Author Topic: New and need advice  (Read 2064 times)

Tim_tom

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New and need advice
« on: August 29, 2017, 03:41:05 PM »
Hi guys, I've been reading the blog for a while, as well as a few others, and I have some investment questions. I wanted to invest in Vanguard like MMM suggests but I couldn't as I'm in the UK. If you can, then I wasn't smart enough to figure it out. Currently I have followed the advice from this blog and invested following this https://frugalstudent.co.uk/index.php/2017/03/02/investing-at-uni/

My question is, what are my next steps? Just keep adding money and saving and wait? Or should I be putting some money in other places too? I'm brand new to all this and I appreciate any help. Thanks!

UKstache

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Re: New and need advice
« Reply #1 on: August 30, 2017, 03:40:05 AM »
You can invest with vanguard in the UK, either directly or via a fund supermarket. You may not be able to buy the same funds exactly as those in the US. You are right to use your ISA but also consider a LISA and SIPP if you're eligible depending on your goals.

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Tim_tom

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Re: New and need advice
« Reply #2 on: August 30, 2017, 06:08:34 AM »
Ah, ok. Thank you UKStache! Can you please explain the main differences between what I'm doing with my money in the H&L ISA and what it would be doing in the Vanguard account?

UKstache

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Re: New and need advice
« Reply #3 on: August 30, 2017, 07:38:28 AM »
Trying to keep it simple is tricky, someone might be able to explain better than me, but... You need to separate the idea of the investment vehicle and its provider from the fund(s) you're going to invest in, and its provider.

Your vehicle is your ISA which just protects its contents from various taxes. A normal share dealing account from any provider including vanguard you would potentially pay tax on withdrawing money in the future.

Some ISA providers have much more choice in the funds provided by other companies that they give you access to. If h&l allow vanguard then it should be in the drop-down where you chose an hsbc all share if I remember correctly.

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Tim_tom

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Re: New and need advice
« Reply #4 on: August 31, 2017, 02:08:58 AM »
Ah, ok. I think I understand that. I can use H&L to access these different types, and currently I've just accessed the ISA, but I can also use it to access some stock index funds. I'm going to try and move some stuff around today, see what I can get access to. Thank you very much.

UKstache

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Re: New and need advice
« Reply #5 on: August 31, 2017, 05:10:15 AM »
Ah, ok. I think I understand that. I can use H&L to access these different types, and currently I've just accessed the ISA, but I can also use it to access some stock index funds. I'm going to try and move some stuff around today, see what I can get access to. Thank you very much.
Maybe an example will help? I have an isa with Cavendish, but inside that  Tax friendly isa "wrapper" I've bought an index fund from vanguard. You want to use all the allowance (20 grand this year for isa) you can before you buy any funds outside of a wrapper. You can have more than one fund in a single isa.

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Tim_tom

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Re: New and need advice
« Reply #6 on: August 31, 2017, 01:11:15 PM »
Right. I think I get the concept, but my problem now lies in how to use my account. But, if I'm reading it rightly, I think I'm going to get a 3% dividend return which makes me happy enough. Might just not play with it, but I also want to diversify a little. I'm a long way off getting to withdraw any of it anyway. Any good links or books you recommend?

UKstache

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Re: New and need advice
« Reply #7 on: September 01, 2017, 04:26:14 AM »
http://jlcollinsnh.com/stock-series/

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UKstache

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Re: New and need advice
« Reply #8 on: September 01, 2017, 04:29:01 AM »
http://jlcollinsnh.com/stock-series/

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Good place to start, just need to apply the principles to the UK. MMM blog and forum covers it all as well probably!

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