A safe haven within a S&S Isa/SIPP?

Rob_192

OK, we've seen a steady rally for the last month and my S&S Isa and Sipp have had a welcome boost, but how long will this last.

If I wanted to liquidate some of my funds, where would be a good safe place to put the money?

Both Isa and Sipp held with HL. Cash earns as close to nothing as makes no difference, so what would you guys suggest is a safe haven within the confines of an ISA/SIPP.

Any suggestions welcome.

R

dunstonh

OK, we've seen a steady rally for the last month and my S&S Isa and Sipp have had a welcome boost, but how long will this last.

Trying to time the market is futile. Because you never know what is going to happen you tend to find those that chase returns often end up losing more/making less than those that dont chase returns.

Both Isa and Sipp held with HL. Cash earns as close to nothing as makes no difference, so what would you guys suggest is a safe haven within the confines of an ISA/SIPP.

Nothing is safe. Everything has risk. Different types of risk but risk all the same.

What is your definition of safe as it may be different to other people's definition. Especially if you consider equities to be higher risk now.

jamesd

How safe do you want to go is the question. If you've been using lots of emerging market funds you could switch some money from them into say Invesco Perpetual Income and reduce potential volatility. No rule against holding cash either if you want to do that (though in theory there's a limit on how long you can do it in a S&S ISA, it's years, not months).

So, what are you starting out with and what sort of reduction in volatility are you after? If it's zero and just losing value to inflation then cash is an option.

If you're mostly in equities and want something more steady that still has decent prospects of staying ahead of inflation then you might look at the funds I've mentioned elsewhere today. No guarantees but they are likely to be less volatile than say a FTSE All Share Index tracker.

cloud_dog

Rob_192 wrote: »

Both Isa and Sipp held with HL. Cash earns as close to nothing as makes no difference, so what would you guys suggest is a safe haven within the confines of an ISA/SIPP.

So whats wrong with holding cash earning very little for a period (short) of time.

What costs might occur to your capital if you decide to remain fully invested when you are obviously wondering about safeguarding your capital (or at least some of it).

I've always been happy to go to cash when I felt it was right. Nothing is ever black and white and I've rarely (only once) gone 100% cash and that was only for a short period.

Yuo need to do what you feel comfortable with.

Edit: In fact I am starting to reduce my equity exposure and increasing my cash holding (in the ISA and the HL SIPP). Not sure if this is good or bad but it is what I feel I need to do.

Rob_192

Nothing wrong with cash, in fact I'm holding over £10k in cash across the S&S isa and Sipp right now - this was about half the value of a transfer from another isa provider which I did a couple of months ago - I didn't feel comfortable investing it all at the same time, although in retrospect I would have been better off doing so.

No, its just that I have a feeling we are in for a slight dip after the recent rally and felt like doing a bit of profit taking - you never seem to hear this term mentioned in the context of funds, yet the same principles must exist as with shares and given that it costs nothing to exit most funds, it must make sense to consider this from time to time.

R

jamesd

Nothing at all wrong with that. Nice way to make some money out of normal market movements up and down.

Cautious_Investor_3

Hi

I would suggest more information needs to be given by the OP before an answer can be reached.

Is the OP wanting to simply find a short term safe haven for his funds until such time that he feels he wants to move back into a market (whatever that market is).

Or

Does the OP want a long term safe haven for his capital i.e. over the long term he does not wish to see a capital reduction.

Clearly by eliminating one risk i.e. capital risk, others are introduced such as inflation risk, opportunity cost etc.

The Cautious Investor

Robie

I am in similar frame of mind as OP - hope you don't mind me joining in this thread.

Basically, I have invested quite a bit in the ISA over the years. I would now like to sell of some of profits and move that 'cash' somewhere else. Don't ask me why but I feel I must convert some of that paper money into cash. I know in the past by not cashing some of my profits, I have lost them due to the stock market (huge) dips. :mad:

So, what are my options? Can this go into a cash ISA (I/my wife haven't set up any ISA cash accounts (well no money actually) for current year? Of course the amount would be less than/equal to £5100. If not in an cash ISA, where else can I move this money.

Thanks

Robie

jamesd

Robie, what funds have you been using? There's a whole range of different levels of up and down movement available in a S&S ISA so there's a good chance that you can both move some to lower risk in the S&S ISA and move some to the cash ISA.

One thing about S&S ISA to cash ISA transfers is that you can't do them as ISA transfers. So it does count as new money being deposited this year. It's only cash to S&S transfers that don't count against the limit.