Which investments to put in an ISA

773567889

Yes, the HL Vantage platform does a good reputation for it's comprehensive & detailed background analysis on funds. I may well use it for my SIPP (if I get one), where it works out as pretty good value for a small investment.

jimjames

773567889 wrote: »

Incidentally, the rep from Hargreaves Lansdown describes himself in the documents as an IFA - yet he is restricted to using HL's expensive platform. How is that unbiased advice?!

Is it because the products available via that platform are across the whole market so it isn't limited to products of one company? The platform isn't a product.

As I understand it IFAs have their own perferred platforms and don't recommend others outside of that so that seems no different to HL.

dunstonh

jimjames wrote: »

Is it because the products available via that platform are across the whole market so it isn't limited to products of one company? The platform isn't a product.

As I understand it IFAs have their own perferred platforms and don't recommend others outside of that so that seems no different to HL.

Any IFA only offering one platform would be a high risk of failing to meet independence criteria. The FCA believe that no one platform can fit all clients. So, it starts with the expectation that you would be using multiple platforms and would need to be satisfied if you are using just one. How would they respond If you apply the question " does the investor want or need the functionality a full wrap platform at higher cost than a fund supermarket with lower charges or going direct to fund house?

Using just one platform is like waving a red flag to the regulator saying "come and get me".

RickyC_IFSWP

jimjames wrote: »

Is it because the products available via that platform are across the whole market so it isn't limited to products of one company? The platform isn't a product.

As I understand it IFAs have their own perferred platforms and don't recommend others outside of that so that seems no different to HL.

Independent advice covers products/platforms, also, given that each platform has their own costs, features, benefits etc, So if an adviser can only advise on one platform, they are restricted.

mdxyz

What's the advantage of a pension over an ISA in the OP's situation? Is there employer match on a huge lump sum that doesn't come from salary? Seems doubtful. Other than that, a pension is just an ISA that is locked for many years. Invest in a pension only if the ISA is maxed out, or you're the sort of person who would withdraw and spend the money early.

---

OP - you seem intelligent and prudent, so I'd avoid recurring fees, front end loads, and any adviser who isn't paid a fixed sum for specific advice. Someone will always pick up the phone to you for £100; no need to pay them £10k/year even if you never call. You can set up a stocks/bond portfolio within your ISA or pension using low cost index funds and keep that money for yourself. A broadly diversified index fund is generally less risky than actively managed funds (it isn't a black box) and after fees tends to outperform active management. Work out what 1 or 2% of lost compound interest is worth for you over 30 years, for instance.

You seem to suggest you intend to live off this money indefinitely - is that right? Make sure that you have at least 30-40x as much as you plan to spend each year.

dunstonh

What's the advantage of a pension over an ISA in the OP's situation?

There is a pension vs ISA thread in the pension section.

Other than that, a pension is just an ISA that is locked for many years.

There is a little more to it than that.

mdxyz

dunstonh wrote: »

There is a pension vs ISA thread in the pension section.



There is a little more to it than that.

In general yes, but the reason why I posted in this thread rather than a general Pensions vs ISAs thread is that the OP has particular circumstances. The main advantage of a pension - allowing one to take earned income in some sense tax free - does not apply to the OP since he is investing a lump sum, not earned income, and has only a low earned income.

planteria

great thread.

innovate wrote: »

...to me it is just a complete no-brainer to put some of the funds into a SIPP (but I would use up my ISA allowance first).

that sounds right to me. ISA use is clear. and the use of some form of pension for further funds that can be classified as 'unavailable for spending' seems too good an opportunity to miss.

i know that some people are using Investment Bonds from a Friendly Society i am a member of...one of the benefits is that the funds in a bond will not be accessed by local authorities to pay for care, aswell as protecting your funds from CGT. is that the kind of thing that the IFAs have mentioned?

planteria

mdxyz wrote: »

In general yes, but the reason why I posted in this thread rather than a general Pensions vs ISAs thread is that the OP has particular circumstances. The main advantage of a pension - allowing one to take earned income in some sense tax free - does not apply to the OP since he is investing a lump sum, not earned income, and has only a low earned income.

but he can stash some of his lump sum away each year, getting tax relief on the way in, allow it to grow, and then cash in part tax free when he decides to (post-55)..

mdxyz

planteria wrote: »

but he can stash some of his lump sum away each year, getting tax relief on the way in, allow it to grow, and then cash in part tax free when he decides to (post-55)..

I agree he should put some into a pension after he's exhausted the ISA allowance. I would ordinarily say to max both, but he seems to expect to live off the investment starting now.