When should you use an IFA?

EdGasket

Glad to hear you are thinking of more than just two trackers for your 36K.
You can move the ISA but you don't need to invest it all right away. A better plan might be to spread purchases out throughout the year then if th emarket does go 'Pete Tong' around or after election time, you can pick up units/shares at cheaper prices.

There is not much increase in charges by splitting your investment. If you opt for ETF's which are bought and sold like any other share, you would incur additional dealing costs but overall ongoing charges would be the same whether you invested in one tracker or 6 assuming the fees of each tracker are similar.

enthusiasticsaver

EdGasket wrote: »

Glad to hear you are thinking of more than just two trackers for your 36K.
You can move the ISA but you don't need to invest it all right away. A better plan might be to spread purchases out throughout the year then if th emarket does go 'Pete Tong' around or after election time, you can pick up units/shares at cheaper prices.

There is not much increase in charges by splitting your investment. If you opt for ETF's which are bought and sold like any other share, you would incur additional dealing costs but overall ongoing charges would be the same whether you invested in one tracker or 6 assuming the fees of each tracker are similar.

If I transfer the matured ISA surely I have to move it in it's entirety to keep the tax free status on the whole £36k don't I? From experience the fixed rate one I have at the moment will go into an instant access isa paying a pittance after the maturity date so I won't want to leave it there. I know you can partially transfer so do you mean just transfer part of it to a stocks and shares isa and then transfer the rest into another better paying instant access cash isa and stagger the transfers to the s and s isa later on in the year. Is that possible?

RobStaffs

Must admit I think I am at a level where I believe my do it your self approach to my money management has reach it's peak. I many have to turn to IFA's to give me a second opinion.

EdGasket

enthusiasticsaver wrote: »

If I transfer the matured ISA surely I have to move it in it's entirety to keep the tax free status on the whole £36k don't I? From experience the fixed rate one I have at the moment will go into an instant access isa paying a pittance after the maturity date so I won't want to leave it there. I know you can partially transfer so do you mean just transfer part of it to a stocks and shares isa and then transfer the rest into another better paying instant access cash isa and stagger the transfers to the s and s isa later on in the year. Is that possible?

If you transfer the entire ISA to a Stocks and Shares broker service like x-o or AJ Bell YouInvest then the money can sit there as long as you like, as cash, until such time as you choose to buy a share, fund, ETF, whatever you like. Of course it won't earn interest but it does allow you to choose your investment timing and stagger purchases if you wish to. You are also free to sell what you bought at any time and the investment reverts to cash sitting in the S&S ISA.

It may be that if you transfer your ISA to a fund administrator like Vanguard or Fidelity that you HAVE to invest in something right away; I don't know about that but have had a similar situation with pension transfers.

Hope this helps.

jimjames

enthusiasticsaver wrote: »

If I transfer the matured ISA surely I have to move it in it's entirety to keep the tax free status on the whole £36k don't I? From experience the fixed rate one I have at the moment will go into an instant access isa paying a pittance after the maturity date so I won't want to leave it there. I know you can partially transfer so do you mean just transfer part of it to a stocks and shares isa and then transfer the rest into another better paying instant access cash isa and stagger the transfers to the s and s isa later on in the year. Is that possible?

If it isn't money from this year then you can do partial transfers from cash ISA to S&S ISAs at different times, there is no need to move it all in one go.

So you could transfer part and move the rest to a new cash ISA then move more at a later date into the S&S ISA.

EdGasket

jimjames wrote: »

If it isn't money from this year then you can do partial transfers from cash ISA to S&S ISAs at different times, there is no need to move it all in one go.

So you could transfer part and move the rest to a new cash ISA then move more at a later date into the S&S ISA.

Partial transfers are not always possible, it as at the whim of the current ISA provider. In my experience most do not allow partial ISA transfers.