Shares ISA to pay mortgage ?

colshandy

gadgetmind wrote: »

Why? Up front fees are usually as you invest in funds, not as you subscribe to the ISA but leave the money in cash.

It might be worth starting a new thread with a very descriptive subject to get more informed opinions than mine.

Okay, cheers, I will do that.

colshandy

I have read the book (although am going to re-read) and found very interesting and think I will keep the ISA (mortgage int rate is 2.5% so surely ISA can do better than this?)

I am thinking along the lines of choosing suitable (low cost whole of market trackers) fund selection for our ISAs (c.60k) & pensions into lowest cost platforms/providers (online fund supermarket type providers?) possible. Have an idea in mind of the spread between equities and bonds/gilts but obviously would take advice on this.

I am undecided about whether to continue with regular ISAs contributions (given this will mean taking more out of my company and more income falling into higher tax band).

Few Q's:

1. Any more view if I am best keeping the 60k in ISAs or using it to pay off some of mortgage currently 2.5% int rate.

2. Can anyone recommend a spread of funds/gilts for me to use as a base case, I want a wide range of the worlds markets covered.

3. Based on the lump sum investment, who is the best provider to use to keep charges down to a minimum.

3. What are folks thought about keeping regular investments going even though it will mean me paying alot of higher rate tax (I have to take the money out of the company some time I suppose...). If we kept the regular ISA contributions going is their a different best provider for regular contributions.

Many thanks - as you can gather I like to suss my options out a lot before making a big decision...

Thrugelmir

colshandy wrote: »

I have read the book (although am going to re-read) and found very interesting and think I will keep the ISA (mortgage int rate is 2.5% so surely ISA can do better than this?)

Currently you invest in cash ISAs at a higher rate than that with no risk to the capital either. Also no fees.

Personally I would still pay down an amount off the mortgage every month as well.

There's an old saying, only speculate with what you can afford to lose.

colshandy

Thrugelmir wrote: »

Currently you invest in cash ISAs at a higher rate than that with no risk to the capital either. Also no fees.

Personally I would still pay down an amount off the mortgage every month as well.

There's an old saying, only speculate with what you can afford to lose.

Very true, another thought I had, if I keep with the ISA, stick half in cash and half in S&S. Although from the book it appears 5% is achievable long term.

I am paying over 1.5k on top of the interest payments currently.

Could afford to take enough from my company to pay full ISA allowance but this would all be subject to 25% tax on the dividends.

Also have a decent amount of reserves in the company which I am thinking of taking out to pay of a lump off the mortgage, any thoughts on if this is a good idea ?

gadgetmind

colshandy wrote: »

2. Can anyone recommend a spread of funds/gilts for me to use as a base case, I want a wide range of the worlds markets covered.

There are lots of sample portfolios around, such as this.

http://www.provisiowealth.co.uk/docs/documents/2011-11%20Provisio.pdf

I'm personally using Vanguard trackers on Bestinvest and am looking to corporate bonds more than gilts right now.

BTW, I haven't been back and re-read the thread, but are you also going to use the same approach for pensions?

crittertog

colshandy wrote: »

I was just thinking would I be stupid loosing out on 8k of this years allowance for the sake of avoiding these fees but unavoidable if I dont want to loose out on this years full allowance.

Put £5,360 into a cash ISA, then at a later date, work out what platform you're going to, and transfer the cash portion into the S&S ISA? That way you avoid paying Synergy's fees, and have still used your ISA allowance (obviously, there'll be a ~£3k gap due to the limits).

(obviously I'm assuming you've not opened as cash ISA this year)

colshandy

gadgetmind wrote: »

There are lots of sample portfolios around, such as this.

http://www.provisiowealth.co.uk/docs/documents/2011-11%20Provisio.pdf

I'm personally using Vanguard trackers on Bestinvest and am looking to corporate bonds more than gilts right now.

BTW, I haven't been back and re-read the thread, but are you also going to use the same approach for pensions?

Yes definatley want to use the same approach with my pensions. My active one is SW, my IFA set it up with 1% AMC but I am going to start a new one, probably with the same provider (SW) through Cavendish as that will get me lower AMC, any thoughts/better ideas.

Why bonds as oppsed to Gilts then ?

Thanks

colshandy

crittertog wrote: »

Put £5,360 into a cash ISA, then at a later date, work out what platform you're going to, and transfer the cash portion into the S&S ISA? That way you avoid paying Synergy's fees, and have still used your ISA allowance (obviously, there'll be a ~£3k gap due to the limits).

(obviously I'm assuming you've not opened as cash ISA this year)

Thanks, think I am going to start up an ISA with new provider and transfer existing funds into that right away but a good back up idea.