Investment platform / general advice

Jeems

So I'm taking the plunge and opening a S&S isa finally. Lots and lots of reading, I think I'll never be able to read it all anyway so want to take the plunge sooner rather than later.

I put £10k into an old cash isa earlier this year so want to invest the remaining £5240. In the new financial year, I will be able to top up the full allowance almost immediately - would people recommend drip feeding or just putting 20k straight in? Would that depend on market conditions at the time?

I'm probably gonna go for the VLS80 as my main fund with maybe 2/3 other funds to compliment (still researching). But regardless, I want to get it up and running and add funds in the near future.

Initially I was going to go for Halifax share dealing but I'm thinking if I've only invested such a small amount now, would it better to go Charles Stanley/Cavendish first so I can open multiple funds and only be charged 0.25% on £5240 (£13). Then when I'm happy with my chosen funds, I'd transfer the lot to Halifax and then top up next years ISA allowance. So no fee's for opening the funds. Or is that too much hassle to save £50 or so on platform fees?

Finally, if I purchase a fund that's not available via Halifax, what happens if I transfer my portfolio across?

Cheers all

george4064

I would invest the lump sum, research has shown that investing a lump sum earlier is better than drip-feeding that lump sum in the market over time..

"Time in the market, not timing the market" is a fitting saying for this.

If I were you I would just go with Halifax from the start.

ColdIron

Charles Stanley Direct charge £10 per holding to transfer out so that probably puts a spanner in the works

grey_gym_sock

you could put the whole £5240 in VLS80 with halifax now, and only add extra funds when you put in next year's ISA allowance.

Jeems

ColdIron wrote: »

Charles Stanley Direct charge £10 per holding to transfer out so that probably puts a spanner in the works

Cavendish online dont right?

grey_gym_sock wrote: »

you could put the whole £5240 in VLS80 with halifax now, and only add extra funds when you put in next year's ISA allowance.

Yes I think I may do. I'm not afraid of risk, but I'm also considering VLS60. Reason being. the other funds I'm looking at supplementing the VLS with all seem to be equity driven (90%+). Thoughts?

ColdIron

Jeems wrote: »

Cavendish online dont right?

What do their T&Cs say?
You should be completely clear on charges before investing any money and don't take the word of someone on an anonymous forum

dunstonh

I'm probably gonna go for the VLS80 as my main fund with maybe 2/3 other funds to compliment (still researching).

Why 2/3 other funds?
What is it about the asset allocation of the vanguard fund that you feel is wrong and that you can do better?

You are only investing a small amount. having 3/4 funds (including VLS) is largely pointless. It will create extra work for you would only be doing it if you think you can do a better job than vanguard. If that is the case then you may as well go with a managed multi-asset fund instead. There are plenty of those with better track records than vanguard.

would people recommend drip feeding or just putting 20k straight in? Would that depend on market conditions at the time?

statistically, phasing results in lower returns more often than investing in one go. You will never know what option is best in advance or what market conditions currently are without hindsight. When you invest you need to be prepared to know that you cannot time these things. A drop will happen and you wont know when. You only know it will happen.

Initially I was going to go for Halifax share dealing but I'm thinking if I've only invested such a small amount now, would it better to go Charles Stanley/Cavendish first so I can open multiple funds and only be charged 0.25% on £5240 (£13). Then when I'm happy with my chosen funds, I'd transfer the lot to Halifax and then top up next years ISA allowance. So no fee's for opening the funds. Or is that too much hassle to save £50 or so on platform fees?

Again, this is a lot of effort and hassle for a small amount. Just go with the one that offers the features and works for you at the best cost. Dont go mucking around with plans to transfer. Indeed, being out of the market for a week would likely cost you more than the cost difference over the year (or even multiple years).

SpeedSouth

Hi,

Hijack this thread as it is related. A week or so back I spotted a thread with an excel sheet to calculate all the costs related to the various platforms but didn't download it Tried searching but can't find it.

I've currently got Charles Stanley accounts as when I set it up it appeared to be the cheapest but now it looks like Halifax will be, given CS is a commission based structure and I'm exceeding £20k now so the Halifax will likely be cheaper at a fixed price of £36.50 by looks of it.

Just wanted to try and double check that, even assuming my CS closure fees.

ColdIron

You are looking for this thread

HSD may not be the cheapest if you do a lot of buying or selling although they do have a regular investment program

Plug you numbers into this and try some what ifs
http://www.comparefundplatforms.com/compare

MPN

I know that you can never time the market and as george4064 said it is 'time in the market' which I agree with, however, my partner currently still has her full 15,240 ISA allowance but wants to hang on for a few months so see what happens until the end of this tax year.

She feels that nothing is of particular value at the moment and prices are very high so it's worth hanging back to see if anything alters over the next two months? If not, then she will have to invest before the 5 April and you never know prices may be even higher. I personally feel she should of invested some time ago after Brexit but she resisted so I suppose we won't know who's right until a few months time!

SpeedSouth

ColdIron wrote: »

You are looking for this thread

HSD may not be the cheapest if you do a lot of buying or selling although they do have a regular investment program

Plug you numbers into this and try some what ifs
http://www.comparefundplatforms.com/compare

Thanks, that was the one.

I only invest monthly into VLS by DD, so I'll run some numbers. I think using the link you provided I don't count a monthly investment as trade so there does skew the numbers away from HSD a lot.