Inclusive vs Unbundled Funds

joerugby

Vortigern wrote: »

That's what I did. Opt for income to be held in the account. Fees are taken from that income and any excess, over HL's suggested minimum, is re-invested manually.

Thanks for the suggestion but all our Funds are Income funds.

We are retired and live on the income

Fees will reduce our income by quite a significant amount

Vortigern

joerugby wrote: »

Thanks for the suggestion but all our Funds are Income funds.

We are retired and live on the income

Fees will reduce our income by quite a significant amount

Take my suggestion above, but instead of "re-invested" substitute the word "withdrawn"

I agree that it should be possible to pay the fee without the forced and chargeable sale of units/shares.

masonic

joerugby wrote: »

Fees will reduce our income by quite a significant amount

They used to be eroding your capital, which does the same thing but more slowly. You can, for all intents and purposes, go back to that system by letting HL automatically sell units to cover the fee if that's what you prefer. Even after transaction fees, your assets will be eroded more slowly than they were under the old system, so the RDR has left you better off if you want these fees to be taken from the funds themselves.

RobStaffs

I spoke to H_L the other day. As I have maxed on my ISA allowance they suggested that I put enough cash into the non ISA stocks and shares account. If there is not enough bonus or cash on account in my ISA they will then take the cash from the non ISA account.

masonic

RobStaffs wrote: »

If there is not enough bonus or cash on account in my ISA they will then take the cash from the non ISA account.

They ought to take it from the Fund & Share account in preference to the ISA - why use up part of your annual ISA allowance paying fees?

RobStaffs

masonic wrote: »

They ought to take it from the Fund & Share account in preference to the ISA - why use up part of your annual ISA allowance paying fees?

I don't keep cash in my ISA accounts. I pay my annual fee from loyalty bonuses etc but I am looking at moving more my funds to inclusive funds which will not cover my annual charge.

masonic

RobStaffs wrote: »

I don't keep cash in my ISA accounts. I pay my annual fee from loyalty bonuses etc but I am looking at moving more my funds to inclusive funds which will not cover my annual charge.

You have to consider loyalty bonuses generated from funds in your ISA to be part of to the ISA. It's part of the money you subscribed to the ISA paid back to you from the funds you've invested in. It's inefficient to use that money to pay fees. You would certainly be better off paying the fees out of your F&S account if you are using all of your ISA allowance each year - that way all of your loyalty bonuses remain within the ISA.