Stocks and Shares ISA

jimbo10

I am thinking of investing a lump sum of £5100 into a S and Shares ISA through Hargreaves Lansdown but dont know where to start as there are so many to choose from.I intended to take there advice but it all seems such a minefield. Anyone any ideas?

jem16

jimbo10 wrote: »

I intended to take there advice but it all seems such a minefield. Anyone any ideas?

HL is good for DIY and therefore you choose your own funds and make your own decisions. To do this you need to do plenty of research.

If taking their advice you will find them expensive and would probably be better with a small local IFA. However you might not find one willing to transact on such a small amount unless other business also held with them.

jamesey

put it this way ive been paying £80.65 into a s&s isa for 10 years and ive made£1000 , it sits at £10600 but ive paid £9678 into it , seems pointless to me
im cashing in and paying a lump off the mortgage this summer

dunstonh

jamesey wrote: »

put it this way ive been paying £80.65 into a s&s isa for 10 years and ive made£1000 , it sits at £10600 but ive paid £9678 into it , seems pointless to me
im cashing in and paying a lump off the mortgage this summer

Your S&S ISA hasnt made anything. Your investments within the S&S ISA have done that. With over 50,000 investments available to hold in the ISA and unlimited variations on how you can diversify, its your comments that are pointless as you havent mentioned your investments once. Just the tax wrapper.

Also, you dont appear to a very good understanding of how these things work, especially with regular contributions. They dont really start making money until after 10 years and better with 15+ when its a small contribution like yours.

Lokolo

dunstonh wrote: »

Your S&S ISA hasnt made anything. Your investments within the S&S ISA have done that. With over 50,000 investments available to hold in the ISA and unlimited variations on how you can diversify, its your comments that are pointless as you havent mentioned your investments once. Just the tax wrapper.

Also, you dont appear to a very good understanding of how these things work, especially with regular contributions. They dont really start making money until after 10 years and better with 15+ when its a small contribution like yours.

Only if you don't include the luck that was last year.

My £1500 investment is now standing at around £2050 after just under 2 years. Happy days.

jamesd

The investments you chose have gained an average of effectively a 1.97% interest rate on the money in the ISA.

1% would have gained £494
2% would have gained £1016
3% would have gained £1568
4% would have gained £2153
5% would have gained £2771
10% would have gained £6441

If you're in a FTSE tracker only, a 10% increase in the FTSE plus dividends would add 1.68% to the 1.97% gain. A 20% increase would add 3.44% to the 1.97% average gain, getting you 5.41%. The FTSE is about 22% down on its summer 2007 values at the moment and it's paying around 3-4% in dividends.

The state of the markets when you take the money out is a key factor in how well you end up doing overall. Since the FTSE is still well down on its highs you're likely to do better by taking out £300 a month to give it some time to recover more, while still hedging your bets.

C_Mababejive

Debt is good. Invest in corporate bond funds.

guli

jamesd wrote: »

The investments you chose have gained an average of effectively a 1.97% interest rate on the money in the ISA.

1% would have gained £494
2% would have gained £1016
3% would have gained £1568
4% would have gained £2153
5% would have gained £2771
10% would have gained £6441

If you're in a FTSE tracker only, a 10% increase in the FTSE plus dividends would add 1.68% to the 1.97% gain. A 20% increase would add 3.44% to the 1.97% average gain, getting you 5.41%. The FTSE is about 22% down on its summer 2007 values at the moment and it's paying around 3-4% in dividends.

The state of the markets when you take the money out is a key factor in how well you end up doing overall. Since the FTSE is still well down on its highs you're likely to do better by taking out £300 a month to give it some time to recover more, while still hedging your bets.

James,

Just wondering if there is a quick formula to calculate the percentages for a monthly "regular" investment over x years as you did above.

Thanks,

jamesd

guli, I set up a spreadsheet to do it and threw it away as soon as I was finished with the post. If you've been making regular payments tell me how many and how much and what numbers you'd like to know.

jamesey

dunstonh wrote: »

Your S&S ISA hasnt made anything. Your investments within the S&S ISA have done that. With over 50,000 investments available to hold in the ISA and unlimited variations on how you can diversify, its your comments that are pointless as you havent mentioned your investments once. Just the tax wrapper.

Also, you dont appear to a very good understanding of how these things work, especially with regular contributions. They dont really start making money until after 10 years and better with 15+ when its a small contribution like yours.

how rude :mad: sorry i spoke , the reason why i joined this forum is to understand more:wall:

jem16

jamesey wrote: »

the reason why i joined this forum is to understand more:wall:

The problem here though is have you learned more by being here?

You have posted here that in your view the S&S ISA is pointless as you have only made £1000 approx over 10 years.

With that one comment you have probably put the OP off making a lump sum investment even though your S&S ISA was a regular monthly investment.

You have also failed to mention that your S&S ISA contained an element of life assurance that was probably worth around £4000 over the 10 years. You also failed to mention it was an L&G UK Index tracker (the most important part of the S&S ISA is the investment within but which you neglected to mention again) and is performing exactly as would be expected for that fund - a different fund or probably better still funds would have performed better. It would also have helped if it hadn't been a tied agent that set it up and ignored it over the last 10 years.

All this was pointed out to you in your thread of 21st March.

https://forums.moneysavingexpert.com/discussion/2352781