Saturday, 7 June 2014

Wheeling Dealing Part 1

My posts for today, tomorrow  and maybe the day after that are  about investing in stocks and shares. We'll see how I go. I want to make something clear right from the very start.  This is not a 'how to do it' kind of tutorial and I'm not suggesting at any point that everyone should go out and do the same thing that I've done.  I just thought that you might be interested.

Setting up a home after marriage break up and buying a rental property made putting any money aside an impossibility for a while.  That was a situation that I was very uncomfortable with.  I like to have a bit fat comfy financial cushion behind my back in case of emergencies and, more importantly, to help me realise future dreams. After saving shouldn't just be for rainy days but the nice times too.  Back in October last year it became clear that I was in the fortunate position to make regular monthly savings again.  As you're all probably aware, interest rates for investor are pitifully low at the moment so I decided to invest in stocks and shares.

My financial risk profile is high.  You can measure yours by following the link here or doing your own Google search.  This isn't the type of approach for someone who'd lose sleep every time the stock market fluctuated.  Having said that I'm prepared to take chances which are analogous to getting into a Formula 1 racing car from a driving point of view, I want to demonstrate that I do that in a measured way, to reduce the impact of those risks.

I've chosen to save into a stocks and shares ISA, that allows me to put £11,880 yearly into a tax efficient pot.   I'll never pay capital gains tax on the profit when I sell shares and dividend payments are capped at 10%, useful if ever I become a higher rate taxpayer.  The Money Saving Expert has a useful guide describing this  type of product and its pros and cons.  My account is with Hargreaves Lansdowne, one of the biggest online stockbrokers.  They're not the cheapest but offer a range of services that make my dealing decisions easier like real time trading, a phone app and very comprehensive information about individual shares.

Right that's the nuts and bolts.  Tomorrow I'll tell you a bit more about share dealing and my own individual strategy.

1 comment:

  1. I have been investing in shares since the age of about 15. On leaving school I became a trainee stockbroker (but soon quit). I now have a simple portfolio that just ticks over; I no longer trade. Some you win, some you lose, but overall I've done well.