Couple investing

Me and my girlfriend want to invest in the same stock every month.

Does it make sense for us to invest through just one of our accounts (so she’d send me her money to be invested through my account) so all our money is together and compounds quicker overtime?

Or does it make no difference and we can just invest through our individual accounts?

I was thinking it’s more effective to pool it to take advantage of compound interest but I’m not quite sure.

It won’t make a difference over time having it in one account, rather than two.

For example, if you each invested £1,000/month in separate accounts at an average return of 8.5%pa, you’d each end up with around £189k after 10 years - or a total of around £378k between you.

If you put £2,000/month into the same account at the same return and over the same period, you’d still end up with around £378k in total.

This site is a handy one for working out compounding https://www.thecalculatorsite.com/finance/calculators/compoundinterestcalculator.php

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even if there was a benefit to doing this, which actuary pointed out already that there isn’t, I would recommend against doing such a thing.

as it stands, you are still just dating. you aren’t engaged or married, and so in the case you end up splitting, whoever has their name on the account can just get up and walk away with all that money. this can and will likely cause tension and trust issues in the relationship and cause a large problem once you do split.

just get the same stocks in both accounts as then you also don’t have to worry about both of your risk tolerances.

If fractional shares weren’t an option then it would make sense in the short term to build enough balance to get both accounts started up, but thanks to fractionals you don’t need to worry about not having enough starting capital which is usually the reason people pool funds into a single account.

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Indeed.

The only benefit I could think of is if you were doing it to max out an ISA.

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I would keep it separate. You never know mate.

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