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  • FIRST POST
    • lindabea
    • By lindabea 27th Nov 17, 2:07 PM
    • 937Posts
    • 132Thanks
    lindabea
    Vanguard LS Question
    • #1
    • 27th Nov 17, 2:07 PM
    Vanguard LS Question 27th Nov 17 at 2:07 PM
    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?
    Before doing something... do nothing
Page 1
    • roxy28
    • By roxy28 27th Nov 17, 2:50 PM
    • 625 Posts
    • 57 Thanks
    roxy28
    • #2
    • 27th Nov 17, 2:50 PM
    • #2
    • 27th Nov 17, 2:50 PM
    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?
    Originally posted by lindabea
    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.
    Last edited by roxy28; 27-11-2017 at 2:54 PM.
    • Alexland
    • By Alexland 27th Nov 17, 8:05 PM
    • 778 Posts
    • 473 Thanks
    Alexland
    • #3
    • 27th Nov 17, 8:05 PM
    • #3
    • 27th Nov 17, 8:05 PM
    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.

    Alex
    Last edited by Alexland; 27-11-2017 at 8:07 PM.
    • Gadfium
    • By Gadfium 27th Nov 17, 10:30 PM
    • 628 Posts
    • 1,169 Thanks
    Gadfium
    • #4
    • 27th Nov 17, 10:30 PM
    • #4
    • 27th Nov 17, 10:30 PM
    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?
    Originally posted by lindabea
    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
    • By Eco Miser 29th Nov 17, 2:15 AM
    • 3,226 Posts
    • 2,989 Thanks
    Eco Miser
    • #5
    • 29th Nov 17, 2:15 AM
    • #5
    • 29th Nov 17, 2:15 AM
    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.
    Originally posted by Gadfium
    Note there is also a one-off £25 charge when you open your first account. This is charged to the non-ISA account, so is in addition to the money subscribed to the ISA. I paid it by a separate debit card transaction.
    Eco Miser
    Saving money for well over half a century
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