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  • FIRST POST
    • Pipz
    • By Pipz 19th Mar 17, 10:49 AM
    • 81Posts
    • 58Thanks
    Pipz
    Advice - Stocks and Shares ISA
    • #1
    • 19th Mar 17, 10:49 AM
    Advice - Stocks and Shares ISA 19th Mar 17 at 10:49 AM
    Hi all,

    Just after a little advice - I've overpaid my mortgage this year and have an established an emergency fund - I'm looking to contribute to an S&S ISA.

    Ideally I'd like to invest to a fund that pays income monthly so that I have the flexibility to deploy received funds as need dictates.

    In reality I'll end up reinvesting in the same fund.

    I wondered if this strategy would have an adverse effect on my ISA allowance or incur unnecessary charges.

    TIA.
    Fortior quo paratior
Page 1
    • Eco Miser
    • By Eco Miser 19th Mar 17, 11:05 AM
    • 2,676 Posts
    • 2,493 Thanks
    Eco Miser
    • #2
    • 19th Mar 17, 11:05 AM
    • #2
    • 19th Mar 17, 11:05 AM
    So long as the money doesn't leave the ISA wrapper, it won't impact your ISA allowance, and if you choose a platform that doesn't charge for fund transactions you won't incur unnecessary charges (unless you could otherwise have had a cheaper fixed fee platform).

    However, not many funds pay monthly income, and restricting yourself to those that do seems unnecessarily limiting, since those funds will be targeted at people who need a monthly income, which you don't.

    Do you intend to contribute monthly, or just lumps sums as and when you have them available?
    Eco Miser
    Saving money for well over half a century
    • Pipz
    • By Pipz 19th Mar 17, 11:15 AM
    • 81 Posts
    • 58 Thanks
    Pipz
    • #3
    • 19th Mar 17, 11:15 AM
    • #3
    • 19th Mar 17, 11:15 AM
    The current plan is to pay in a fixed amount each month -with any additional disposable income for that month paid in after that.
    Fortior quo paratior
    • AnotherJoe
    • By AnotherJoe 19th Mar 17, 11:16 AM
    • 5,708 Posts
    • 5,960 Thanks
    AnotherJoe
    • #4
    • 19th Mar 17, 11:16 AM
    • #4
    • 19th Mar 17, 11:16 AM

    Ideally I'd like to invest to a fund that pays income monthly so that I have the flexibility to deploy received funds as need dictates.

    In reality I'll end up reinvesting in the same fund.

    I wondered if this strategy would have an adverse effect on my ISA allowance or incur unnecessary charges.

    TIA.
    Originally posted by Pipz
    No, but a better plan especially if you plan to reinvest in the same fund would be to invest in an accumulation fund.

    Should you wish to take any income out of the ISA or invest it elsewhere inside, just sell some units.

    As said by EcoMiser, to make it worse, a monthly paying fund will be very restrictive since there arent many and most likely give you a poorly performing fund to boot.
    Last edited by AnotherJoe; 19-03-2017 at 11:25 AM.
    • picks
    • By picks 19th Mar 17, 3:39 PM
    • 81 Posts
    • 21 Thanks
    picks
    • #5
    • 19th Mar 17, 3:39 PM
    • #5
    • 19th Mar 17, 3:39 PM
    However, not many funds pay monthly income, and restricting yourself to those that do seems unnecessarily limiting, since those funds will be targeted at people who need a monthly income, which you don't.
    Originally posted by Eco Miser
    I would suggest to anyone wanting monthly income from a fund could instead split their investment into three funds which pay quarterly income. Just make sure that the pay day for each of the three falls in a different month.
    • novice_1
    • By novice_1 19th Mar 17, 5:26 PM
    • 11 Posts
    • 4 Thanks
    novice_1
    • #6
    • 19th Mar 17, 5:26 PM
    • #6
    • 19th Mar 17, 5:26 PM
    Instead of limiting yourself to those paying a monthly dividend, just invest in an accumulator and sell out as/when you need. Over the long term, talking averages, you should see a monthly increase in the capital value.
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