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Opening a brand new ISA - help please

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  • also from your experience do you think Van Guard is the best option for somebody with no investing experience?


    if so, I just need to find the best broker to do this through...
  • xylophone
    xylophone Posts: 45,746 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    also from your experience do you think Van Guard is the best option for somebody with no investing experience?


    if so, I just need to find the best broker to do this through...

    I have never held Vanguard Funds - however, they do seem well thought of.

    See also

    https://forums.moneysavingexpert.com/discussion/comment/64837484#Comment_64837484 post 4 for some links that you might find useful.
  • I would suggest putting it into a stocks and shares ISA too, you can always but some in a cash ISA too and split it but you many see more interest for your money in one lump sum. This tool is really good and a possible incentive to just invest and leave well alone - https://www.fidelity.co.uk/investor/isa/stocks-and-shares-isa/isa-calculator.page Fidelity's calculates that if you invest £10,000 over two years at 5% growth you could give you lump sum of £10,585. So you could potentially make £585 from just investing for 2 years - pretty good!
  • bigadaj
    bigadaj Posts: 11,531 Forumite
    Ninth Anniversary 10,000 Posts Name Dropper
    I would suggest putting it into a stocks and shares ISA too, you can always but some in a cash ISA too and split it but you many see more interest for your money in one lump sum. This tool is really good and a possible incentive to just invest and leave well alone - https://www.fidelity.co.uk/investor/isa/stocks-and-shares-isa/isa-calculator.page Fidelity's calculates that if you invest £10,000 over two years at 5% growth you could give you lump sum of £10,585. So you could potentially make £585 from just investing for 2 years - pretty good!

    I think you're unfortunately mis reading that.

    There are no guarantees in share investing, the fidelity guide is for example purposes only. Investments in equities should be for at least five and ideally ten years, and will be volatile though should perform better over the longer term.

    I can guarantee you won't get those returns, it is likely to be higher than that than lower, but you could easily have less than you put in after two years, and need to consider that.
  • jimjames
    jimjames Posts: 18,889 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    edited 13 March 2014 at 6:47PM
    shoegal30 wrote: »
    Thanks for the link xylophone - I will probably try and hijack that thread haha.


    Dumb question - if I went down the S&S route, would I still have the same tax exemptions as per a standard cash ISA?


    Yes and it's even better than cash as you also avoid Capital Gains tax too!
    Fidelity's calculates that if you invest £10,000 over two years at 5% growth you could give you lump sum of £10,585. So you could potentially make £585 from just investing for 2 years - pretty good!

    Last year the UK FTSE100 rose 15% not 5% so your £10000 would have been worth £11,500. The previous year it rose 6% but in 2011 it dropped 6%.

    You can't assume it will just rise as per the examples from Fidelity - those are purely examples to show charges not estimates of what will happen.
    Remember the saying: if it looks too good to be true it almost certainly is.
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