10.2k Into an ISA, stocks or cash?

stringer_bell

Mikeyorks wrote: »

No ...... that's why I said if you're not 'tied in'. With that sort of product you usually are. It may have a tradeable value ..... but unlikely to be as much as you paid for it at this early stage.

Out of interest ...... which Index ..... and what is the yearly percentage?

FTSE 100, and 7%

Mikeyorks

stringer_bell wrote: »

FTSE 100, and 7%

Normally 6 years for that product. It's usual that there will be a valuation put on it after a few months.
I've got one (Premier) .... but they were offering 16% at the time I took that 3 years ago.

In your position - if you're not confident to DIY with Funds - a good IFA may be worth the fee?

stringer_bell

Mikeyorks wrote: »

Normally 6 years for that product. It's usual that there will be a valuation put on it after a few months.
I've got one (Premier) .... but they were offering 16% at the time I took that 3 years ago.

In your position - if you're not confident to DIY with Funds - a good IFA may be worth the fee?

Yes I'm thinking you are right, would love to at least do something on my own though, that's why I'm thinking an ISA for myself, and an IFA for all other investments, but seems even an ISA is more complicated than I thought

Does this mean I can transfer the barclays ISA to another provider after a few months?

jimjames

stringer_bell wrote: »

Yes I'm thinking you are right, would love to at least do something on my own though, that's why I'm thinking an ISA for myself, and an IFA for all other investments, but seems even an ISA is more complicated than I thought

Does this mean I can transfer the barclays ISA to another provider after a few months?

It certainly should be possible to transfer but the value could be very dependent on their terms for early surrender. Worth checking with them first but you can still setup another one from April.

I'd say it was entirely possible to do an ISA yourself without needing an IFA. The charges listed on another thread where an IFA had setup an ISA seemed very high and everything you pay out in charges or commission will reduce your returns.

I've been investing in ISAs since they came out and have never seen the need to use a cash ISA.

stringer_bell

jimjames wrote: »

It certainly should be possible to transfer but the value could be very dependent on their terms for early surrender. Worth checking with them first but you can still setup another one from April.

I'd say it was entirely possible to do an ISA yourself without needing an IFA. The charges listed on another thread where an IFA had setup an ISA seemed very high and everything you pay out in charges or commission will reduce your returns.

I've been investing in ISAs since they came out and have never seen the need to use a cash ISA.

Thanks, Will try to set one up myself in April, read up on it first

whats a good rate of return for a stocks & shares ISA, is the 7 percent on my barclays isa decent?

jimjames

stringer_bell wrote: »

Thanks, Will try to set one up myself in April, read up on it first

whats a good rate of return for a stocks & shares ISA, is the 7 percent on my barclays isa decent?

It all depends on the funds that are in it.

I got approx 20% last year from Artemis Income fund that I hold in my ISA and 28% the year before. Another fund the HSBC Pacific tracker returned 28% last year and 58% in 2009 but dropped 33% in 2008.

Choice of fund is the determining factor in your returns.

Mikeyorks

stringer_bell wrote: »

whats a good rate of return for a stocks & shares ISA, is the 7 percent on my barclays isa decent?

It's as good as you will get from a Bank, I'm afraid. The Premier one I mentioned was exceptional .... at 16%pa. There's no guarantee it will 'kick out' ..... but at least the FTSE is now hovering around the start mark.
If it matures with profit - in fact either way - I'll just transfer it to my other ISA, holding Funds, with Hargreaves Lansdowne.

If you bought yours 2 months ago then I assume the FTSE was around the 5800 mark? So at least (close just above 6040 tonight) it's headed the right way. But 'Guaranteed Equity Bonds' (which is the product you have) aren't very flexible in that you get no dividends and you have no real control over them.

You would be better - in the long term - with Funds in your S&S ISA. And you've got a bit of time, before April, to do some studying? Their profitability is very varied. I made 56% overall in the year to April ...... but much lower (around 15%) in the last 10 months.

But even the lower figure is considerably better than cash. And it's all tax free as it's either in an ISA or I make sure it stays under the CGT allowance where I hold funds outside an ISA.

stringer_bell

jimjames wrote: »

It all depends on the funds that are in it.

I got approx 20% last year from Artemis Income fund that I hold in my ISA and 28% the year before. Another fund the HSBC Pacific tracker returned 28% last year and 58% in 2009 but dropped 33% in 2008.

Choice of fund is the determining factor in your returns.

I have an account with HSBC too, would it be worth me taking out an ISA with them?

stringer_bell

I just opened a account on share.com, they give you 15,000 worth of shares to play with, a good way for me to dip my toes if I ever want to get into this in the future, so many companies to choose from. Any tips on what to look for?

Mikeyorks

stringer_bell wrote: »

I have an account with HSBC too, would it be worth me taking out an ISA with them?

Not unless you wish to restrict yourself to HSBC products ... which is unwise.

The HSBC tracker, previously mentioned, is available from the fund supermarkets such as HL. But there you can balance your ISA, over time, with Funds from different providers and covering other areas.