Vanguard LS Question
lindabea
Posts: 1,477 Forumite
Hello all,
Just invested some money in an LS60 ISA - just wandering about the general opinion on this forum regarding the deduction of platform fees. Is it best to have the fees deducted from
1 your bank account
2 by selling units
3 deducted from a cash account
Vanguard tell me that if I am fully invested in an ISA wrapper, I cannot have funds sitting in a cash account - I will need to open a general account.
Would appreciate your comments about the best way of handling this situation?
Just invested some money in an LS60 ISA - just wandering about the general opinion on this forum regarding the deduction of platform fees. Is it best to have the fees deducted from
1 your bank account
2 by selling units
3 deducted from a cash account
Vanguard tell me that if I am fully invested in an ISA wrapper, I cannot have funds sitting in a cash account - I will need to open a general account.
Would appreciate your comments about the best way of handling this situation?
Before doing something... do nothing
0
Comments
-
Hello all,
Just invested some money in an LS60 ISA - just wandering about the general opinion on this forum regarding the deduction of platform fees. Is it best to have the fees deducted from
1 your bank account
2 by selling units
3 deducted from a cash account
Vanguard tell me that if I am fully invested in an ISA wrapper, I cannot have funds sitting in a cash account - I will need to open a general account.
Would appreciate your comments about the best way of handling this situation?
I just leave a small amount in cash in my ISA and they will deduct the fees from that, i just make sure i have enough to cover the fees.
Also i use Charles Stanley Direct and i recived a email last week to confirm my NI number because of new regulations, i will have to sign in and check that one.:T0 -
Assuming your are with Vanguard Investor then I would fully invest the cash to get maximum long term return and let them sell them down as appropriate to cover the fees.
On the DIY platforms they can charge a penalty for doing this (even greater than a normal rate cost) but with Vanguard direct it's ok there are no fees for trades, even those to cover fees.
Alex0 -
Hello all,
Just invested some money in an LS60 ISA - just wandering about the general opinion on this forum regarding the deduction of platform fees. Is it best to have the fees deducted from
1 your bank account
2 by selling units
3 deducted from a cash account
Vanguard tell me that if I am fully invested in an ISA wrapper, I cannot have funds sitting in a cash account - I will need to open a general account.
Would appreciate your comments about the best way of handling this situation?
A simpler solution might be to use an ISA provider that doesn't charge to hold these products. iWEB for example charges no ongoing fee for holding an ISA and no charge to hold LifeStrategy. There is a £5 charge when you buy or sell the fund and that is deducted from the proceeds of the transaction.0 -
A simpler solution might be to use an ISA provider that doesn't charge to hold these products. iWEB for example charges no ongoing fee for holding an ISA and no charge to hold LifeStrategy. There is a £5 charge when you buy or sell the fund and that is deducted from the proceeds of the transaction.Eco Miser
Saving money for well over half a century0
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