My mistake, i just Googled the ticker you gave me and it said no dividend yield, my mistake.
Thanks for the link and the additional information.
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Urbandreamer wrote:Until such time as you have more than £ 20,000 a year to invest, you should be looking at ISAs (or possibly LISAs). Almost every platform offers them.
While Alaric may be being a bit too pedantic, depending upon if he means you (personally) or you (a group), I'd argue that he is very likely right in your case. Assuming that you have pension contributions sorted.
There is a strong argument that you should consider pension/long term saving. A SIPP will cost more than a LISA, but fees would be covered by the tax return on contributions. The issue is that the money can't be touched until 55. The advantage of a LISA is that you could use the money to buy a house. Using it for anything else before 60 leads to what I would describe as a fine.
Aminatidi wrote:The Vanguard suggestion is a good one if you're going with a simple single fund and want the lowest cost whilst you grow the pot.
My personal view at 19 is forget about dividends and go with "Accumulation" units as that means that your investment is literally set and forget.
Essentially it means rather than you getting a dividend and having to think/remember to re-invest it, it happens automatically.
With all respect to the members here, you're 19 and many of them are older and are looking at dividends as a form of guaranteed income - you don't need that, you want to accumulate by growing the pot automatically IMO.
staffordian wrote:As for the best broker, have a look at Halifax Share Dealing. Their ISA has an annual fee of £12.50, with no holding fees I'm aware of.
They also have a cheap regular dealing scheme where you can invest on four set days per month for £2 commission, as well as a monthly "sale" where you can buy or sell, usually in a two hour slot around 12.00 to 2.00pm for £3.95.
I've used them for many years and found the service efficient and straightforward to use.
Worth a look, I'd suggest.
I was thinking of opening up an ISA with Interactive Investor (II) as the fees seem to be decent compared to others, now initial investment was going to be £1000 and then £100 a month
colin wrote:I was thinking of opening up an ISA with Interactive Investor (II) as the fees seem to be decent compared to others, now initial investment was going to be £1000 and then £100 a month
if you pay a £10 dealing charge to buy £100 of an ETF you have just lost 10% of your money straight away.
For you I can't see why an ETF should have an advantage over an index tracking fund, take dealing costs into account when doing your research.
TUK020 wrote:The key benefit of investing in a SIPP is the tax relief on contributions, and the ability this gives you to arbitrage the tax rates on contributions vs withdrawal later. E.g. get tax relief at higher rate going in, and pay tax at nil, or lower rate on withdrawal.
The disadvantages are that you lock up the money until you are 55 or later, and the government continually changes the rules while your money is locked up.
I suspect that at age 19, it will be a while before you are paying higher rate tax, therefore an ISA gives you much the same benefit, but with the flexibility of being to access the money when you need it (e.g. as a deposit on a property).
Lootman wrote:2) Pensions really just defer taxes and tax rates may be much higher in the future given deficits, borrowing, demographics etc.
Urbandreamer wrote:My advice is to stick with your original idea and make a start. Starting is in fact the most difficult bit. Deciding that another alternative might be better is very easy, once you have taken the initial step.
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