Cash v S&S ISA

heydee

After much procrastination, have decided to dump my full allowance into an ISA before 5 April (I was holding on as I want to buy a home in a few months time and was debating whether to add it to the deposit).

So, I was wondering what people's thoughts were re taking a S&S ISA v Cash. I've been reading some insight recently around falling markets and equities being available at more attractive prices and lower PE ratios, so I was thinking of putting my allowance into several S&S funds.

Where have you been putting your ISA allowance this year - and what are peoples thoughts on the type of funds to look at in the current climate - geography, industries, situations etc? I'm not looking at taking financial advice on here, but would love to hear a debate on this.....

Cheers for any responses.

dunstonh

, I was wondering what people's thoughts were re taking a S&S ISA v Cash.

Cash is an asset class. S&S ISA is a tax wrapper. One of the vehicle and the other is the petrol. So, you cannot compare them directly.

so I was thinking of putting my allowance into several S&S funds.

The logic is that prices do look attractive and for the long term you could do well. Short term is likely to be up and down like a yo you and we may not have seen bottom yet. Only time will tell.

Where have you been putting your ISA allowance this year

Does it matter? The regular contributors here all have different investment strategies and risk profiles. Different objectives, timescales, knowledge and will transact and review at different frequencies. How would you know if one poster is similar to you or not?

One thing that is fairly consistent though across the board is that you shouldnt invest money at this time that you cannot afford to not be there for at least 5 years, probably closer to 10. It may not be that long but you need to be prepared that it may be.

Lokolo

Indeed, I'm 20 so I can have money in for 10-15 years so I am going uber high risk with my funds.

You on the other hand could be 50, wanting the money in around 5-10 years and wanting lowish risk.

Just_landed

In layman terms S & S is like betting on the 3:30 at Doncaster :- you could win or lose big time. Cash is more sure and steady, might not be great profit but its alway's there each year.

Paul_Herring

So, I was wondering what people's thoughts were re taking a S&S ISA v Cash.

Do you have the oft-recommended 3-6 months wages in an (almost) instant access savings account?
Do you have sufficient (easy access) savings for other things you plan to buy over the next year/2 years etc.?
Do you have any debts?
Are you already saving in a pension?
Do you think you could stand to lose (say) 40% of your (equity) investment over the next year or so?
If you already have substantial savings, how much is/do you want in cash and how much in equities?

(These are largely rhetorical questions designed to make you think a bit harder about what you want to do - I'm not necessarily after the answers.)