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new to s&s isas

loopy_lou_6
loopy_lou_6 Posts: 88 Forumite
Car Insurance Carver!
in ISAs & tax-free savings
hi everyone. I have a mini cash isa and would like a s&s tracker isa, inthe recent edition of which magazine they had alist of all the providers and their charges. my question is should I go directly to the provider or through a fund supermarket or discount broker. Would this reduce the charges or not. In the article they also mention ETFs, can anyone point me in the right direction as to where these have been discussed elsewhere on these boards. thanks a lot
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Comments

  • cheerfulcat
    cheerfulcat Posts: 3,405 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    loopy_lou wrote: »
    my question is should I go directly to the provider or through a fund supermarket or discount broker.

    Hi, loopy lou,

    Go through a discount broker/fund supermarket - it's cheaper.

    In the article they also mention ETFs, can anyone point me in the right direction as to where these have been discussed elsewhere on these boards.

    Not on these boards, but there is a dedicated board on the Motley Fool which you may find useful, here. The ishares site is also very good.
  • dunstonh
    dunstonh Posts: 120,009 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    and would like a s&s tracker isa
    Why?

    What is it about a tracker that is desirable to you? Be wary as trackers have negatives as well (just as managed funds do) but many sites, including MF, do not give you the negatives.
    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.
  • loopy_lou_6
    loopy_lou_6 Posts: 88 Forumite
    Car Insurance Carver!
    dear dear Dunstonh, thankyou so much for all the tireless work you do on this site, and edinvestor and cheerfulcat. you guys are truly great. The simple answer to this is that i just dont get it. i have literally spent all day on here reading different threads and my head is hurting. i dont think im thick, i hold down a good job as a nurse. i have o levels and a levels, i speak fluent german, i run my house well and have no debts. in my circle of friends im actually thought of as being clever with money and budgeting, people ask for my advice. I want to invest some money, but not just stick it in a bank account or even a cash isa. my husbands salary covers all our outgoings, my income is pretty much disposable, we have a small house, small mortgage. I have looked at hyps over on mf but i just get lost. at this moment in time, i am kind of understanding etfs a bit and might considr them(probably only after i have asked you guys a number of really thick questions) I really dont want to sound rude but sometimes i dont think you appreciate how difficult this is for ordinary folk, for you its easy, because its your area. Equally, could you come into my life and get a roast dinner on the go, tackle the ironing while your at it, whilst being on the phone and babysitting your sisters 3 kids as well as your own. This for me is a walk in the park. as is investing for you. i would like some advice but please be patient with me
  • cheerfulcat
    cheerfulcat Posts: 3,405 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    Hi, loopy lou,
    I have looked at hyps over on mf but i just get lost.

    What's making you feel lost? Can I help?

    As far as trackers are concerned, I know that dh doesn't like them but I do. I especially like ETFs because they let you target specific areas. Most managed funds will not outperform trackers; I don't know why anyone would want to pay for management when what they're getting is closet tracking. Having said that, a tracker will only ever do what it says so if you want more than market performance you'll need to be more active!
  • loopy_lou_6
    loopy_lou_6 Posts: 88 Forumite
    Car Insurance Carver!
    yes please you can help but only if you are reall y patient and willing to put up with me! I know that everyone has different opinions and different comfort zones. But im thinking that my investment style will not be studying different indices and markets all the time, i just dont have the time or the brain cells. which is why the hyp looked good but i just dont know how to go about it even after having read all the posts. so i think for now i am going to settle on a etf/isa thing co s as i understand it diversification is important and i can do that with an etf without too much effort. I dont want to be the next warren buffet!
  • loopy_lou_6
    loopy_lou_6 Posts: 88 Forumite
    Car Insurance Carver!
    so do i go to that self trading website(having been referred by someone to get the 50 quid)set myself up and then i can buy different indeces and comodities within the same 'wrapper' thus exposing myself to different things as opposed to just getting a HSBC FTSE allshare index tracker.in which i would be just exposed to the ftse allshare? i know i need to fill in some gaps there but is my line of thinking right or am i way off base
  • SeanW
    SeanW Posts: 322 Forumite
    Selftrade is more expensive than Hargreaves Lansdown for funds, and they charge £25 a year for the ISA.

    For ETFs/iShares you will need a broker, Selftrade, with their £50 deal and free ETF dealing, will be ideal, however still costing you £25pa for the ISA though.

    In both, you can utilise different options, you could get a number of ETFs with Selftrade, or different [tracker] funds with H-L.
  • EdInvestor
    EdInvestor Posts: 15,749 Forumite
    If you want ETFs, the Selftrade ISA deal is excellent, with no dealing charges on purchases.ETFs are cheaper than trackers and you can buy and sell them like shares - they pay you your dividends regularly into your account which you can then reinvest for free.

    This will give you a better feeeling for how the stockmarket works than tracker funds. Good for newbies IMHO.

    If the HYP idea attracted you then the "IUKD" ETF would be worth a look, as it tracks high yield shares.There are also property and corporate bond ETFs as well as loads of equity ones covering many foreign stockmarkets.

    Why not choose a selection - eg 4 in a mini ISA?
    Trying to keep it simple...;)
  • cheerfulcat
    cheerfulcat Posts: 3,405 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    loopy_lou wrote: »
    yes please you can help but only if you are reall y patient and willing to put up with me!

    No problem. Everyone has to start somewhere!

    But im thinking that my investment style will not be studying different indices and markets all the time, i just dont have the time or the brain cells. which is why the hyp looked good but i just dont know how to go about it even after having read all the posts. so i think for now i am going to settle on a etf/isa thing co s as i understand it diversification is important and i can do that with an etf without too much effort.

    There are several articles on putting together a HYP - LINK. Putting together a portfolio of ETFs is going to require as much ( or depending on how you look at it, as little ) time as assembling a HYP, and you will certainly need to do a bit of research in both cases.
  • dunstonh
    dunstonh Posts: 120,009 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    I have no problems with trackers when they are used correctly. It's just they are a little over hyped and many people do not realise the level of risk that exists with a typical FTSE tracker. I would feel more comfortable with a novice investor not doing research ending up with a fund of funds (not a manager of manager though which really are over rated). Also, if it comes to it, give me an equity income fund over a FTSE tracker any dy.

    I bet if you asked most novice investors what their maximum tolerance to loss was, it would be less than what they droped in 2000-2002. These people are typically the ones that pull after a loss and then go around saying they will never invest in the stockmarket again. If they had just invested in line with their risk profile to begin with then they wouldnt have lost the money.
    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.
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