S&S ISA newbie

jackisla · 16 April 2019 at 7:38PM

Hi,

First time poster.

I'm looking to open a S&S ISA, probably deposit £1000 and drip feed maybe £50 per month into it.

Now as someone with limited knowledge, apart from snippets i've read on here and reddit, I was thinking of opening an account with Vanguard and investing in one of their Lifefunds. I'm just looking to see if I could get a general explanation of how it all works, why is there a Lifefund 20,40,60,80,100, What are the fees involved etc. Any help would be greatly appreciated.

Thanks

ColdIron · 16 April 2019 at 8:10PM

You say nothing about your circumstances or objectives so investing may or may not be right for you, but 10 minutes reading this general explanation of Vanguard's LifeStrategy funds would be a good introduction
https://www.vanguardinvestor.co.uk/investing-explained/what-are-lifestrategy-funds

I'd become much more familiar with the basic concepts than snippets on here and especially reddit which I would ignore. Perhaps start with these
https://monevator.com/category/investing/passive-investing-investing/
https://monevator.com/vanguard-lifestrategy/

There are two fees involved

An Ongoing Charge of 0.22% pa of the value of your investment, this is taken from within the fund so you won't see an explicit charge. This will be the same regardless of which platform you use
A platform fee, this will be an explicit charge. If you use Vanguard Investor (the same people who provide the fund) it will be an additional 0.15%. There are many platforms but at your level of investment this is likely the cheapest and most appropriate for you

DrSyn · 17 April 2019 at 9:47AM

In addition to ColdIron's post, these should broaden your understanding of investing:-

1. Use tax shelters and keep charges to the minimum.

2. Make sure you clearly understand the difference between savings and investments, as some persons do not.

Savings means putting money in the bank or building society. Just make sure the bank is covered (up to £85000 at present) by the FSCS .

Investing is a another word for "long term gambling" your money is at risk. The longer the better, with a minimum of 5 years.

Investments are not covered by the FSCS.

https://www.moneysavingexpert.com/investments/

3. I suggest you look at these following two videos before you begin investing:-

http://www.kroijer.com/

https://www.ifa.com/indexfundsthemovie/

4. As you ask about VLS, this should be of interest to you.

https://forums.moneysavingexpert.com/showthread.php?t=5879942&highlight=multi+asset

S&S ISA newbie

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