Maxi ISA coming to maturity

Rhino666

I have a tessa only ISA and a maxi ISA maturing early next year.

Does anyone know if the new rules give me any choices with regard to reinvestment with these investments. To be honest I would like to keep the tax free wrapper and have them as cash ISA type investments, if at all possible.

Thanks

Rob

LOST

I think you can roll the original capital content only over into a TOISA - not the interest - not quite sure

isasmurf

Your Tessa Only ISA is a Cash ISA, and as such can be transferred to any other Cash ISA. for your Maxi ISA any Stocks & Shares must remain as Stocks & Shares, and any Cash must remain as Cash, but these can be of the Mini variety.

Rhino666

Thanks for info on Toisa.

The maturing maxi ISA is a stockmarket based investment - £7K invested in a FTSE 100 index linked thingy.

I thought there were new rules coming out, extending ISAs and making the maxi ISA a more flexible investment ?

dunstonh

The maturing maxi ISA is a stockmarket based investment - £7K invested in a FTSE 100 index linked thingy.

Awful investment so be wary before deciding to do another.

I thought there were new rules coming out, extending ISAs and making the maxi ISA a more flexible investment ?

It is highly flexible already. Indeed, it would be hard to make it any more flexible than it is already.

Upon maturity, all you need to do is find another investment ISA to transfer the proceeds to. This must be done within the ISA rules themselves and not after you have received the proceeds to your bank account.

EdInvestor

I would suggest you move the maxi ISA over to a discount broker like https://www.selftrade.co.uk or https://www.h-l.co.uk and reinvest the money in either a mix of funds or trackers/Ishares( a kind of tracker in a share).

Both these discount brokers will rebate the charges. Selftrade have a very cheap ISA deal for Ishares, where they charge no commission and no dealing fee to buy. Annual fee for the ISA is 25 quid regardless of size. Bargain.

The IShares offer a really big range of trackers, including foreign ones and one that pays a dividend (the IUKD tracker4) of around 4%, so you are not stuck with the FTSE100.

To transfer your ISA, contact the NEW provider, fill in their account form, and they will then collect the money from your old provider and put it in your account, then you can invest it.
https://www.ishares.net

Rhino666

The ISA has turned out to be a poor investment because it bridged the stockmarket collapse. It has done rather well over the last eighteen months or so though and the capital was guaranteed. As I said in my original post I am looking to reinvest in cash if possible rather than continue exposure to the stockmarket. Maxi ISAs do not currently appear to be flexible enough to allow me to do that with maturing ISA funds - I was hoping that new rules I had heard that are coming out would change that.

With hindsight dunstonh the original ISA was a poor investment but that was mainly because of market conditions rather than the investment quality, surely ? What would you consider to be a worthwhile maxi ISA investment ?

Thanks

Rob

dunstonh

With hindsight dunstonh the original ISA was a poor investment but that was mainly because of market conditions rather than the investment quality, surely ?

No, the investment was poor. No dividends and all your money in one sector and tracking just one index (and a poor quality index at that). You could have returned over 50% in that same period just achieving sector average returns using a sector allocated portfolio to the same risk rating. Had you utilised a number of the higher profile funds in that same spread, you would have come close to doubling (if not doubling).

isasmurf

Rhino666 wrote:

I thought there were new rules coming out, extending ISAs and making the maxi ISA a more flexible investment ?

All we've had so far is a teaser. The details have yet to be announced AFAIK.

Rhino666

'It is highly flexible already. Indeed, it would be hard to make it any more flexible than it is already.'

I would personally hope that the Maxi ISA would be made more flexible so that it were possible to switch between a cash based investment like the current mini ISA and shares. This would allow a small invester like me to hedge their bets against volitile stock markets without sacrificing this tax efficient wrapper - just my thoughts of course - others may disagree :-)

dunstonh

If you want to reduce your stockmarket holdings, you can do so with a maxi by choosing non stockmarket funds. Most portfolios should have a percentage in those other area as well.

We dont know much about the rule changes about from MINI/MAXI going. The treasury loses more tax on the cash side I believe than the investment side. So any large extension of the cash allowance is unlikely to occur. Although Gordon Brown may use it an attempt to buy the next election. Hottest rumour seems to be that you will be able to do a cash ISA and an investment ISA giving you £10k potential each year. But its mostly rumours at this stage.