My first investments!

I reported in my last post that I planned to open an account with The Share Centre for my investments but having read a recent post over at Millennial Revolution where they talk about moving to Vanguard, I did a bit more research and decided to open an account there instead. Vanguard charge just 0.15% as an annual fee on balances up to £250,000 (I’m a way off that yet!) and over that it’s free!

Opening the account was really easy and I was able to add my first £450 deposit straight away. I then chose my investments based on the asset allocation I’ve decided to use. I spent a lot of time reading about asset allocation but I don’t think there’s a right or wrong way to do it – it’s just about spreading your risk. With that in mind, I’ve chosen:

FTSE All World – 30%

FTSE Developed Europe – 25%

S&P 500 – 25%

UK Investment Grade Bond – 20%

With my first investment of £450 my percentages are not consistent with my planned allocation but this will become easier as I get used to making the calculations and as the level of investments increase. I have a direct debit set up to transfer £450 every month straight after pay day when I will then check my allocations and buy the appropriate investments. Now all I have to do is stop checking my account every other day to see whether I’m up or down! I never thought investing would be so fun!

 

 


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s