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Thinking about investing!
Stuart Studdart
Posted: 12 February 2018 16:40:24(UTC)
#1

Joined: 12/02/2018(UTC)
Posts: 5

Just gonna throw it out there, if I invest £50K into a company, do I need to pay that much each month? Yes I am too wet behind the ears, just want to know before jumping in.
AJW
Posted: 12 February 2018 16:54:36(UTC)
#2

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Typically you can buy shares on a stock exchange as frequently as you like, so no - you could buy £50k's worth and not buy any more.

I'd seriously consider funds rather than shares, and perhaps an IFA, if you are lacking in investment knowledge.
Sara G
Posted: 12 February 2018 17:09:26(UTC)
#3

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I'd recommend reading 'The DIY Investor' by Andy Bell and then have a look at some of the online platforms to see how things work.

£50K into a single company sounds pretty risky for a beginner... as AJW suggests, maybe try a few funds first and drip-feed the money in rather than go all-in.
Stuart Studdart
Posted: 12 February 2018 17:50:07(UTC)
#4

Joined: 12/02/2018(UTC)
Posts: 5

Okay, thanks, but how would investing in a company work of any amount of money? And I am guessing the book would be on Amazon.
Jim S
Posted: 12 February 2018 18:10:51(UTC)
#5

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Moneysaving expert has some good info to get you started:
https://www.moneysavinge...gs/investment-beginners

I would first educate yourself on the basics before you dive in. Going to a bookshop and browsing the personal finance section might also be worth doing.

When you buy shares in a company or a fund, they generally pay you a small a dividend once or twice a year. You don't have to keep paying the company you buy the shares in, instead they pay you a bit of their profits as long for as you hold their shares.

But as Sarah and AJW have said, avoid single company shares for a while and stick to well regarded funds, investment trusts or trackers. Those will buy you lots of companies' shares so that spreads your risk.
Sara G
Posted: 12 February 2018 18:11:36(UTC)
#6

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Yes, the book should be on Amazon - think that's where my copy came from.

Forgive me if I have misunderstood your question, but if you are asking how to invest different amounts over a period of time, the simplest way is via a DIY investment platform such as Hargreaves Lansdown (not the cheapest for share dealing at £11.95, but very simple to use and great customer service if you get stuck). You can place single deals or set up monthly contributions at £1.50 each, and don't forget there will be stamp duty to pay as well. The shares can be held in a basic Share account or within a tax wrapper - SIPP or ISA (subject to annual investment limits).
Stuart Studdart
Posted: 12 February 2018 18:13:36(UTC)
#9

Joined: 12/02/2018(UTC)
Posts: 5

Okay, I pay once into something and get profit. I'm starting to understanding it, I will buy the DIY investor book and do my research. Thanks again.
Stuart Studdart
Posted: 12 February 2018 18:20:23(UTC)
#7

Joined: 12/02/2018(UTC)
Posts: 5

Sara G;57038 wrote:
Forgive me if I have misunderstood your question, but if you are asking how to invest different amounts over a period of time, the simplest way is via a DIY investment platform such as Hargreaves Lansdown (not the cheapest for share dealing at £11.95, but very simple to use and great customer service if you get stuck). You can place single deals or set up monthly contributions at £1.50 each, and don't forget there will be stamp duty to pay as well. The shares can be held in a basic Share account or within a tax wrapper - SIPP or ISA (subject to annual investment limits).


What I am asking, is do I pay each moth or can I just do a one time and let the investment do it's work without putting more into it.
Sara G
Posted: 12 February 2018 19:55:37(UTC)
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Yes, you can make a single share purchase and then leave it without adding more. The dividends will still keep coming in.
Jay Mi
Posted: 12 February 2018 20:01:19(UTC)
#8

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Stuart Studdart;57040 wrote:


What I am asking, is do I pay each moth or can I just do a one time and let the investment do it's work without putting more into it.


You can do a one time investment. And forget about it for 20 years. The dividends if any, you can choose to pay into your bank account, into your dealing platform or to be auto-reinvested (buy more of the same shares). The dealing platform may have a holding charge.

You're not obliged to keep investing each month. You can set up monthly investments on some dealing platforms.
Stuart Studdart
Posted: 12 February 2018 20:57:30(UTC)
#11

Joined: 12/02/2018(UTC)
Posts: 5

Thanks chaps and ladies, makes sense, and I have ordered the book. Thanks for the recommendation and making things simple.
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