Stocks & Shares ISAs

Alexland

Matteo024 wrote: »

I have done my research and know what I am willing to do, I have 10k to invest into my own chosen portfolio of companies

Do more research an understand that's an approach that is likely to give a significantly worse outcome in terms of fees and performance than just using a low cost diversified fund. I tried stock picking for a few years, and stupidly again for a few more years a decade later, and learnt the hard way. My stock picking returns were less than my concurrent fund investments that I was sensible enough to continue.

Investing in 100% equities for 5+ years has an unacceptable probability of ending with a net loss especially if you are racking up trade fees and stamp duty. A mixed asset fund containing a balanced mix of equities and bonds would be more appropriate. Consider holding a Vanguard LifeStrategy fund in a Vanguard Investor S&S ISA.

Alex

Matteo024

Thank you for the replies, it seems like I was close to making a terrible decision, are funds the only thing you would recommend ?

Alexland

Matteo024 wrote: »

Thank you for the replies, it seems like I was close to making a terrible decision, are funds the only thing you would recommend ?

What's wrong with funds? They are a great way to invest.

You might also want to consider using a Lifetime ISA (up to £4k per tax year) for a 25% government bonus. These accounts can be used towards your first property purchase (stay in cash if the purchase is less than 5 years away) or you can invest in S&S towards a more distant property purchase or withdrawal from age 60 for retirement, etc. Read the terms and conditions carefully to ensure the product meets your needs as otherwise a withdrawal penalty would apply. Always keep enough liquid cash for emergencies and short term needs.

If you are employed contribute enough to your workplace pension to get maximum employer matching.

Alex

ColdIron

Matteo024 wrote: »

are funds the only thing you would recommend ?

You might look at your pension but I appreciate that at 19 that looks a long way away. Multi-asset funds will stand you in good stead until you have maybe £50,000 or more. Oh and do use an ISA, you may not think you are liable for tax now but how about in 10 years time? You should aspire to reach a level where tax is an issue. Even if you don't you may be challenged by HMRC and will need detailed records to prove otherwise. ISAs are generally no more expensive than unwrapped accounts

Alexland

ColdIron wrote: »

Multi-asset funds will stand you in good stead until you have maybe £50,000 or more.

I agree mixed/multi asset funds are ideal for account balances up to around £50k but they are also OK to continue using for much more if you want a hands off approach with automatic re-balancing. Ultimately the exposure and volatility profile will need managing anyway as you get closer to withdrawal unless you use a target date fund which are only really suitable for lump sum withdrawal events rather than sustained income draw down.

ColdIron wrote: »

You should aspire to reach a level where tax is an issue.

I aspire to reach a level where my fund unit rebalancing cause the fund manager(s) unexpected in/outflow problems. I like to calculate what proportion of the whole fund's assets are mine and if I get a high enough percentage then maybe they will rename it the "Alexland got filthy rich using this" fund ;-)

Alex

Matteo024

Couldn’t be more happy with the decision I made to take it to these forums, really appreciate all your help, saved me a lot of time and trouble, in terms of funds, is there any particular provider you would recommend

Matteo024

I have a lifetime isa already and have maxed out my employer pension “, just need a form or investment now really

Nardge

Good afternoon,

There has been much discussion in the forums regarding S&S and it's myriad variations!

I've tried to glean the essentials, and have also read MSE's S&S Guide beforehand

I'd be grateful if you could kindly confirm/refute/answer the following:

Vanguard Life Strategy:

Is amongst the best for someone who:

• Doesn't have much spare time
  
  
• Has relatively minimal knowledge/understanding
  
  
• Wants relatively cheap all-round fees
  
  
• Seeks broad diversity
  
  
• Seeks international investment e.g. China, and also within the UK
  
  

Does anyone know of any cashback links for opening the same?

Does anyone have a referral they'd like me to use for an agreement made by Private Message?

Stocks and Shares:

• Unless one has a vast amount of money non-ISA S&S is the preferable option?
  
  
• Switching non-ISA to ISA is only possible via Cash ISA (with attendant financial expense)?
  This would arise if/when I felt the latter was more favourable
  
  
• There is little point/no benefit in having several S&S ISA open concurrently (contrast P2P (Peer-to-Peer) ISAs)?
  
  
• It is possible to funnel P2P ISAs directly (from Holding Accounts) into S&S ISA?
  

Thanking you in advance

With Kind Regards

AnotherJoe

Nardge wrote: »

Good afternoon,

There has been much discussion in the forums regarding S&S and it's myriad variations!

I've tried to glean the essentials, and have also read MSE's S&S Guide beforehand

I'd be grateful if you could kindly confirm/refute/answer the following:

Vanguard Life Strategy:

Is amongst the best for someone who:

• Doesn't have much spare time
• 
  Whats spare time got to do with it? There are numerous global tracker funds available
  
  
• Has relatively minimal knowledge/understanding
  
  
• Wants relatively cheap all-round fees
• Agreed
  
  
• Seeks broad diversity
• More diversity is available in other funds due to the artificial 25% "UK" holding.
• (artificial because its an arbitrary %. Its not the 6% world GDP of the UK so theres no reason for it other than it sounds good.)
  
  
• Seeks international investment e.g. China, and also within the UK
  

The 25% is not particularly UK. That is misleading. The "UK" companies its invested in are massive global multinationals that do relatively low business in the UK. Not that thats a bad thing per se, but it is a bad thing in terms of concentration within a very few industry sectors.



Does anyone know of any cashback links for opening the same?
Never seen one mentioned.


Does anyone have a referral they'd like me to use for an agreement made by Private Message?

Stocks and Shares:

• Unless one has a vast amount of money non-ISA S&S is the preferable option
• I disagree profoundly. Having your investments in an ISA avoids a lot of complex form filling and tax returns.
  
• 
  
• Switching non-ISA to ISA is only possible via Cash ISA (with attendant financial expense)?
  This would arise if/when I felt the latter was more favourable
• Switching what?
  
  
• There is little point/no benefit in having several S&S ISA open concurrently (contrast P2P (Peer-to-Peer) ISAs)?
• Agreed
  
  
• It is possible to funnel P2P ISAs from Holding Accounts directly into S&S ISA?
• No idea what that means. Whats a "holding account" ?
  

Thanking you in advance

With Kind Regards

HTH extra text

ColdIron

Nardge wrote: »

• Unless one has a vast amount of money non-ISA S&S is the preferable option?

No. ISAs will shield you from dividend and capital gain taxes. They also do not require that you keep detailed records of purchases, sales and dividends accrued over the years. You may not think you are liable for tax now but you may be if your investments do well. HMRC may challenge you and you need to be able to prove otherwise. There are almost no disadvantages to using an ISA and usually no extra cost. It's a no brainer

• Switching non-ISA to ISA is only possible via Cash ISA (with attendant financial expense)?

No. You can transfer directly into an ISA though there may be costs attached anyway