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Complete Novice wanting to invest
Comments
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I do not think btl mortgage covers airb&b and it is his main residence anyway so not sure why he would pay CGT on it ; in any case even if it was calculated as due the anjual exemption would have more than covered it likely.Kernel_Sanders wrote: »Is everyone assuming the OP has his fill of the 3%+ current accounts on offer, or do they consider such guaranteed returns too small?
Do you realize that when you sell your flat, a proportion of any profit will be assessable for CGT even though it's the only property you own? Also, did you change your mortgage to a buy-to-let or gain the mortgagee's permission to let?The word "dilemma" comes from Greek where "di" means two and "lemma" means premise. Refers usually to difficult choice between two undesirable options.
Often people seem to use this word mistakenly where "quandary" would fit better.0 -
Clive_Woody wrote: »I just had a look and it looks like the minimum monthly DD with Vanguard LifeStrategy is £100 per month (minimum of £500 for single payments).
That's why I suggested h-l so the OP is aware of this.
Probably planning to wait until next year for the small regular investment with h-l or see whether the larger amount is available with Vanguard.0 -
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Kernel_Sanders wrote: »Is everyone assuming the OP has his fill of the 3%+ current accounts on offer, or do they consider such guaranteed returns too small?
For the 25+ year time horizon the OP mentioned, it is definitely too small.
It's a good return for your short term emergency fund, assuming the time cost is not a problem.0 -
Malthusian wrote: »For the 25+ year time horizon the OP mentioned, it is definitely too small.
It's a good return for your short term emergency fund, assuming the time cost is not a problem.
Sorry being absolutely stupid, but what are you both talking about, in regards to the 3%?
Again I apologise for being not clued up.0 -
They mean the various high-interest current accounts out there, where you could probably get approximately 3% interest on a large amount of cash by transferring money between them. As an example Nationwide have a Flex Direct Account where you can get 5% interest for a year on £2,500 where you pay in £1,000 pm - you can set up Standing Orders to pay that money in from another bank and then pay it straight back out again. If you have a wife/husband, you can both have sole accounts and one joint account - therefore a total of £7,500 at 5% with Nationwide alone. You can also have £20k in Sandander 123 currents accounts at 1.5%, so it can mount up and you could get 3% overall on quite a large sum if you add in a few others like Tesco current accounts.Sorry being absolutely stupid, but what are you both talking about, in regards to the 3%?
Again I apologise for being not clued up.0 -
They mean the various high-interest current accounts out there, where you could probably get approximately 3% interest on a large amount of cash by transferring money between them. As an example Nationwide have a Flex Direct Account where you can get 5% interest for a year on £2,500 where you pay in £1,000 pm - you can set up Standing Orders to pay that money in from another bank and then pay it straight back out again. If you have a wife/husband, you can both have sole accounts and one joint account - therefore a total of £7,500 at 5% with Nationwide alone. You can also have £20k in Sandander 123 currents accounts at 1.5%, so it can mount up and you could get 3% overall on quite a large sum if you add in a few others like Tesco current accounts.
Hi thank you for the detailed information. So, I am correct in thinking you mean I will money on the interest or they charge me interest? In regards, the Vanguard and transferring funds, I don't intend to transfer any money from it.
I currently have 2 jobs and do a little btr of airbnb. All of the money goes into my Halifax current account. I then transfer it into my savings/ISA which is also with Halifax.0 -
I mean you will receive that interest on these high interest current accounts. See link below:Hi thank you for the detailed information. So, I am correct in thinking you mean I will money on the interest or they charge me interest?
http://www.moneysavingexpert.com/savings/savings-loophole0 -
Thank you Audaxer:money:0
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Update: I have put in a lump sum of £500 for now into the Vanguard LS80 fund. I have done this through Vanguard themselves. I am under the impression that I don't have to do anything with it now. Just leave it and check on it every now and then? I don't intend to touch it for a very long time 20+ years, does this sound right to you guys?
Did you open this as a Vanguard ISA (a S&S ISA) rather than a general account?
https://www.vanguardinvestor.co.uk/investing-explained/stocks-shares-isa
https://www.vanguardinvestor.co.uk/investing-explained/general-investment-account
I only ask because reading through some of your posts on this thread gives me the impression you might not be aware that you can have a Cash ISA and a S&S ISA.
Like others have recommended, you should aim to add regularly to your investment. If you can't afford the £100 minimum, open a second account with your bank and set up a £25/month payment (or whatever you can afford) into that. Then send money from there to Vanguard when it reaches £100.
You could also consider transferring some of your cash ISA to Vanguard when/if you get a bit more confident that investing is for you. If you do this, make sure you use a transfer form rather than take the money out of the cash ISA yourself.0
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