Will existing ISA's become NISA's

le_loup

Archi_Bald wrote: »

There seems to be some sort of religion-like belief that filling your annual cash ISA allowance at all costs is a good thing ......... It will probably take decades before Joe Public will be literate about investments.

And yet - different subject - you seem to believe that there is no problem in giving these same people access to their pension funds without restriction!

brewerdave

Archi_Bald wrote: »

It will probably take decades before Joe Public will be literate about investments.

....in my view it will NEVER happen...I regard myself as moderately intelligent:o......but reading thru some of the threads over the past two months on the pros and cons of different platforms (HL,Charles Stanley,Cavendish etc etc) and their almost incomprehensible charging/rebating structures has made my ears bleed:eek: - and I already have money tucked away in various fund ISAs - for someone coming new to "investing" I'm afraid a simple interest bearing cash ISA is always going to be a "winner":(

Archi_Bald

le_loup wrote: »

And yet - different subject - you seem to believe that there is no problem in giving these same people access to their pension funds without restriction!

No, I have never said that. What I did say is that people who have saved all their lives for their retirement should have the freedom to spend their money as they like.

By definition, these people will have a level of financial literacy, and/or will engage professional advice where needed.

talexuser

Archi_Bald wrote: »

and/or will engage professional advice where needed.

I think the danger is the financially inexperienced will go to their bank which hardly has a good track record in "advice" or a new industry of "wide boys" will emerge to cream off profits from their pension pots. I've already seen a tv advert akin to the injury ambulance chasers saying use us to get your tax free lump sum on the back of the budget publicity. So after the obligatory scandals a whole new regulatory setup will be needed for pension advisers?

Archi_Bald

Unless I am mistaken, Financial Advisors are already able, and regulated, to advise on annuities, drawdown and of course investments paying income. But I agree, there will no doubt be some new sharks out there, trying to enrich themselves from unsuspecting people.

le_loup

Archi_Bald wrote: »

By definition, these people will have a level of financial literacy, and/or will engage professional advice where needed.

But the people who have "a religion-like belief that filling your annual cash ISA allowance at all costs" (your words) are not.
You are good at investing and I think I am too but it's because I have that sort of mind. Ask me to do some electrical re-wiring and I will most likely kill myself.

Archi_Bald

le_loup wrote: »

But the people who have "a religion-like belief that filling your annual cash ISA allowance at all costs" (your words) are not.

Yes, agreed. Nothing new there though, is there - - they always had their cash savings, and they could always do with them whatever they liked. The new freedom applies to formal pension investments only.

le_loup wrote: »

Ask me to do some electrical re-wiring and I will most likely kill myself.

I doubt that - you would be smart enough to call an electrician .

Just like the smart investor will call in the expert when they feel they have reached their limits of competence.

jimjames

lisyloo wrote: »

What's the point in doing that then?
May as well leave the money in a current account and get some interest, then move it in July.

Exactly! It seems that some people are more obsessed with it being tax free than actually getting a good return.

Outside an ISA 5% taxed, even at 40%, is still more than 1.5% tax free inside one!

I think the press are as guilty as anyone and I guess most journalists have no idea about S&S ISAs either. More shocking to me are the annual articles that appear about the "best ISAs" that go through all the pathetic rates on offer yet only in the final footnote mention that current accounts or savings account actually pay higher interest.

xylophone

I am acquainted with a very elderly person whose ISA allowance in S&S is always used because of the tax advantages for income.

lisyloo

I am acquainted with a very elderly person whose ISA allowance in S&S is always used because of the tax advantages for income.

I'm sure some of them do - presumably the ones who don't need instant access to it and are comfortable with the risk.

There are also lots of people who are either
1) saving to pay off a mortgage
2) savings for a deposit
3) pensioners or others needing access to savings

I am not saying these are all the groups and I am not saying there are no exceptions. I am actually agreeing with jimjames and Jonbvn that there is no "one fts all" solution. Cash ISAs aren't it but neither is investing.

The solution surely has to fit the persons goals, attitude to risk, need for access etc. etc.

I have a mixture. My mortgage "pot" is one I'm not prepared to gamble with and actually it's ony the nominal value that is of interest. My "emergency fund" has to be accessible, but I also take risks with equities.
I am actually agreeing with most of you !! so why are you arguing :-) :-)