How To Invest For Beginners (Starting in 2025)

[@imbarmstrong]

Good timing, for the last few weeks my youngest Nephew has asked me to explain how to invest his pocket money. Am going to start with this video.

[@TobyNewbatt]

Hope this helps!

[@JAMESKITTERIDGE]

Merry Christmas Toby, and thank you for holding my hand this year on my first year using Trading 212 and my stocks ISA. I am up 16% on my ETF and fingers crossed it will be up this time next year. In the words of some I know well “this time next year we will be millionaires” “or on the way” Thanks again for some of the best content on KZbin

[@TobyNewbatt]

Thank you!! And good luck

[@Caerdan]

Also, don't take advice from the KZbin comment section if they recommend any individual stocks (companies) or crypto, or name drop a ' 'professional' that they recommend. Stick to the information provided by Toby in his videos. These are most likely bots trying to advertise scams with comments that are designed to look helpful.

[@Blinky888]

I wish Google would do something about these.

[@TobyNewbatt]

I hate this bots so much I even have the filters turned on and it does nothing at all. Takes me all day to keep blocking and reporting them

[@genericusername5909]

Buy Berkshire Hathaway A series

[@liza5568]

@@TobyNewbatt I keep reporting them, I just can't stand these scammers.

[@Lucas-wn5wm]

​@@TobyNewbatt its like a whole syndicate lols

[@NightElff88]

Trading 212 got me into investing in 2020. It was a rough ride, but I have zero regrets. Thank you for the video Toby!

[@TobyNewbatt]

haha yes it has been a bumpy ride but I'm sure you are glad you started :)

[@NightElff88]

@@TobyNewbatt It's the second best decision in my life :)

[@adrianl5899]

Thanks for all the content you made this year, Toby! Wishing you and yours every happinesss in 2025.

[@TobyNewbatt]

Adrian thank you for your support and massive contribution to the community via the comments - it does not go unnoticed :)

[@theAmateurInvestorstory]

Great video as always Toby

[@user-mw2oe6xc7u]

Great video toby , I’ve been banging on to my partner about doing this for sometime, your the reassuring voice she needs , so new year new plan for her 👍🏻👌🏻

[@TobyNewbatt]

Good luck!!

[@lja8187]

Nice one as always Toby. I've used your pie. I'm quite late to start investing (I'm 42) but better late than never. I've just switched from Vanguard due to the fees. Started last year.

[@TobyNewbatt]

Never ever too late - welcome aboard the rollercoaster of investing :)

[@MDRashid0509]

How was the pie done for you? What return has it gave you in the past year!

[@MakeItCount-55]

Thanks Toby. Great guide for the start of the year. Hopefully, it will encourage those who have not yet taken the leap to make their money work harder for their future.

[@TobyNewbatt]

@@MakeItCount-55 exactly that thank you 👍👍

[@1292liam]

Happy Christmas and New Year ...to Toby Newbatt ! 🎄🥳

[@WealthyChronicle]

You had me at 'you don't need to be a genius to invest.' Just signed up and ready to start my journey! 🙌

[@TobyNewbatt]

👍🤣

[@amsterdamkim]

Excellent informative video 👍

[@TobyNewbatt]

Glad it was helpful!

[@SuchetB]

Thank you Toby - The genuine advice you gave in this video in the first 2 minutes, has made me subscribe to you and convinced me to invest - Thank you.

[@TobyNewbatt]

welcome and thank you :)

[@Abdul_Rahman86]

I’m a “seasoned” investor but I’ve just recommended this particular video to my mate just now

[@TobyNewbatt]

Always grateful thank you! I want to try and keep as much as simple as possible as you know investing can get really complicated! 👌👌👌

[@fesleymedia]

Thanks for the video Toby, a great resource for new investors.

[@TobyNewbatt]

Glad it was helpful!

[@andrew.d.london]

Great video, thanks Toby

[@jonathanreevescad]

Happy holidays Toby and all the best for 2025 🎉 great video for beginners.

[@TobyNewbatt]

Same to you!

[@Sabadiver]

Well done Toby, great video 👍🏻

[@valerienewbatt9678]

Great video as always Toby.

[@TobyNewbatt]

Thanks again!

[@stevemarra4459]

Went with the ftse developed world accumulating, always wondered why rami,Damien,chris prefer this and you prefer the ftse all world. Been investing 4 months so far so good

[@TobyNewbatt]

There’s very little difference between developed world and the all world - it’s about diversification. But remember that the emerging markets only make up about 10% of the equity market anyway.

[@nineteenninetyeight]

first video that i understood lol! thank you

[@TobyNewbatt]

Glad to hear that thank you!

[@AurelioWilderman]

I want to dive into Step Finance more. Any chance you could create a beginner’s guide?

[@notknownguy]

Perfect timing 😂🎉🎉❤

[@faithmbong9305]

Hello sir, please i am a Cameroonian please i want to buy stocks,what do i need

[@mr-cook]

Toby - great video - very helpful thank you. One question, I know the share value can go up and down and there is no protection like that, but what if the trading platform such as 212 collapses - is there are UK regulatory protection on getting our money out or back (such as the £85K government guarantee on savings accounts). This would be really useful to know as if I'm investing more than this limit I would know to use multiple platforms. Do you have any info on this?

[@TobyNewbatt]

I’ve done a video on this topic before if you go back on my channel. I think it’s called something like what happens if your broker goes bust!

[@davidwhitnall9783]

I have a lump sum and wanted to invest in this tax year, is now a good time or should I spread it out unto April?

[@TobyNewbatt]

@@davidwhitnall9783 always a great question. The short answer, backed up by the data, says you should not try and time the market. If you are a long term investor you will mostly be better off getting it in now. HOWEVER - it all comes down to you and how you’d feel if the market dips etc. if it stops you sleeping or stresses you out then just find a strategy that makes you most comfortable

[@davidwhitnall9783]

@ Just thought better than being in the bank and not earning much, didn’t know if the market is high or low at the moment

[@urmi396]

Thank you

[@TobyNewbatt]

you are very welcome :)

[@bm8641]

where do you invest your emergency funds?

[@TobyNewbatt]

I earn cash interest using trading 212 feature 👍 (which is money market funds and banks)

[@OllieD631]

Hi Toby, how long does it take for the Trading 212 free share to appear? I am in the process of moving from Vanguard to T212 and have done all of the required steps for the free share. Thanks

[@TobyNewbatt]

It’s usually as soon as money is in the account. If it’s a transfer then you might have to wait. Or you could pop a few quid in to make sure so long as that doesn’t mess with any allowances. Also double check you used the code Toby sometimes I have heard people with issues with cookies etc

[@OllieD631]

@TobyNewbatt Hmm, I have added in money through an instant bank transfer and have used the code. When I put the code in it says "you already claimed free shares for your sign up" but I haven't seen anything as of yet. Maybe I need to be more patient 😅

[@MrWatchAndwatch]

Toby with the xmas upload i see u

[@TobyNewbatt]

Providing the entertainment when theres nothing to watch on tv 🎅

[@MrWatchAndwatch]

@TobyNewbatt As someone that doesn't care about the holidays, I appreciate that. Now I at least had a vid to watch while eating lunch😎👍

[@amarnibishop310]

Just curious what S&P 500 do you invest with personally?

[@LatinoAaron]

Watch the video.

[@zedman442]

Would you suggest index funds ex-UK?

[@TobyNewbatt]

Personally I just like to own the world at its market cap weights. For all I know the UK might have a great few years considering how cheap the market could be argued to be. But feel free to do what you like 👍

[@BadgerFriday]

XTB have launched an ISA now too. Free. Competes with t212. I’ve opened an XTB ISA and, yeah, absolutely fine. Decent range of U.K. ETFS too.

[@JasonOsgood-jf2xz]

I have already maxed out my current 20k a year isa allowance (isa with bank...not fantastic returns) but want to now get started on 212....what are the pitfalls other than tax liability of me opening up a standard trading account on 212 and investing a few hundred until the new tax year starts?

[@TobyNewbatt]

That's all you have to worry about really, tax. But if its a small amount then you might not ever make enough to trigger anything like capital gains or dividends anyway. As a curve ball - what about putting money into your pension/ SIPP instead? This could be a very tax efficient way to do things :)

[@giftchisom7131]

Hello Toby I used your promo code and I got nothing😪😪. I created the account yesterday after watching ur video. I have deposited funds and I’m only able to see the money I deposited only. What am I doing wrong??

[@TobyNewbatt]

Very weird - can you double check and go to the promo code section now and try manually using TOBY again? So long as you are signed up, deposit at least £1, you will qualify.

[@paulsheridan3690]

Thanks, you kept it succinct. Others blind with terms and theories that cause confusion. Have made an initial venture into the 'World' pie and so it starts.

[@TobyNewbatt]

Thanks Paul - this is what I wanted to do with this vide start simply and then have other videos to build out in a bit more detail :)

[@drummingspain207]

I'm living in the UK and having watched this, I've just now noticed that my Vanguard FTSE All-World (Acc) is the European version (VWCE and not VWRP). Would there be any benefit in switching to the RP?

[@TobyNewbatt]

If you’re buying in euros then you are taking on that currency risk. Every time you buy with your pounds you are costing yourself an exchange rate. In the long term I’d prefer to just use pound

[@drummingspain207]

@@TobyNewbatt That makes sense, so thanks! I've already used up my ISA annual allocation so I'll have to wait until April as if I sell the euro version, I won't then be able to buy the sterling one. I really do appreciate the reply, so thanks again :) Hopefully, others won't now make the same mistake

[@adrianl5899]

Regardless of a fund's currency denomination, investors are only exposed to the currency of underlying assets (here it's USD). Thus you have no additional currency risk compared to someone using VWRP unless Vanguard starts hoarding Euro fund investors' cash rather than investing, against the remit of the fund. The thing of concern is whether or not you're needlessly paying fund/broker conversion charges, but other than that the denomination itself is irrelevant.

[@ObjColumnist]

@@drummingspain207if its in an ISA you can buy and sell what’s in an ISA whenever you want, only what money you add into the ISA counts towards the allowance.

[@lisamorgan2666]

Hi Toby, thank you so much for all your videos! I've opened up an account with Invest Engine using your link. I really appreciate you sharing your knowledge. I firstly read a book called 'Girls that Invest' by Simran Kaur, plus watching many YT videos and Google searches for a few months and now I feel ready. I'm investing long term, 20-25 years. I'm currently 48 and wish I learnt this sooner. I'll share your channel with my daughter. Thanks again!

[@TobyNewbatt]

Welcome aboard the rollercoaster Lisa :)

[@RM_3D]

is there any danger with the platform going under? if you have an account with Invest engine but the company fails or the app gets shut down or something? is that a possibility?

[@lawrencer25]

I wouid do some due diligence. Plenty of free videos and advice on KZbin. Plenty of brilliant books out there . Never invest in something you dont understand. Your money protected up to £85K . Read up about DCA and ETF'S. Good luck ❤

[@BatsAndBadgers]

Check if they are covered by government insurance for this. Trading212 covers you up to 86k if something happens to their platform

[@NightElff88]

It is a possibility (especially with InvestEngine, because they are not profitable) - but even if that happens, your funds are segregated and will be transferred to another platform if yours fails.

[@TobyNewbatt]

I did a video on this topic a while ago :) - worth watching that one to explain the process of what the FCA covers and how it would work :)

[@RM_3D]

@@TobyNewbatt I watched it an was very helpful thanks

[@hammyuk]

Season greeting Toby. Just woken up from hangover and watching you in bed on 65inch 4K tv (Samsung) with mug of English Breakfast Tea (PG). All the best for 2025 will be investing in bonds this year (£865)

[@TobyNewbatt]

More detail needed 🎅

[@christophersmith379]

Hi Toby. I started my investment journey this year putting money each month into the S&P. I can see the long term potential investing has on growing your cash. My dilemma is that I’ve been one of those people that has used an ISA savings account to save money. I can see the wasted opportunity doing this now but unfortunately I was none the wiser at the time because I thought investing was something for professionals or the super wealthy. My question is what is the best way of moving a large amount of funds (25K+) from a cash ISA into a Stocks and Shares ISA. Doing it in one hit isn’t optimal but drip feeding that into a S&P account will take a substantial amount of time also. Any thoughts on what you would consider doing? Maybe a video for those people with large amounts in a cash ISA and are looking to transfer it into the S&P for example.

[@JoashD]

Trading 212s S&S ISA pays interest on uninvested cash. I would transfer in the whole lot utilizing this and next year's allowance and set up an automated buy. Your uninvested cash will still earn interest similar to your cash ISA.

[@kw8757]

Who says moving it in one lump sum isn't optimal? Everything I've watched and read says moving it in a lump sum rather than dollar-cost-averaging gives better results over the longer term. You can only do what you are comfortable doing with your hard earned money. But for me it's a case of whack it in ASAP, and up to now, despite the ups and downs I don't regret it. There are also more diversified alternatives to the S&P 500, the US Equity Index Fund represents over 3600 US companies of all capitalisations and was advocated by Jack Bogel, but thats entirely up to you. Good luck for 2025 👍📈

[@christophersmith379]

@@JoashD Hi Joash. I transferred my Cash ISA to Trading 212 this year as well when I saw the interest returns compared to my banks rate. The roughly 5% return on that has been good. As we know interest rates are likely to go down so that sort of rate won’t last medium/long term. Transfer if it all eventually into a Stocks and Shares ISA going to give a better return long term but it’s just working out the best way to do it. With talk of a correction, who knows, I’m thinking about waiting for a possible dip and then to invest the bulk. Kinda like what Warren’s doing with his money. I’m not comparing my situation to his, just his cautious approach at the moment. In the meantime I’ll just invest in smaller increments each month as I have been doing this year.

[@adrianl5899]

If all the cash is meant for the long-term (5+ years, some more cautious would say 10+ for 100% equities) then the markets are expected to provide a better return than cash. Historically, lump sum investments have beaten drip-feeding the majority of the time. No-one can know what's 'best' this time round until it's happened, nor know how next year's 43% crash/16% gain will impact your investing behaviour. It's this final point (avoiding emotional inveator behaviour) which will ultimately have the greater bearing on future wealth rather than lump sum or drip-feeding of £25k.

[@ObjColumnist]

I would just move it all, you can invest it in a money market fund if the platform doesn’t pay interest on uninvested cash.

[@radders6569]

Doesn't an index overdiversify? You would have something like 0.0001% in a stock

[@kw8757]

If you don't fancy indexing why don't you pick individual stocks to buy? You could come back in a few years and let us know how it worked out for you. Good luck.👍

[@alextaylor610]

The index such as s&p 500 will move more of your money into the better performing companies..(vusa) 👍

[@TobyNewbatt]

That’s not how indexing works unfortunately. Make sure you understand it. The weighting is market cap based. It means the biggest companies get the largest portion. The top companies make up 25-30% of the index. With an index fund you can’t over diversify 👍. It’s a myth spread by grifters

[@radders6569]

@kw8757 yeah. So i was looking into Magnificent 7. Biggest companies like. Amzn, Msft, Meta, Goog, Ely Lily. Was thinking of putting 5-10% in those. And exit based on Monthly MACD crossing its signal line

[@radders6569]

@TobyNewbatt ah so. So would it not be worth just investing in the top 20-40 companies of the s&p500, for example instead?

[@Gavinfunk69]

Is property not the best option If you have a large pot of cash? I bought a house in Belfast for 88k in 2017. Now worth 220k, mortgage of 46k ~ £440 a month, currently renting for 1150. For the initial outlay of 22k + fees i have made 150k in equity + 4.5k a year in rent after bills including mortgage, insurance etc. My 16k isa has made me 1200 in 3.5 years. My gold coins have appreciated faster!

[@TobyNewbatt]

Over the long run stocks have beaten property by an enormous margin. You just need to look at the data. Property has done well during certain time frames with zero interest rates but there’s no free money anywhere. On your isa I am presuming you are talking about a cash IsA? Whatever you have there you are being taken for a ride. Use your isa for the better. All tax free. Property has so many make hidden costs you need to factor in

[@Gavinfunk69]

@TobyNewbatt it's a vanguard stocks and shares isa. I put 250 a month in after putting 3k in to open it. Just cehcked and ive made 1860 since it opened. With my first property, for 22k I have made, in total, nearly 200k, if I total the rental income and equity. Don't think any mainstream stocks are doing 900%. I also don't have to do anything. Its completely managed for me and dont know what tax your talking about other than income tax. When the mortgage is paid in 9 years, completely by rental income, it will be worth 300k and I will have made 80-100k over 16 years in rent after tax. So for 22k in 16 years I'll have made close to 400k. My tax bill on this property is through personal income tax and = 7.5k a year. Stamp duty is expensive but I won't pay that unless I buy another house. Sorry, I just cant see the math you all talk about or even an example that's better than the one I've detailed if you could show one? I bought another house in 2022. 147k now worth 200k and renting for 950 mortage is 612. After bills I make £60 a month but again I don't pay anything and it just goes up in value. Stamp duty was 5.5k. If I sold today I'd make around 35k after capital gains. 2 years for 35k with 40k invested - again i can't see any stock examples beating this if you can share one. I would sell up tomorrow

[@Gavinfunk69]

Would you have any examples or direct me to the 'data' your talking about? If i sell up, my CG tax is 19k so I'll have made 120k from 22k in 7 years plus the 7 years rental income. If you have a stocks example that beats that I'd sell up today! I'm really not trying to catch you out btw. Buying the first house was easy buying my 2nd house took 18 months and it only makes 60 a month after all my bills but has still went up in value by 25% since Feb 2022. Is Northern Ireland just a different market atm?

[@glennwhitlock1272]

Are you saying that the same house you bought in Belfast for £88k is now worth £220k?

[@TobyNewbatt]

@ there’s tonnes of data you can start here if you like: awealthofcommonsense.com/2021/05/200-years-of-asset-class-returns/ This shows long term returns across more than 2 centuries for all asset types. Doesn’t mean you didn’t make money in your personal situation. Property is highly illiquid, can’t be protected inside a pension or an ISA and has maintenance costs that get forgotten about 😀. It’s a liability and an asset at the same time

[@Bad_Gnasher]

The Magnificent Seven is +67% in 2024.

[@Poetrap1]

Nothing stays Magnificent for every. So investing in just MAG7 only is stupid mistake! Best to put in S&P as it includes mag 7 anyways

[@TobyNewbatt]

Yes true. But past performance is totally irrelevant when investing for the future 👍. It’s a lesson we all need to learn but nobody listens to unfortunately. If you chase the hottest stocks and trends you’ll end up like everyone else - underperforming massively! 👍👍. Also you own all the big stocks in any index fund -