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To want to invest in index funds??

3 replies

coffeestains · 19/05/2024 20:29

I have some savings which are just lying in my bank account. I have scrimped and saved about 50k
Can someone please tell me how / if i should invest it in index funds? I don't know much at all just that they are low risk?
Is there anything else that I may be able to invest it in? I really would be grateful
If someone can explain how / where I can get sound info about investing and also give me any advice that may help me to invest this money. I am 50 and single / no kids so I won't be accessing the money until I retire maybe.
Thank you thank you!!

OP posts:
ExpressCheckout · 19/05/2024 20:40

Recommend you find a financial advisor, it's straightforward:

https://www.moneysavingexpert.com/savings/best-financial-advisers/

https://www.which.co.uk/money/investing/financial-advice/how-to-find-a-financial-adviser-afZ375F6BIiC

https://www.unbiased.co.uk/

With 50K they're likely to suggest an investments ISA or a Pension. Both are tax efficient but in different ways, and according to your circumstances and/or projected retirement age.

So, it's best to start with an IFA now, to get the basic decisions right, and the above links will help you to find one.

How to find a financial adviser - Which?

Everything you need to know about finding a good financial adviser - find out what an independent financial adviser (IFA) does, and the different types of financial advice available. 

https://www.which.co.uk/money/investing/financial-advice/how-to-find-a-financial-adviser-afZ375F6BIiC

NotPennysBoat · 19/05/2024 20:44

If you're on Facebook join the Meaningful Money page and ask your question there. I've learnt so much from there!
If you're not on Facebook try the Meaningful Money podcast which is really excellent for beginners.

SoWhat21 · 19/05/2024 21:01

I invest in index linked funds. They’re not necessarily low risk just that they’re passive. IE they are linked to an index (ie S&P) and the investments in it track the top names on that index. So there’s no traders making decisions and taking punts. But will still be strongly linked to the movements of the stock market. So you’re exposed to market volatility risk.
I set up a broker account with a reputable stockbroker. It was all on line took a couple of weeks. Sent some money over and then bought the funds I wanted. I basically went for ETFs (exchange traded funds) run by really well known houses. iShares (Blackrock), Vanguard, Invesco. Because ETFs are available for general sale they are subject to stringent rules to protect retail investors. Also the big houses have a lot of regulator oversight as the impact of any failure in their side to the economy would be high.
Theyve done pretty well for me. About a 20% growth in 2 years. Invested in an actively managed fund around the same time and only had 10% growth on that. It’s not hard to do on a broker account.

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