How I’d Invest £20,000 In a Stocks & Shares ISA (in 2024)
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- Опубликовано: 9 июн 2024
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In this video, we explore how to invest £20,000 in a Stocks & Shares ISA. We start by explaining the different types of ISAs available and why investing in a Stocks & Shares ISA is a wise decision. We then dive into index funds, which are low-risk and perfect for beginner investors, and highlight the benefits of investing in the S&P500. We also discuss the importance of diversification and spreading your money across many companies to reduce risk. Finally, we offer tips for getting started and making the most of your ISA. Join us for an informative and engaging discussion on investing in Stocks & Shares ISAs.
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Timestamps
00:00 All About Stocks & Shares ISA
00:52 The 4 Types of Stocks & Shares ISA
03:20 Introduction to Index Funds
05:20 How I Use a Stocks & Shares ISA
07:09 Choosing a 'Platform' for Stocks & Shares ISA
09:20 Platform & Fund Fees Explained
11:19 Pros & Cons of Index Fund Investing
14:43 Conclusion
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This stuff isn’t easy but it can be very rewarding with the right information and mindset. 👍🏻
@@larrydimon7811 scammers
Yes, absolutely!
Once you start making progress it becomes addictive.. I remember starting with $75K in 2021, today my portfolio is worth six figures and growing!
Making money, simple
I don’t know where to start
I think investors should always put their cash to work, especially In 2024, we'll start to see more market diversification. I'm hoping to invest about $350k of my savings in stocks against next year. Hope to make millions in 2024
Since risk is at an all-time high right now, perhaps you should be a little more patient and return when it has decreased. Alternatively, you can consult a trained financial expert for strategy.
Yes true, I have been in touch with a brokerage Advisor. With an initial starting reserve of $80k, my advisor chooses the entry and exit commands for my portfolio, which has grown to approximately $550k.
How can I participate in this? I sincerely aspire to establish a secure financial future and am eager to participate. Who is the driving force behind your success?
Angela Lynn Shilling is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
I searched for her full name online, found her page, and sent an email to schedule a meeting. Hopefully, she responds soon. Thank you
I have about 250k distributed across various investing accounts, with 35% of my capital invested in an ISA and 25% in index funds. In Q4, 2023, I suffered a great deal. I'm just searching for methods to get better in 2024 right now.
Adding JEPI and JEPQ is smart for nearing retirement especially. As for staying committed to higher-risk investments, it's all about balancing your risk tolerance with your long-term goals. Maybe consider speaking to an advisor to help in diversifying your portfolio to spread out the risk.
It's unclear which stocks and sectors will continue driving the uptrend. Stay away from readjusting if you do not have guidance from a plannner and investment strategist. My finances have been in order since I got a wealth planner like Jennifer with large following working for me.
Who is this Jennifer you speak about? I have been searching for an advisor who can direct us on where the market is headed this year.
She goes by ‘Jennifer Leigh Hickman’ I suggest you look her up. To be honest, I almost didn't buy the idea of letting someone handle growing my finances, but so glad I did
I'm impressed with your advisor's prompt response and expertise. Her clarity and professionalism instilled confidence from the start. Excited to explore opportunities together! Thank you.
I am so happy that I made productive decisions about my finances that changed my life forever. I am a single mother and I live in Spain, I bought my second house in September and I hope to retire next year at 40 if all goes well. thanks to Louise O'Brien for helping me achieve this.
I've heard a lot about her. Please how do I contact Louise O'Brien?
SHE IS ON TELE GRAM.
She communicates on tele gram..
@ATLouise55 ..that's it .
That’s her user-name
Best video ive seen on stocks and shares isa, thank you
Hit $200k today made me realize the essential thing that everyone should be thinking about right now is investing in non-government sources of income. Especially in light of the current global economic crisis. It is still a wonderful moment to invest in gold, silver, digital money, and stocks.
Thank you for these valuable content to help beginners like me!!!
Thank you very much Matt !!! Brilliant as usual...
Could you please make more videos on this topic , especially for beginners...?!
Thanks in advance !!!
Will do!
Another great video Matt
Thanks for the sharing
I wasn't financial free until my 40’s and I’m still in my 40’s, bought my third house already, earn on a monthly through passive income, and got 4 out of 5 goals, just hope it encourages someone's that it doesn’t matter if you don’t have any of them right now, you can start TODAY regardless your age INVEST and change your future! Investing in the financial market is a grand choice I made.
Im 27 now can i still do it
Great video, thanks! How are you able to spread your costs like this when I read you can't pay into more than one Stocks and Shares ISA in one tax year?
Fantastic 😊
You think the VWRL is good option to invest in as I am a beginner investor?
Thank you Sir
Excellent Vid! 1 quick question!
Can u open let's say 1 s&s isa with one provider and then 2nd s&s isa with different provider in a same tax year but only contribute aka deposit to just one of them. Is that against rules? Anybody know this? Thanks!
Matt Brighton your vidos are very useful. i just wanted to know that are the house prices going down in yorkshire as im looking to buy house as im first time buyer. a lot of people saying to me wait i have been waiting for long time now.
I'd like to see a video on stocks and shares in general, like popular trading sites can have a large withdrawal fee.....so why are they popular? Good video though! Gonna look into these later!
I have a few older ones on the channel with looking through! 😃
@@MattBrighton nice one, will take a gander thanks!
Does the top 100 changes? Lets say the FTSE 100. Does the company of 100 stays the same and the percentage of market share the same ?
What's your views on moneybox and wealthify ?
How much from savings would you recommend to invest in ETFs? Assuming there’s no budget is there a benefit of maxing out the 20k allowance. I.e buying 20k worth of stocks? I understand there are a number of assumptions there
Good luck with your stock ISA in the stock market climate NOW...
Can we invest in S&p 500 through Fidelity Platform?
Does stock and share ISA allow to buy specific stocks?
Thanks Lewandowski!
Probably a stupid question but assuming you can invest in cash isa one year and a stocks and shares isa the next year (if you're not adding to your cash isa in that time ofc)?
My 5m portfolio has to be diversified and invested in carefully so that it may grow significantly during this bull market. Which sectors do you think might lead the uptrend this year
why did you use the 1 year time chart for FTSE and YTD chard for S&P? Could it be because showing 1 year of S&P would mean showing a decline of 10%, which does not look too good? :) I would still both indexes in same light, you made a disclaimer at the beginning that they can go up or down, so no surprise there
Or dump up to £50,000 into Premium Bonds and fulfill the lottery itch.
What's the benefit of pros and cons of using the s&p 500 Vs the USA index accumulation fund on vanguard? The s&p 500 you have a minimum spend of a unit atm of £61 ish the index accumulation you done, but is there actually any difference between the two?
Thanks this was a good vlog for me.
I'm a little nervous about the market at the moment. I will buy into next year's investment ISA, but with my limited expertise I am keeping some funds in a high interest deposit account. Yes,I''ll take a small inflation hit, but I don't want to buy into a market just before a possible downturn.
Is that foolishness.
Looking forward to your next vlog. Thanks.
Only you can decide if it is foolish, Kevin. For me my mantra is to never put into investments more than I can afford to ‘lose’ for five years. Until this year I would have been more Bullish on the market but a low time might be coming so caution is warranted.
@@Sukerkin Thank you.
Yes, that is very much where I am at.
My S&S isa has made nothing in the last two years and in fact has fallen. I'm getting more from my premium Bonds!
Likewise Jim 👍
Same here. In fact I’ve since sold up nearly my entire portfolio and put into Premium Bonds for one year as a tester. So far I’m averaging more per month than I averaged in monthly dividends.
If it’s done nothing in the last 2 years then that’s your own fault for not reallocating you money to a fund(s) that’s performing well.
So why do all the people on this type of video claim anything from 7% to 30% per year?
Are they just to push affiliate codes?
It started to rise over the last few months since I posted..... up over 20%
Hi Matt, great video. I'm struggling to find an answer to my question, so maybe you know? IF we invest in US funds, like the S&P 500, in a UK ISA... do we pay US tax at 15% on it? IF so, how do we pay it using the platforms you showed us?
You don't, there should be no more fees than those of the platform and the funds management charge.
Depending on the platform you may have a dealing charge for both funds and individual stocks. You may also be charged A conversion fee on individual US stocks even if there is no upfront fee - your platform will make you aware of this but it might be a linked document rather than stated upfront.
That LISA penalty is feeling especially spiteful in this cost of living crisis. I was planning to put the full £4k in annually but I'm not sure I can justify it anymore.
I was put off by the penalty system instead I’m using Premium Bonds as my emergency fund
But the whole point is to use it for buying your first home...
You have to get a mortgage though and not everyone can get one
There's is no point putting money in a LISA unless you are saving for retirement or buying a house....that's the whole purpose of it and if you use it for that there is no penalty. It would be pointless to put money in otherwise, literally.
You're absolutely right. S&S ISA would be a much better investment for most cash ISA users but I think the language around them is putting people off. You used much the same language in your video, such as "capital is at risk", "the value of your investment may go down", etc. It puts the average ISA user off IMO. Only in the past months have I got the nerve together, done the research and got a S&S ISA.
I'm not saying these warnings shouldn't be given, but it just makes people think the WILL lose their money, not might.
Completely agree, that's why I never got one, but will in April with Trading212.
When invested in LISA, does the government offer the 1000 pounds every year or only on the starting year?
I believe it's 25% on the total pot, but you're only allowed to deposit 4K a year. And the 25% is only at retirement age or if you buy a house under £450,000. Otherwise nothing. The government page for LISA should have the info.
I’m looking at investing with my lifetime isa into index funds, do I invest my total balance or do I invest only a percentage of my balance?
Entirely up to you, personally invest my total balance in index funds since it means I have peace of mind of not having to check it all the time. Others may like some more “active” investments like individual stocks but these require more maintenance.
Can you invest in multiple funds wrapped in a stock and shares ISA? Or is just the one, i.e 100 life strategy wrapped in your Stocks and Shares ISA. And then maybe Global technology fund and S&P 500 as a general investment account? (FYI I understand you marginally invest into S&P 500 with the life strategy).
Your ISA acts as the wrapper, or wallet which holds cash which can then be invested in multiple investment options
@@TheNomadicTrader So you could have two separate index funds in a Stocks and Shares ISA?
@@liam70457 the Stocks and Shares ISA is the account, in the account you transfer cash, with the cash you can buy investments. So yes, you can buy multiple investments by investing your cash into different funds. Vanguard has all the information you'll need 👍
@@TheNomadicTrader Thanks, much appreciated! 👍
@@liam70457 you can have multiple index funds in an ISA
30%??
If you had invested £1000 in a FTSE tracker 5 years ago then today that investment would be worth £1000
Wrong. You are forgetting the 3.7% yield per year.
The problem is that the ISA system is too difficult to understand. I didn't open a stock ISA until late last year simply because I didn't understand the system
Not difficult at all.. It's just tax free savings
It's only difficult because you've not applied yourself to it - it's an allowance of up to £20k per annum and the money you make on it is tax free. Do the work and it becomes easier
Do you have any knowledge of the platform Hargreaves Landsdown?
Another large provider like fidelity. Has lots of funds. If I remember right has higher fees but respected large company to use
I use HL and they have a very intuitive platform and a huge range of products. There are cheaper options out there though, especially if you plan on doing a lot of transactions buying and selling stocks and shares, although I think you can set up regular contributions at lower cost.
Expensive..
Returning 12% this year. Its been a good year.
Did you liquidate your returns like how did you made 12% to make 12% you have to sell your positions right
@@72087hjno, I still hold my positions of course they are just unrealised until you sell your stocks. But if I sold them now I would realise the increase
Matt,
Would you suggest 99% of people just get an index fund?
I have £5K in a global tracker and £5K in Scottish Mortgages in a LISA. Before i started investing i had the believe, you know nothing about Investing, so stick with index funds. My first £4K into the LISA went into the global fund. But then the year after the hype of SMT and the crazy returns, i invested £4K in that. Of course it has crashed since and therefore today my balance is 10% up on the global fund, 10% down on SMT so i have basically the same value.
My chasing of returns and trying to get rich quick has cost me. But with your tech example, the 40% gains are so tempting.
Tech has had a bad 2022 so lots of funds down including S&P500 but that’s what I would do for myself. Rather than chasing and gambling.
That being said after periods of high growth come periods of low growth so the S&P and fidelity funds might not doo that well for the next few years. But at least the companies they’re invested into are large innovative companies pushing new boundaries which is promising
Yes... but when you've a £200k mortgage currently at 5% for two years, I'd bet the money you'd earn on any savings in a S&S ISA would be dwarfed by the savings on interest in the same time...
i don't get it. I tried to invest money into a fund in 2018 but i looked at the date and it's 2023 so i'm not sure it's easy to make these returns. Lots of funds have lost value in the last 1,2,3,4,5 years. Be careful. Don't just look at cherry picked examples. They are usually pedalled by people with affiliate deals.
Matt, how much should you be investing??
Only as much as you're comfortable with and don't need for 3 - 5 years.
@MattBrighton, thanks for this. I'm a little confused by fees and yours is the only video that even touches on them.
Are the fees a percentage of the amount that was originally invested? Or the value of the investments at the time the fees are calculated?
Eg £20k at 1% will always be £200? Or if the value goes up by 10% in the first year will it be £220?
Usually it’s based on fund value including gains. So if you got a 10% return but the fees are 1.5% - your net increase would be 8.5% as it takes off the whole total
I Cs;oh
,
I have a stocks and Shares ISA that is managed by platform experts. However, I would like to open another one where I choose the investments. But you cannot contribute to two stocks and Shares ISA in the same financial year. 😏
You can if you do not pay in more than £20K in total in to all of your ISAs each tax year. The same as cash ISAs , you can open 2 with £10K in each.
I have just transferred 2 cash ISAs to new ones and will open a S&S ISA in April to have 3 running together. You can keep transferring old ISAs to new ones and have as many as you like at the same time, but can only put your £20K between them all each tax year.
@@OH2023-cj9if Yes, the rules will change in April. But if you were contributing to two stocks and shares ISA before, that was wrong and best to alert HMRC.
Like your content but its not "easy" to get returns in the stock market, there are ups and downs and capital is always at risk in any stock/etf asset
It's super easy, you put money into it regularly and watch it grow. The stock market goes up and down but as explained, over the last 70 years it's gone up more than 7% per year on average). If you don't invest, your money is 100% guaranteed to go down in value with the rate of inflation. Savers are losers. Get Rich Dad Poor Dad...
@@TheNomadicTrader No offence but how come you live in your car then if its so easy to make money in the stock market?
It is “easy” to get returns on the stock market. Passive funds are literally the easiest way to get returns due to the low fees and you not having to do anything.
Is there any way to invest £100/month into the S&P500 without repeatedly incurring a high transaction fee?
Index funds? I guess it depends on platform but HL for example don't charge for index funds but do for ETFs.
Trading212
Do you happen to know if you can pay into a s&s Isa and a S&s LISA in the same year?
Yes you can but you can only put 4k into LISA then 16k into S&S ISA
Great! Thanks, I want to put the extra savings beyond my s&s LISA into s&s and always thought I was limited to just cash isa
:)
Yup - only difference you can only pay into one of each type. So you could have all 4 types of ISAs and pay into each of the 4 in a single year. But you cannot pay into two of the same so you couldn’t pay into 2 separate stocks and shares ISAs
I believe you can open multiple of the same account - it only applies to actually paying in money.
So can I cash in a Lisa if I wanted to buy another investment property prior to retirement age?
@@celiahall6168 from my understanding you lose the extra 25% benefit and actually lose 6% of the original investment too since you lose 25% of the total amount
Is anyone able to advise me?
- I haven't paid into and won't pay into another stocks and shares ISA in the same tax year that I pay into my Dodi investment ISA, unless that other ISA is being transferred to my Dodl investment ISA.
Does this mean I can only invest in one stocks and shares fund? For example if I invest in L&G global tech fund, can I not invest in S&P500 or other stock and share fund in the same financial year? Many thanks.
Hi mate, did you get any answers to this question? Just starting to learn and I’d love to know as well,
Thanks.
@@xlegendgamerprohi mate. Yeah so it’s all about the provider ie plum, dodi, Hargreaves Lansdown etc. You can have multiple stock and share funds so long as with the same 1 provider, in 1 financial year. Msg if this doesn’t make sense lol
You can open as many ISAs as you like, but you can only use a maximum of £20K per tax year to fill them up with. So you could have 1 with £20K or 5 with £4K in each.
You can split the £20K between different types of ISA too.
You can also open more ISAs in the same tax year to transfer old ones in to , but can't add more money if you have used the £20K allowance in that tax year.
So, go wild, but remember, £20K is the most you can add as a total for all your ISAs combined each tax year.
You could open two Trading212 accounts, stocks and shares ISAs and split £20000 between them in any tax year if you want separated accounts.
@@CharlieMUFC okay thank you
With inflation running at a four-decade high, a Recession is now the ‘most likely outcome for the economy. How can I grow my portfolio to outpace inflation and maintain a successful long-term strategy? I have been reading of investors making about $250k profit in this current crashing market, and I need ideas on how to achieve similar profits.
You’re right! The current market might give opportunities to maximize profi.t, but in order to execute such effective transactions, you must be a skilled practitioner.
@@purplebliss6875 On the contrary, even if you’re not skilled, it is still possible to hire one. I am a project manager and my personal port-folio of approximately $750k took a big hit in April due to the crash. I quickly got in touch with a financial-planner that devised a defensive strategy to protect and profit from my port-folio this red season. I’ve made over $150k since then.
who is this individual guiding you? I lost over $9000 just last week, so I’m in dire need of a financial-planner.
@@lindamattalom My advisor is “Deanna Lynn Renfro” is highly qualified and experienced in the financial market. She has extensive knowledge of portfolio diversity and is considered an expert in the field. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market`
Right now you’re better off stacking a high interest ISA and waiting for a crash before buying stocks
How can you say that 4% is a really good rate when inflation in running at 9% - obviously I’m using RPI since the government like to deny the reality of inflation and exclude rents/mortgage so use the CPI instead 😂
That's a fair comment, cash in savings accounts are still losing value relative to inflation
@@MattBrighton yeh mate ur correct on that it's madness isn't it. But I always think there's also a certain degree of scaremongering also because inflation affects ppl in different ways. My food bill has not gone up, fuel is way lower than this time last yr, but then rent/mortgages are £££ - I feel lime there shd be a personalised inflation calculator... maybe there is one out there? 🤔
The decline in my crypto portfolio in the last few days has been very disheartening. Holding doesn't really bring much profit. Any idea how to earn better in the short term?
30% max santander is rubbish i lost thousands over 8 years .
I think ISAs fall below pension in order of important. Your video doesn't really address this, but there is a huge difference between pre-tax and post-tax money. And ISAs are post-tax. Its not the incredible tax wrapper people make out because you already paid a chunk of tax to get the money in there in the first place. The argument being you pay tax on pension on the way out ... sure ... but at no point did you ever pay national insurance + you get 25% tax free withdrawal. Also couple an often over-looked fact ... a pension is recognised in every country you might conceivably want to retire to and you can just move it and pay the local rate of tax there ... again saving huge amounts of money potentially. No one outside of the UK respects an ISA. So if you retire to Spain and start paying taxes in Spain, you are going to be on the hook for CGT on that ISA of yours. I have no ISAs. I don't think they make very much sense to me.
Fundsmith
Years ago the stock market wasn’t available to ordinary working people, but with the explosion of on line trading and investment platforms, anyone can invest and hopefully make a better return on their money.
20k straight into TSLA 😎
Trouble is if everyone starts using them, the govt will shut them down
Preach. If everyone gets on the bandwagon the isa will be no more. It's just a matter of time at this rate.
In the near future, artificial intelligence (Ai) and cryptocurrency will outsmart the banking system and act as a worldwide fiat. Currently profiting by over 85% on my most recent investment
Wow! Please explain how that is feasible; I would appreciate any advice you have on how to proceed.
dreaming....
Evidence?
My wife had a stocks and shares ISA and after 3 years over 50% of it had gone, please steer clear of these guys
Stocks and Shares ISA's are not the core problem. This comes down to the type of fund you invest into. Also ensuring that you can keep funds in for 5 years + to factor any market dips.
You’ll never get 30% returns from funds in the next few years 🤣
Sounds like you got rekt sir
I love the energy and efforts you always put in your videos. The stock/crypto market can be very tricky especially for newbies. If it hadn’t been with the help of my broker Julia David, whom I can’t thank enough. I had already given up on crypto after losing so much money.
I'm surprised you know her too, I've been making a lot of profit investing with her for a few month now.
Amazing to see others who trade with Julia David, I'm currently on my 5th trade with her and my portfolio has grown tremendously.
I'm new at this, please how can i reach your broker
investwithjuliadavid1???
$SQQQ entire stack. growth stocks are done for the next 15 years