Stocks and shares ISA

[DustyLee123]

Keep seeing on SM that we should have one of these, but I’ve no idea where to start. I’ve no interest in playing the stock market, and not a lot to invest every month. Can you choose one where you just put it in and leave it?

What would you want it for? What would you do with the money otherwise and if it’s in the isa? They can be great but do it because you have a considered plan not because sm makes you feel you should.

They can be useful for long term goals, and bridging a gap between when you want to reduce work and pension starting.

There are providers who will accept monthly payments of £25. You may find a provider who accepts less.

If you are consumer debt free, have a good sized emergency fund, are paying 15%+ into pension, are paying down mortgage, then investing any surplus can be a good idea.

Podcast episode about long term goals which talks about using Stocks & Shares ISA.

meaningfulmoney.tv/2023/07/05/finance-os-longer-term-goals/

@nannynick, when you say 15%+ here, do you mean the total of your contribution + your employer's contribution? Thanks!

I would say individuals contribution. However I would count what goes to S&S ISA in that when that is being used as part of retirement planning.

amp.theguardian.com/money/2016/mar/02/pensions-retirement-savings-15-per-cent-workers-income-needed-review-finds

I think the point is to be doing a decent amount into retirement savings. If you only do 4% (auto enrolment minimum) then that's not enough.

I’ve been a bit spooked by the pension age going up to 70. My pension is a pittance due to not starting one early enough, and being a SAHM for many years (DH has a good pension but it’s his, I have no control)
I’m not a fan of giving people my money to have control over ie pensions, I’d rather put it where I can get at it when I want, so rather than upping my pension payment I want to put it somewhere where I can get more for it than interest in a bank account.

Thanks @nannynick.

I think I'll consider my S&S ISA separately as I might like to fund a slightly early retirement with that, so it's probably best not to count it at this point.

@DustyLee123 I use Vanguards Stock and Shares ISA. It is low fee. You can open with £500, and the size of contribution after that is entirely up to you. If you are investing for a long haul (10 years-ish), then go for medium/high risk (ETF). Please note that if you go for ETF, then you need to buy at least 1 unit. Many people tend to go with Lifestrategy (either 80% or 100% equity). If you go for Lifestrategy, then you don't need to buy at least 1 unit which is a bit if a faff.

I’ve set up a nutmeg one. It’s performed pretty well. Don’t get fully managed, just a fixed allocation that they review regularly.