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  • FIRST POST
    • Smurphington
    • By Smurphington 12th Jul 18, 2:00 PM
    • 53Posts
    • 208Thanks
    Smurphington
    Investing v small amounts
    • #1
    • 12th Jul 18, 2:00 PM
    Investing v small amounts 12th Jul 18 at 2:00 PM
    I know practically nothing about investing and despite trying to read the guides I'm still none the wiser. I'm wanting to invest a very small amount 50 a month but over the long haul. I'm wondering if this is even possible or if I should just continue putting it in a cash isa
Page 1
    • kidmugsy
    • By kidmugsy 12th Jul 18, 3:07 PM
    • 11,083 Posts
    • 7,639 Thanks
    kidmugsy
    • #2
    • 12th Jul 18, 3:07 PM
    • #2
    • 12th Jul 18, 3:07 PM
    You could, for instance, put 30 month or more into investment trusts run by Baillie Gifford: see their Share Plan.
    https://www.bailliegifford.com/en/uk/individual-investors/how-to-invest/investment-trust-share-planisa/

    Some of the other investment trust management companies offer something similar, though BG's might be a particularly attractive combination of low charges with a record of investment success.

    https://www.theaic.co.uk/aic/find-compare-investment-companies/management-group-and-wrapper-schemes

    Often it costs a bit more to use the tax shelter (Stocks and Shares ISA) than to use the unsheltered investment scheme/share plan.

    At 50 p.m. it might be best to avoid the higher charges of the ISAs because you are most unlikely to have to pay any tax on your dividends or capital gains anyway.

    By the way, is there any reason not to consider a pension as a home for your investment?

    P.S. If you are under 40 you might like to consider a LISA.
    Free the dunston one next time too.
    • badger09
    • By badger09 12th Jul 18, 3:11 PM
    • 6,101 Posts
    • 5,468 Thanks
    badger09
    • #3
    • 12th Jul 18, 3:11 PM
    • #3
    • 12th Jul 18, 3:11 PM
    I know practically nothing about investing and despite trying to read the guides I'm still none the wiser. I'm wanting to invest a very small amount 50 a month but over the long haul. I'm wondering if this is even possible or if I should just continue putting it in a cash isa
    Originally posted by Smurphington
    Yes it is possible.

    Have you read this? if not, its a decent place to start.

    http://monevator.com/category/investing/passive-investing-investing/

    You haven't given much info, but usual advice is to clear high interest debts first, then save a decent cash fund for emergencies - eg 6months essential outgoings, then look at investing.

    Depending on your age & other factors such as home ownership, tax rate etc - look at pension, HTB ISA, LISA, S&S ISA

    edit: kidmugsy types faster than me
    • Joe_Bloggs
    • By Joe_Bloggs 12th Jul 18, 3:18 PM
    • 4,448 Posts
    • 1,564 Thanks
    Joe_Bloggs
    • #4
    • 12th Jul 18, 3:18 PM
    • #4
    • 12th Jul 18, 3:18 PM
    Regular tax free saving 50 for 12 months will accumulate 600 capital. An interest rate of 1% will result in an extra 3.25. This interest scales with interest rate. So with a rate of 2% you get 6.48 (Figures from the MSE regular savings calculator). Basic rate tax payers get a 1000 allowance on interest earned so there will be little point in using an ISA wrapper.

    Once you have a lump sum you can build up resilience to personal financial shocks.

    With this capital lump sum you can take part in stocks and shares investments. My Vanguard ISA will take 500 lump or 100 regular payments to an ISA. This is not a recommendation. It might be more profitable to open current accounts that pay interest or have high interest regular savers. My Tesco account pays 3% on up to 3000.

    J_B.

    From kidmugsy link to https://www.bailliegifford.com/en/uk/individual-investors/how-to-invest/investment-trust-share-planisa/


    Summary of Features

    • Tax-efficient investment
    • No set-up charge*
    • Flat rate annual management charge of 32.50 + VAT
    • Lump sum investment from 2,000 up to a maximum of 20,000 each tax year
    • Invest monthly from 100
    • Choose from the range of investment trusts we manage
    • Smurphington
    • By Smurphington 12th Jul 18, 3:57 PM
    • 53 Posts
    • 208 Thanks
    Smurphington
    • #5
    • 12th Jul 18, 3:57 PM
    • #5
    • 12th Jul 18, 3:57 PM
    You could, for instance, put 30 month or more into investment trusts run by Baillie Gifford: see their Share Plan.
    https://www.bailliegifford.com/en/uk/individual-investors/how-to-invest/investment-trust-share-planisa/

    Some of the other investment trust management companies offer something similar, though BG's might be a particularly attractive combination of low charges with a record of investment success.

    https://www.theaic.co.uk/aic/find-compare-investment-companies/management-group-and-wrapper-schemes

    Often it costs a bit more to use the tax shelter (Stocks and Shares ISA) than to use the unsheltered investment scheme/share plan.

    At 50 p.m. it might be best to avoid the higher charges of the ISAs because you are most unlikely to have to pay any tax on your dividends or capital gains anyway.

    By the way, is there any reason not to consider a pension as a home for your investment?

    P.S. If you are under 40 you might like to consider a LISA.
    Originally posted by kidmugsy
    I do have a work based pension and I contribute 4% of my earnings plus 50 contribution monthly. I put 400 a month into an easy access Isa so I was considering decreasing this to 350 and using 50 for something more long term .
    I am under 40 so will look at this. Thank you
    • Smurphington
    • By Smurphington 12th Jul 18, 4:00 PM
    • 53 Posts
    • 208 Thanks
    Smurphington
    • #6
    • 12th Jul 18, 4:00 PM
    • #6
    • 12th Jul 18, 4:00 PM
    Also I have no debts other than a mortgage but I am currently working on the emergency fund .
    • charliehelyes
    • By charliehelyes 12th Jul 18, 4:10 PM
    • 7 Posts
    • 0 Thanks
    charliehelyes
    • #7
    • 12th Jul 18, 4:10 PM
    • #7
    • 12th Jul 18, 4:10 PM
    yes its possible you can set up a monthly savings plan with Hargreaves lansdown the minimum is 25 a month you can choose nearly any fund or ftse listed stock.
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