There’s a vicious circle problem in writing any guide to this. You need to keep it short to hold people’s attention, but often each element you explain then mentions something else that requires further explanation.
As I’ve already wasted 154 words in that preamble, I’ve set myself the challenge of explaining the basics someone needs to know to invest in an Isa in less than 700 words from here on - and then adding some simple fund options.
You shouldn’t risk either your rainy day fund or money you need in the short-term. Keep that safely in readily accessible cash savings.
But you also don’t need to be rich to invest, you can start investing with a small lump sum or £25 per month.
You can pay a professional to do it for you but for most people the cost of a financial adviser will feel prohibitive for their simple investing needs.
That leaves two main options: use an automated service or do it yourself.
The former involves an online wealth manager, or robo-adviser, as they are often called. These offer tools to establish your goals and risk levels and will build a portfolio they manage for you.
You pay a bit for this, but in return you get easy hands-off investing with some expert help. Read our review of the main robo-advisers here.
If you want to pick investments yourself – perhaps with some guidance - then you need a DIY investing platform. My tried and tested, established platforms that are easy to use include Hargreaves Lansdown, Interactive Investor, AJ Bell and Fidelity.
These let you buy shares, funds and investment trusts, and our DIY investing platform round-up will help you understand their charges and which is best for you. Vanguard's low-cost platform is also worth a mention but only lets you buy its products.
No comments:
Post a Comment