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  • FIRST POST
    • Interest
    • By Interest 11th Mar 18, 7:56 AM
    • 11Posts
    • 2Thanks
    Interest
    Buying Shares
    • #1
    • 11th Mar 18, 7:56 AM
    Buying Shares 11th Mar 18 at 7:56 AM
    Hi,

    Some background:

    Mid 20's
    Basic rate taxpayer
    Only source of income from salary.
    Have a mortgage
    No other form of savings/investments other than a few of thousand in a current account.

    I would like some advice as I would like to purchase shares in the near future, for the first time.

    I would like to simply buy and hold shares for around 5 years to hopefully see a profit. I am talking a few hundred pounds to start with.

    I have read the 'how to buy shares' guide on here and I wanted to check my understanding. As I don't plan to regularly trade, I believe it's worth using Hargreaves Lansdown as there is no platform charge, would that be sensible? I do realize there is a larger transfer out fee. I assume this is payable when you sell your shares?

    Thank for your any support you can offer.
Page 1
    • Alexland
    • By Alexland 11th Mar 18, 8:07 AM
    • 2,571 Posts
    • 1,953 Thanks
    Alexland
    • #2
    • 11th Mar 18, 8:07 AM
    • #2
    • 11th Mar 18, 8:07 AM
    Just to help us understand are there any particular shares you are looking to buy or are you just seeking to benefit from the stock market generally?

    With only a few hundred pounds the fees in trading individual shares would be a high proportion of your money so you might also consider funds in which you buy into a larger pool of stock market investments? Funds might be better suited to your needs as the costs can be incurred as low percentages so are likely to offer you a better return at lower risk.

    How is this money going to be eventually used? If it is for retirement then there are ISA and pension accounts that offer government incentives to save and invest. Does your employer offer a pension and if so are you taking maximum advantage of matched contributions?

    Alex
    Last edited by Alexland; 11-03-2018 at 8:23 AM.
    • Interest
    • By Interest 11th Mar 18, 8:23 AM
    • 11 Posts
    • 2 Thanks
    Interest
    • #3
    • 11th Mar 18, 8:23 AM
    • #3
    • 11th Mar 18, 8:23 AM
    Hi Alex

    Thank you for the response.

    There were some companies shares that I had in mind, FTSE 100 companies.

    Funds isn't something I'd considered but I'm going to read up on this now.
    • Alexland
    • By Alexland 11th Mar 18, 8:27 AM
    • 2,571 Posts
    • 1,953 Thanks
    Alexland
    • #4
    • 11th Mar 18, 8:27 AM
    • #4
    • 11th Mar 18, 8:27 AM
    Hi Alex

    Thank you for the response.

    There were some companies shares that I had in mind, FTSE 100 companies.

    Funds isn't something I'd considered but I'm going to read up on this now.
    Originally posted by Interest
    You can buy into a FTSE100 tracker fund very cheaply but the consensus on this forum is that limiting yourself to the UK market in not a good idea and a more global perspective is better. Try doing a spreadsheet and seeing how quickly share trading fees add up.

    Alex
    Last edited by Alexland; 11-03-2018 at 8:31 AM.
    • Interest
    • By Interest 11th Mar 18, 8:58 AM
    • 11 Posts
    • 2 Thanks
    Interest
    • #5
    • 11th Mar 18, 8:58 AM
    • #5
    • 11th Mar 18, 8:58 AM
    You can buy into a FTSE100 tracker fund very cheaply but the consensus on this forum is that limiting yourself to the UK market in not a good idea and a more global perspective is better. Try doing a spreadsheet and seeing how quickly share trading fees add up.

    Alex
    Originally posted by Alexland
    Will do, thank you.

    Sorry Alex, I just saw the rest of your response form earlier. The money isn't for retirement, I want to do this instead of traditional savings with a view to (in the future) putting the money into other income producing assets. Possibly property.

    Re my pension that you mentioned, I take full advantage at work. I pay 5% of my salary per month & my employer pays 13%. The total is just over 5k per year.
    • Alexland
    • By Alexland 11th Mar 18, 9:10 AM
    • 2,571 Posts
    • 1,953 Thanks
    Alexland
    • #6
    • 11th Mar 18, 9:10 AM
    • #6
    • 11th Mar 18, 9:10 AM
    18% is a good contribution level for mid 20s and if you have been doing that for a few years your pot(s) should be off to a good start. It's worth doing some maths on the amount of income you would like in retirement (above state pension) and working backwards (remember it's only growth above inflation that counts, and you may pay some income tax in retirement ) to see if you are contributing enough.
    Last edited by Alexland; 11-03-2018 at 9:18 AM.
    • ValiantSon
    • By ValiantSon 11th Mar 18, 12:52 PM
    • 2,013 Posts
    • 1,863 Thanks
    ValiantSon
    • #7
    • 11th Mar 18, 12:52 PM
    • #7
    • 11th Mar 18, 12:52 PM
    Spam reported.
    • Alexland
    • By Alexland 11th Mar 18, 12:59 PM
    • 2,571 Posts
    • 1,953 Thanks
    Alexland
    • #8
    • 11th Mar 18, 12:59 PM
    • #8
    • 11th Mar 18, 12:59 PM
    Spam reported.
    Originally posted by ValiantSon
    And quickly removed. I was going to comment that Sberbank within my son's fund had been doing well recently and their growth was mostly unaffected by the recent correction.
    • Thrugelmir
    • By Thrugelmir 11th Mar 18, 3:12 PM
    • 58,925 Posts
    • 52,251 Thanks
    Thrugelmir
    • #9
    • 11th Mar 18, 3:12 PM
    • #9
    • 11th Mar 18, 3:12 PM
    I would like some advice as I would like to purchase shares in the near future, for the first time.

    I would like to simply buy and hold shares for around 5 years to hopefully see a profit. I am talking a few hundred pounds to start with.
    Originally posted by Interest
    Until you've build a sizable portfolio in value. You'd do better investing in funds or investment trusts. In order to have a well diversified portfolio.

    In the meantime keep reading and learning. There's plenty of good material available that will enable you to broaden your investment knowledge.
    Financial disasters happen when the last person who can remember what went wrong last time has left the building.
    • Interest
    • By Interest 11th Mar 18, 3:25 PM
    • 11 Posts
    • 2 Thanks
    Interest
    Until you've build a sizable portfolio in value. You'd do better investing in funds or investment trusts. In order to have a well diversified portfolio.

    In the meantime keep reading and learning. There's plenty of good material available that will enable you to broaden your investment knowledge.
    Originally posted by Thrugelmir


    Thank you, I appreciate the advice.
    • inflationbuster
    • By inflationbuster 11th Mar 18, 8:38 PM
    • 167 Posts
    • 46 Thanks
    inflationbuster
    Few hundred pounds? Don't bother instead read up on investing (Naked Trader), practice trading virtually and save up.
    • Alexland
    • By Alexland 11th Mar 18, 10:03 PM
    • 2,571 Posts
    • 1,953 Thanks
    Alexland
    Few hundred pounds? Don't bother instead read up on investing (Naked Trader), practice trading virtually and save up.
    Originally posted by inflationbuster
    This is exactly the type of book the OP would be best avoiding. Sure a few hundred pounds is a small start but everyone has to start somewhere and if the OP is keeping to percentage fees they should be able to make good long term returns on their original capital.
    • John-K
    • By John-K 11th Mar 18, 10:15 PM
    • 654 Posts
    • 1,016 Thanks
    John-K
    Few hundred pounds? Don't bother instead read up on investing (Naked Trader), practice trading virtually and save up.
    Originally posted by inflationbuster
    Practice trading is worthless. It is worse than that, actually, it is actually damaging if you later intend to trade with real money.
    • Thrugelmir
    • By Thrugelmir 11th Mar 18, 11:19 PM
    • 58,925 Posts
    • 52,251 Thanks
    Thrugelmir
    Practice trading is worthless. It is worse than that, actually, it is actually damaging if you later intend to trade with real money.
    Originally posted by John-K
    Particularly if you are rash in making decisions.
    Financial disasters happen when the last person who can remember what went wrong last time has left the building.
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