We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
£23k in shares ISA what do with it - help.
DebsDD
Posts: 37 Forumite
Hi, this is my first posting so I hope someone can help me.
My mother is 68 and since she started receiving her OAP pension she has put this money into an ISA which is a Virgin Tracker so we presume it is a stocks and shares ISA and now has £23,000 in it.
From reading the site I know she can not transfer this to a cash ISA but doesn't think it is earning as much interest as she could be. What should she do with this money?
She is intending to open a new cash ISA for her pension from now on as we think that is safer and she should be able to get more interest this way, is that right? She will not be receiving more than £3600 per year so the limit won't be a problem.
Any advice?
thanks a lot
Debbie
My mother is 68 and since she started receiving her OAP pension she has put this money into an ISA which is a Virgin Tracker so we presume it is a stocks and shares ISA and now has £23,000 in it.
From reading the site I know she can not transfer this to a cash ISA but doesn't think it is earning as much interest as she could be. What should she do with this money?
She is intending to open a new cash ISA for her pension from now on as we think that is safer and she should be able to get more interest this way, is that right? She will not be receiving more than £3600 per year so the limit won't be a problem.
Any advice?
thanks a lot
Debbie
0
Comments
-
You can transfer the funds to a new investment, maybe one thats lower risk? I seem to remember someone saying that the Virgin Tracker is quite high risk (however, not 100% on this).
However yes you can do the Cash ISA thing with future payments.0 -
My mother is 68 and since she started receiving her OAP pension she has put this money into an ISA which is a Virgin Tracker so we presume it is a stocks and shares ISA and now has £23,000 in it.
From reading the site I know she can not transfer this to a cash ISA but doesn't think it is earning as much interest as she could be. What should she do with this money?
What is her priority - capital gains or interest income? Now is not a good time to be selling out of an equity investment like a tracker fund, as the market looks to be near the bottom and may shortly start to recover. She will just crystallise losses by switching right now, not a good idea.
She can continue to invest in equities but also get an income (if that's what she wants) if she switches to a type of fund called an "Equity Income" fund. These funds pay a dividend income. This would involve moving the ISA to another provider, such as https://www.h-l.co.uk (which is the cheapest one) and reinvesting. She could also consider adding a corporate bond fund, which will also pay interest, and be lower risk.Trying to keep it simple...
0 -
she has put this money into an ISA which is a Virgin Tracker so we presume it is a stocks and shares ISA and now has £23,000 in it.
Virgin have a limited range of funds. Most are trackers or the climate change fund. nearly all are medium/high risk with potential for 50-70% loss in a 12 month period. Quite high risk for someone to stick all their money in.
There is increasing figures and comments to suggest we are near bottom (although only time will tell). So, she needs to decide if she is willing to sit in a such a risky fund or adjust the investments to give a spread that matches her risk profile. Eds covered off the DIY options available to her. She could also seek advice from a local IFA if she is unsure. Perhaps something she should have done at the start as its probably unlikely she would have ended up in such a high risk fund for 100% of the money and wouldnt have seen the losses she has had.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 354.4K Banking & Borrowing
- 254.4K Reduce Debt & Boost Income
- 455.4K Spending & Discounts
- 247.3K Work, Benefits & Business
- 604K Mortgages, Homes & Bills
- 178.4K Life & Family
- 261.5K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards