Shares ISA to go alongside SIPP

Langers

I am 37 and 3/4 and going to start my pension next week, using money I currently have in cash ISAs to start it off and then paying in £500 per month going forward.

I have been advised to go for the Vanguard LifeStrategy 60 product via LV= as it gives me a medium high risk (60% UK and Global shares and 40% fixed income) and low fees (0.25% + 0.24%). I am happy with this.

However, I am looking to also start a Shares ISA, so that I have some cash I can access, if necessary, but will probably move some of the funds to my pension every so often. I am looking to initially invest around £4k and then put in £400+ a month going forward. I don't have any knowledge about the stock market, so really looking to stick my money in something that requires minimal intervention (as I have done with my pension). I would also like to keep the fees as low as possible but would be prepared to go slightly higher in risk than my pension.

I have been looking at Architas MA Passive Growth Acc S Fund on AXA Self Investor, which is a ready made passive fund like the Vanguard LifeStrat 60, but with 90% in shares (US & UK) and 10% in property.

I would welcome any comments and advice on this.

masonic

I would recommend picking a platform that you will stick with for at least a few years because transferring can be a real pain! The AXA platform is quite expensive when the initial fee-free period is over, is it not?

Perhaps Charles Stanley Direct is worth a look. Another fund option you could consider is L&G Multi Index, which like Lifestrategy has varying risk levels.

Langers

Thanks for the feedback. Axa fees are 0.35% and fund fees are 0.45%.

I will look at your suggestions.

Langers

Also, would it be worth me having a bit of something else in the ISA for diversification? Quite fancy something like UK Mid Cap.

puk999

Langers wrote: »

However, I am looking to also start a Shares ISA, so that I have some cash I can access, if necessary.

Do you have an emergency cash fund in place so you don't have to dip into investments? This will protect you from having to sell the investments as they may be in a trough when you need the money.

atush

yes cash emrgency fund, then pension, then S&S isa.

At 37 I would dare say you could go higher with Vanguard up into 80%, and pick global trackers and the like for your S&S isas.

If you stick to clean class shares the % charges will be very low.

Silian

Can I ask why you are going to have the money that you need in the short term (your Isa) in a more risky fund than those you need in the long term?

I would personally switch them around.

Langers

Thanks for all the replies. Think I will take your advice on board and go for a less risky shares isa and also put some into a cash isa.

Think I will use Cavendish Online for the shares ISA as their fees are good and I'm only looking at funds.

gadgetmind

Silian wrote: »

I would personally switch them around.

I was about to say exactly the same!