Going for Maxi ISAs

butch_dingle_2

OK, heres the plan.

We (me and the missus) have decided we have enough cash in "immediatetly available" savings. We have decided that we would like to start putting away a monthly sum in a stocks and shares ISA.

We have been given a recommedation (by an already happy investor) of a managed fund ISA from Scottish Widows. Since these can be setup individually we will be setting up one in each of our names for £300 per month each, plus £1000 to get them started. We do envisage over the year adding extra funds so that we will be close to the £7000 limit.

So all I can see that is left to do in this is to choose the actual funds in which we would like our money to be working. From what I can see from SW website, then we are more likely just to choose the balanced portfolio, since our aim is for long term growth.

anyone got any comments on this strategy ?

jem16

If you go direct to Scottish Widows you are going to have to pay an initial charge of 5% and an annual management charge of 2% and basically receive no advice.

If you go to an IFA you will pay less than this and can have funds tailored to your own risk profile.

If you really want to go DIY then best to go to a discount broker like Hargreaves Lansdown where the initial charge and part of the annual charge will be discounted. If you really want a managed fund you can get them here and the initial charge will be less at around 1.5%.

http://www.h-l.co.uk/our_services/mmf_charges.hl

dunstonh

IFAs can go Scottish Widows funds cheaper than Scottish Widows advisers (assuming you mean LTSB). Scot Widows dont actually have that many good funds. A few on the SWIP side and maybe one or two on the SW side. Howeer, at £300pm each, it would be daft to use a single provider/single fund.