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my simple approach has been to put a regular amount in some sort of tracker fund in a S&S ISA and ignore it.
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strong recommendations against using Plum
The fees are higher than other platforms but not egregiously so (assuming I'm looking at the right company). The best you can get is about 0.15-0.25% depending on how adventurous you want to be (less for larger portfolios).
"Annual management fee is equal to 0.45% of the value of each of your ISA/GIA Platform Products." https://withplum.com/legal/fees_uk.html#GIA_ISA_Fees
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I liked Plum for a bit, but eventually just moved to Vanguard since with Plum I was just paying into the same funds with an extra fee on top. The Plum fee sounds small at <0.5%, but when the annual growth is say 5-10%, that actually means you're losing as much as 1/10th of it. Obviously this compounds over years/decades.
But, having said that, it was quite nice that it did the saving for me and I didn't really have to budget or think about anything
Did you open the ISA account? You get fucked on tax if it's not in an ISA
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Getting on top of debt now
Well done for getting on top of it, not easy. Does that mean you have already paid it off, or have a plan to do so?
First rule of saving is do things in this order:
- Pay off debt
- Save
No point doing any of 2 before you have done all of 1 (mortgage and possibly student loans are the only exceptions) as it will be more expensive.
Don't know anything about Plum but somebody had to spend time and money to develop it, so they will want to earn a return on that investment, and there is only one place that return can come from...
Index tracker fund with eg Vanguard is the easy option that beats most others most of the time.
- Pay off debt
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jb000
NickCJ
frankenbike
frank9755
@yoshy
Hello, total noob here who's been in a fairly bad way financially for a while. Getting on top of debt now and building up the rainday fund to the point I'd like to start siphoning off a small amount of the money I'm saving to invest. Currently using Plum, which is nice for helping me save. Path of least resistance seems to be to set up a "pocket" to invest with there, and let it do it's thing? Any strong recommendations for anything else (gold or similar?) or strong recommendations against using Plum? I keep half an eye on the thread but it goes over my head pretty quickly.
Liked the "time in market > timing the market" thing. Had a play with pocket money and btc trying to time things and holding would have done better.