S&S ISA - lump sum or monthly payments?

edited 30 November -1 at 1:00AM in ISAs & Tax-free Savings
1 reply 870 views
CloudydazeCloudydaze Forumite
684 Posts
edited 30 November -1 at 1:00AM in ISAs & Tax-free Savings
Hi

I want to fill 2 S&S ISAs in the next few months - ie y/e 14 & 15.

I've not decided exactly where yet but looking at the Vanguard options.

My question is about timing. Obviously, there's limited time left for this years but is it generally better to pay monthly? I was initially going to fill one in March & then the next in April. What are the disadvantages of doing this?

Replies

  • jimjamesjimjames Forumite
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    Cloudydaze wrote: »
    My question is about timing. Obviously, there's limited time left for this years but is it generally better to pay monthly? I was initially going to fill one in March & then the next in April. What are the disadvantages of doing this?

    The disadvantage is that you have all your money invested if the market drops.

    Conversely the advantage is that you have all your money invested if the market rises.

    You don't have much time to do 2013/14 but you can still split it over 4 months. You can put 2014/15 over 12 months.

    Or just put it all in two lump sums - the choice is yours depending on your thoughts of where markets are heading - which I guess depends which markets you are investing in.
    Remember the saying: if it looks too good to be true it almost certainly is.
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