Important information - the value of investments and the income from them can go down as well as up, so you may get back less than you invest.
I turned 25 recently. My goal for the year ahead is to feel more empowered with my finances.
To tackle the tricky questions like “How much do I save per month?” and “What do I invest in?” I used Fidelity’s tools for guidance.
Boosting my rainy-day fund
Prior to working at Fidelity, I kept my rainy-day fund in a regular savings account. Now I’m more financially savvy, I put these savings in a Stocks and Shares ISA which I aim to keep brewing for the next five years.
While I know how much I want to invest per month, I was unsure of how this sum would grow over the next couple of years.
If I could see an estimated figure, it would motivate me to save even more.
The Fidelity Stocks and Shares ISA calculator is a helpful tool to find this information out.
All you need to do is enter how much you want to save regularly - either monthly or regularly, whether you want to contribute any single payments, the value of your existing ISAs, the rate of growth and the number of years you plan to save.
The results also feature a helpful visualisation that breaks down the amount invested and the positive return. Remember the value of your investments can go up or down.
After using this tool, I plan to increase my monthly payment from £100 to £120.
Choosing my investments
What you choose to invest in is dictated by your personal circumstances like your age, financial goals and the type of account you want to invest in.
If you’re new to investing and looking for a diversified fund in a few easy steps, the Navigator tool may be a good fit. It can help you invest in a multi-asset fund.
I wasn’t interested in investing in a multi asset fund, so this tool wasn’t the right fit for me.
Select 50
The Select 50 is a list of funds selected by Fundhouse, an independent fund research company. It includes active and passive funds, investment trusts and exchange-traded funds.
The Select 50 tool allows you to filter according to fund provider, asset class, investment association sector, Morningstar rating, ongoing charge and management style.
If you’re new to investing, it’s a nice tool to help you find the fund that's right for you. (If you’re looking to browse through all the funds on our platform, the Investment Finder is a good option.)
Another handy feature is ‘our view’ tab on the fund factsheet - it’s a short paragraph that explains why Fidelity likes the fund.
This was a helpful tool when I invested in my SIPP.
Retirement
Although retirement is a while away, I want to ensure I’m saving for future me. That’s why I contribute to my SIPP and workplace pension every month.
There’s two tools available - a retirement calculator and a pension calculator.
I opted for the pension calculator to see what my projected savings and projected income were. Interestingly the tool offers two projected pensions - one where the market performs average and another for when the market performs poor.
Ed Monk highlighted the pension calculator in his latest article on how to perform a mid-life MOT.
I know volatility is part and parcel of investing but since a pension is a long-term investment, I’m hoping to ride it out.
Regardless of where you are in your investment journey, tools are a good way to help you navigate the details. And it saves you getting the notebook and pen out.
Important information - investors should note that the views expressed may no longer be current and may have already been acted upon. Tax treatment depends on individual circumstances and all tax rules may change in the future. Withdrawals from a pension product will not be possible until you reach age 55 (57 from 2028). Select 50 is not a personal recommendation to buy or sell a fund. Please note that these guidance tools are not a personal recommendation in respect of a particular investment. If you need additional help, please speak to an authorised financial adviser. You should regularly reassess the suitability of your investments to ensure they continue to meet your attitude to risk and investment goals. This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice.
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