£10,000...?

brasso

DUTR wrote: »

Years ago I took £300 of shares with a view to beating the savings account, within a week the value had gone up 9% great, but now they are worth less than £80. Like the OP I have £10k+ earning £1.49 per month, but I also have the last 3 years of ISA maximum, so another before April 2013 is not possible. I have some shares ready to be sold when my next car is due, it seems realistically 2% or thereabouts is as good as they may get

What do you mean, you "took £300 of shares"?

Sounds like someone putting a bar of chocolate into their supermarket trolley for a naughty treat.

jimjames

DUTR wrote: »

Years ago I took £300 of shares with a view to beating the savings account, within a week the value had gone up 9% great, but now they are worth less than £80. Like the OP I have £10k+ earning £1.49 per month, but I also have the last 3 years of ISA maximum, so another before April 2013 is not possible. I have some shares ready to be sold when my next car is due, it seems realistically 2% or thereabouts is as good as they may get

The downside of buying small amounts of one share. Far better to have a balanced portfolio using funds for small amounts so that you aren't tied to the fortunes of one company.

Glen_Clark

I cannot see the point of putting £10,000 in a stocks and shares ISA.
The chances of it earning enough to be liable to Capital Gains Tax are negligible.
You are just paying the extra charges of an ISA for nothing.
You might as well buy shares direct and avoid all the ongoing charges.

dtaylor84

What extra charges for an ISA?

Buying shares outside of an ISA incurs fees as well...

Glen_Clark

dtaylor84 wrote: »

What extra charges for an ISA?

Buying shares outside of an ISA incurs fees as well...

Well I haven't looked at S&S ISA's for a long time - but last time I looked - you had to leave your shares with a broker and pay an annual charge.
So I keep all my share certificates myself and pay no ongoing charges.
As a very approximate illustration, if you pay just 1% a year in charges (and many charge a lot more when you include the hidden charges), after year 1 your £100 is £99, year 2 £98, etc so over a lifetime the broker gets more than the punter. Yet the punter puts in all the money and takes all the risk.

Linton

Glen_Clark wrote: »

Well I haven't looked at S&S ISA's for a long time - but last time I looked - you had to leave your shares with a broker and pay an annual charge.
So I keep all my share certificates myself and pay no ongoing charges.
As a very approximate illustration, if you pay just 1% a year in charges (and many charge a lot more when you include the hidden charges), after year 1 your £100 is £99, year 2 £98, etc so over a lifetime the broker gets more than the punter. Yet the punter puts in all the money and takes all the risk.

The ongoing charges on my online share ISA which holds shares in some 20 companies amount to 0.12% annually which is discounted completely if I make 2 trades/quarter. There are no "hidden charges". I am more than happy to pay this for the convenience and speed of online trading.

dtaylor84

Glen_Clark wrote: »

As a very approximate illustration, if you pay just 1% a year in charges (and many charge a lot more when you include the hidden charges), after year 1 your £100 is £99, year 2 £98.01, etc so over a lifetime the broker gets more than the punter. Yet the punter puts in all the money and takes all the risk.

I pay £80/yr for my ISA, and this fee covers the dealing charges for my monthly investments. I think it's a fairly good deal for me, but other options are available. 1% is a very high fee for a simple execution-only dealing account (ISA or otherwise).

jimjames

Glen_Clark wrote: »

I cannot see the point of putting £10,000 in a stocks and shares ISA.
The chances of it earning enough to be liable to Capital Gains Tax are negligible.
You are just paying the extra charges of an ISA for nothing.
You might as well buy shares direct and avoid all the ongoing charges.

I'm sure you are aware that S&S ISAs are far wider than just buying shares. In general there are no extra charges for holding funds inside an ISA. CGT may not matter immediately but do £10k every year and you'll soon have enough to matter as well as not needing to worry about declaring dividends inside an ISA.

pleeplop

innovate wrote: »

Well put, bowlhead99. It's amazing how little research some people - in particular newbies - seem to have done before they ask question for which the answers are right in front of them.

The other thing that amazes me is that some of them get quite skirty when they aren't getting spoon-fed, or when they have some undisclosed preconceptions that aren't being supported by the responses.

As it happens, I think pleeplob is genuine, but that's no excuse for not doing the groundwork themselves before asking for help.

I have looked into options myself but as with most things I find it best to ask actual people (as opposed to google) to get a more rounded answer and help distinguish between what is actually good advice and what is just convincing advertisement. Especially when it's to do with something I have absolutely no experience in (money in this case!). It's a whole new language to me

I think I'll look more into ISAs as most seem to agree they are the best option, and also the other advice Robin gave.
Whilst I'd love to go the stocks and shares route I'm guessing it's probably not a great idea for someone who barely knows what an ISA is! I'm not really in a position to take risks with the money I have

innovate

pleeplop, bowlhead99 is just trying to help you. They didn't even mention the word 'google'. Please read their post again, it's packed with good advice if you really consider it.