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Time lag moving out of shares ISA. Dangerous?

Hi all

I tried to find this topic without success so please excuse me if this has been covered already.

I consider myself lucky, and I have many ISA years that are in significant profit..... so.... I'd like to move some of these nicely grown ISA's into cash, wait for a slump in markets and then put it back in..... But.... Moving money from shares ISA's is very slow.... It involves written confirmation and processing through the back office system.

So my question is.... How do people move money out of shares ISA's without risking losing money due to a market drop between requesting the money and it actually moving out of the iSA? I know putting money in is fairly quick so you get the price at midday on each day, so if you put money in after midday you get the following day's midday price.

This seems like a very unfair system and isn't given the attention and focus it deserves when these investment companies attract your business. I think the customer should get the fund price at the moment they request the money on the phone and not be in the lap of the gods as to when the money finally moves. Imagine this happening across the 2008 market crash?!
Peace.
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Comments

  • le_loup
    le_loup Posts: 4,047 Forumite
    Not true!
    I can sell shares today and the cash is then available in my ISA.
    I suspect you think that you have to withdraw the cash from your ISA and then put it back. Bad thing to do as the cash then loses its ISA status.
  • dunstonh
    dunstonh Posts: 120,198 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    . But.... Moving money from shares ISA's is very slow.

    Not in my experience.
    It involves written confirmation and processing through the back office system.

    Again, not the case with most modern providers.
    So my question is.... How do people move money out of shares ISA's without risking losing money due to a market drop between requesting the money and it actually moving out of the iSA?

    Either you re-register so you are never out of the market or if you use cash transfer then do it at a time when you are looking to alter your holdings.
    This seems like a very unfair system and isn't given the attention and focus it deserves when these investment companies attract your business.

    The system works well. Is it perhaps your knowledge that is a bit off on this one?
    Imagine this happening across the 2008 market crash?!

    You would be quite pleased to be out of the market at that point.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • Archi_Bald
    Archi_Bald Posts: 9,681 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    Moving money from shares ISA's is very slow.... It involves written confirmation and processing through the back office system.
    Who do you have your ISA with?
    ....between requesting the money and it actually moving out of the iSA?
    do you really want to move the money out of the ISA? I could take years to get it back in. If you want to re-invest, just leave the money in the ISA.
    I know putting money in is fairly quick so you get the price at midday on each day, so if you put money in after midday you get the following day's midday price.
    Putting money into an ISA is indeed quite quick - you just make a deposit. Investing the money is a different process alltogether - - it depends firstly on when you give your purchase instructions, secondly on what you are investing in (shares, funds, bonds), and thirdly on what the rules of your provider are for the different investments.
  • CLAPTON
    CLAPTON Posts: 41,865 Forumite
    10,000 Posts Combo Breaker
    Hi all

    I tried to find this topic without success so please excuse me if this has been covered already.

    I consider myself lucky, and I have many ISA years that are in significant profit..... so.... I'd like to move some of these nicely grown ISA's into cash, wait for a slump in markets and then put it back in..... But.... Moving money from shares ISA's is very slow.... It involves written confirmation and processing through the back office system.

    So my question is.... How do people move money out of shares ISA's without risking losing money due to a market drop between requesting the money and it actually moving out of the iSA? I know putting money in is fairly quick so you get the price at midday on each day, so if you put money in after midday you get the following day's midday price.

    This seems like a very unfair system and isn't given the attention and focus it deserves when these investment companies attract your business. I think the customer should get the fund price at the moment they request the money on the phone and not be in the lap of the gods as to when the money finally moves. Imagine this happening across the 2008 market crash?!



    maybe you are talking about Unit trusts(or funds) and not shares?


    in any event, I'ld be surprised in a days delay is really going to make a lot of difference if you have held them for years.
  • Hi

    I only want to move money from S&S ISA into cash within the ISA wrapper and then move back into S&S. So probably 10k. This 10k would be comprised of 3 or 4 ISA's from a while back. I'd like to shift it out of S&S now. Then.... If the market dips this coming tax yr I have an opportunity to buy low.

    All of my S&S ISA's are with Fidelity and have always been with them. I have always benefitted from zero initial charge due to friends/family situation. To be fair the last time I inquired about this idea was many yrs ago.... So maybe things have changed?

    So you guys are sure that if I phone Fidelity tomorrow, I can exercise the money from S&S on the same day/ next day into a holding cash ISA? So there is only maximum 24 hr delay in fund price that I get applied to my shares?
    Peace.
  • dunstonh
    dunstonh Posts: 120,198 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    You cant move from an S&S ISA to a cash ISA. However, you can use the cash account within the S&S ISA with fidelity.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • Hi
    Thank you for letting me know about the facility to hold the cash, I noticed it has practically no interest when it is in that holding area.

    So.... What about the delay between requesting the money to leave the S&S Fund and the shares in the fund actually being sold and converted to cash? I guess it is not an instant thing like direct share dealing on stock market, but how long is the delay and is it a fixed time delay?
    Peace.
  • Archi_Bald
    Archi_Bald Posts: 9,681 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    Handling of sales vary from provider to provider, and from investment to investment. Did you ask yours what their processes and rules are for your investments?
  • dunstonh
    dunstonh Posts: 120,198 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    I noticed it has practically no interest when it is in that holding area.

    Typically, they pay figures around base rate. However, they are not meant as savings accounts. They are meant as a temporary home for financial planning reasons or whilst you decide on a changed investment.
    So.... What about the delay between requesting the money to leave the S&S Fund and the shares in the fund actually being sold and converted to cash? I guess it is not an instant thing like direct share dealing on stock market, but how long is the delay and is it a fixed time delay?

    funds are priced once a day. If you instruct before a certain point in the day you will get that price for that day (a few exceptions apply).
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • Thanks for your help, I've checked, the fund get priced at midday, so i'll basically have only the previous day's price to go by.

    So my final question to you guys.... Why do they not allow you to have a condition for exercising the money, such that if the price changes by more than a pre decided negative percentage they don't move your money?

    I'm worried that I'll ask for my shares in the fund to be sold, the market crashes and I get a lot less than I was expecting. If the market crashes I'd prefer to not sell the shares until the value returns to a better level.
    Peace.
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