about “protection” at your age, you’ve got probably 40 years for your investments to recover if there was a crash. Bonds as protection is useful for people nearing or in retirement, but they’re not a good investment for a young person whose aim should be to accumulate and grow their savings as much as possible. Suggest you go on YouTube and watch some videos by Damien Talks Money or Toby Newbatt … they offer pretty good advice for young people starting out.

LHW99

Your mum may have been aiming more for income, which can nivolve using actively managed funds rather than passive trackers.

You may not need that (now) but it still doesn't mean you need to worry about changing things quickly. One thing you could do is make out the details of what you have (paper or PC), where and what your plans are for work, training, holidays, housing for the next few years. Then you can see how you could use your money / investments to help reach those goals.

justme8786

LHW99 said:

Your mum may have been aiming more for income, which can nivolve using actively managed funds rather than passive trackers.

You may not need that (now) but it still doesn't mean you need to worry about changing things quickly. One thing you could do is make out the details of what you have (paper or PC), where and what your plans are for work, training, holidays, housing for the next few years. Then you can see how you could use your money / investments to help reach those goals.

Yes thank you, I will do just that.