Image source: Getty Images
How can a stocks and Shares ISA investor get started in 2024?
I've had an ISA for years and know my strategy. But I still believe that listening to all the opinions I can find is a good idea.
So I've been checking out what the experts are saying about ISAs and investing in UK shares, ahead of the New Year.
People are often held back by a series of myths. And I'm happy to see Hargreaves Lansdown exploding some of them.
For the rich?
People often think that stocks are only for the rich and that they don't have enough to buy them.
Well, Hargreaves Lansdown allows us to open an ISA with as little as £100, or monthly direct debits as modest as £25. AJ Bell is similar, with a minimum lump sum of £500, or the same monthly direct debit of £25.
I chose those two only because I know them; most ISA providers have very similar offerings.
And we don't need to make a purchase right away. We can accumulate cash in our ISA until we have enough for a profitable investment.
Mid-cap stocks?
The people of I G Remind us that although the Bank of England base rate has peaked at 5.25%, it is likely to remain high for some time yet.
They also feel that many mid-cap stocks look undervalued, and others also think the same.
So maybe the FTSE 250 could be a good place to look for ISA shares in 2024.
Over the long term, the smaller index has easily outperformed the FTSE 100. But it has receded in recent years.
Bigger may not be better
I am always cautious when comparing stock indices. Unless we opt for a tracker, we don't buy an index. We buy shares of individual companies.
So I choose based on the company's performance and the value of the stock, not what index it is in. In this case, I want to be careful not to see the trees for the wood.
Still, if I have to invest some money in a tracker in my ISA next year, I think I might opt for one from the FTSE 250.
The best stocks to buy?
What individual stocks are experts highlighting for 2024?
Curiously, Rolls-Royce holdings seems to be a popular option. And that's even after the share price has tripled in the last 12 months.
Many commentators point to high dividend-paying stocks as possible options for next year. And, although forecasts are being tightened a bit, they still suggest that dividends should continue to grow over the next two years.
Fidelity has HSBC Holdings and National Network among your top dividend picks. And I like both.
Common thoughts
Everyone has their own favorite stocks and Shares ISA for 2024 and beyond.
But the one thing everyone seems to agree on is that we should use as much of our ISA allowance as we can and start investing as soon as possible.