Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@. Skimlinks & other affiliated links are turned on

Search
  • FIRST POST
    • henryandmay
    • By henryandmay 14th Mar 18, 1:58 PM
    • 15Posts
    • 2Thanks
    henryandmay
    Advice on investing £1000 pm
    • #1
    • 14th Mar 18, 1:58 PM
    Advice on investing £1000 pm 14th Mar 18 at 1:58 PM
    Firstly, itís my first time posting but I have been reading and picking up a lot of useful information from the forum, so a big thanks to all the regular contributors and especially the ones who send quite detailed replies to peoples posts.

    Iím 35 and finally, after being reckless with money through my late teens and 20ís and accumulating over £30,000 of debt; Iím debt free.

    Iíve spent the last two years well and truly in the black and have manged to save £10,000. It feels great and I now really want to build on my newly gained saving addiction with a view to amassing a sizable pot for enjoying later on in life c.55 years old.

    I earn £32,000 pa and after all my outgoings, I have £1000 pm to play with. I plan on leaving the £10,000 in my isa as an emergency slush fund.

    Iíve read a lot about Vanguard on this form and in particular their Life Strategy fund, which seems very popular among many who comment on here but it just seemsÖwell a bit obvious to me and I do, wonder how many people have just ploughed money into these funds based on very limited research and on the basis of following the masses and their recent good performance.

    After spending hours researching online and reading two recommended books, I think my options are as follows;

    ē Invest a sizable chunk of the £1000pm in a total world equity tracker. Forget and leave it. This gives me exposure to markets in all four corners of the globe and low fees
    ē Invest in a LISA £4000 pa + £1000pa bonus
    ē Put together a portfolio perhaps based William Bernsteinís No Brainer Portfolio and rebalance accordingly. Use cheap platform to keep fees down.

    The above is not an exhausted list, just some ideas I have picked up over last 6 months of researching.

    Any advice or pointers would be much appreciated and I have considered paying for financial advice but itís always good to have as much knowledge as possible before seeking such advice.

    On a separate matter; had I been taught about being money aware and financial savvy in school, Iíd of had so much more to show for the last 15 years of workingÖ If only this was taught on the curriculum, kids would benefit hugely.

    Thanks
    Last edited by henryandmay; 14-03-2018 at 2:49 PM. Reason: grammer
Page 1
    • Linton
    • By Linton 14th Mar 18, 3:15 PM
    • 9,384 Posts
    • 9,519 Thanks
    Linton
    • #2
    • 14th Mar 18, 3:15 PM
    • #2
    • 14th Mar 18, 3:15 PM
    Do you own a house?

    Are you paying into your employer's pension? If not why not? If you are, would your employer contribute more if you did?

    If you own a house, or dont intend to buy one for 5-10 years......
    1) World tracker
    A reasonable strategy, certainly very sensible whilst your investments are below £25K-£50K. However you must be prepared at some stage for the investments to fall perhaps 40%. If 40% scares you look at a multi-asset fund.Vanguard LifeStrategy 60 is an option though there are several others with possible advantages.
    2) Lisa - dont know
    3) William Bernstein Portfolio
    He was writing perhaps 20 years ago for a US audience in a very different economic situation. The world has changed and we arent in the US.

    For the amount you have to invest I dont believe professional advice would be justified.
    • henryandmay
    • By henryandmay 14th Mar 18, 3:38 PM
    • 15 Posts
    • 2 Thanks
    henryandmay
    • #3
    • 14th Mar 18, 3:38 PM
    • #3
    • 14th Mar 18, 3:38 PM
    Do you own a house?
    I own the modest terrace house I live in with approx 79,000 outstanding on the mortgage at 2% fixed for next 5 years.
    I don't plan on up sizing at any point in the next 10 years and any work based bonus or windfall will go on mortgage over payments.
    Are you paying into your employer's pension? If not why not? If you are, would your employer contribute more if you did?
    Yes I have a work based pension with Aviva and pay in 5% and my employer matches that.
    • henryandmay
    • By henryandmay 21st Mar 18, 12:21 PM
    • 15 Posts
    • 2 Thanks
    henryandmay
    • #4
    • 21st Mar 18, 12:21 PM
    • #4
    • 21st Mar 18, 12:21 PM
    Bump.
    Anyone?
    • Fatbritabroad
    • By Fatbritabroad 21st Mar 18, 12:31 PM
    • 352 Posts
    • 191 Thanks
    Fatbritabroad
    • #5
    • 21st Mar 18, 12:31 PM
    • #5
    • 21st Mar 18, 12:31 PM
    The 10k i wouldn't keep in an isa but spread it among numerous high interest accounts (nationwide pays 5% on 2500 and you can have 3 accounts if there are two of you)

    Until you habe larger savings y ou could do worse than lifestrategy or one of the other world trackers. They are popular because they do a job. Are low cost and rebalance automatically. Theres alot of people that use them even for larger portfolios. I have 25k in vamguard 100 and intend to stick with that until its at least 100k by which Time ill probably want less risk anyway. Im 37 and will only look to he 100% equities for probably another ten years. My pension is also in a global tracker
    • henryandmay
    • By henryandmay 21st Mar 18, 12:53 PM
    • 15 Posts
    • 2 Thanks
    henryandmay
    • #6
    • 21st Mar 18, 12:53 PM
    • #6
    • 21st Mar 18, 12:53 PM
    I have looked at the multi bank / saving accounts option but seems like a lot of hassle moving money around per month and having multiple acconts to run and service.
    Do you need to set up DD to and from these accounts to qualify for the interest?
    • Fatbritabroad
    • By Fatbritabroad 21st Mar 18, 1:01 PM
    • 352 Posts
    • 191 Thanks
    Fatbritabroad
    • #7
    • 21st Mar 18, 1:01 PM
    • #7
    • 21st Mar 18, 1:01 PM
    Not with nationwide just set up a standing order for 1000 to go in and out every month.

    Im similar im too lazy to go for the convoluted set ups some people do but then i dont have alot relatively in cash anyway

    I have

    2x tsb accounts at 3% on 1500

    I did have 3x nationwide between girlfriend and i at 5% on 2500 each now just one sadly

    A nationwide regular saver 5% on 500 a month (now 250)

    A santander regular saver at 5% on 200 a month

    10k in santander 123 account at 1.5%

    4k i ln ablrate p2p account getting 12% (needless to say this is not comparable to a bank account and capital is at risk)

    The rest of my money is in pensions and s and s isas
    • Zorillo
    • By Zorillo 21st Mar 18, 1:08 PM
    • 158 Posts
    • 84 Thanks
    Zorillo
    • #8
    • 21st Mar 18, 1:08 PM
    • #8
    • 21st Mar 18, 1:08 PM
    If you out more in your pension would your employer match?

    Even if not, I think 10% combined contributions is low for a 35 year old. I'd double your contribution (I'm also 35 and pay 10% of my salary, my employer contributes 6% and I worry I'm too light on it. As I'm a basic rate tax payer (like you) I do it instead of a LISA but you could do both.
    • newatc
    • By newatc 21st Mar 18, 1:18 PM
    • 233 Posts
    • 270 Thanks
    newatc
    • #9
    • 21st Mar 18, 1:18 PM
    • #9
    • 21st Mar 18, 1:18 PM
    I would consider investing some of the money in a private pension to take advantage of the tax bonus going in. Disadvantage of course is not getting the benefits until you are 57/8 but that sorts of it fits in with your aim of your plan to giving you life a lift at 55!
    • henryandmay
    • By henryandmay 21st Mar 18, 2:10 PM
    • 15 Posts
    • 2 Thanks
    henryandmay
    Thanks, can you provide more information on who and how one would get a private pension on top of the one I already have through my employer.
    • Fatbritabroad
    • By Fatbritabroad 21st Mar 18, 2:20 PM
    • 352 Posts
    • 191 Thanks
    Fatbritabroad
    If you out more in your pension would your employer match?

    Even if not, I think 10% combined contributions is low for a 35 year old. I'd double your contribution (I'm also 35 and pay 10% of my salary, my employer contributes 6% and I worry I'm too light on it. As I'm a basic rate tax payer (like you) I do it instead of a LISA but you could do both.
    Originally posted by Zorillo
    Im just above at 17% and seems ok but then im a hrt payer and on that am forecast to hit the lifetime allowance so loathe to put more in
    • eskbanker
    • By eskbanker 21st Mar 18, 7:05 PM
    • 7,137 Posts
    • 7,565 Thanks
    eskbanker
    Thanks, can you provide more information on who and how one would get a private pension on top of the one I already have through my employer.
    Originally posted by henryandmay
    Unless you want to pay an IFA to do this for you, spend plenty of time researching this in detail, both on MSE and elsewhere - there's a pensions info area at https://www.moneysavingexpert.com/pensions/ and a forum board at http://forums.moneysavingexpert.com/forumdisplay.php?f=19

    In terms of specific companies, some are briefly listed at https://www.moneysavingexpert.com/savings/discount-pensions#cheapestfirms but there's a more comprehensive comparison at https://www.money.co.uk/pensions.htm, also https://www.moneywise.co.uk/pensions/managing-your-pension/moneywise-pension-awards-2017

    Also check out government-run sites like https://www.pensionwise.gov.uk/en and https://www.pensionsadvisoryservice.org.uk
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

143Posts Today

1,326Users online

Martin's Twitter
  • It's the start of mini MSE's half term. In order to be the best daddy possible, Im stopping work and going off line? https://t.co/kwjvtd75YU

  • RT @shellsince1982: @MartinSLewis thanx to your email I have just saved myself £222 by taking a SIM only deal for £7.50 a month and keeping?

  • Today's Friday twitter poll: An important question, building on yesterday's important discussions: Which is the best bit of the pizza...

  • Follow Martin