Cashing in ISA's

hamer

dunstonh,
Forgive me if I sound stupid, but what do you mean with 100% non equity.

dunstonh

hamer wrote: »

dunstonh,
Forgive me if I sound stupid, but what do you mean with 100% non equity.

At the moment you only have 15% in the stockmarket. If that amount is too much for you then you can switch to have nothing in the stockmarket. Look at corporate bonds, fixed interest funds, other bonds etc which still dont have guarantees but have a focus on paying an income (which can be reinvested to buy more units which in turn gives more income which can buy more units etc etc). A spread of these suited to your risk profile could offer a better choice for you until you feel you are ready to dip your toes back in with 10-20% stockmarket later on.


Risk is a sliding scale. Its not on/off. It is not just a choice of cash savings and then stockmarket. There is a lot you can do between that. At the moment you are at the lower risk end but its just being done with poor quality. The concept is right. Just the execution of it in a rather poor quality lloyds bank fund.

JoeShmoe_2

Dunstonh

Can you now switch a stocks ISA to a Cash ISA without penalty under the new rules? Perhaps a cash ISA would be better for him (no risk at all and guranteed return unlike that fund which has some equity exposure, junk bonds etc and is at the mercy of inflation / interest rates)

Lokolo

JoeShmoe wrote: »

Dunstonh

Can you now switch a stocks ISA to a Cash ISA without penalty under the new rules? Perhaps a cash ISA would be better for him (no risk at all and guranteed return unlike that fund which has some equity exposure, junk bonds etc and is at the mercy of inflation / interest rates)

No you can only do the other way round Cash --> S&S

Could obviously cash in the S&S ISA and put it in a Cash but that owuld mean the allowance has gone.

jamesd

JoeShmoe, no, you can't go from S&S to cash but you can look at the Cru Investment Portfolio and BlackRock UK Absolute Alpha funds. They aren't as certain as cash but with higher returns and little prospect of significant value drops they are well worth considering.

JoeShmoe_2

Whats the portfolio in those funds?

Im thinking if he wants low risk/guaranteed return with no equity exposure or exposure to junk bonds if theres a fund that basically has gilts and not much else that might suffice, until he can transfer it next year.

Alternatively he can just take it and use to pay off any existing debt he may have

jamesd

JoeShmoe, best to read the detailed descriptions on the web sites of the providers. The BlackRock fund uses a range of things including shorting so it makes money during down times; and buying shares of companies in the same sector that are expected to go up and short selling one expected to go down so that the value goes up or down based on those two companies not whether the market as a whole moves up or down.

The Cru fund uses a mixture including interest from businesses borrowing based on their orders and secured against their loans and a collection of hedge funds with varying approaches.

Since those techniques isolate them both from much of the market ups and downs that's why they are relatively stable and don't suffer big drops. Even bond funds have seen more of a down side in capital value recently.

hamer

Hi, me again,
Thanks to everyone again for the earlier comments, I'm still dithering, so to speak.
Can I transfer our Isa's from where they are now to the L/TSB's cash Isa's or have we missed the deadline.
If I still can, is it a simple procedure.

dunstonh

Can I transfer our Isa's from where they are now to the L/TSB's cash Isa's or have we missed the deadline.

No. You have never been able to transfer them to a cash ISA.

nrsql

Depending on the provider you might be able to sell them and leave the cash in the isa - the interest rate won't be as good as a cash isa but will still be n the wrapper. Depends if you would want to invest again.