Investment & Investing

What do you think of Nutmeg's fees?

I like the look of their S&S ISA - the portfolio they created aligned nicely with what I was thinking for a long term schooling / university investment.

Realised I now need to check that their fee - which around .75pc - is expensive for what is effectively non active investment.

I had shares in ICAP plc last year but the company has gone through so many changes recently, im struggling to figure out what I still actually own??

In December last year the majority of the company was purchased by Tullett Prebon Plc and merged into a single company TP ICAP Plc

https://www.bloomberg.com/news/articles/2016-12-30/tullett-prebon-completes-1-6-billion-deal-for-icap-broker-unit

But I think ICAP still remained trading *although renamed to NEX Group

So.. im not sure if I now own shares in NEX group or TP ICAP or both or neither..

So.. im not sure if I now own shares in NEX group or TP ICAP or both or neither..

Your broker will be able to tell you.

Seeing as you are around (apols for dredging something 5 months old) but how do you buy into something like a S&P 500 tracker? I read about the Warren Buffet bet recently where he said over a 10 yr period that would out perform any hedge fund.

Also does anyone know if it's best to drip feed into it rather than place a lump sum in such a ting?

1. Get an account with a broker

2. Set up recurring payments to buy stock in an S&P500 tracker ETF*

* this is basically a company that exists only to mirror the performance of the S&P500 by buying / selling S&P500 company stock.

This could be as simple at opening a nutmeg account.

The real challenge with trackers is finding the cheapest.

Also, don't take advice from an upside down cat on a bike forum - he might not be an IFA :)

Thanks didn't realise it was that simple! And it's only now that you point out what your avatar is that I can see it's a cat. How did I not realise that before?

I'm using Hargreaves Lansdown to handle fund trading. http://www.hl.co.uk/

Set up an ISA, deposit money, search for fund, click buy.

Charles Stanley are another good (and cheap) brocker. Just set up account and invest in something like the 'Vanguard US Equity Index Fund Acc'. If your really quick, you'll be able to use this year's ISA allowance

@Drakien & @dt - thanks both. Really helpful suggestions.

I like to use Halifax £3 share dealing on certain days and £12.50 annual charge.
I generally buy etf as you can buy and sell anytime. Rather then be given.a price value by the fund manager twice a day.

This book is highly recommended. An easy read and good advice.

https://www.amazon.co.uk/Long-Short-investment-normally-intelligent/dp/1781256756/ref=sr_1_2

Regarding broker costs - here's a good resource to find the cheapest for your circumstances : http://monevator.com/compare-uk-cheapest-online-brokers/

Finally I am at the point where I can begin saving for mortgage. I have about £5k spread in a couple of places already including a help to buy ISA and I'm able to put away circa 5-700 per month. house prices being what they are that likely going to mean 2/3 years of saving regularly and whacking away anything extra that I can to achieve it.

any thoughts on what I should do with this expanding balance in that time? I have a couple of regular savings accounts, 1 TSB, 1 Halifax and in the process of opening one with first direct too. but I can only put a certain amount into those together per month and the returns (first Direct aside) at 2%, 3% and 5% respectively aren't the most eye popping.

not averse to a bit of risk for good reward. I have been contacted by this Nigerian prince who needs help....

Thoughts?

I peer2peer isa is an idea but risky.
Stock and share isa is probably most ideal but I am personally feel the market is lofty at the moment. Timing is key with the markets.
You should seriously look into lifetime isas. Don't know too much as it's the first year of them. But only heard positive vibes.

Thanks. Slightly out of date but good guide none the less.

I am not an IFA but given your are saving for a mortgage deposit, I would have thought your time horizon is far too short to invest.

your money, your choice though

^this. I'd stick with what you are doing. Finding the best current accounts / regular savers etc. and, as @wildwest says look at the lifetime ISA

lifetime ISA

No brainer if you are a FTB.

yeah I am awaiting the lifetime Isa's to go live over the next week so I can switch my help to buy Isa into it. I think the only thing I dont like about them is like the regular savers, they will have a maximum contribution per month.

Thanks for the tip. I guess I was looking for a bit of validation that i was doing the right thing/not missing an easy trick and also a slight frustration that realistically even with 2/3 regular savers accounts with ok % in, I will still have extra money each month that will just sit in an easy saver earning pittance. I guess I could open even more accounts...

so its 6th April when the new lifetime ISA's are due to open so I thought I would have a look around at the various products out there.

This:
http://www.telegraph.co.uk/news/2017/04/05/lifetime-isa-chaos-fees-could-leave-savers-60k-worse-pensions/

makes slightly worrying reading. only 3 being offered so far.

aha. This:
*

But Lady Altmann worries that young people who open one for any reason
other than the short-term goal of buying a home will blight their
finances for their whole lives

*.
from:
http://www.thisismoney.co.uk/money/pensions/article-4383104/ROS-ALTMANN-Lifetime-Isas-abandoned.html

is a bit more positive for my direct situation. now just got to get onto Nutmeg or HL to find out more detail about their specific products.

i think those articles are a tad on the sensationalist side. To me, for first time buyers they look like a great deal. It's a pretty much guaranteed 25% return.

I'm not sure how good they are as a pension vehicle (as the articles mention). I'd imagine it depends a lot on your personal circumstances if it's worth using.

There's some good info regarding LISA's on reddit

As a product - and the system around it - it's pretty complicated : /

Bad news looks like there are no cash Lisa's just yet.
Which means stock and shares are the only option and as said previous this is a risky choice for short term investing horizon.
Stick to help to buy isa for those saving for a house deposit.
http://www.bbc.co.uk/news/business-39506199