Tammy is a young professional and new to investing, she'd love some help?


Welcome to our investor clinic. The aim of the clinic is to allow ordinary investors to get feedback from peers on their investments. This time we’re
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Tammy is a young professional and new to investing, she'd love some help?

@Tammy can I ask how much you intend to save in to your pension each month?

The way a lot of SIPP providers work is they charge different levels of fees based upon the value of your account.


My company will pay £750 pm and I’ll pay £250 @casper.

The rest I’ll pay in to my an ISA.


Well if you are setting up a SIPP you should transfer your old pension plans because as @casper said they tend to get cheaper the more assets you have on them. Having said that you’re not starting off with a lot.

I am not sure who would be best for a £23k SIPP that will grow to over £30k within a year (with your £1k monthly contribution).

I use Charles Stanley Direct because they’re good value (not the cheapest) and they’re pretty efficient and easy to use. I’m not sure how much they would charge you though. I’ll have a look.


Sorry, I meant to say it’s £750 pm in total going in to my pension -£500 from my company, £250 from me, with an additional £250 going in to an ISA.



There’s a useful table on the Motovator website with charges and requirements on the various platforms…



Thanks, I’m looking through @ChrisBu 's list now.


The Motevator list is a good place to start but it doesn’t list all the charges, and I’m thinking particularly of fees for regular investing because that’s what you will be doing.

I know Alliance Trust charge a monthly fee of £5 for instance which is 55 of £100, too high me thinks.

What does Charles Stanley or Hargreaves charge? Does anyone know?


With the Scottish referendum coming us I don’t think i would invest anything until we know what the result it is @Tammy. Markets could become very volatile if it’s a yes and the Scots go.



@Tammy, before selecting a platform, have a think on how you will want to invest, e.g. investment trusts, OEICs, index trackers, or all of the above! A decision here could influence which platform is best for you both on running costs and product availability on your preferred platform.

Whatever you decide, you might want to hold off from transferring any other pensions and cash ISAs until such a stage that you are comfortable with your choices. In the event that you did want to change tack then this might be more easily and cheaply achieved with a smaller pot of assets. Are the old pensions company ones or personal? If they are the former then you might not be able to easily transfer them to a SIPP, at least, not without the involvement of professional advice. There is a reluctance these days (and rightly so) to transfer out of company schemes due to the potential loss of other benefits (but how much this applies to DC as opposed to DB schemes I couldn’t say).

The usual suggestion for a rainy-day fund is for it to cover three-to-six months’ worth of expenditure. Whether towards the longer or shorter end of this - or for longer even than six months - should be based upon your view of your job security. However, there is nothing wrong with holding more than six months’ worth of cover if that leads to a more comfortable feeling. Is your existing cash ISA your rainy day fund? You don’t want to transfer that into shares if it is!

Do you have a goal - or goals - in mind for saving into an S&S ISA? e.g. saving for an even earlier retirement, paying down the mortgage early, a big holiday in a few years’ time, etc. It can help to have a particular objective - or a set of objectives - in mind because this can help to decide how long you’re looking to invest for, and therefore the types of assets to look at, i.e. more equities for longer, more cash for shorter.



Thanks @Arkwelder. I had to do a bit of work to understand all the things you said.

I have personal pensions and a stakeholder pension. I’ve got this from the policy documents.

Apparently the easiest way for me to transfer my pensions is as cash which means they will transfer in to the new Sipp pension as cash. I’ve only spoke to one company but they said it would go in to the cash account which is kind of like a bank account for my pension only (weird eh).

Also he said I could take my time to move it in to investments. I dont really mind if it is investment trusts or Oiec’s they seem similar but different. Some people seem to like one or the other more.

I read about index trackers - again I saw some like them loads and some don’t so much. They didn’t grab me. I just found myself thinking, well if my money is to grow over decades until I retire, surely a proper fund would be better (sorry, I mean non tracker but I don’t know what the terminology for that is).

I read about City of London trust and the Scottish trust increasing their payments for three or four decades, every year. In my little mind that kind of sounds alright. By that I mean it doesn’t sound like it is terribly, terribly risky.

Some people say that having your money in the stock market is like playing the lottery or the grand national. I don’t see how it is with things like that.

In terms of goals - well it’s mainly my pension but if I was to get married I would probably use some of my ISA I think.

I hope this doesn’t sound really random but it’s just my little way of understanding all of this. The language people use to talk about investing takes some real effort to get your head around. I feel I’ve had to work at understanding this and I’m sure I’m still not that great and may have missed some stuff.

I am learning from you guys though. Hey, I know what a tracker fund is now!



@Tammy this is how you learn best, from others. I learned a lot from newspapers and then from online forums.

This site is more specialised in investment trusts but to be honest they are probably the best thing for a small investor like you, though I wouldn’t exclude Unit trusts/OEICs either.

You’ve done well so far, the advice and direction you’ve received from others in this forum has been pretty good.

It it were me I would transfer your old pensions as cash because it makes them easier to manager, unless anyone of them had ridiculously cheap charges. You should check what the charges are first. But they are all pretty small so you may decide to transfer them anyway.


Originally published at: http://whichinvestmenttrust.com/tammy-young-professional-new-investing-shed-love-help/
Welcome to our investor clinic. The aim of the clinic is to allow ordinary investors to get feedback from peers on their investments. This time we’re featuring Tammy, a young professional, who doesn’t feel that she has a lot of financial knowledge, and is looking for advice and feedback on her pension savings options and…