Each month I will be publishing the following regular progress updates toward achieving my second goal for 2016 which includes the pursuit of Financial Independence:
1. Portfolio Value and Net Worth as it stood at the end of the previous month
2. Income, Expenses and Savings achieved for the previous month
3. My Investing Choice for the previous month's savings
This post covers point 3 above: My investing choice.
Freedom Kitty Investment - Feb 2016
As I discussed in my Income, Expenses and Savings update I was able to save £1,048.22 toward my Freedom Kitty for February 2016.
Last year I decided that I wanted to have a stocks and shares ISA even if I was only able to invest a small amount into it, so since July 2015 I've been saving £150 per month into an ISA with St. James Place. With the tax year end fast approaching I decided that the best place to put my hard earned savings from February would be into this ISA - anything I can do to max out the ISA for the 2015-2016 tax year would be a good idea.
However, while I took time to decide where to put the money, as well as deciding what to do with some profit I made on the recent sale of my flat (which completed in January) I didn't get chance to invest the money during February. Therefore you will see when I publish my investing post for March how much I finally managed to transfer into my ISA before tax year end (essentially the sum of my savings from February, March and the profit from my flat) as well as the fund choice.
Sorry it's not much of an update about my investing for February, but since I have committed to providing 3 regular progress updates per month on my financial independence goal I felt it was important to be consistent and publish the 3rd post for February anyway (even though the detail will really be coming in March).
Personal Pension Investment - Feb 2016
In February my Personal Pension received a regular contribution from my Business Account of £3,000. My Personal Pension is held with St. James Place. Previously I'd had 3 different pension accounts which I'd accumulated from working at different places where a workplace pension was provided, so I chose St. James Place to consolidate these (a process I began back in February 2015).
One of the reasons I chose St. James Place (SJP) is because I don't know a thing about investing (or at least I didn't at the time of my decision!) and so I was looking for somewhere with a Financial Advisor I felt I could trust. Since my parents had held their pensions with SJP and were very happy with how their affairs had been handled it seemed a sensible decision to follow suit. I had previously sat in on some of their meetings with their financial advisor to make sure I was happy that everything was being done as I felt it should be (although I'm no expert, I have worked at a Pensions company in my past, and I felt I knew a bit more than my parents so could let them know if I felt anything didn't feel right!) I like that you get assigned a financial advisor who will always be your contact, and they will come out to see you at a place and time that's convenient for you several times a year (on an as-needed basis). So far I have been very happy with the SJP product and service, though it's a bit early to tell how well the investment will do.
Since I have a financial advisor at SJP he ascertains my propensity to accept risk, and selects the best investment options on that basis. The approximate split for the current allocation of my contributions is as follows (I've included links to the fund factsheets on Trustnet):
SJP Global Equity
SJP Schroder Managed
SJP Strategic Income
SJP Strategic Managed
SJP AXA Framlington Managed Pension
SJP Multi Asset
SJP Global Managed
Do you use a Financial Advisor or Company to invest with or do you undertake your own investing? If you self-invest, I'm interested to know how you first learned the basics of how to do it, and how you found the process of investing in the early days.
Do let me know in the comments if you have any thoughts...