S&S ISA for DIY investments

olb81

Hi all
As a long term plan I will put most of my savings into a pension invested in a diverse fund.
If I wish to invest a few thousand more so as a hobby into specific stocks eg companies I think are selling a useful service or goods and will be for the long term, is it a good idea to use a s&s isa for this?
For example put say 25% my income into savings, 20% pension and 5% s&s isa for example. 

eskbanker

Yes, long term money will generally be best invested rather than saved, to minimise the risk of real terms value loss to inflation, while also reducing investment risk by virtue of holding for long enough to negate the dips that will happen.  Don't underestimate the amount of effort (and risk) involved in trying to pick winners rather than diversifying more widely!

masonic

If you're only intending to have some fun with about 5% of your pot, then that is a sensible way of limiting the damage potential. A S&S ISA will be important if you do not like tax calculations! Perhaps one of the newer breed of no fee trading services like Trading212 would be a good option.

eskbanker

masonic said:

If you're only intending to have some fun with about 5% of your pot, then that is a sensible way of limiting the damage potential.

5% of income, but more like 10% of the pot if saving or investing half of income!

olb81

What does the 212 mean in the name trading 212?

olb81

Also I want to invest rather than trade, as I know that's more like gambling. 

eskbanker

olb81 said:

What does the 212 mean in the name trading 212?

According to Google's AI:

The name "Trading 212" comes from the original New York City area code, 212, symbolizing accessibility and global reach, much like how 212 was the primary code for the biggest city, making trading easier for everyone, although the company started as Avus Capital in 2004 focusing on Forex before expanding. It's a nod to being a simple, all-encompassing platform for financial markets, aiming to bring Wall Street to the masses, similar to how 212 was NYC's essential code.

masonic

olb81 said:

Also I want to invest rather than trade, as I know that's more like gambling. 

There's no obligation to trade (nor would I encourage it), you can use the account for long term investing. But it is handy to have commission free investing if you are making regular monthly contributions, especially small sums where a £5-£10 broker fee could be a significant cost. Other brokers have regular investment plans too that allow you to do this for a low or zero commission, but not quite as flexibly.

olb81

Thanks which are the ones that allow regular investments at a low rate?
I'd rather established platform than a trading app.
Thanks

gesdt50

olb81 said:

Thanks which are the ones that allow regular investments at a low rate?
I'd rather established platform than a trading app.
Thanks

Iweb and Investengine or the cheaper versions

wmb194

olb81 said:

Thanks which are the ones that allow regular investments at a low rate?
I'd rather established platform than a trading app.
Thanks

Trading212 offers regular investing ("autoinvest") with no fees. What's your definition of established? T212's been around for quite a while now and is a nicely profitable company.

https://helpcentre.trading212.com/hc/en-us/articles/30661163244317-Pies-AutoInvest-Introduction