Stocks & Shares ISAs
Comments
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Hi,
I have a Stocks & Shares ISA (Homeplan) that has been running for abot 15 years (this was set up jointly with my partner so we both contribute) to assist in paying our mortgage off (Jun 2018).
I would like to cash in about 75% of the current S&S ISA (approx. 70K) & we will continue to pay in £300 per month to it. I'm concerned about leaving all this money in the S&S ISA when so near mortgage pay off.
I have checked and there are no fees associated with withdrawing the money. I can only pay 10% overpayment on my mortgage of approx. 100K.
Main question is: The money I withdraw will be used to pay off majority of my mortgage Jun next year, I guess we can both put some of this remaining money into cash ISAs as long as it doesn't exceed the total allowance for each of us for the year! Any advice welcome.
Thanks0 -
I would definitely consider cashing in now given how soon the money is needed.Hi,
I have a Stocks & Shares ISA (Homeplan) that has been running for abot 15 years (this was set up jointly with my partner so we both contribute) to assist in paying our mortgage off (Jun 2018).
I would like to cash in about 75% of the current S&S ISA (approx. 70K) & we will continue to pay in £300 per month to it. I'm concerned about leaving all this money in the S&S ISA when so near mortgage pay off.
I have checked and there are no fees associated with withdrawing the money. I can only pay 10% overpayment on my mortgage of approx. 100K.
Main question is: The money I withdraw will be used to pay off majority of my mortgage Jun next year, I guess we can both put some of this remaining money into cash ISAs as long as it doesn't exceed the total allowance for each of us for the year! Any advice welcome.
Thanks
The interest generated by £70k is unlikely to exceed a couple's personal savings allowance (if basic rate taxpayers), so using a cash ISA might not be the best option if you can find a better non-ISA rate. If you do wish to use a cash ISA, you may be able to do a partial transfer through your ISA provider, assuming your S&S ISA permits this. That way you'd not be limited to your allowance.0 -
I'm in my mid 30's, and I own my home via a mortgage on ~2.2% apr. My mortgage balance is currently only £25,000.
I have just invested my full £20,000 isa allowance on a monthly income fund that apparently pays 0.5p/share/month. I invested using the HL platform, and they told me to expect about £102 income per month paid into my bank account.
It sounds too good to be true. If I knew such funds existed, I would have started investing 2-3 years ago when I was very liquid. I'm hoping to keep investing in the fund using other non-isa accounts until I'm able to achieve an income of £1000/month from it, not bad to look forward to in retirement, aye?!0 -
I'm in my mid 30's, and I own my home via a mortgage on ~2.2% apr. My mortgage balance is currently only £25,000.
I have just invested my full £20,000 isa allowance on a monthly income fund that apparently pays 0.5p/share/month. I invested using the HL platform, and they told me to expect about £102 income per month paid into my bank account.
It sounds too good to be true. If I knew such funds existed, I would have started investing 2-3 years ago when I was very liquid. I'm hoping to keep investing in the fund using other non-isa accounts until I'm able to achieve an income of £1000/month from it, not bad to look forward to in retirement, aye?!
What's the fund?0 -
It doesn't sound so unreasonable. It is a 6% yield, which is within the scope of a high income fund. Of course, the income could go down in the future, as could the capital value of your investment.I have just invested my full £20,000 isa allowance on a monthly income fund that apparently pays 0.5p/share/month. I invested using the HL platform, and they told me to expect about £102 income per month paid into my bank account.
It sounds too good to be true. If I knew such funds existed, I would have started investing 2-3 years ago when I was very liquid. I'm hoping to keep investing in the fund using other non-isa accounts until I'm able to achieve an income of £1000/month from it, not bad to look forward to in retirement, aye?!
As an aside, I hold investments where I receive 1% per month, but again these are not without capital risks.0 -
It sounds too good to be true. If I knew such funds existed, I would have started investing 2-3 years ago when I was very liquid. I'm hoping to keep investing in the fund using other non-isa accounts until I'm able to achieve an income of £1000/month from it, not bad to look forward to in retirement, aye?!
When you're in your 30s surely growth is more important than income?Remember the saying: if it looks too good to be true it almost certainly is.0 -
A few people have stated as absolute that the only way to invest in funds is via a platform. That it is not possible to invest via the fund manager directly.
This is not true.
For many years I've invested into index trackers with Legal and general directly. I have only gone with platforms for active managed funds as the platform reduced the initial and annual management fees and hence it was cheaper to invest via the platform.
From my reading of the fees, it is better for people to invest in two of the funds listed (The L&G UK Index and the L&G US Index) directly with L&G themselves. It certainly was in comparison with investing via H&L as H&L gave no reduction in the AMCs (there are no initial fees) and added their own platform fee on top.
So am I right in that in this case (L&G) the charges are lower going directly? In which case why would anyone use a platform for these funds?
Vanguard have a cheap platform to invest directly on a % basis.
https://www.vanguardinvestor.co.uk/ https://www.vanguardinvestor.co.uk/what-we-offer/fees
https://www.theguardian.com/business/2017/may/16/vanguard-funds-investment-isa-uk-fees-hargreaves-lansdown-fidelity
It was mentioned on BBC WakeuptoMoney this morning http://www.bbc.co.uk/programmes/b08q458t
A market commentator (from top US investors PIMCO) also gave thoughts on why the FTSE is still rising.
(For what it is worth, I have posted my contrasting opinion that there is a time for putting a lump sum into an index ETF or index tracker, but that time is not now http://forums.moneysavingexpert.com/showpost.php?p=72553346&postcount=460 -
Thanks for highlighting that, Brand - Vanguard previously only had a 'direct to customer' offering for investors with minimum £100k and didn't offer any ISA wrappers.
Their new offering to handle a more 'mainstream retail' level of investing and with an ISA available only launched this week, thus the publicity you linked.
0.15% is very competitive compared to all the other percentage-based platforms and would be great if you are just looking to hold a single lifestrategy-type product. Other people might not begrudge paying a different platform 0.25% instead if it means they can hold funds from multiple providers and easily rebalance between them in a 'fund supermarket' type manner.0 -
Just wanted to post something regarding Cavendish, as it seems there may or may not be a hidden charge there not mentioned in the article.
Both the article and Cavendish state 0.25% in fees, being a humble peasant with only 1K to invest low cost is important so I went to Caven.
Upon opening the article it appears there is an annual 45 GBP "investor fee" that has apparently been in place for a few years now, this was not mentioned in the article(despite it being "updated April 2017") or on Cavendishs main site.
Confusingly a document said the 45 GBP fee is waived for Cavendish, but the Cavendish account page says it will be charged, hence why I am mentioning it here.0 -
Hi
Forgive my ignorance regarding S&S ISAs...
Is it worthwhile putting a small amount (£50 or £100 per month into a Halifax S&S ISA towards my retirement? Or is this too little to be worth doing?
Other info - I have a HTB ISA, pension which I pay extra into, and savings for the short term.
I understand I could lose every penny - but won't bother if the charges are large in proportion to the tiny amount I can save at the moment.
Advice welcomed.
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