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  • FIRST POST
    • BritOnABudget
    • By BritOnABudget 6th Aug 18, 10:38 AM
    • 64Posts
    • 495Thanks
    BritOnABudget
    Best place to invest when starting out?
    • #1
    • 6th Aug 18, 10:38 AM
    Best place to invest when starting out? 6th Aug 18 at 10:38 AM
    I am 20 years old and looking to invest for the first time, however not sure what would be the best option. Looking for a long term period and reasonably low risk. I have little knowledge on the area so any tips and advice would be much appreciated.
    Would a property ISA with Bricklane,com be suitable or would I be better going with a Stocks & Shares ISA etc.
    House Deposit: £5,015.37
    Make £2018 in 2018 - £1399.45/£2018
    Save 7k in 2018 #25
    Emergency Fund - £0/£1000 = 90%
Page 1
    • BritOnABudget
    • By BritOnABudget 6th Aug 18, 10:52 AM
    • 64 Posts
    • 495 Thanks
    BritOnABudget
    • #2
    • 6th Aug 18, 10:52 AM
    • #2
    • 6th Aug 18, 10:52 AM
    Looking at adding in about the minimum every month £100 as more return than a regular savings account over the longer term, or do you think it would be better in a savings account?
    House Deposit: £5,015.37
    Make £2018 in 2018 - £1399.45/£2018
    Save 7k in 2018 #25
    Emergency Fund - £0/£1000 = 90%
    • AnotherJoe
    • By AnotherJoe 6th Aug 18, 11:02 AM
    • 10,980 Posts
    • 12,668 Thanks
    AnotherJoe
    • #3
    • 6th Aug 18, 11:02 AM
    • #3
    • 6th Aug 18, 11:02 AM
    What are you saving for?
    Retirement? - Pension.
    House - LISA or HTB ISA
    Unknown / building up an emergency fund - High interest regular saver
    Long term savings wont ever be needed for house - S&S ISA
    • BritOnABudget
    • By BritOnABudget 6th Aug 18, 11:08 AM
    • 64 Posts
    • 495 Thanks
    BritOnABudget
    • #4
    • 6th Aug 18, 11:08 AM
    • #4
    • 6th Aug 18, 11:08 AM
    Looking at long term savings. Already have pension, LISA and regular saver and happy with the amounts going into these so looking to branch out for the future.
    House Deposit: £5,015.37
    Make £2018 in 2018 - £1399.45/£2018
    Save 7k in 2018 #25
    Emergency Fund - £0/£1000 = 90%
    • Wildsound
    • By Wildsound 6th Aug 18, 11:16 AM
    • 183 Posts
    • 115 Thanks
    Wildsound
    • #5
    • 6th Aug 18, 11:16 AM
    • #5
    • 6th Aug 18, 11:16 AM
    Work out your goals first and then let us know - AnotherJoe's post is pretty much what kind of products you should be looking at depending on the goal.

    As for Bricklane - your capital is at risk of 100% loss, no fscs protection and is high risk. I'm not saying you shouldn't invest in it, but it should not be given the same consideration as say a cash savings account should.
    • BritOnABudget
    • By BritOnABudget 6th Aug 18, 11:23 AM
    • 64 Posts
    • 495 Thanks
    BritOnABudget
    • #6
    • 6th Aug 18, 11:23 AM
    • #6
    • 6th Aug 18, 11:23 AM
    As mentioned above I am looking at long term savings not including house deposit or pension.
    That's great thank you, I would rather look at getting an ISA than cash savings as from what it seems there is a better return on the cash I put into it
    House Deposit: £5,015.37
    Make £2018 in 2018 - £1399.45/£2018
    Save 7k in 2018 #25
    Emergency Fund - £0/£1000 = 90%
    • Voyager2002
    • By Voyager2002 6th Aug 18, 11:32 AM
    • 12,424 Posts
    • 8,478 Thanks
    Voyager2002
    • #7
    • 6th Aug 18, 11:32 AM
    • #7
    • 6th Aug 18, 11:32 AM
    As mentioned above I am looking at long term savings not including house deposit or pension.
    That's great thank you, I would rather look at getting an ISA than cash savings as from what it seems there is a better return on the cash I put into it
    Originally posted by BritOnABudget
    The standard advice (on this board, anyway) would be Vanguard index funds, probably lifestyle 100 (that is, 100 per cent equities). And of course put that into an ISA wrapper.
    • coyrls
    • By coyrls 6th Aug 18, 11:52 AM
    • 1,063 Posts
    • 1,131 Thanks
    coyrls
    • #8
    • 6th Aug 18, 11:52 AM
    • #8
    • 6th Aug 18, 11:52 AM
    There is no such thing as a "Property ISA". There are three types of ISA: Cash, Stocks and Shares and Innovative Finance. Bricklane are offering a Stocks and Shares ISA. Personally I wouldn’t open an ISA with Bricklane, I would say that you would better off with a diversified portfolio, initially using a single multi-asset fund held on a mainstream platform as suggested above.
    • BritOnABudget
    • By BritOnABudget 6th Aug 18, 12:34 PM
    • 64 Posts
    • 495 Thanks
    BritOnABudget
    • #9
    • 6th Aug 18, 12:34 PM
    • #9
    • 6th Aug 18, 12:34 PM
    There is no such thing as a "Property ISA". There are three types of ISA: Cash, Stocks and Shares and Innovative Finance. Bricklane are offering a Stocks and Shares ISA. Personally I wouldn’t open an ISA with Bricklane, I would say that you would better off with a diversified portfolio, initially using a single multi-asset fund held on a mainstream platform as suggested above.
    Originally posted by coyrls
    Thanks for your response. This is the link that I went through which states 'Property Isa' https://www.zoopla.co.uk/invest/property-isa/
    House Deposit: £5,015.37
    Make £2018 in 2018 - £1399.45/£2018
    Save 7k in 2018 #25
    Emergency Fund - £0/£1000 = 90%
    • ColdIron
    • By ColdIron 6th Aug 18, 12:36 PM
    • 4,721 Posts
    • 6,164 Thanks
    ColdIron
    There are 4 types of ISA:
    • cash ISAs
    • stocks and shares ISAs
    • innovative finance ISAs
    • Lifetime ISAs
    You can put money into one of each kind of ISA each tax year.
    https://www.gov.uk/individual-savings-accounts
    • mije1983
    • By mije1983 6th Aug 18, 12:46 PM
    • 3,542 Posts
    • 20,277 Thanks
    mije1983
    Thanks for your response. This is the link that I went through which states 'Property Isa' https://www.zoopla.co.uk/invest/property-isa/
    Originally posted by BritOnABudget
    It's a S&S ISA dressed up to appear as something else. If you scroll to the bottom of that page in the disclaimers etc it says

    A Stocks and Shares ISA may not be right for everyone and tax rules may change in the future. If you are unsure if an ISA is the right choice for you, please seek independent financial advice.

    The fees seem on the high side as well. 2% every time you invest (so every month you will only be investing £98) and a 0.85% management fee. Much cheaper S&S ISA providers out there.
    Last edited by mije1983; 06-08-2018 at 12:50 PM.

    • xylophone
    • By xylophone 6th Aug 18, 12:54 PM
    • 26,872 Posts
    • 16,026 Thanks
    xylophone
    Consider an ISA with Vanguard?

    https://www.vanguardinvestor.co.uk/investing-explained/stocks-shares-isa

    http://monevator.com/using-vanguard-lifestrategy-funds-life/
    • DrEskimo
    • By DrEskimo 6th Aug 18, 1:00 PM
    • 264 Posts
    • 183 Thanks
    DrEskimo
    I would just add more to the house deposit on the principal that you can't have 'too much deposit', but it's very possible to have too little...

    Not to mention the costs involved in buying a house, such as Stamp Duty, solicitors fees, estate agent fees, mortgage fees, etc. It's conceivable that you would want to access this money to help towards these costs, and if the markets aren't in your favour you could be down on your original capital, as well as paying fees to keep it there (albeit they would be pretty low at the start given the amounts).
    • point5clue
    • By point5clue 6th Aug 18, 5:48 PM
    • 55 Posts
    • 16 Thanks
    point5clue
    If you are considering investing in Vanguard Lifestrategy 100 I would suggest the Global All Cap as an alternative. Two hundredths of a percent higher charge, but no home bias, and includes a much wider selection of shares.

    https://www.vanguardinvestor.co.uk/investments/vanguard-ftse-global-all-cap-index-fund-gbp-accumulation-shares?intcmpgn=equityglobal_ftseglobalallcapindex fund_fund_link

    However you say 'low risk'. If long term to you means several decades then 100pc equity is the lowest risk in my opinion. But most people would say that 100pc equity is 'high risk' because the value can fluctuate a lot (including reduce over a few days or weeks by half its value)

    Unless you are sure don't need the money any time soon and that you can watch the value collapse from time to time without panic selling then maybe Lifestrategy 60 or 40 might be a better way to start your investing career ?

    Apologies if I'm teaching you to suck eggs on any of this...

    Personally I really like the Vanguard ISA platform - there are slightly cheaper ones out there, but its a great place to start, and transferring at a later date is easy (or just starting on a different platform in a future year).
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