How do I go about investing?

[Pensionpot123]

Hi all,
I have £20k to invest and have a fair idea of what fund I want to invest in. HL looks like a good shout for making the investment through. Is this right? Or is there a better way to make the investment?

I'm new to all this so just not 100% sure. I also wasn't sure...on the HL website it says there are 4 ways to make this investment S&S ISA, LISA, SIPP or Fund and Share account. I'm a bit confused about that too 🙈.

Thanks!

Hi op what funds in hargreve.
I use them but out of laziness and I like their app.

I mainly invest in tracker funds and index funds.

A sipp is a self invest personal pension, so if you need one maybe open up one. I'm too old for a Lisa so don't know about those.

Don't put 20 grand in at once even if you buy in over a few months unless the market takes a big dip now then buy.

I would choose the main fund to use first. Use fund search tools on provider websites and PickAFund.

When you know what you will invest in, such as Vanguard FTSE World ex-UK, or Vanguard Lifestrategy 80%, or something else... then look at which providers offer that fund at the lowest cost based on how often you expect to be buying.

If you were to be buying in a lump sum, once a year, then a broker like iWeb is likely lowest cost, as they charge a fee per buy/sell.

If you are buying every month, then using a provider like Vanguard Investor or Dodl is likely cheapest initially, as they charge a percentage of the total amount held.

Once you have £100k invested then providers like Interactive Investor can be lower cost than the percentage based providers.

So it changes over time. You are not stuck with your choice... you can change fund(s) and you can change platform (the provider of the wrapper - ISA, SIPP).

m.youtube.com/watch?v=UsV0QyAirWU

ISA - this is a tax free wrapper which is accessible at anytime. Limit is £20k paid in each tax year. It shares the £20k allowance with other ISA types, such as LISA.

LISA - this is a special account for those aged under 40, who are saving for a first home deposit, or for retirement. £4k can be paid in each tax year. It is Restricted access... can access it only for a first time home purchase (subject to rules) or at age 60.

SIPP - this is a pension which you manage yourself. It has restricted access, so cannot take money out until 10 years before State Pension Age. That may mean you cannot access until age 57/58. This is a taxable wrapper... but it gets tax relief added on the way in. Pensions can be complicated to understand, so read/watch/listen lots about pensions.

When choosing where to put money consider when you would be using it. Given money a purpose.

Emergency fund - you want this money to be accessible very easily.

Long term savings - money you will not touch for 5, 10, 15 years you can invest within an ISA.

Retirement - money for retirement can be locked away in a pension.

Most people just need an ISA and a Pension. Many will already have a pension via their employment.

Thanks all, the one I looked at was Legal and General international index trust. 👌