£110 quidco from L&G ISA

DireEmblem

Hi,

I've been thinking of investing in a mini S&S ISA for a while, and L&G were always up there in my list of choices. The bonus only acted as a further incentive to finally jump on the bandwagon.

I have deposited the initial £500, with the aim to follow with £50 a month.

Now given the charges of 4.53% for the first year, my investment is down to £477.35.

In order to lose money, (taking into account the £110 bonus) the fund would need to drop ~20% in value for me to be worse off in a years time and not make any profit from this.

For my first investment in a UT, i'm fairly happy with this margin, and I'm sure a lot of people will feel the same way too.

Note: The money fed into the mini S&S isa is from cashback earned the past year, and I aim to top up a further £50 a month with cashback received. Either way the risk is minimal, as any money back is a bonus.

Jennifer_Jane

dunstonh wrote: »

L&G ISAs are single provider and they only have a couple of decent funds. You can make/lose more than £110 in a day with a £7k investment so it would be short sighted to make an investment based on a upfront incentive.

dunstonh - which are the couple of funds that you think are decent, please?

PS - thanks so much for all the help that you give on this forum. Always read everything with interest.

Jen

dunstonh

In order to lose money, (taking into account the £110 bonus) the fund would need to drop ~20% in value for me to be worse off in a years time and not make any profit from this.

The two UK trackers lost 45% 6 years ago so its possible.

dunstonh - which are the couple of funds that you think are decent, please?

L&G UK Alpha & L&G UK property are the only two that come to mind right now. L&G Growth trust isnt bad either.

The popular L&G UK index trackers (all share and 100) are poor performers so I am not keen on them. They are only popular because they are bought by people thinking they are cheap. They dont realise the level of underperformance they have had. For reference, check their position in the UK all companies sector in any time period and you will see what I mean. You will need to scroll down a bit to find them. Around mid point for all share and bottom half for FTSE100.

Jennifer_Jane

dunstonh wrote: »

The two UK trackers lost 45% 6 years ago so its possible...quote]

Thanks so much for your help, dunstonh. I always value your opinion and your time. There are some extraordinary people on this forum, so generous with their time and knowledge.

Thanks :A


Jen

TheAble

Are we sure we need to invest anything at all in this ISA? What if we just open an account but don't invest anything? We therefore wouldn't have broken ISA rules (if we decided we wanted an ISA with a more competitive provider) and we are fulfilling cash back conditions surely?

dunstonh

Are we sure we need to invest anything at all in this ISA? What if we just open an account but don't invest anything?

You cannot open an "account" without investing anything.

With reference to the losing 45% 6 years ago, to be fair, I dont think anyone is expecting a drop like that in the near feature. There is scope for a correction but nothing on the scale of the last crash. Times like this a crystal ball would come in handy.

dotchas

Wow,
I was tempted by the £110 cashback but decided to to some research first.
I am not sure if its worth it,I am not up on investments.I will have a good think about it and take on board all advice given.
Its fantastic that you can get such great advice on MSE:T

notatroll

Thanks d, forgive me my ignorance, but once i have invested £500 and received cashback can i simply cash it? A small fee maybe. Or do i have to transfer to another provider in order to do so? Once again i am not that lazy – just easier to ask then read t&c. If that offends you – disregard.

Jennifer_Jane

notatroll wrote: »

Thanks d, forgive me my ignorance, but once i have invested £500 and received cashback can i simply cash it? A small fee maybe. Or do i have to transfer to another provider in order to do so? Once again i am not that lazy – just easier to ask then read t&c. If that offends you – disregard.

As I mentioned in post 11: "The cashback is from Quidco, so you would get that in the usual way (does that answer the question?)." So the cashback is nothing to do with Legal & General, you have to have registered on Quidco.

For information, I have applied (and got) the L&G Growth ISA as being as close to Dunstonh's ideas as were allowed in the ISA wrapper. I have gone for £500 (maximum I can afford at the moment!). The £110 has already tracked on Quidco for Sept 07.

(Beware, though, the money came out of my account immediately which has left me a bit short and having to move money about. The application form would only accept a debit card.)

Hope this helps
Jen

MikeeMOO

I've just signed up for the High Income Trust mini-ISA, £50 per month via Direct Debit, no lump sum needed and no initial charge with only 1% annual charge.

This fund seems to be a steady, safe performer in the fixed-interest sector:

http://www.iii.co.uk/factsheets/?type=detail&mex=LGITA

-Mikee-