Daves 5 year plan

djt1959

Hi,
I suppose over the years I have been remiss in terms of saving, or more to the point, not given my savings the attention they deserve. I have decided Ineed a 5 year plan, as this will take me to my 60th birthday, and would value any input as I Im a true novice when it comes to investing/saving, so here goes:

1) on the 1st of July move £15000 out of savings and put into a Stocks & Shares Isa

2) as above move another £15000 and put into a Stocks & Shares Is a in kmy wife's name .

3) I have opened a Santander 123 account, I could put £20,000 in there to take advantage of the 3% interest, as I have set up appropriate dDDSto qualify.

4) I have opened a Nationwide account which will pay 5% on the £2500, again I have set up DDs to qualify for interest.

5) i have a stocks & shares investment with Standard Life (which I had almost forgotten about) this investment over the last 3 years has done nothing in terms of growth, however in the last 8 months it has grown significantly and now valued at £13500, i plan to move this investment into an isa in 2015

I am left pondering,

*) should I really put £20000 into Santander or should I put this into another ISA via my son (not ethical, I know)

*) I/we also have £500 a month that we could save, as we would have used our is allowances, where would be a good place to save the money. If I used £15000 of the Santander money for an ISA in my sons name (he is 29 and does not have an ISA) i could put the £500 a month back into Santander.

Finally, why a 5 year plan, well I am fortunate that I am able to take flexi retirement at 55, havingg paid a "kings ransom" into my pension over the years. I/we have a small mortgage, but locked into a deal and would have pay a pently of £3000 if i pay the the mortgage of before August 2016.

OK that's my financial soul layed bare, does my 5 year plan sound realistic, or do I we need to teak it a bit???/

Thanks
Dave

Archi_Bald

4) no DDs needed for FlexDirects

It is not unethical to give your son money to put into an ISA.

You could consider other current accounts and/or regular savers for your spare money.

You could probably also put more money into pensions, e.g. SIPP.

xylophone

Be aware that if you give your son the money to put into his ISA, the money becomes his and you will have no further legal claim on it.

westy22

xylophone wrote: »

Be aware that if you give your son the money to put into his ISA, the money becomes his and you will have no further legal claim on it.

And also the money in 'his' ISA will be counted as part of his assets if he ever needs to claim certain benefits in the future.

lozzy1965

If you are moving into the Stocks and Shares ISA realms, you will also get a Dealing account, alongside your ISA. An option (as I do) is to put money that can't go into your ISA, that you want to invest in the stock market, into the Dealing account. Then each year, lump sum it into the ISA by selling any shares in profit and balancing, or expanding your portfolio within your ISA.

Albert_Tatlock_2

Don’t forget about TSB Classic Plus accounts – you and your missus can get 6 between you giving you £12k @ 5% interest. A good bit better than having that £12k with Santander 123

djt1959

lozzy1965 wrote: »

If you are moving into the Stocks and Shares ISA realms, you will also get a Dealing account, alongside your ISA. An option (as I do) is to put money that can't go into your ISA, that you want to invest in the stock market, into the Dealing account. Then each year, lump sum it into the ISA by selling any shares in profit and balancing, or expanding your portfolio within your ISA.

Hi Lizzy sorry to be 'dim' what is a dealing account? I intend to spread my risk into 3 different companies,
1) Standard Life, myfolio
2) M&G
3) Artemis

Will I get a dealing account with these companies and how does it work?

Dave

RickyC_IFSWP

djt1959 wrote: »

Hi Lizzy sorry to be 'dim' what is a dealing account? I intend to spread my risk into 3 different companies,
1) Standard Life, myfolio
2) M&G
3) Artemis

Will I get a dealing account with these companies and how does it work?

Dave

With the terminology used, I presume the dealing account refers to an account used to purchase direct share investments.

You can actually simply hold similar investments as your S&S ISA (i.e. in funds) with an "Investment Account", which works the same way but just isn't in an ISA wrapper. It would actually make more sense to use this account to feed future ISA allowances.

Mallotum_X

xylophone wrote: »

Be aware that if you give your son the money to put into his ISA, the money becomes his and you will have no further legal claim on it.

Unless you all sign a loan agreement to the effect you have lent him money...

balmk

First direct have a good regualr saver account - you can save up to £300 per month and get a 6% (gross) return after 12 months (I think that you need a FD current account) - if you set up a joint account with teh Mrs, you can then open a regular saver each.

djt1959

Mallotum_X wrote: »

Unless you all sign a loan agreement to the effect you have lent him money...

Hi thanks for the advice, I trust my son 100% and his future inheritance will depend on it:rotfl: