Hi all. I have 10k sitting in a savings account which is earning 0 right now. Obviously there's a risk by investing this instead of leaving it there, but I'm happy to take that risk. In terms of risk tolerance, I'm thinking of splitting my investment between long-term and short-term stocks (70/30) so it would be high for that 30%. The reason for this is to try and take advantage of the CGT allowance each year, if it comes to that.
- Do most people make use of the annual allowance each year? Let's say your portfolio is made up mostly of long-term investments, does it make sense to supplement it with some attempts at making short-term gains? Or do people tend to sell some of their long-term stocks to get that 1.2k each year?
- How frequently do people here tend to buy and sell? Is it a bit of a nightmare in terms of tracking and then filing the CG1 at the end of the year?
- Somewhat linked to the above, how much should I be looking at in terms of fees per month? What stocks should I be looking at? IE stocks are €2 + 0.05% and US stocks are €0.50 + $0.004 per share. So should I be focusing on the latter and investing in those listed on the NSY only? Does it matter picking NSY/NDG/TDG etc?
- My initital investment will be 10k. What's the general consensus in terms of splitting a sum like that? I will be adding to it each month afterwards but I'm wondering if I should be looking at 2,3 or 5 companies initially.
- For the short-term investments, am I wasting my time looking at high valued shares (e.g. $300+) if I'm going to invest 1k?