New Year - Help me get started - I keep putting it off!

[yoshiblue]

I know I need to start investing in S&S rather than a Cash Isa, but have been so busy/tired/had covid/any other excuse, I've just not got around to sorting it out.

I want to start investing £200 per month in S&S, I presume in an ISA? Also, I am paying £100 per month into a Junior ISA for my son, which I presume is better to switch to a S&S version long term.

Otherwise, I will continue to save a bit of cash each month, but we are having a loft conversion this year, so want this close to hand.

I'm also increasing the contribution on my work pension in April, when our benefit window opens.

Please can you give some quick advice on the best place to start. I need something easy where I can put in my level of risk and get going with it, rather than any complicated selections. I think I've read about Vanguard in the past (is that the guy that is quite frugal in using hire cars when he needs them? Fees are low etc)

We will be fortunate enough to pay off our mortgage in a year too. So it would be handy to have a fund that can adapt/change as more money becomes available to invest.

Thanks

Id recommend listening to some of the Meaningful Money podcasts on the subject - this one might be a good place to start.

https://meaningfulmoney.tv/2019/01/11/isas-explained-5mf029/

Re Vanguard, they offer ISAs (a tax free wrapper for your investments) AND specific Vanguard funds you buy within the ISAs. The key thing to know is that Vanguard ISAs only allow you to buy Vanguard investment products, but you can buy Vanguard investments through ISA S&S providers eg interactive investor, AJ Bell.

Thanks so much....I've watched a few of his videos on You Tube this evening and it's really helped build my knowledge!

I use Santander investment portal it's very easy to navigate and you can do some easy research on all the different funds.

DH did a spreadsheet of a long list making sure to spread across geographic areas, industries etc then we chose a spread of 10 funds so relatively small amounts in each one.

He regularly updates this so we can track performance and ditch any that aren't performing very well although obvs it's long haul strategy so we don't do that very often

Vanguard Lifestrategy ISA fund is very easy to set up. Choose your level of risk from 20%- 100% investment in worldwide stocks and shares (with the remaining percentage in bonds), and they do the rest. Fees are very low compared to most providers.

They also offer a Junior ISA.

Do you have an overall financial strategy in place for savings, pensions and other financial protections? Before moving forward with any new investments I would think of it in terms of your financial goals and how it fits in.

I use the Freetrade app - the General Investment one is free, the ISA one is £3 month. It's so easy to use and you can buy and sell commission free. I have a referral which would give you a free share to start with if you sign up. (message for details if you're interested). Obviously stocks and can go up as well as down. I have a mix of stocks across various sectors including some ETFs to spread the risk but I'm up 14% on my investment.

@seekingasimplelife Thanks - I've been researching yesterday and am going to start a Life Strategy ISA for myself and a Junior one for my son.

Thanks also for making the point about a wider financial strategy. I do have a pension (had since age 25 and ramped up contributions), savings, plus life insurance was reviewed and upped last year. I'm still going to write it all out and look for any gaps.

@yoshiblue - sounds like you are already in a good set up with financial planning.
Just one thought - I'm not such a fan of Junior ISA's if you still have spare capacity to maximise in your own Stocks & Shares ISA. Once you've put it in the Junior ISA you lose access to it - so for instance you couldn't use it for driving lessons on their 17th birthday.

Your children have complete control and access once they reach 18. This might not necessarily be what you intended (or in their best interest), especially if they are not financially prudent.

I'm not a qualified financial advisor, so it's just my own thoughts- do your own research on this.

Getting started is key. Well done for choosing a fund, then a provider.

Set things up so they are automated as much as possible and then review things perhaps every 3-4 months, increasing the auto invest amount of you can at each review.

@seekingasimplelife great point though to date my DS is very prudent with his pocket money and loves savings - not like his spender DH at all!

I like the fact he has his own pot of money. I also want to start asking relatives to add to it for birthdays/Christmas.

@nannynick I've recently had a promotion at work. So will start with £200 per month but will aim to up it once I understand how much 'additional' I have left after increasing my pension too.

@yoshiblue - I understand, and it's great your ds has such a good financial start and understanding. Never too young to start.

My caution arises because I had a troubled young teen live with me for a while (not my dc). They had a legacy at 18 with full access - enough cash to buy a small flat at the time. Blew it all in 5 months - mostly on taking taxis on severel hours journey to London to impress and splash out on new friends. Penniless and homeless after that. It was sad to see.

Oh my! That’s terrible!

@yoshiblue

The isa is the wrapper for tax free saving
You want a stock and share isa, and within that isa you seem to have chosen a vanguard fund

Ie its not a vanguard lifestyle isa.

I have vanguard life style products (100% equity). And some of of their index trackers.

Mainly in the US stock market.

• life stragety not life style!!