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Whats the best way of investing long term?
Hi, we want to start investing some money every month, but really don't know where to begin. We are just going to leave it to grow and never touch it for about 20 years.
The thing is we just don't know where to start with stocks etc, I do know that it's best to split it between low risk and higher risk funds.
Where and how is the best way to research which funds to invest in?
Any advise would be really appreciated, thanks.
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Good for you. But - do not even consider investing (risking) money if you have debts - clear them first, particulary store cards and credit cards.
If you have a mortgage, consider paying that off, or off-setting your savings against the mortgage.
Then put cash into a mini cash ISA - they have reasonable interest rates and any gains are tax free. You can put in up to �3,000 in each tax year, so you could put in �250 each (in separate ISAs) each month. Most also have instant availability, so you can get it the cash in an emergency.
You should aim to have 3-6mths salary available in cash in case you lose your job so you can keep up payments on utilities/mortgage/etc - and the cash ISA is a good place for at least some of this.
Consider pension contributions - a tax-efficient way of saving for old-age.
For long term investments, equities (stocks and shares) have historicaly been the best bet. Take advice from an Independent Financial Adviser, preferably on a fee basis so you don't think her/his recommendations have been made on the basis of the commission s/he might receive.