Investment of the Week: Online ISAs
Investment expert Holly Mackay reveals this week’s hottest tip
When you work in investments, you’re often asked for tips. The next Facebook. The hottest market of 2017.
If you look to the Grand Daddies of investing – George Soros and Warren Buffet – they don’t giddy about in a blizzard of tips and suggestions. They pick good, money-making companies and hold on to them.
Closer to home, star managers Neil Woodford and Terry Smith tend to pick a small base of stocks which they buy and hold for a long time. As unsexy as it sounds, a good investor is a boring investor who gets their kicks elsewhere and knows it’s about time in the markets, not timing the markets.
So my top tip this week is to start 2017 afresh. Start saving as much as you can, as early as you can. Adopt the ‘Pay Yourself First’ principle with any pay rise – set up a direct debit to sweep 20 per cent of it into savings. Have a look at new savings apps such as Moneybox, which round-up card purchases and invest the total each month.
And, if you don’t have an adviser, look at online ISAs. You should not be paying more than 0.5 per cent a year for the ISA admin service, which will be more like 1.3 per cent all-in by the time you add the fund or investment charges.
I’d suggest Hargreaves and Fidelity or newer Nutmeg if you need a helping hand to get started.
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