You’re a smart cookie and have tucked away some savings. Now you want to make them grow but what on earth are these investment people talking about with their “dead cat bounce” and “mean reversion”?
Don’t worry, we’re here to break down the language barrier and get you ready to take your first step into the world of investing.
The Telegraph’s personal finance podcast is back for a new series, and this time we’re here to help you get through life’s biggest money challenges, one step at a time.
Financial journalists Sam Brodbeck and Laura Miller will be on hand over the next twelve episodes with a bumper course of no-nonsense explanation and expert advice on everything from buying your first home to dealing with bank fraud and going freelance – and today we’re smashing down the barriers of perhaps the most confusing one: how to invest.
In this episode, join Laura, Sam and investment experts Holly Mackay and Simon Clements as they explain – in simple steps – how investing works, practical ways to get involved, and what to do if the company you’ve backed suddenly nosedives.
We also promised to share some handy tools with you.
Use the calculator below to see how much your money could grow with regular investments. Enter how long you’ll be investing the money for, what the annual returns are likely to be (between 4 and 6pc is reasonable) and how much you’ll be saving each month.
As we explain in the episode, investing isn’t free. Even small differences in charges can have a big difference on the size of your portfolio. And there are several layers of fees – there’s the cost of holding your money as well as underling fund manager fees.
The calculator shows you the impact of halving your investment fees, from 1pc to 0.5pc for instance. Even for small pots, the difference is startling.
Most investors use “fund supermarkets” to hold their assets. These also have a cost and these vary depending on how much money you have and how active you are.
Don’t forget that service levels differ too. A cheaper platform is likely to offer less support and may be more suited to an experienced investor, for instance.