Freedom Kitty Investment - March to April 2016
In March I used a combination of savings from February & March as well as profit from my flat sale to max out my 2015-2016 ISA with St. James Place. This saw me transfer in £14,810.53, meaning that the total money paid toward the ISA in the tax year was £16,010.53 (the excess over the annual ISA allowance of £15,240 was for initial fees).
Prior to making this lump sum transfer I'd only been investing £150 per month into the ISA and for that reason I'd been recommended to direct my money into just one fund. My lump sum investment therefore also went into this one fund. So my 2015-2016 ISA is invested in the UK High Income UT - Acc fund, a link for the Financial Times fact sheet on this can be found here.
At some point I will discuss with my financial advisor diversifying my fund choice a bit for the ISA - probably later this year.
Freedom Kitty Investment - May to August 2016
Of the available money I'd put aside for investing into my Freedom Kitty in May - August, I actually invested £2,500 of it. I was particularly busy with our house move during May and June so it took me a while to find time to investigate and choose where to invest for the 2016-2017 tax year. Making use of the Monevator's superb resource page "Compare the UK's cheapest online brokers" (which has been updated in August 2016), I finally made a decision at the start of July and opted to open an ISA with Lloyds Bank Direct Investments Online.
I decided that I would like to set-up a regular investment plan rather than just making ad hoc transfers into the ISA (in reality I will probably end up doing a combination of both). So I have set-up a plan to invest £1,000 per month from July onward. In addition to this, I also transferred a one-off contribution of £500 into the ISA in July so that I could test out how the investing process worked (seeing as I was completely new to online investing).
I have opted to keep things really simple for now, so my investments were as follows:
- £500 lump sum investment into Vanguard LifeStrategy 80% Equity Fund A Acc
- £1,000 regular investments into Vanguard LifeStrategy 60% Equity Fund A Acc
For now my ongoing regular investments are set-up to go into the Vanguard 60% LifeStrategy fund, but I may look to change this in future months.
Personal Pension Investment - March to August 2016
For the period March - August 2016 the following contributions from my Business Account were made into my Personal Pension:
- March: £3,000
- April: £3,000
- May: £1,000
- June: £ 350
- July: £1,000
- August: £1,000
- TOTAL: £9,350
The amounts fluctuated because I was going through a period of not doing any work contracts (for 4 months), therefore without any income source I opted to reduce the contributions to my pension scheme slightly.
Since I have a financial advisor at St. James Place where my Personal Pension is held, they select the best investment options for me based on my propensity to accept risk. The approximate split for the current allocation of my investments is as follows (I've included links to the Financial Times fund factsheets):
SJP Global Equity - 14.5%
SJP Schroder Managed - 14.5%
SJP Strategic Managed - 14.5%
SJP AXA Framlington Managed Pension - 13.5%
SJP Global Managed - 13%
SJP Worldwide Managed - 13%
SJP International Equity - 9.5%
SJP Multi Asset - 5%
SJP Strategic Income - 2.5%
It's quite an interesting exercise for me to delve into the funds which are underlying my pension investments, because I have to confess that most of the time I'm largely unaware of where the money is invested having chosen to leave these choices in the hands of my financial advisor. I've received comments previously and have seen similar view points while reading other personal finance blogs, that the charges for my pension funds are considered high, particularly compared to what I would likely choose if I managed my pension investments myself. However, for now I'm happy with the status quo of where things are. Time is a very precious commodity for me, I have many projects I'm working on at any given time, so it's nice to be able to invest into my pension without having to worry about monitoring and selecting the investment choices. I'm having a dabble at my own investing in this year's ISA to see how that goes, maybe at some point in the future I'll reassess things, who knows!
The key thing for me right now is that I'm investing more money than I ever have before, and it's all moving me in the right direction to my goal of becoming financially independent by the time I'm 50.
If you have any thoughts on my investment choices, or anything else about this blog please do let me know in the comments below...