Cheapest FTSE All share Tracker

max11

sabretoothtigger wrote: »

Do it monthly and you will distribute risk over time as well as need a smaller amount.
We're in a bear market so why would you want to invest it all right now, bear means cheaper prices in future or do we all know better

Thank to the help of you all, I understood that it wouldn't be very safe to invest all £3,600 now.
the other option would be to put them in a holding account (to do noit lose my ISA allowance) but with HL I will have to choose the index tracker funds in exactly 3 months.
What I realized is that I will be subjected to the same volatility.

So what can I do?
-set a monthly payment before end of this year?
-set a monthly payment in the next year as soon I see another bear period?

Anyway, as outside an ISA I should pay taxes only if I make more than £9,600 Capital gain, what is the advantage of an s&s ISA if I invest only a small amount (let's say £5K)? I think in that way it is difficoult I can gain more than £9,600, isn't it?

dunstonh

he other option would be to put them in a holding account (to do noit lose my ISA allowance) but with HL I will have to choose the index tracker funds in exactly 3 months.
What I realized is that I will be subjected to the same volatility.

Is that 3 month rule an HL thing? It doesnt exist with other fund supermarkets. It may be worth checking to see if that is correct.

If you dont want to go fully invested at this time into equities then use lower risk investments and phase them across periodically.

Anyway, as outside an ISA I should pay taxes only if I make more than £9,600 Capital gain, what is the advantage of an s&s ISA if I invest only a small amount (let's say £5K)? I think in that way it is difficoult I can gain more than £9,600, isn't it?

With small amounts not a lot unless you are a higher rate tax payer. However, there is no cost difference inside an ISA or unwrapped so you may as well use ISA. Also, I would expect you to have some lower risk holdings in there at some point from the fixed interest sectors and they are able to claim the tax back still inside an ISA.

max11

dunstonh wrote: »

Is that 3 month rule an HL thing? It doesnt exist with other fund supermarkets. It may be worth checking to see if that is correct.

If you dont want to go fully invested at this time into equities then use lower risk investments

thank you...excuse me. what exactly?

With small amounts not a lot unless you are a higher rate tax payer. However, there is no cost difference inside an ISA or unwrapped so you may as well use ISA. Also, I would expect you to have some lower risk holdings in there at some point from the fixed interest sectors and they are able to claim the tax back still inside an ISA.

yes I am a HTP, so I'll pay 40% also under k9,6k capital gain and something more over?

ozzage

I think I can clear up the issue around Hargreaves Lansdown and the 3 months.

You can ALWAYS park your cash into a H-L S&S ISA with no requirement to have it there for three months. They pay a poor rate of interest but it's possible.

CURRENTLY they have a special offer besides that, which lets you lock the cash up for three months and earn 2% gross on it. That is what the other poster is referring to.

You don't need to use that 3 month offer though. You can just invest as cash now into a S&S ISA without using the fixed rate option. When filling in the application just put the whole desired value into the Cash option at the bottom of the table where you normally fill in which funds you want. This won't get the higher rate of interest but you can then choose at any time (tomorrow, in a month, in three months, whatever) to go ahead and invest it properly.

sabretoothtigger

Yea they sent me this offer, the interest was better then even a savings account when they mailed me.

This offer is limited because they only hedged interest rates for a certain amount of time, soon they wont be able to do this.

I'd be surprised if they didnt offer some sort of long term cash fund isa to park yourself in, thats half the point of a sipp,etc that you can do that and fund managers generally wont or cant

max11

ozzage wrote: »

I think I can clear up the issue around Hargreaves Lansdown and the 3 months.

You can ALWAYS park your cash into a H-L S&S ISA with no requirement to have it there for three months. They pay a poor rate of interest but it's possible.

CURRENTLY they have a special offer besides that, which lets you lock the cash up for three months and earn 2% gross on it. That is what the other poster is referring to.

You don't need to use that 3 month offer though. You can just invest as cash now into a S&S ISA without using the fixed rate option. When filling in the application just put the whole desired value into the Cash option at the bottom of the table where you normally fill in which funds you want. This won't get the higher rate of interest but you can then choose at any time (tomorrow, in a month, in three months, whatever) to go ahead and invest it properly.

That is right! thank you.! Indeed it is a special offer but I can put money on cash.
"you could choose cash and then deal once your account is set up. You may also want to choose cash if you would like to open your ISA today and decide where to invest later"

That solves my problem.I think I could also still set a montly payment insering an amount in cash, even if I 'm not sure about the mechanism.

sabretoothtigger

The monthly option means you would be using next years isa allowance also and I dont think you can have more then one fund provider in one year, hence why people stick lump sums into the market just before april which is not best really

Maybe this explains some of the current rally, lots of end of tax year cashflow

max11

sabretoothtigger wrote: »

The monthly option means you would be using next years isa allowance also and I dont think you can have more then one fund provider in one year, hence why people stick lump sums into the market just before april which is not best really

Maybe this explains some of the current rally, lots of end of tax year cashflow

thanks, so today I just will open the S&S ISA account and wait to choose the funds when I see a proper period.

Just for curiosity, as a high rate tax payer, will I pay 40% also under £9,6k capital gain (outisede the isa allowance)?

tradetime

Just for curiosity, as a high rate tax payer, will I pay 40% also under £9,6k capital gain (outisede the isa allowance)?

No, the current £9,600 allowance is your yearly taxfree capital gains allowance, tax only applies to profit / gains above the £9,600.

max11

tradetime wrote: »

No, the current £9,600 allowance is your yearly taxfree capital gains allowance, tax only applies to profit / gains above the £9,600.

thank you!
and if so, I repost my previous question:
what is the advantage of an s&s ISA if I invest only a small amount (let's say £5K)? I think in that way it is difficoult I can gain more than £9,600 (it would mean to increase 3 times the money invested), isn't it?