Started Trading this year

[dirk_]

Evening all
I have recently started trading shares via the Trading 212 and as my knowledge is limited I wanted to join a forum to hopefully get some help and information going forward.

At the moment we have around £40k in savings doing nothing for us and between my wife and I £12k in ISA's via Trading 212, all of this in Individual shares and also recently started using their Auto Pie investments scheme, only paying £100 per month at the moment but will be increasing this amount this month or adding more pies either with a mix or shares and EFT's.

My wife would like to keep as much of the £40k in a high interest!!! long term savings account but I cannot find anything that pays enough to satisfy us.

As we have paid off our mortgage early we can now invest or save £2k monthly after paying our bills and also contributing to our private pension.

Any assistance on where we can invest our current savings would be welcome.

Our goal is to invest in a many long term growth prospects, holding these for between 5-10 years with the hope of an early retirement in our early 50's

Thanks

 

[MasterOfCoin]

Welcome back, @dirk_

(I see you were here briefly in late 2016 and hope you'll join in more this time )

Congratulations on starting Trading. 🍾

You are entering the markets at the ideal time for investments, both short and longer term.

Short, because the markets are volatile in the ongoing crisis.
& long because values are at the lower end of a downturn cycle.

You'll find plenty of good sound advice here as well as a range of opinion about current trends.

Although this tends to be on the 'trading' side of things (hence the name T2W) there are plenty of investors here who will offer guidance on strategies for longer to medium term investing also.

Any as*sistance on where we can invest our current savings would be welcome.

Conventional savings rates are at all-time lows and with the Central Banks murmuring about 'negative base rates' savers could soon be in the position of paying banks to hold their deposits, rather than be paid interest on them.

You can, however, easily get returns of 8% or more if you are prepared to take some risk on your capital, and around 4% if you are very risk-averse and will settle for the smaller rewards this safer option generally yields.

But, while it's sensible to spread your investing out across a broad range of investments, the many traders here will be quick to point out that, compared to Annual % Rates, stock movements of 5-15% in a day are not uncommon, and modest 3% swings are routine, and can be considered entirely normal. That's potentially a years' reward per day, IF you get it right, buying low and selling high !

Of course, if it were that easy, everyone would do it. It isn't. Hence T2W

Here at least you'll find all the best guides and advice on how to make that winning strategy a reality.

Join in the fun.

 

[dirk_]

Thanks for the reply guys, started looking into investing in 2016 but didn't get to it, so far we have invested around £12k with a short term return of just over 5% between us, but as mentioned this is a long term plan we are also looking into getting in contact with a financial advisor to sort out our plan for the £40k and our ongoing savings.

Thanks for the welcome

 

[1nvest]

Thanks for the reply guys, started looking into investing in 2016 but didn't get to it, so far we have invested around £12k with a short term return of just over 5% between us, but as mentioned this is a long term plan we are also looking into getting in contact with a financial advisor to sort out our plan for the £40k and our ongoing savings.

Thanks for the welcome

Have you looked into government bonds. They will pay far better than a High interest savings?
Trading212 will likely have a range of etfs. Then, with a better return but with additional risk are corporate bonds. Neither of these are as risky as equity (stocks or index etc) but wont have the return.
What you could do is do all 3, allocate a smaller percentage to equity, say 20% then 40% to corporate bonds the rest in government bonds. You have a bit of balance but will likely get far better returns than your interest account
The only caveat to this is you should still employ some sort of market timing. Keep it real simple, but it stops you from blindly putting in money to something that is going down. Which is likely to happen should you go down the 212 pie route or the advisor route
Any financial advisor will do the same. And charge you 1-2% for the privilage

I did this many many years ago, and then started managing my own pension. Happy to help if i can, youd be surprised the choice you have to suit whatever risk profile.
Good luck nonetheless