Investment Quickstart for beginners
Today, I would like to share a Quickstart guide for UK beginner readers. After this 5 minute Investment Quickstart For Beginners, I am confident you can take the first step into your investment journey.
Imagine investing money into amazing companies like Facebook, Amazon, Unilever, Prada or Netflix from your phone and grow your wealth with these companies.
If you stick till the end, I shall also share my 5 Recommendations on which index our low-cost funds to Buy ahead.
Stocks and Shares Investing is one method of growing money while you sleep.
Simpel 5 steps to wealth building
I have simplified the formula of Investing in the UK. It is as simple as these 5 steps. This is not a get rich quick scheme but a long term investment to help build your investment portfolio. I have also catered a beautiful infographic below if you are short on time. The details of the steps are explained below.
Investment Quickstart For Beginners UK 2019 Edition
1. Sign Up to Hargreaves Lansdown
I am getting straight to the point. Read here for my video review. Finding a broker is not easy. You need a broker with a simple to use the app. Good security login. An established business which will be around when you retire. Platform with a vast collection of various EU and International shares. Excellent customer service. Hargreaves Lansdown covers all mentioned above. Other cheaper low-cost platforms are too young and unestablished. I am worried about putting my vast amount of monies in these new unestablished startups.
Online Stock Broker
We trust them with our Family and Children's money.
2. Open a Stocks and Shares ISA.
UK is the only few developed tax paying countries which offer tax-free investment platform which allows UK tax-payers to invest £20,000 per financial year. All the profit gained from these investments is tax-free. (Note: Dividends paid are capped at £10,000 tax-free per year). So if you earned £1,000,000 that is all tax-free and withdrawable.
For children, you are allowed Junior ISA which is max at about £4,000 per year.
3. Minimum Deposit of £100 to start.
The cost of dinner meal for 4 or 2 new pair of jeans (£100) is your starting minimum allowed to begin your first investment. You do not need to be a rich tycoon to start investing in 2019. It is so simple that you do not even need to turn up at the branch. All can be sorted via your phone, tablet or PC.
4. Buy Index or Low-Cost Fund.
Do not complicate the journey. Instantly diversify your portfolio by buying an INDEX or Low-Cost FUNDS first. An index or fund is simply a collection of great companies in a single investment. SNP500 is a US index which consists of Facebook, Amazon, Netflix, Johnson & Johnson, PepsiCo and many more. FTSE100 is a UK index of the large capital companies such as BP, Unilever, Diageo, Ocado, HSBC and many more. Emerging Market Asia Funds consists of Alibaba, Nintendo, Toyota and many more. The list goes on.
5. Regular £25 a month.
Do not expect your £100 to turn into a magical wealth. You need to regularly feed it on at a minimum of £25 direct debit a month. This is like a Friday night take away a week.
Do you know if you have started with £100 and invested £25 regularly for the last 10 years, you would earn £5709.98?
2019 top 5 recommendation
As promise, I am sharing my Top 5 Index and Low-Cost Funds recommendations. For more you can always visit Coo’s Hot Stocks here. If you want to learn more about building that 6 figure or milliona dollar portfolio take the SUPER FREE course here!
My 2019 Favourite Fund. Grown more than 18% this year. Low cost fees of 0.41%. You own Disney, Unilver, Heineken, Prada, Nintendo and many more. A super gloabl diversified funds for all investor.
A low cost fees of 0.06%. Unbeatable fees on the largest economy country in the world. you own a peice of Microsoft, Facebook, Netflix, Apple and many more!
A low cost fees of under 0.38% which focuses more on technology based companies. Their top 3 holdings are Microsoft, Apple and Facebook. Remember Apple and Fb cost over $200 a share. This index is under 60p per share.
These are collection of companies whom have strong sense of corporate responsbilities in recycling, carbon footprint and sustainable energy.
Another low cost index of global top capital growth companies.
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