Couple of questions about S&S isas...?

LouC

Hi everyone, couple of quick questions...

1. I'd like to use my full 10.2k isa allowance, but am not necessarily looking for a great return, just something v.low risk (maybe 3-5% p.a.) - any suggestions?

2. Say i've got a s&s isa - can I transfer this to a cash isa in future years, or does it have to stay in s&s?

Many thanks

Lou

Mikeyorks

1. The problem is that nothing is guaranteed .... not even 3% - 5%. Have a look at some of the funds on HL in the 'cautious managed' or absolute return' categories (search 'by sector' on the drop down). But do look - when you have the category list - at the 'Performance & Charts' tab to see the level of volatility between years. And factor in that the markets have been very volatile in the last 3 months.

http://www.h-l.co.uk/funds

2. No ...... it's one way traffic I'm afraid. You can move Cash to S&S, but not the other way around.

Lokolo_2

S&S ISA's aren't worth it unless you know what to invest in! For a guaranteed return you can invest in just a standard Cash ISA, if you want a good rate then you need to fix your money for a longer term.

Imagine if one was allowed to transfer from S&S to a normal ISA, everyone would be doing it, those would be the days if you could save £10.2k a year in a Cash ISA :eek: :T

The answer to where to invest, depends on how much risk you want to take, if the answer is no risk then a Cash ISA is the best option!

LouC

Cheers guy, much appreciated!