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Pre ISA Investing...
A_Flock_Of_Sheep
Posts: 5,332 Forumite
Does anyone here pre-invest ready for the following year's ISA allowance for a S&S.
What I mean here is I have already fully subscribed to this year's allowance so can pay no more into my S&S ISA until next April.
But does anyone here invest in say funds "unwrapped" in readiness for a subscription to the next year? Or is this really a bit risky in case the money invested drops?
Are there any less riskier investments suitable for this purpose that might generate say a 6% gain on the capital invested?
Perhaps you use a savings account for this but the rates are so pitiful.
I have a NatWest Online saver paying 2.89% bu this is due to end in November.
What I mean here is I have already fully subscribed to this year's allowance so can pay no more into my S&S ISA until next April.
But does anyone here invest in say funds "unwrapped" in readiness for a subscription to the next year? Or is this really a bit risky in case the money invested drops?
Are there any less riskier investments suitable for this purpose that might generate say a 6% gain on the capital invested?
Perhaps you use a savings account for this but the rates are so pitiful.
I have a NatWest Online saver paying 2.89% bu this is due to end in November.
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Comments
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What's your tax situation? You can always invest in "unwrapped" assets and then Bed and ISA come April 6th but you need to watch for CGT (unlikely to be an issue) and extra tax on income and dividends.
I always use our S&S ISA allowances ASAP in April and use disposal of unwrapped assets for this. As some is from SAYE, I can do one ISA transfer and 2x CGT allowances every year.I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0 -
BTW, why does it matter more if unwrapped drops in value before moving to ISA than afterwards? In fact, isn't it better that you "ISA up" when markets are lower?
Money is fungible and tax wrappers don't change this too much.I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0 -
Are there any providers who do a bed and ISA for free?0
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Archi_Bald wrote: »Are there any providers who do a bed and ISA for free?
HL (for funds, maybe not for shares and trusts)0 -
Archi_Bald wrote: »Are there any providers who do a bed and ISA for free?
X-O do commission free Bed & ISA for shares, ETFs etc. Of course, you still have to pay 0.5% SDRTOld dog but always delighted to learn new tricks!0 -
HL don't charge a fee for Bed and ISA of shares and there is no SDRT on share sales. The shares are sold unwrapped and the money "beams" into your ISA. If you buy shares there, then there are the usual fees, but the B&I stage is free.I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0 -
Can I ask what does 'bed and ISA' actually mean?0
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It used to be the case that you could sell some shares, realise the capital gains, and then buy again. This let you use your annual capital gains allowance. Some called it "Bed and Breakfasting".
The rules changed to prevent this, but the terminology lives on as you can sell shares unwrapped and then buy again in an ISA, hence "Bed and ISA".I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0 -
gadgetmind wrote: »HL don't charge a fee for Bed and ISA of shares and there is no SDRT on share sales. The shares are sold unwrapped and the money "beams" into your ISA. If you buy shares there, then there are the usual fees, but the B&I stage is free.
That is a good deal if you can sell unwrapped shares for free and have the proceeds as cash in your ISA - normally commission-free Bed&ISA deals require a simultaneous sale and repurchase of the same shares.Old dog but always delighted to learn new tricks!0 -
gadgetmind wrote: »BTW, why does it matter more if unwrapped drops in value before moving to ISA than afterwards? In fact, isn't it better that you "ISA up" when markets are lower?
Money is fungible and tax wrappers don't change this too much.
I have just penny dropped here yes. I was thinking along the lines of capital gains making it easier to reach your ISA limit but of course if your unwrapped were to drop say 30% then in effect would you not have 30% more space to feed the ISA. ??????0
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