Donate to Remove ads

Got a credit card? use our Credit Card & Finance Calculators

Thanks to johnstevens77,Bhoddhisatva,scotia,Anonymous,Cornytiv34, for Donating to support the site

Choosing a safe strategy for a beginner while also learning more

Investment discussion for beginners. Why you should invest your money, get help getting started
MonikaEWM
Posts: 1
Joined: October 6th, 2021, 10:47 am

Re: Choosing a safe strategy for a beginner while also learning more

#448257

Postby MonikaEWM » October 6th, 2021, 11:26 am

Hi,

Setting up an ISA is a great idea. Any growth or income within an ISA won’t be taxable so for people who are just starting to save it’s a good tax wrapper.

Wrapper is just like a shopping bag, its important what bag you use but what’s more important is what goes inside the bag, because that’s what you’re going to use to make your dinner(it’s just a metaphor, so bear with me)

Passive / tracker funds follow a specific market index for example FTSE100. They are cheaper compared to other funds, but they will never outperform the benchmark.

What I would recommend is getting an IFA that can manage the investment for you. They will carefully choose a range of diversified funds that match your attitude to risk.

Finding the right funds requires a lot of time and expertise and if you choose wrong you could loose all of your money.

I would suggest that If you want to give it a go then maybe use £1000 and put the rest with an IFA. After a year you should see the value of using an IFA.

Hope my message helps you !

Dod101
The full Lemon
Posts: 16629
Joined: October 10th, 2017, 11:33 am
Has thanked: 4343 times
Been thanked: 7534 times

Re: Choosing a safe strategy for a beginner while also learning more

#448266

Postby Dod101 » October 6th, 2021, 12:27 pm

MonikaEWM wrote:Hi,

Setting up an ISA is a great idea. Any growth or income within an ISA won’t be taxable so for people who are just starting to save it’s a good tax wrapper.

Wrapper is just like a shopping bag, its important what bag you use but what’s more important is what goes inside the bag, because that’s what you’re going to use to make your dinner(it’s just a metaphor, so bear with me)

Passive / tracker funds follow a specific market index for example FTSE100. They are cheaper compared to other funds, but they will never outperform the benchmark.

What I would recommend is getting an IFA that can manage the investment for you. They will carefully choose a range of diversified funds that match your attitude to risk.

Finding the right funds requires a lot of time and expertise and if you choose wrong you could loose all of your money.

I would suggest that If you want to give it a go then maybe use £1000 and put the rest with an IFA. After a year you should see the value of using an IFA.

Hope my message helps you !


You are serious I assume. Passive/trackers are fine but a young investor just starting out ought to be getting some 'hands on' experience when he can afford mistakes. I would therefore go for at least a few individual shares to get a flavour for what investing is about.

An IFA? Now I know you are joking. After a year with an IFA, he will discover how an IFA works. If the market provides a nice uplift the IFA will be able to show how clever he is, and so his fee is a mere bagatelle. If the market is down the IFA will of course be able quite rightly to claim that it is much too early to judge his efforts. It needs five years or so for that and in the meantime he might like to consider increasing his monthly saving with him. What any young investor needs is hands on experience. If it goes wrong well he can count the loss as his tuition fees. At least he will not be in the situation of not only losing on the investment but also paying someone else to do it for him.

Dod

scotia
Lemon Quarter
Posts: 3561
Joined: November 4th, 2016, 8:43 pm
Has thanked: 2371 times
Been thanked: 1943 times

Re: Choosing a safe strategy for a beginner while also learning more

#448269

Postby scotia » October 6th, 2021, 12:37 pm

MonikaEWM wrote:Hi,

Setting up an ISA is a great idea. Any growth or income within an ISA won’t be taxable so for people who are just starting to save it’s a good tax wrapper.

Wrapper is just like a shopping bag, its important what bag you use but what’s more important is what goes inside the bag, because that’s what you’re going to use to make your dinner(it’s just a metaphor, so bear with me)

Passive / tracker funds follow a specific market index for example FTSE100. They are cheaper compared to other funds, but they will never outperform the benchmark.

What I would recommend is getting an IFA that can manage the investment for you. They will carefully choose a range of diversified funds that match your attitude to risk.

Finding the right funds requires a lot of time and expertise and if you choose wrong you could loose all of your money.

I would suggest that If you want to give it a go then maybe use £1000 and put the rest with an IFA. After a year you should see the value of using an IFA.

Hope my message helps you !


MonikaEWM - welcome to the Lemon Fool. From your first post, do I detect that you may be an IFA?
I think that most investors on TLF don't use IFAs - and I suspect that most of us would not advise pursuing that path. As to loosing all your money, a simple world tracker would be a reasonably safe choice - unless you believe that the entire world equity market is going to crash to zero.

Dod101
The full Lemon
Posts: 16629
Joined: October 10th, 2017, 11:33 am
Has thanked: 4343 times
Been thanked: 7534 times

Re: Choosing a safe strategy for a beginner while also learning more

#448271

Postby Dod101 » October 6th, 2021, 12:40 pm

I very much hope that Monika is not an IFA otherwise he/she should be declaring an interest but it might explain the advice given.

Dod

monabri
Lemon Half
Posts: 8396
Joined: January 7th, 2017, 9:56 am
Has thanked: 1539 times
Been thanked: 3428 times

Re: Choosing a safe strategy for a beginner while also learning more

#448275

Postby monabri » October 6th, 2021, 12:48 pm

The original post was May 2021 so it might be good to hear the thoughts of the OP?

Quote : "What I would recommend is getting an IFA that can manage the investment for you. They will carefully choose a range of diversified funds that match your attitude to risk."

Sorry but " attitude to risk" is nebulous and what better diversification could they offer than a global tracker, an IFA will probably be recommending investing in last years winners.

LooseCannon101
Lemon Slice
Posts: 252
Joined: November 5th, 2016, 2:12 pm
Has thanked: 302 times
Been thanked: 147 times

Re: Choosing a safe strategy for a beginner while also learning more

#448300

Postby LooseCannon101 » October 6th, 2021, 2:24 pm

I would like to hear from an IFA on how they invest their own money. Obviously, Monika is an IFA.

Beginners can learn a lot from the many experienced and wise investors on this site.

One or more highly-diversified world equity investment trusts or a world equity index tracker would be my choice for a long-term investment e.g. 10+ years. Volatility is inevitable. Discipline and patience through a monthly saving and dividend re-investment scheme makes money for you, not your advisor.

LooseCannon101
Lemon Slice
Posts: 252
Joined: November 5th, 2016, 2:12 pm
Has thanked: 302 times
Been thanked: 147 times

Re: Choosing a safe strategy for a beginner while also learning more

#448302

Postby LooseCannon101 » October 6th, 2021, 2:31 pm

I would like to hear from an IFA on how they invest their own money. Obviously, Monika is an IFA.

Beginners can learn a lot from the many experienced and wise investors on this site.

One or more highly-diversified world equity investment trusts or a world equity index tracker would be my choice for a long-term investment e.g. 10+ years. Volatility is inevitable. Discipline and patience through a monthly saving and dividend re-investment scheme makes money for you, not your advisor.

gryffron
Lemon Quarter
Posts: 3605
Joined: November 4th, 2016, 10:00 am
Has thanked: 550 times
Been thanked: 1585 times

Re: Choosing a safe strategy for a beginner while also learning more

#448422

Postby gryffron » October 6th, 2021, 11:33 pm

MonikaEWM wrote:What I would recommend is getting an IFA that can manage the investment for you.

LooseCannon101 wrote:Obviously, Monika is an IFA.

Don’t think she is. Google the name.

Hi Monika, and welcome. But it isn’t a great idea to post on Bulletin boards using a name that can so easily be traced. Your employer might not like it. Unless you really are posting here in an official work capacity?
If you don’t want people to know who you are, I strongly suggest you change your username!
Use the alert button “!” to ask the site administrators to change your name and the quotes above.

Gryff

Dod101
The full Lemon
Posts: 16629
Joined: October 10th, 2017, 11:33 am
Has thanked: 4343 times
Been thanked: 7534 times

Re: Choosing a safe strategy for a beginner while also learning more

#448461

Postby Dod101 » October 7th, 2021, 9:26 am

gryffron wrote:
MonikaEWM wrote:What I would recommend is getting an IFA that can manage the investment for you.

LooseCannon101 wrote:Obviously, Monika is an IFA.

Don’t think she is. Google the name.

Hi Monika, and welcome. But it isn’t a great idea to post on Bulletin boards using a name that can so easily be traced. Your employer might not like it. Unless you really are posting here in an official work capacity?
If you don’t want people to know who you are, I strongly suggest you change your username!
Use the alert button “!” to ask the site administrators to change your name and the quotes above.

Gryff


When I Google the name, I just get a reference back to this site. Don't care anyway. The advice is not very good.

Dod


Return to “How Do I Invest”

Who is online

Users browsing this forum: No registered users and 3 guests