Looking to invest

Funky_Haggis

Hello, 

I am looking at investing and would appreciate any guidance or pointers from the knowledgeable people on this forum.

I don't have the knowledge or expertise to look at what companies etc to invest in, so ideally would be looking for a ready made / 'off the shelf' product, if such a thing exists.

Looking at investing approximately £250 per month (sometimes more) and want to invest for at least 10 years, perhaps longer.

Risk appetite, somewhere between 'balanced' and 'growth'. Apologies if these aren't the best terms - not looking at the safest option or the most risky.

I have invested in company share save schemes over the years so am aware of the risks involved. 

About me - 44 years old, higher rate tax payer, only debt is mortgage (£160k) which should be cleared in 6 years (when current fix will end). I already overpay my mortgage and also pay monthly AVC's into my pension on top of my monthly contributions. 

I have easy access to over 6 months salary for emergencies.

I am quite new to this but would be grateful for any pointers or guidance as to what products might be worth researching / looking into. 

Many thanks

Brie

Do you have an investment ISA?  That might be a good place to start.  

ColdIron

As a higher rate taxpayer your pension somewhat suggests itself

Your money will be invested in much the same areas that a self select investment could but without the effort and plus tax relief. Seems to tick many if not all of your boxes

Funky_Haggis

ColdIron said:

As a higher rate taxpayer your pension somewhat suggests itself

Your money will be invested in much the same areas that a self select investment could but without the effort and plus tax relief. Seems to tick many if not all of your boxes

Yes the pension is the obvious choice, but I would rather my money wasn't tied up until I can access it at 57. Not that I am looking to touch it, just thinking worst case scenario...

Bostonerimus1

Pay off all high interest debt.

Put 6 months spending in the bank for emergencies.

Pay off the mortgage. 

Put money into your workplace pension in low cost multi-asset or index tracker funds.

Put money into an S&S ISA in low cost multi-asset or index tracker funds from companies like Vanguard, Fidelity, L&G etc. 

Put money into a general investment account in low cost multi-asset or index tracker funds from companies like Vanguard, Fidelity, L&G etc.

Maybe yoiu just do the final two on that list.

jimjames

Bostonerimus1 said:

Pay off the mortgage. 

Personally wouldn't pay off mortgage but invest instead, that's a personal choice. When OP is on a fix for the next 6 years so presumably repayment penalties I definitely wouldn't pay if it's going to cost more. 

Eyeful

1. Any money needed within the next 5 years should be in a savings account protected by the FSCS.
 Protected up to £85K 

2. Investment for at least 10 years. The longer the better.

3. When investing used tax shelters where posable (a) Pensions (b) Stocks & Shares ISA's.

4. Consider a low cost Multi-Asset Fund with a share/bond split you are comfortable holding.
This will give you a ready made portfolio set at a risk you are happy with.
Example: 
https://www.vanguardinvestor.co.uk/investing-explained/what-are-lifestrategy-funds?intcmpgn=lifestrategyfunds_learnmore_link

5. Read this:
https://monevator.com/passive-fund-of-funds-the-rivals/

6. Watch this: 
 https://www.kroijer.com/

DRS1

Funky_Haggis said:

ColdIron said:

As a higher rate taxpayer your pension somewhat suggests itself

Your money will be invested in much the same areas that a self select investment could but without the effort and plus tax relief. Seems to tick many if not all of your boxes

Yes the pension is the obvious choice, but I would rather my money wasn't tied up until I can access it at 57. Not that I am looking to touch it, just thinking worst case scenario...

You are looking to invest for at least 10 years so you shouldn't be touching the money in that time.  The cash buffer (you mention 6 months worth) is there for the worst case scenario.  If it is not enough then boost that but you don't want to be disinvesting when it doesn't suit you.

Bumping up your AVCs by £250 pm looks like the sensible route.

If you do decide to keep the £250 separate from the pension (in an ISA say) then make sure you understand the charges.  You don't want to be paying £11.95 commission every time you invest £250. 

Albermarle

Funky_Haggis said:

ColdIron said:

As a higher rate taxpayer your pension somewhat suggests itself

Your money will be invested in much the same areas that a self select investment could but without the effort and plus tax relief. Seems to tick many if not all of your boxes

Yes the pension is the obvious choice, but I would rather my money wasn't tied up until I can access it at 57. Not that I am looking to touch it, just thinking worst case scenario...

That is understandable but the very generous 40% tax relief on pension contributions is very very tempting...

daveyjp

Its easy to overthink and be overwhelmed by the options.  The important step is to do something now as money not invested isn't working for you.

No investment decision taken now has to be baked in for ten years.  Choose something basic now through one of the cheaper S&S ISA providers as Vanguard/Fidelty etc at a risk level you are happy with and make a start.

You can then spend some time doing reading and make adjustments to investment strategy as you learn.  You may decide what you have chosen is a 'fire and forget' option that suits you for 5-10 years and you then decide to make changes as you approach retirement.