How best to invest lump sum and monthly payments over 5 years

[Salou83]

Hi,

Some financial help for a clueless numpty please!

I have £4000 as a lump sum and I would like to add £250 (maybe more) to this every month over 5 years, possibly longer. I don't need to make withdrawals.

What's the best route to make the most of the money please?

Thanks!

Probably a stocks and shares ISA. Maybe a pension - depending on your age and other financial details.

Thank you. I've heard of investigating in the S&P500 but I'm clueless. Stocks and shares might be the way to go though!

S&S ISA on a low fee platform (vanguard probably a good tracker).

Thank you for this!

A fund that invests in the S&P500 invests purely into American companies. Nothing else. As a novice you need more diversification. You need a multi asset fund that invest into global equities as well as Bonds. If you must go down the Vanguard route at least try their Lifestrategy funds. Maybe the 60/40 one.

FTSE Developed World UCITS ETF(VHVG)
Low fees on this one on Vanguard.
Global exposure so diversified.
Life strategy 60:40 not going doing so well and fees higher.

The Vanguard 60/40 wont be doing as well as the FTSE developed World fund because, as the names apply, one invest only 60% on equities where the other is 100% in equities.

The Vanguard fund might also not lose as much when stockmarkets go tits up & fall 20%.

What do you plan to do with the money or are you putting something by for the future?

Thank you so much guys.

We're trying to build savings for the children so we're in it for the long term.

Some have advised regular savers and ISAs but I was wondering if the alternatives are better.

Special children's accounts?

Also, I would avoid fees if possible!

I would also happily recommend vanguard stocks&shares isa with life strategy 100% option.

I'm not pretending for a minute that I'm super savvy but I think of this as an invest and forget option. There may be better options but they may well take a lot more of your time, effort, anxiety, stress and brain power.

We can't all be isa gazillionaires but it's a step in the right direction.

I also strongly recommend prioritising your own pension provision as well. (I use vanguard, nest and another provider)

If I had my time again then I'd have put my future old age BEFORE (or at least level with) paying off the (low cost) mortgage (I appreciate those days have now gone for most anyway) and paying my kids' university costs (but again rising interest% leaves me feeling relieved that I made a good mathematical tactical decision in the face of naysayers).

Invest well and prosper