Trying lo learn about Stocks and Shares ISA's

SteveSilva

Burridge60 wrote: »

Why do you want a Stocks and Shares ISA?

Do you have a mortgage? What rate are you paying? Did you buy an endowment? What do you expect as a return? Do you want a guarantee of your Capital? Do you trust your Bank?

Now ask my original question again? Has your answer changed?

I do have a mortgage with £150 k to pay over the 30 years or 5%, I do overpay monthly but think that rates will probably increase when my fixed rate is over next Jan. Its a repayment.
I am willing to take some risk but am not investing more than £1k as I understand the stock market usually gives a return better than savings accounts but with added risk.
I don't particularly trust my bank that is why I am here trying to learn.

SteveSilva

Thanks for all the advice, my next question is once I buy a fund within an ISA and regulary invest £50 per month for three months and then just let it grow (or drop depending on the market). So after a while if the fund has increased from £150 to say £200 am I able to take out that £50 profit or do I have to sell the entire fund?
Also any profit I make from selling these funds is the Capital Gains, so I may have to pay tax if the profit was over £10,000?

Hope you can correct me if I am wrong



Thanks

Mikeyorks

SteveSilva wrote: »

1) So after a while if the fund has increased from £150 to say £200 am I able to take out that £50 profit or do I have to sell the entire fund?
2) Also any profit I make from selling these funds is the Capital Gains, so I may have to pay tax if the profit was over £10,000?

1) You can part sell the fund. But I'm sure some providers will have a minimum amount on cash withdrawals ..... as £50 is awfully low. It doesn't work quite as flexibly as an easy access account.

2) You're in an ISA? Which is a tax free wrapper. No CGT chargeable

SteveSilva

Thanks Mikeyorks,

I just want learn as much as possible about these ISA's, for example I didn't know you could part sell a fund. There must be many details like that I need to be aware of, just don't know where to get the info from.

masonic

SteveSilva wrote: »

Thanks for all the advice, my next question is once I buy a fund within an ISA and regulary invest £50 per month for three months and then just let it grow (or drop depending on the market). So after a while if the fund has increased from £150 to say £200 am I able to take out that £50 profit or do I have to sell the entire fund?

I just gave this a little test with my S&S ISA at Hargreaves Lansdown and it didn't have an issue when I told it I wanted to sell £1 of one of my funds. However, with H-L, to withdraw cash to your bank account you need to fill out a form and post it. There doesn't seem to be a lower limit there either, but you'd have to wait at least a week to see your money. I don't know for sure, though, as I've never taken any cash out in the 5 or so years since I opened it.

Mikeyorks

masonic wrote: »

However, with H-L, to withdraw cash to your bank account you need to fill out a form and post it. .

So long as you have a Bank account logged with them .... you can withdraw entirely online. At which point you're given the options of cheque / BACS / CHAPS (at £25). The only - reasonable - reservation is that you can't withdraw until the sale has been settled ..... typically 4 days after the contract note is available.

Easiest way to find this is 'Contact Us' (Homepage top) and then the 'How to withdraw cash' in the FAQs down the right side.

Mikeyorks

SteveSilva wrote: »

There must be many details like that I need to be aware of, just don't know where to get the info from.

I read the Hargreaves Lansdowne site + others from top to bottom. Initially a lot goes over your head ...... then you realise a lot stuck inside as well. Set up a virtual account if you want to see the screens. It's not something I did .... but it may help some.

SteveSilva

Mikeyorks wrote: »

So long as you have a Bank account logged with them .... you can withdraw entirely online. At which point you're given the options of cheque / BACS / CHAPS (at £25). The only - reasonable - reservation is that you can't withdraw until the sale has been settled ..... typically 4 days after the contract note is available.

Easiest way to find this is 'Contact Us' (Homepage top) and then the 'How to withdraw cash' in the FAQs down the right side.

OK and I suppose thats when the charges come in, and these charges are one thing to look at when deciding which supermarket to use?

jimjames

SteveSilva wrote: »

OK and I suppose thats when the charges come in, and these charges are one thing to look at when deciding which supermarket to use?

I'm not aware of any charges to withdraw money from HL unless you are selling shares.

For funds you will just get the number of units sold at the "sell" price and receive the proceeds. Its just as simple as getting money out of the bank; unless you bank with Santander in which case its much easier than the bank :rotfl:

King_Weasel

masonic wrote: »

Are you planning to buy and just hold long term? Whenever I've considered buying individual shares, I've always been put off by the dealing costs. You need to invest a large sum to make it cost effective, even if you trade quite infrequently.

What costs put you off? I find The Share Centre charges acceptable for low-value transactions, and there are others too. (1%, min £7.50.)

But the OP should clearly be looking at S&S ISAs, if he's going to buy shares/bonds in the first place.