Transfer my ISA into a current account?

jacknight

Alter_ego wrote: »

Or the current account rate dropping- they are all variable, could even go to zero!

It's like gambling with limited risk, ha.

I'm thinking I take out £15,240 from my ISA and put it into a 123 current account. Then on April 5th pop the £15,240 back into my ISA and re-evaluate then.

:T

colsten

How much do you know about being a landlord? Why would you be happy to put all your money into one single rental property rather than in a huge range of companies across all industries across the world (e.g. via a single tracker fund)? The latter would be significantly less risky, and a lot more flexible, than the former.

jacknight

colsten wrote: »

How much do you know about being a landlord? Why would you be happy to put all your money into one single rental property rather than in a huge range of companies across all industries across the world (e.g. via a single tracker fund)? The latter would be significantly less risky, and a lot more flexible, than the former.

A fair bit, someone in the family runs their own estate agents.

How is it risky? Look at house prices over the last 30 years, sure there are dips but overall they have gone up in value at an incredible rate.

I'm not ruling out S&S, but like I said I don't think I have the time to read up / research on it. Where would the place to start be?

jimjames

jacknight wrote: »

A fair bit, someone in the family runs their own estate agents.

How is it risky? Look at house prices over the last 30 years, sure there are dips but overall they have gone up in value at an incredible rate.

I'm not ruling out S&S, but like I said I don't think I have the time to read up / research on it. Where would the place to start be?

On that basis look at the stock market over the last 30 years and the huge increase in that.

Some people have very short memories of property market crashes. Unlike stock market there isn't a daily value published for house prices but that doesn't mean they always go up.

chucknorris

jacknight wrote: »

A fair bit, someone in the family runs their own estate agents.

How is it risky? Look at house prices over the last 30 years, sure there are dips but overall they have gone up in value at an incredible rate.

I'm not ruling out S&S, but like I said I don't think I have the time to read up / research on it. Where would the place to start be?

Most of the risk is related to finding yourself having to sell during a market downturn, if you don't depend too heavily on the property, then you are unlikely to 'have' to sell, so you could avoid that particular risk. The other risk is that you end up with a tenant from hell, not particularly likely, but it can happen. We won't invest in property, but that is only because we already have 8 investment properties. I am currently investing in equities, to diversify my portfolio (which is heavily weighted with property).

Invest in a diversified fund/ETF, this will significantly reduce risk, and allow you to passively invest (no need to do any research or have a deep understanding of how the markets work). This: http://www.morningstar.co.uk/uk/etf/snapshot/snapshot.aspx?id=0P0000YWPH is something that I am shortly going to invest in, not only is it geographically, it is also industry sector diversified. It pays about 3.8 to 4% in dividend income, so it compares well with savings accounts.

colsten

jacknight wrote: »

How is it risky? Look at house prices over the last 30 years, sure there are dips but overall they have gone up in value at an incredible rate.

Very simple: if the housing market takes a dive, your entire investment takes a dive. All your eggs are in one basket. Past performance is no guarantee of future performance, as you know. None of us has a crystal ball but I would say that housing needs a radical change.

If instead you spread your money across all industries and all countries, you are not exposed to anything like the risk you have with one rental property. Property, including commercial property, will be included in global fund. If any one or two asset classes tank, you still have all the others to keep you afloat.

There's lots of good reading about investments - you could start here: https://forums.moneysavingexpert.com/discussion/5043692

AFC_King

I would also like to ask, is it possible to use the switching service to switch an isa into a current account. I have a Lloyds isa and am considering switiching it into a TSB account. Is this possible?

badger09

AFC_King wrote: »

I would also like to ask, is it possible to use the switching service to switch an isa into a current account. I have a Lloyds isa and am considering switiching it into a TSB account. Is this possible?

If you mean the Current Account Switching Service (CASS), then no. The clue is in the first word

atush

jacknight wrote: »

Not that I am aware, I have had 2 before in my own name?



I don't really want it to be tied away, as eventually I hope to use some of it to invest in a house and let it out. How long that will be I don't know as I'm finding hard to find the right property.

I haven't looked at stocks and shares much, but doesn't the money have to be tied away for many years?



What sort of return do you people get from S&S ISAs and how long must the money be tied up for? S&S is not really something I have looked into much before. I came across an appealing website the other day called NutMeg that get nice returns but they take 1% fee.

Surely you realize that BTL is more risky than well diversified S&S isa investing?

not to mention you'll pay tax on the income and gains? And there are new restrictions coming about what expenses and how much will be deductible?

AndyT678

atush wrote: »

Surely you realize that BTL is more risky than well diversified S&S isa investing?

I think you'll find that many otherwise normal and intelligent people think that S&S investing is incredibly risky and requires a wealth of highly specialised knowledge whilst BTL is a help yourself cornucopia of easy money that any idiot can prosper in.