Stocks & Shares ISAs

masonic

Nardge said:

Good Morning,

A few years ago I made my first venture onto this thread and following the useful guidance have now invested £60,000 with Vanguard Life Strategy (75% in the 80 % Equities, 25% in the 100% Equities). 

I intend to keep investing in 'global-index trackers', but recall reading that £50,000 was about the right amount to invest with the above and perhaps other platforms, as for larger amounts, cheaper platforms existed...

If you are investing direct with Vanguard then the annual platform fee for investments valued at £50k would be £75 per year. However, if you are investing at Hargreaves Lansdown you'd be paying three times that, £225 per year.

Charges vary from time to time and it is unlikely that the break-even point for a fixed fee provider will be in the same place now as it was a few years ago. For example. iWeb now has a £100 account opening fee, and Interactive Investor has a different pricing model.

You may be able to realise a saving with some providers by building a DIY version of Vanguard Life Strategy using Vanguard (or other) ETFs to take advantage of fee caps.

The other factor to consider is that your current platform may not charge you anything to buy and sell funds, while fixed fee providers invariably do.

eskbanker

masonic said:

If you are investing direct with Vanguard then the annual platform fee for investments valued at £50k would be £75 per year. However, if you are investing at Hargreaves Lansdown you'd be paying three times that, £375 per year.

Think your calculator may need new batteries....

masonic

eskbanker said:

masonic said:

If you are investing direct with Vanguard then the annual platform fee for investments valued at £50k would be £75 per year. However, if you are investing at Hargreaves Lansdown you'd be paying three times that, £375 per year.

Think your calculator may need new batteries....

Oops, £225, now corrected, must have hit 5 instead of 3!

Dravid1

Hi, been looking into transferring funds from my long accumulated cash ISA into stocks and shares ISAs. No payments into it this tax year. Does anyone know if I can make partial transfers to more than one provider in the same year ? E.g. If £60,000 current cash ISA, transfer £30,000 to one stocks and shares ISA provider and £30,000 to a different stocks and shares ISA provider ? Thanks in advance for any help. 

eskbanker

Dravid1 said:

Hi, been looking into transferring funds from my long accumulated cash ISA into stocks and shares ISAs. No payments into it this tax year. Does anyone know if I can make partial transfers to more than one provider in the same year ? E.g. If £60,000 current cash ISA, transfer £30,000 to one stocks and shares ISA provider and £30,000 to a different stocks and shares ISA provider ? Thanks in advance for any help. 

There's nothing in the rules that prevents this, but not all S&S ISA providers will accommodate partial transfers, so it'll depend on the Ts & Cs of the providers you have in mind.  Why would you want to use two anyway?

masonic

You only need one of your chosen S&S ISA providers to accept partial transfers, since the second transfer will be a full transfer. If neither accept partial transfers, then you'd need to make a partial transfer to a second cash ISA before doing two full transfers.

dunstonh

The question of why you want 2 ISA managers is pertinent.  

Dravid1

Thanks all, I would prefer two different stocks and shares ISAs just to spread/diversify risk.

jimjames

Dravid1 said:

Thanks all, I would prefer two different stocks and shares ISAs just to spread/diversify risk.

Are you planning on using completely different funds in each ISA? You may want to consider what risks you are trying to mitigate against by doing that.

eskbanker

Dravid1 said:

Thanks all, I would prefer two different stocks and shares ISAs just to spread/diversify risk.

It's a free world but I'd suggest that, provided you're using mainstream platforms, splitting a £60K pot across two providers is largely futile, and potentially calls into question your understanding of risk and diversification, which are important concepts when investing....