Where do I start with stocks/shares ISA

dizzie

Hi,

I would really appreciate any words of wisdom on where to start with a stocks/shares ISA. Our circumstances are as follows:

1. We have an offset mortage (with about 70% of the mortgage value as savings in the offset account)

2. For a few years, we have each been contributing into cash isas and have balances of around £10k and £20k respectively

3. We both contribute to private pension schemes

4. We are both higher rate taxpayers.

Our aims are as follows:

(ii). To help fund our two children (aged 11 and 12) through university - if that is what they want to do.

(iii) To maximise our savings in retirement

My thoughts/rationale were as follows (Please tell me if you think I'm wrong here)

If we could also start to invest in a mini stocks/shares isa, then this will give us three "vehicles" from which to draw funds - offset, Mini cash, or Mini stocks/shares ISA. University fees are 6-7 years away, and retirement is going to be at least 20+ years away.

From what I have read, it seems it is best to drip feed a stocks/shares ISA to make the bumps - well - less bumpy! I am also aware that there are various fees attached. So I am just wondering if anyone out there can recommend a good starting place for decent predicted returns, reasonable fees and possibly a degree of flexibility (? ability to change funds) for a complete inexperienced novice, with a "balanced" attitude to risk.

Many thanks

debbie42

There is a thread on the ISA forum on this very subject: I just bumped it to the top for you. Link below:

http://forums.moneysavingexpert.com/showthread.html?t=416337

The stock market is very volatile at the moment, as I'm sure you know(!), but FWIW I'd be using my S&S ISA allowance in your position.

dizzie

Thanks Debbie42, I'll go and have a look at that.

PS Sorry to be a complete ignoramous...but what does FWIW stand for ?

Aegis

dizzie wrote: »

Thanks Debbie42, I'll go and have a look at that.

PS Sorry to be a complete ignoramous...but what does FWIW stand for ?

FWIW = For What It's Worth

debbie42

That's right, though it could just have easily been:
Financial Wizard (I Wish)

Aegis

debbie42 wrote: »

That's right, though it could just have easily been:
Financial Wizard (I Wish)

It's all about the context

takoo

Hi Dizzie

Sample the magazines for a regular read:

• Investor's Chronicle
• Shares.

Sample the books for a few "bibles"- a few names to read or read about:

• William O'Neill
• Benjamin Graham
• Warren Buffet
• Jim Slater.

Look for :

• capital growth
• income growth etc.

Read quality newspapers - business sections. I prefer

• The Times
• The Financial Times.

Get a feel for industries / sectors / international market over a 10 years
future:

• China
• India
• Telecommunications etc.

I tend to go for amix of:

• investment trusts
• penny shares
• FOOTSIE 100.

That is the first instalment.

Above all do not commit more than you can afford to lose!

I hope you have as much enjoyment as I have had - and I have missed some whoppers, made losses.

All the Best

Takoo

dizzie

Thanks Takoo,

I'm just digesting the info on the link that Debbie42 posted. Looks like I have a fair bit of homework to do before i take the plunge.

Until now, I've avoided the stockmarket investments mainly because I didn't undertand them or even understand where you make a start in trying to undertand them (if you see what I mean). A lot of those heavy financial articles mean "diddly squat" to me at the moment, but I am going to try to start gaining some knowledge.

Many thanks for your advice.