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    #16
    Originally posted by jpucng62 View Post

    There is no point having a cash ISA - the rates are so low you might as well put your money under your bed. Stocks & shares is the way forward. DO NOT go into a bank for this!!!

    Open an ISA with HL or some other platform, do some research (lots of info on HL) & learn the business. Start small - a regular saver each month into a few funds and watch and learn.

    My current favourites:

    Fundsmith / HSBC FTSE 250 / L&G US tracker / Baillie Gifford Positive Change / Marlborough Special Situations

    £50 or £100 each per month would be a good way to start.

    Good luck
    Thanks for the advice, the way I understand what you have said is that if I open an ISA stocks and shares account with HL I can then use that account to invest within different funds such as Fundsmith, HSBC FTSE 250 etc. I don’t need to open separate accounts with each of those five that you listed?
    Do I need to choose a fund and add money when setting up the account or can I do that at a later date?

    Comment


      #17
      You are correct in your assumptions. HL is a Fund Supermarket so you can buy lots of different funds (like brands at a supermarket). You could go to Fundsmith direct to buy Fundsmith & HSBC to buy the ftse 250 tracker, a bit like buying Apple products from the Apple store rather than Currys, but as you can only open one S&S ISA in each year it makes sense to go somewhere that you can buy a range of funds in case the one you choose doesn't do so well. (This is also why you don't go to a bank as they can only sell their own products).

      You may pay a slightly higher charge at a supermarket to cover their costs, although often they negotiate discounted rates from the fund manager, so that's not always the case.

      You can chose the funds when you invest if you want or you can chose to put money into cash and choose the funds later. You will need to put at least some money in when you open the account but probably as little as £100. You can then choose as many funds, investment trusts or shares as you like - funds are the easiest to get a grip of so start there.

      A word of warning: we are at pretty much historic highs in the stock market at present so don't expect your investments to gain too quickly to start with - this is a medium to long term investment and it may be a while before you see any real gains. Stick with it and you should be rewarded.

      Also do some homework. You didn't start knowing anything about BTL but you probably learned somethings before you bought. Don't expect to make a mint without some work. There is a huge amount of information on HL for novice investors - do read it.

      And when you are an ISA millionaire, remember me and pass on the advice to another novice!!

      Comment


        #18
        jpucng62 I have previously looked at the HL website but got quite confused looking at it as I was confused about the different types of ISA’s and how they work. I have just looked on the website again and a minimum amount of £100 is required to open the ISA so I will get this done.
        I currently have a lot of savings as I was intending to invest in further BTL but I don’t see anything worth buying at the moment due to the ridiculously high prices.
        By putting money in an ISA I may be able to at least make a bit towards covering the interest I pay on mortgages rather than having the money just sat in the bank doing nothing.

        Comment


          #19
          There are several types of ISA but you want just a standard Stocks & Shares ISA - others are aimed at house purchase or retirement. If you are putting in a lump sum there is a £20k limit per year. I would advise putting in in teaches in case the stock market dives soon after investing. If you want to put in more than £20k then you can open a Fund Account - exactly the same as an ISA but without the tax-free wrapper. You would need to be careful not to go over the CGT threshold when selling but this can be managed and money moved from Fund Account to ISA in the new tax year.

          Good luck

          Comment


            #20
            Originally posted by BTL investor View Post
            jpucng62 I have previously looked at the HL website but got quite confused looking at it as I was confused about the different types of ISA’s and how they work. I have just looked on the website again and a minimum amount of £100 is required to open the ISA so I will get this done.
            I currently have a lot of savings as I was intending to invest in further BTL but I don’t see anything worth buying at the moment due to the ridiculously high prices.
            By putting money in an ISA I may be able to at least make a bit towards covering the interest I pay on mortgages rather than having the money just sat in the bank doing nothing.
            Why not look at a 'with profits' stocks & shares ISA. It's a more cautious, more balanced form of investment than pure stocks & shares. Typically will grow more slowly, but also more steadily. The fund invests in a mix of shares, cash, property, and UK gilts (UK government debt)

            I have one with a Friendly Society and you can do it all online without too much hassle. I didn't find it confusing at all.

            Comment


              #21
              Originally posted by jpucng62 View Post
              There are several types of ISA but you want just a standard Stocks & Shares ISA - others are aimed at house purchase or retirement. If you are putting in a lump sum there is a £20k limit per year. I would advise putting in in teaches in case the stock market dives soon after investing. If you want to put in more than £20k then you can open a Fund Account - exactly the same as an ISA but without the tax-free wrapper. You would need to be careful not to go over the CGT threshold when selling but this can be managed and money moved from Fund Account to ISA in the new tax year.

              Good luck
              “I would advise putting in in teaches in case the stock market dives soon”

              What does ‘teaches’ mean? Is it a typing error or a term to do with the investments?
              I have now opened an account with HL with the minimum £100 cash deposit, will start looking in to it in a bit more depth when I have a bit more time.

              Comment


                #22
                Originally posted by Beswick View Post

                Why not look at a 'with profits' stocks & shares ISA. It's a more cautious, more balanced form of investment than pure stocks & shares. Typically will grow more slowly, but also more steadily. The fund invests in a mix of shares, cash, property, and UK gilts (UK government debt)

                I have one with a Friendly Society and you can do it all online without too much hassle. I didn't find it confusing at all.

                Just been reading about with profits ISA on Wesleyan website, I have already now opened an account with Hargreaves Lansdown but will bear your advice in mind.

                Comment


                  #23
                  Originally posted by BTL investor View Post
                  What does ‘teaches’ mean?
                  I think he means ' tranches' or to put it another way lump sums.

                  Comment


                    #24
                    I have the bulk of my investments in equities. Have been investing for a whilst. Given the huge rise we have seen in equities I am actually thinking of moving some of this into another BTL property (I only own one currently).

                    If you are only just getting started, I would accept the fact that returns going forward are expected to be low (certainly compared to recent history). You need to know what your objectives are in investing (why risk so much if you don't need to grow capital), know what your risk tolerance is (can you be comfortable with x amount down 50% and not recovering for many years?) and from this you can form some sort of asset allocation.

                    Understand that there is so much more to investing then just property and stocks. You have private equity, infrastructure, hedge funds, gold, commodities, crypto, corporate and government bonds.

                    The hard part is deciding how much you need in each asset class. The easy bit is choosing the right funds to fit into your chosen asset allocation. For your equities allocation, I would stick to tracker funds like vanguards offering. Anything else you are taking risks you do not need to.

                    Personally, I am in my 30s and have about 50% invested in equities, 15% in BTL and the rest in safe funds and cash. My net worth is into the 7 figures and I don't need to risk so much any more so have a fairly balanced portfolio. I don't need to be 100% equities and BTL.

                    Whatever you decide to do, don't look at your portfolio except maybe once a year and whenever you need to rebalance or invest/withdraw money. Accept the fact that, depending on how much risk you have taken, you could be down into the double digit % for extended periods of time. You are playing the long game (assuming you are still quite young) so only care about returns over a 10 year or more period.

                    Comment


                      #25
                      Oh and by the way, there is literally an endless number of ways you can allocate your money but don't get overwhelmed. There really is no such thing as an optimal portfolio. Just think the long game, keep things simple (and as passive as possible) and really try to understand your objectives and risk tolerance. The later may be hard to do if you have never been invested during a crash, but you can try to think how you would feel if say the markets crashed 50% or more and did not recover for many years. Does not happen often, but certainly will happen a number of times during your investing lifetime.

                      Comment


                        #26
                        Originally posted by AlexR View Post

                        I think he means ' tranches' or to put it another way lump sums.
                        I did meant tranches - thank you (blooming autocorrect!) and I am in fact a she

                        Comment


                          #27
                          Leasee123 makes some good points - there are other investments around - although I disagree with sticking with trackers (they certainly have their place) and I look at my S & S portfolio considerably more often than once a year!

                          I think the important thing is to get started. I think you should only invest in things you understand (hence I don't do crypto currency) and starting with a S & S ISA investing in Funds is pretty simple. You need to build up your knowledge and then diversify if you wish. You also need to understand your risk profile. Not everyone can watch the market drop 30% as it did at the start of the pandemic & even consider putting more money in as it falls, confident that it will recover strongly (which it did).

                          You have to find your own level and we all have different approaches. What I do know, is that if you don't invest your cash will just devalue.

                          Good luck to all



                          Comment


                            #28
                            After setting up my HL account 3 weeks ago I have finally got around to trying to start investing in to it.
                            Following advice given in this thread I decided to search for Fundsmith Equity Fund on the HL website and it brings up the options of ‘Fundsmith Equity Class 1 - Accumulation’ and Fundsmith Equity Class 1- Income’.
                            Anybody able to explain the difference between these please?

                            Comment


                              #29
                              Income shares pay out dividend. Accumulation shares reinvest your dividend.

                              https://www.fundsmith.co.uk/factsheet/

                              Comment


                                #30
                                Thanks Gordon, I assume that in the event of needing to withdraw all of the funds at some time in the future then removing money from either of them would be the same process and the same or similar timescale due to the fact that neither of them need to be locked in to for a fixed term?

                                Comment

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