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  • FIRST POST
    • dredgos
    • By dredgos 13th Jul 18, 10:22 PM
    • 2Posts
    • 0Thanks
    dredgos
    New to investing
    • #1
    • 13th Jul 18, 10:22 PM
    New to investing 13th Jul 18 at 10:22 PM
    Hi everyone, another investment newbie here!

    In the past I have not paid a huge amount of attention to my savings, I have tended to just use regular saver accounts to get a good interest rate and then at the end of the period that money ends up in an ordinary saving account. However, I have now taken a much greater interest in what I could be doing with my money and I definitely think I could be making better use of it. I am 32 and have a mortgage, but my investment would definitely be looking for long term growth as I do not need the money now so would be looking at 10-20 years strategies.

    I have set up my 'emergency fund' now and with what is left (2500ish) and also some regular top ups (100-200) I was thinking about investing my money to try and get more from it than the 1% it gets sat in my savings account.

    Doing some reading, both on these forums and around the internet, it seems that with the money I am looking to use going for a multi asset fund may be the way to go given the capital I have to put into it. What advice would people have for someone in my position?
Page 1
    • Audaxer
    • By Audaxer 13th Jul 18, 11:10 PM
    • 1,432 Posts
    • 871 Thanks
    Audaxer
    • #2
    • 13th Jul 18, 11:10 PM
    • #2
    • 13th Jul 18, 11:10 PM
    Doing some reading, both on these forums and around the internet, it seems that with the money I am looking to use going for a multi asset fund may be the way to go given the capital I have to put into it. What advice would people have for someone in my position?
    Originally posted by dredgos
    Exactly that - a low cost globally diversified multi asset fund, with a percentage of equity and bonds to suit your risk tolerance. Some possible options are Vanguard LifeStrategy, HSBC Global Strategy and L&G Multi Index funds.
    • DrEskimo
    • By DrEskimo 13th Jul 18, 11:11 PM
    • 292 Posts
    • 211 Thanks
    DrEskimo
    • #3
    • 13th Jul 18, 11:11 PM
    • #3
    • 13th Jul 18, 11:11 PM
    I think the first thing is to make use of high interest savings/current accounts. For example NationWide's Flex current account can offer 5% on 2500, and the Flex regular saver allows you to deposit 250 per month and offers 5% interest too.

    Second response I typically see is what your pension provisions are like. Since you are considering investing for 20years, and are 32, investing using your pension will offer the benefit of tax relief on your contributions.

    If S&S ISA is the way you want to go, then yes personally I went for a low cost multi-asset fund. Decide which you would like to invest in, and then decide what platform would be best suited in terms of fees, personal preference, etc.
    • dredgos
    • By dredgos 14th Jul 18, 9:56 AM
    • 2 Posts
    • 0 Thanks
    dredgos
    • #4
    • 14th Jul 18, 9:56 AM
    • #4
    • 14th Jul 18, 9:56 AM
    Thanks for the responses, I already have taken advantage of the nationwide 5% offers so this money that I am looking to invest would be additional to those offers.

    I will look into my pension scheme before making my final decision, although I don't think I can do much with it so it may well be S&S ISA in an asset fund as I thought, so I will do some further readings on the ones which have been suggested.
    • BLB53
    • By BLB53 14th Jul 18, 10:11 AM
    • 1,394 Posts
    • 1,164 Thanks
    BLB53
    • #5
    • 14th Jul 18, 10:11 AM
    • #5
    • 14th Jul 18, 10:11 AM
    Doing some reading, both on these forums and around the internet, it seems that with the money I am looking to use going for a multi asset fund may be the way to go given the capital I have to put into it. What advice would people have for someone in my position?
    I think you are on the right lines as over 10 or 20 yrs, equities will give you a much better return than cash deposits. The main thing is getting to grips with volatility so I would suggest make sure you think hard about asset allocation. I like the Vanguard Lifestrategy funds where you can select the most appropriate level for the risk you wish to take.

    If you have not already done so, recommend a read of some articles on the likes of Monevator
    http://monevator.com/category/investing/passive-investing-investing/

    and DIY Investor
    http://diyinvestoruk.blogspot.com/p/basics.html

    Basically keep it simple, low cost, divesified and have a plan of action before you start.
    If you choose index funds you can never outperform the market.
    If you choose managed funds there's a high probability you will underperform index funds.
    • orlaflutter
    • By orlaflutter 14th Jul 18, 10:31 AM
    • 8 Posts
    • 2 Thanks
    orlaflutter
    • #6
    • 14th Jul 18, 10:31 AM
    • #6
    • 14th Jul 18, 10:31 AM
    Kudos to you for getting started early. I'm 60 so not looking [I]too[I] long term but after seeking advice on here have just this week opened a s&s isa and put some spare cash into vls 80, to dark rumblings from husband who is a sock-under-the-mattress and nothing-riskier-than-premium-bonds type.
    Now lying back and fanning myself after the effort, and reading up on SIPPs and the best way to go about it, and with which provider.
    Good luck with your decisions -you should be able to build up a nice healthy financial cushion with all the time you have.
    • Audaxer
    • By Audaxer 14th Jul 18, 2:24 PM
    • 1,432 Posts
    • 871 Thanks
    Audaxer
    • #7
    • 14th Jul 18, 2:24 PM
    • #7
    • 14th Jul 18, 2:24 PM
    I'm 60 so not looking [I]too[I] long term but after seeking advice on here have just this week opened a s&s isa and put some spare cash into vls 80
    Originally posted by orlaflutter
    If you are not looking too long term, VLS80 does seem a bit risky. Even at 60 it would be safer to leave it invested long term and draw out a small percentage from gains each year that there are gains, to supplement retirement income.
    • badger09
    • By badger09 14th Jul 18, 2:59 PM
    • 6,378 Posts
    • 5,786 Thanks
    badger09
    • #8
    • 14th Jul 18, 2:59 PM
    • #8
    • 14th Jul 18, 2:59 PM
    If you are not looking too long term, VLS80 does seem a bit risky. Even at 60 it would be safer to leave it invested long term and draw out a small percentage from gains each year that there are gains, to supplement retirement income.
    Originally posted by Audaxer
    From OP's thread, looks like she is in a reasonable financial position and is trying to learn about investments with a small amount of 'spare' income. Husband is a cash ISA/PB man only, as is mine.

    https://forums.moneysavingexpert.com/showthread.php?t=5863128

    I'm a few years older than her but at similar age decided to start with VLS 100. I now have a 6 figure sum invested, mostly in S&S ISA and have diversified. I do have a FS pension & substantial cash savings though.

    So, as OP is basically trying to beat inflation on a small amount, I don't think VLS 80 is a bad choice. Its certainly better than making no choice at all, or dithering for ages as I did.
    • 50Twuncle
    • By 50Twuncle 14th Jul 18, 4:16 PM
    • 8,664 Posts
    • 2,059 Thanks
    50Twuncle
    • #9
    • 14th Jul 18, 4:16 PM
    • #9
    • 14th Jul 18, 4:16 PM
    I think the first thing is to make use of high interest savings/current accounts. For example NationWide's Flex current account can offer 5% on 2500, and the Flex regular saver allows you to deposit 250 per month and offers 5% interest too..
    Originally posted by DrEskimo

    Sorry - Nationwide flex current account offers 0% interest

    Flexplus offers a dizzy 3% and this allows you to open a flexdirect account (as does a standard flex account) - which allows you to transfer 250 per month in to the higher rate account - but if you transfer 250 per month - over 12 months - is an average of only 1500 - giving interest of just 75 !
    I am sure that the OP is looking for greater returns than 75 ?
    • DiggerUK
    • By DiggerUK 14th Jul 18, 4:29 PM
    • 3,152 Posts
    • 3,078 Thanks
    DiggerUK
    This is the epoch for the tortoise, not the hare
    ..........What advice would people have for someone in my position?
    Originally posted by dredgos
    With no need to get your money back for a long time you need to concentrate on clearing the mortgage. There will be reduced outgoings once that debt is gone which will give you cash to play with.
    Why not continue with regular savers and the 5% merry go round, and pay the resulting lump sums off the mortgage. That secured roof is an investment in the bag.

    With the income you have, and a low interest environment, I wouldn't worry too much about an emergency fund either. Best of fortune..._

    Edit. Sorry to disappoint you, but it's a bit too early in your economic life for you to consider buying too much gold.
    I am not now, nor have I ever been, a Financial Adviser.
    'Forward to the British Spring' 'Viva Wikileaks'
    • ValiantSon
    • By ValiantSon 14th Jul 18, 9:58 PM
    • 2,536 Posts
    • 2,518 Thanks
    ValiantSon
    Sorry - Nationwide flex current account offers 0% interest

    Flexplus offers a dizzy 3% and this allows you to open a flexdirect account (as does a standard flex account) - which allows you to transfer 250 per month in to the higher rate account - but if you transfer 250 per month - over 12 months - is an average of only 1500 - giving interest of just 75 !
    I am sure that the OP is looking for greater returns than 75 ?
    Originally posted by 50Twuncle
    Um, no, not quite.

    FlexDirect pays 5% on 2,500 for the first year, i.e. 125. Combine this with a Flex Regular Online Saver, paying 5% on 250 per month, and you can add another 80.64. The combined total, therefore would be 205.64.

    You were only out by around 63%.

    Oh and the cash value of returns is irrelevant, what matters is the rate of interest earned.
    • ValiantSon
    • By ValiantSon 14th Jul 18, 10:02 PM
    • 2,536 Posts
    • 2,518 Thanks
    ValiantSon
    With no need to get your money back for a long time you need to concentrate on clearing the mortgage. There will be reduced outgoings once that debt is gone which will give you cash to play with.
    Why not continue with regular savers and the 5% merry go round, and pay the resulting lump sums off the mortgage. That secured roof is an investment in the bag.

    With the income you have, and a low interest environment, I wouldn't worry too much about an emergency fund either. Best of fortune..._

    Edit. Sorry to disappoint you, but it's a bit too early in your economic life for you to consider buying too much gold.
    Originally posted by DiggerUK
    Assuming that the OP is making good use of low mortgage interest rates then there is plenty of good reason to divert some of their spare cash into investments. They don't need to wait until they are clear of the mortgage as the rate they are paying will almost certainly be lower than the likely rate of return on investments.

    Gold would be a terrible choice, however, so you are quite right about them not buying that. I'm sure that they can find a good multi-asset fund, as already discussed.
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