Do you invest?

[Greentoytractor]

And if not, why not?

Obviously a lot of people can't afford to, but my question is more for people who can, but keep all of their savings in cash rather than stocks and shares. This is the position I'm in, and have only just started investing in my mid 40s. I wish someone had educated me on investing back in my 20s. Feel like I've missed a trick!

Smarter Investing by Tim Hale is a great book.

Get rich slow is the sentiment. Not as exciting as get rich quick but the former is generally achievable for the average person.

I only started in late 40s, I didn’t really have any savings before that, or pension. My pension is DC and I put in as much as possible, it’s stocks and shares and I guess bonds. And I have a stocks and shares ISA split between safe and risky funds. I do have a few shares in individual companies but from that little experiment I’ve realised I’m generally lousy at picking companies, so stick with the pre-made funds now. I am going to start a cash ISA next year as I aim to retire in next 3 years or so and want to have cash available in cash the shares really dip, so I don’t have to cash them in.

F

Check out the MSE and Vanguard guides to investing, especially with regards to S&S ISAs. Very straightforward and they don’t have an axe to grind or an agenda to push.

Start easy by investing a small sum every month by DD, for example in a global tracker. Choose a low cost platform such as Vanguard, Hargreaves-Landsdowne (there are others - compare fees/charges).

Don’t obsess over it and try not to keep checking ‘performance’ every month, ideally don’t look at it during the first way. Instead invest time in learning more and read some books about investing. MSE probably has some good recommendations.

Yes but not in a stock picking way - I just use a low cost global fund for my SIPP and ISA. Keep our emergency fund in an instant access Cash isa but anything extra is invested

No, because I'm very averse to risk. I can't actually afford to lose anything, so that means I can't afford to invest. However, I'm in a position where outgoings are way more than I have capacity to earn, and I can't change either situation. So I've accepted I'll need to accept the risk and actually make my money work for me.

I can’t afford not to invest!

Inflation is a killer that constantly eats away at the value of cash. Investing is what keeps the value of our money actually growing.

No because I'm very risk averse but even I'm starting to think I need to make my money work harder. I'm going to treat it like a hobby and see how I go.

This is what I didn't really understand or appreciate until recently.

I think you need to realise that people have different attitudes to risk op. For some of us we have a need to have money in a more liquid form so we can get to it quickly in an emergency.

So whilst I have saved and thanks to 3 brilliant financial advisors in 40 years have a sizable pension pot and sizable stocks and shares ISAs. I also have about £30k in various bank accounts. £70k in premium bonds in my and my wife's names. Both are really easy to access should I need to.

I do agree with you re education. My parents never had much money and kept money in the house rather than the bank. But it would be hidden in different places, one to fill the freezer with meat, one to pay the phone bill, one for the rates etc. they saved and indirectly taught me to. But I think money management needs to be on the national curriculum. I know of someone with a successful business and quite a bit of personal money who leases vehicles for the business but never puts down a sizable deposit, hence paying much more in interest...you can't explain to them why that's a bad idea as they don't understand interest rates over time

Yes for decades

Property

Work share save scheme

Work pension

Private pension

ISAs cash & shares

Premium bonds

Gold coins

Various savings with high interest, move regularly for a better rate

Peer to peer lending

Invest in myself eg training courses, health

I saw the Brewdog investment, but I decided not to invest

I'm a real newbie to it, as I've never had the money to spare, and I still don't really. I've started putting £25 a month into Monzo investments, and I've put the risk rating to risky. I feel ok trialling £25 a month. The returns in my fund are up 14% this year, and it's been nice to see that kind of growth.

I'd recommend it to anyone who doesn't know what they're doing but is interested in the process.

Yes. I have an Investment Account and ISA with Scottish Widows, and I fund my annual ISA with money from the Investment Account. I also have a Bond with Nationwide that was locked away for a year. That is due to mature in May, so I will probably transfer that into the Scottish Widows Investment Account as that has been performing better - and it pays me £600 a month.

Yes but in a very easy way - a S&S isa in one of the standard offered portfolios. I’d like to do more but for years I worked in a big law firm where I had to report shareholdings so didn’t bother. I’ve now left that sort of role but my husband’s firm requires him to declare his spouse’s holdings (which I find pretty objectionable tbh) so it would be a lot of hassle to trade, so I’ve left it in the isa’s bog-standard fund. It has done ok though, so that’s fine.

All my savings are in cash accounts. I just don’t understand stocks or shares or have the energy to invest in tracking them etc, and I don’t have that much money to risk losing money!

Do any of you know a way to learn? I wish this stuff had been taught in school! I have a few quid to spare on this and only in my early 40s.

Started in my late 20s through my works SAYE and BAYE schemes. Pretty much covered a maternity leave when one of my SAYE schemes matured. Children have S&S JISAs in global equity funds, just opened a SIPP in the last year to up my pension contributions outside of my work scheme and put that in an ETF. I wouldn’t say I’m utilising my ISA allowance as best as I could but I pour what spare money I have into my pension as I do not want to be working past 57 (unless they change the minimum drawdown age again 🙄). Hoping long term I can open a S&S ISA once we’ve paid our wedding off.

There’s loads out there to help you educate yourself. Cost effective & useful app.

https://www.quilterinvest.com/

I do a small amount each month in a S&S ISA.
But it should always be money you can afford to lose or wait out any dips in the market.

Only started in my 40s, I WISH someone had educated me in my 20s. Parents were very risk averse and could have made an absolute killing but were always cash savers. Next best thing is educating my own DC.

Edited to add I read something the other day - if you can afford to invest £5k a year from age 25 - 35 and then leave it till 65, you will most likely be a millionaire or very close. Compound interest is mind blowing. Of course when I was this age I was saving for house deposit, having children etc so very hard to find that kind of money but my god.

Yes. Invested my inheritance. Was doing very nicely until this week, although I feel bad mentioning that.

I invest in property but apparently as a landlord I’m the devil incarnate. I used to invest in stocks using a financial advisor but just could not get my head around beta markets and all the jargon and frankly made much more buying and selling property. Bricks and mortar I get so I’m sticking with that.

Investment Trusts are good for cautious investors as they spread risks.

I have a managed S&S ISA. I don't know enough to do it myself and while I could learn I also know my brain and that I simply wouldn't keep track of things so managed is best for me although potentially lower return.

I only started it this year and I'm in my 40s, I didn't really know anything about them and I thought that investing was all complicated and large numbers and financial advisors. I wish I had known earlier because I could have so much more of a cushion. But I figure I still have a good length of time to build it up so if the best time to be start was in my 20s then the second best time is now!

My 19 year old is working and on a good wage and has already started a S&S ISA. They save a good chunk each month in a cash ISA for the shorter term (car, moving out fund) and another chunk in S&S which they basically synth internet to touch at all for at least 10 years. I'm so impressed!

If you read the calcs in The Psychology of Money, if anyone just consistently invested the same amount regardless of the conditions of the market, they will make more than someone who tries to boom and bust.

I highly recommend the book, I shied away from investing for years because of comments like this, but actually, investing little, often, and AS EARLY AS POSSIBLE is much better than an "only money you can lose" perspective.