Anxious about S&S ISA Choices

Mynxmox

I put £13000 into a S&S ISA in the last moments of the previous financial year with Axa self investor. But what to do with it?? I am a total novice with investments.
I am 53, single, no dependents, no debt, rental property, basic rate tax payer (but working overtime pushes me into higher rate), just started and joined work pension, 6 months' earnings in cash ISA's, £30k in SIPP another R20k in savings.
My objective is planning for retirement. I have read a bit about S&S Isa's but will never be an expert. Went to see 2 IFA's but their fees are too high for my small portfolio (they did not even bothr to get back to me). Medium to low risk is what I can live with and 'Funds' sound more stable than having to choose stocks and shares etc.
Vanguard seems to be mentioned a lot. I aim to save a further R1k per month.
Please give me your much valued advice.

Jsscmm

Whilst you may get a lot of specific funds etc suggested one or two thoughts...

You haven't specified how long you want to keep this invested for. You have nice numbers for a cash cushion but if you are wanting say 20 years that may result if different answers to 5 (5 probably being too short for S&S).
Funds generally are lower risk than single companies as they spread the money over a range of companies, even if one fails, the others should help. However funds can still go down.
Vanguard sell a range of different funds. Some may be suitable, some may notThey tend to be good at what they aim to do, but not always the best/cheapest etc. That said, working out what asset class before you find a fund manager is probably a good idea. Personally I do use a couple of vanguards though, as they did suit that particular need at the lowest cost.

Figure out your timetable, add in your risk level and I suspect you may end up with a relatively high bond, low equity split and therefore a low numbered LS or l&g multi index might be an answer, but work out the elements in the correct order.

Good luck.

Final thought... How did you select your sipp elements?

BLB53

I am guessing you will be limited as to what funds are available with Axa. If Vanguard are available then possibly the Lifestrategy 40 or 60 would be the most appropriate.

If Vanguard are not on offer, then see if there is something low cost and similar suitable for fairly cautious investor. If not, maybe consider a transfer out to a platform that offers a full range of investment options at low cost e.g. Charles Stanley Direct or Cavendish.

TakeCareOfThePennies_2

Mynxmox wrote: »

I can live with and 'Funds' sound more stable than having to choose stocks and shares etc.

If you're not even comfortable with funds, you most certainly should not even remotely contemplate picking individual equities ! And with only £13000 to invest, I wouldn't recommend it either.

With £13000, I'd probably stick with something relatively "safe" like a decent tracker fund. Especially if you want something that you can "forget" for a few years.

brasso

Mynxmox wrote: »

I put £13000 into a S&S ISA in the last moments of the previous financial year with Axa self investor. But what to do with it??

If you were me, and you are clearly not me, you would do something like split it between Vanguard LifeStrategy 100%, Woodford's Equity Income fund, a bond fund and an emerging markets ETF/tracker.

These choices are regarded as "high risk" by many but they're the sort of things that have served me very well over recent years. To reduce the risk you could buy them in tranches, say one every 2 months.

Don't get too stressed. You'll be OK -- probably .

dunstonh

Medium to low risk is what I can live with

One persons low risk is another persons high risk. Can you put some context on those figures. For example, how much loss could you tolerate in a 12 month period before getting cold feet and pulling out?

With £13000, I'd probably stick with something relatively "safe" like a decent tracker fund.

Trackers funds are not indication of "safe". you can get tracker funds across the risk profiles.

Especially if you want something that you can "forget" for a few years.

If you want to invest and forget then multi-asset funds are likely to be more suitable than a portfolio of trackers that need ongoing reviews. It's going to be a good many years before this "portfolio" gets big enough to start thinking about having single sector funds in there. The knowledge doesnt appear to be there yet either.

Mynxmox

dunstonh wrote: »

Can you put some context on those figures. For example, how much loss could you tolerate in a 12 month period before getting cold feet and pulling out?

If I am sure it is a good investment for the long run I won't pull out if I am at a loss. I would prefer to wait until I have recovered my losses and will ask your advice .:)

dunstonh wrote: »

If you want to invest and forget then multi-asset funds are likely to be more suitable

This is helpful advice. How do I find/ choose a multi asset fund?

brasso wrote: »

split it between Vanguard LifeStrategy 100%, Woodford's Equity Income fund, a bond fund and an emerging markets ETF/tracker......These choices are regarded as "high risk"

How high risk?? I score about 4-5 on the risk tolerance test or 'moderate' profile.

brasso wrote: »

To reduce the risk you could buy them in tranches, say one every 2 months

I thought to do this, thanks.

Jsscmm wrote: »

You haven't specified how long you want to keep this invested for.

I did say I am planning for retirement. My retirement age is 68 (government dictated), so I hope to be able to retire any time before that, say at 65, thus another 12+ years.

Jsscmm wrote: »

I suspect you may end up with a relatively high bond, low equity split and therefore a low numbered LS or l&g multi index might be an answer

This is nice and simple advice thanks. You also mentioned 'working out what asset class before you find a fund manager is probably a good idea' however I don't have the knowledge to be sure I would make the right choices. Would prefer to select a 'package deal' that come recommended.

dunstonh wrote: »

The knowledge doesnt appear to be there yet either.

Well spotted Dunstonh

ktk

If you do decide on Vanguard LS, and can't get it with Axa, remember to get your new broker, eg Charles Stanley, to transfer the ISA, or you will loose the tax free status for last year.

noggin1980

You arn't going to go to far wrong with a vanguard lifestrategy 60 imo. I'd make sure you are putting enough into your works pension to avoid hitting higher rate and you should absolutely be putting enough in to get the full employer max match whatever that is, if the employer matchs up to 15%, put at least 15% in yourself even if that means you have less money to save.

It's going to be very hard to save enough for you to retire at 65 unfortunately less you have other work pensions you've not mentioned.

kidmugsy

Mynxmox wrote: »

My retirement age is 68 (government dictated)

The govt doesn't give a hoot when you retire - it's entirely up to you.

dunstonh

How high risk?? I score about 4-5 on the risk tolerance test or 'moderate' profile.

On a typical 1-10 scale of mainstream options (with 1 being cash), your selection would come out 9, probably 10. Moderate on that same scale would be around 6. Moderate would typically be around 50-60% equity. You are 100% equity. So, you are investing much higher risk than you indicate you are willing to accept.