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What and where to invest £5000 as newbie

Investment discussion for beginners. Why you should invest your money, get help getting started
Jaxon
Posts: 1
Joined: November 25th, 2023, 6:21 am

Re: What and where to invest £5000 as newbie

#629814

Postby Jaxon » November 25th, 2023, 6:26 am

Welcome!

Considering your goal for pension savings, ETFs can be a solid choice. but diversifying with a mix of stocks and bonds may provide a well-rounded portfolio. Seeking advice on specific ETFs or other alternatives would be beneficial.

dgd975
Posts: 1
Joined: May 27th, 2024, 4:29 pm

Re: What and where to invest £5000 as newbie

#666172

Postby dgd975 » May 27th, 2024, 7:46 pm

Hi, put the lump sum into an ISA for easy access. Into a pension not worth it at this early stage in your investing career. Remember pension only worthwhile if your employer is putting in their contribution. Pension - you'll pay 15% ( 20% tax on 75%, the remaining tax free).
Getting 20% tax relief on your initial investment involves a lot of paperwork i.e. your time and this is only 5% reward. Remember abrdn pension review report is coming out in next couple of years and pension changes likely.
I suggest Vanguard ISA for their low fees & global funds. VUAG (USA companies) or VHVG (global companies).
Very low fees will avoid your £5k losing too much in fees.
Then set up a monthly direct debit and look at for first month and not until 1 year later.
Then read more about Passive investing. It's the way, in my view, to go with your ISA and your company pension.


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