Stocks & Shares ISAs

Trinity1011

Thanks for the reply and please excuse my faulty fag packet maths. For clarity the product is a Standard Life Global Advantage Fund.
I have done some digging around on the Standard Life website and found a fact sheet which shows their past performance figures for my fund from 2008 to 2017. Adding the percentage returns for each year over 10 years and dividing by 10 gives 6.76%. Is it correct to call this the average return? And is it a low performance as you suggest 8.4% would be normal.
You are right about fees as I have also found that they charge 1.03% over a year – I take it that this is excessive when people are recommending Vanguard LifeStrategy fund series for a total of 0.37% platform and fund fees. Standard Life also charge 4% as an entry charge!

masonic

Trinity1011 wrote: »

I have done some digging around on the Standard Life website and found a fact sheet which shows their past performance figures for my fund from 2008 to 2017. Adding the percentage returns for each year over 10 years and dividing by 10 gives 6.76%. Is it correct to call this the average return? And is it a low performance as you suggest 8.4% would be normal.

It's slightly worse than that as returns are compounded, so 67.6% over 10 years works out at 5.3% annualised return (1.676^(1/10)). This is a multi-asset fund, but has a pretty low exposure to bonds and ought to be performing better than it is.

You are right about fees as I have also found that they charge 1.03% over a year – I take it that this is excessive when people are recommending Vanguard LifeStrategy fund series for a total of 0.37% platform and fund fees. Standard Life also charge 4% as an entry charge!

Agreed and it's arguably equivalent to VLS 80, which is not only cheaper but has performed a lot better. It's not uncommon for initial charges to be discounted down to 0%, but that may not be the case for you.

canice_lynch

Hi, I have read the information about being able to withdraw 25% of my pot tax-free but i still don't understand this fully. For example - In 15 years time say I have £70,000 in my stocks and shares ISA. Does it mean i can withdraw £17,500 to my account tax free? Will the remaining £52,500 stay invested? Also am i able to do this once every tax year? So the following year am i able to take 25% of my remaining balance out again as tax free?

jimjames

canice_lynch wrote: »

Hi, I have read the information about being able to withdraw 25% of my pot tax-free but i still don't understand this fully. For example - In 15 years time say I have £70,000 in my stocks and shares ISA. Does it mean i can withdraw £17,500 to my account tax free? Will the remaining £52,500 stay invested? Also am i able to do this once every tax year? So the following year am i able to take 25% of my remaining balance out again as tax free?

No, I'm not sure where you got 25% from. All money in a S&S ISA is tax free. I think you are talking about pensions where there is a limit on tax free withdrawals.

canice_lynch

So i could withdraw the full £75k in one lump sum and not pay any tax? FYI i am talking about a S&S ISA with Vanguard

ColdIron

canice_lynch wrote: »

So i could withdraw the full £75k in one lump sum and not pay any tax?

Yes

FYI i am talking about a S&S ISA with Vanguard

Makes no difference, an ISA is an ISA. As jimjames said you are confusing ISAs with pensions

newnhak

Hi


I currently have a S&S ISA with X-O. Next tax year I want to invest in some funds (like vanguard or ishare) which I cannot do with X-O. Should I open a new ISA next year or look for ETF's instead?


It would probably be a monthly invested amount of around £500


Thanks
K

eskbanker

newnhak wrote: »

I currently have a S&S ISA with X-O. Next tax year I want to invest in some funds (like vanguard or ishare) which I cannot do with X-O. Should I open a new ISA next year or look for ETF's instead?

Always decide what you want to invest in first and then sort out where to hold it, so if your current platform doesn't support what you want to buy then yes, use another one.

If you've already paid into your current one this tax year then yes, you can open another in the next tax year, keeping both running in parallel, or you could transfer your current S&S ISA to another platform this year and continue funding only into the new provider....

newnhak

Thankyou Eskbanker. I am a little confused about the difference between ETF's and funds but as you say I guess that is something to think about once I have decided where to invest

eskbanker

newnhak wrote: »

Thankyou Eskbanker. I am a little confused about the difference between ETF's and funds but as you say I guess that is something to think about once I have decided where to invest

No, that's the opposite of what I said! My point was to identify what you want to invest in before sorting out where to hold it, so I'm advocating deciding on whether you'd want to buy ETFs or (non-ETF) funds first and then decide which platform(s) to use....