Scottish Widows Investing ?

Heytheremrblue

Total newbie to investing here …

I have a Scottish Widows Pension and noticed you can also have an investment account with them.

I fancy having a go !

Maybe start with 500 quid to see how it goes with perhaps a coupe of K to ultimately play with.

If it goes well maybe invest a bit more.

They appear to have packages already setup that can be chosen.

So the question is do I investigate SW more or should I be looking elsewhere ?

gesdt50

Heytheremrblue said:

Total newbie to investing here …

I have a Scottish Widows Pension and noticed you can also have an investment account with them.

I fancy having a go !

Maybe start with 500 quid to see how it goes with perhaps a coupe of K to ultimately play with.

If it goes well maybe invest a bit more.

They appear to have packages already setup that can be chosen.

So the question is do I investigate SW more or should I be looking elsewhere ?

Lucky you. they are now associating with Iweb, the investment platform and one of the better ones so a good time to make a start

ColdIron

You would be better to opt for an ISA if you can

Your issue with a GIA (General Investment Account) is the fairly onerous record keeping and tax reporting responsibilities that come with it. It's quite a steep learning curve and not for 'newbies' as you describe yourself

It's not a SW thing, any platform would require this

poseidon1

If you have a SW pension you are not a 'newbie' to investing.

Unless you have taken time to understand where and how your pension contributions are invested and importantly how that is performing, randomly jumping into a ready made SW investment account is not necessarily the best way to start your personal investment journey outside your pension.

In any event income and gains  in an investment account are taxable, and we have noted on this forum that newbies in this area get confused as to the records they need to maintain and what to report to HMRC each tax year from such accounts.

Accordingly, if you are not using your £20k annual ISA allowance, you would be best advised to start investing via a tax free stocks and shares ISA from a low cost provider such as A J Bell Dodl. 

There are plenty of pointers on the ISA subforum worthwhile exploring, particularly with regard to understanding what index tracking funds and etfs do, and  how these might best serve your objectives as a fledgling investor. Therefore more reading and researching before taking your next step.

Eyeful

As your a newbie to investing

1. Have an emergency account to cover 6 to 12 months of house hold bills and to pay for boiler/car breakdowns etc.

2. Any money you know you will need in the next 5 years should be in a saving account covered by the
FSCS Savings Protection.

3. For money you will not touch for at least 10 years you can consider investing.

4. The longer you invest for, higher the odds of winning the game.
There is no guarantee you will win.

5. Look through this info, then decide what you want to do.
(a) Watch this:   https://www.kroijer.com/
(b) Read these:
https://monevator.com/passive-fund-of-funds-the-rivals/
https://monevator.com/best-global-tracker-funds/

6. Typical newbie actions are jumping into the markets at or near the top and jumping ship when the markets collapse, sometimes never to return, Hence locking their losses. 

7. Consider investing your money in equal amounts over the next 12 months.

8. Use tax shelters when available (a) Pensions (b) Cash ISA's (c) Stocks & Share ISA's,

Heytheremrblue

Thanks guys sorry a little more info I’m 56 and retired.

Isa’s are maxed for this year as are PB’s.

i have 2k of my tax allowance available.

Albermarle

Heytheremrblue said:

Thanks guys sorry a little more info I’m 56 and retired.

Isa’s are maxed for this year as are PB’s.

i have 2k of my tax allowance available.

So have you looked in to the way your SW pension is invested and are you happy with that?

Did you know you can still add £2880 a year to your pension even if your are not earning anything. 
You get £720 tax relief added.

Heytheremrblue

Yeah that Pension is in drawdown

Bostonerimus1

Heytheremrblue said:

Yeah that Pension is in drawdown

But how is your pension invested? 

dunstonh

Heytheremrblue said:

Thanks guys sorry a little more info I’m 56 and retired.

Isa’s are maxed for this year as are PB’s.

i have 2k of my tax allowance available.

Any reason you are not maximising your pension despite it being the better wrapper?  (6.25% better for a basic rate taxpayer than an ISA)

jimjames

Heytheremrblue said:

i have 2k of my tax allowance available.

What do you mean by this? Which tax allowance?