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  • FIRST POST
    • Steve bartlett
    • By Steve bartlett 14th Jul 17, 11:01 AM
    • 3Posts
    • 0Thanks
    Steve bartlett
    Share ISA Help / Advise
    • #1
    • 14th Jul 17, 11:01 AM
    Share ISA Help / Advise 14th Jul 17 at 11:01 AM
    Good Morning. I've just opened a Share Isa and need some guidance.
    Q1- If I buy 20k of let say National Grid and they then half in value, can I purchase a further 10k to make it back upto 20k and stay within my allowance.
    Q2 - If they pay let say 1k dividend and the shares are still valued at 20k, can I purchase more shares with my dividend within the ISA.

    Kind Regards

    Steve
Page 1
    • jimjames
    • By jimjames 14th Jul 17, 12:57 PM
    • 11,933 Posts
    • 10,332 Thanks
    jimjames
    • #2
    • 14th Jul 17, 12:57 PM
    • #2
    • 14th Jul 17, 12:57 PM
    1) No. You can only pay in £20k per year

    2) Yes. Income within the ISA can be reinvested and doesn't affect your allowance
    Remember the saying: if it looks too good to be true it almost certainly is.
    • Keep pedalling
    • By Keep pedalling 14th Jul 17, 1:36 PM
    • 3,445 Posts
    • 3,712 Thanks
    Keep pedalling
    • #3
    • 14th Jul 17, 1:36 PM
    • #3
    • 14th Jul 17, 1:36 PM
    I hope you are not really going to be sinking your entire £20k into a single share or come to that a few shares, unless you get a buzz from taking big risks.
    • Steve bartlett
    • By Steve bartlett 14th Jul 17, 2:30 PM
    • 3 Posts
    • 0 Thanks
    Steve bartlett
    • #4
    • 14th Jul 17, 2:30 PM
    • #4
    • 14th Jul 17, 2:30 PM
    Many thanks Jim. Yes Keep Pedalling, I intend spreading my savings across many FTSE 100 and 250 shares, each recommended by brokers and with a good track record. Nat Grid is one of them and are yielding 4.75% where else can you get that.

    Cheers

    Steve
    • Steve bartlett
    • By Steve bartlett 14th Jul 17, 3:32 PM
    • 3 Posts
    • 0 Thanks
    Steve bartlett
    • #5
    • 14th Jul 17, 3:32 PM
    • #5
    • 14th Jul 17, 3:32 PM
    Jim if the Grid shares doubled in value, can I sell half and buy 20k of other shares within the ISA envelope.

    Cheers

    Steve
    • badger09
    • By badger09 14th Jul 17, 3:43 PM
    • 5,112 Posts
    • 4,325 Thanks
    badger09
    • #6
    • 14th Jul 17, 3:43 PM
    • #6
    • 14th Jul 17, 3:43 PM
    Jim if the Grid shares doubled in value, can I sell half and buy 20k of other shares within the ISA envelope.

    Cheers

    Steve
    Originally posted by Steve bartlett
    Yes you can.

    Basically, you can do anything you want with the original money & the gains/dividends on it, as long as it stays inside the ISA envelope.
    • jimjames
    • By jimjames 14th Jul 17, 7:31 PM
    • 11,933 Posts
    • 10,332 Thanks
    jimjames
    • #7
    • 14th Jul 17, 7:31 PM
    • #7
    • 14th Jul 17, 7:31 PM
    Many thanks Jim. Yes Keep Pedalling, I intend spreading my savings across many FTSE 100 and 250 shares, each recommended by brokers and with a good track record. Nat Grid is one of them and are yielding 4.75% where else can you get that.

    Cheers

    Steve
    Originally posted by Steve bartlett
    Problem is that with £20k you have either a very limited number of companies or very small holdings of each one with correspondingly high transaction costs. Not much point getting 4% yield if it cost you 10% to buy the shares in the first place.

    I also think you are maybe focusing too much on the yield rather than the overall return and risk. National Grid may pay 4.75% but the share price has dropped over 20% in the last 12 months so you'd still be down over 15%.

    Rather than looking at income on individual shares why not look at funds where your investment is split across companies with much lower risk and trading costs
    Remember the saying: if it looks too good to be true it almost certainly is.
    • Alexland
    • By Alexland 14th Jul 17, 9:00 PM
    • 64 Posts
    • 37 Thanks
    Alexland
    • #8
    • 14th Jul 17, 9:00 PM
    • #8
    • 14th Jul 17, 9:00 PM
    Agree it's high risk owning a small number of companies even if you spread across the world and industries. I got stung doing this about 10 years ago and Nat Grid was one of my poor performers. I got caught up in a messy rights issue. Funds and Trusts offer much better diversification.
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