should I pull money out of my Isa?

saver861

2010 wrote: »

Once you come out of cash savings (ISA or not) you risk your capital with all other investments.
Investments can go DOWN as well as up.

Yes but if OP sticks the money into high interest current accounts he will be getting somewhat more than 1.3% and no risk!

Keep_pedalling

saver861 wrote: »

Yes but if OP sticks the money into high interest current accounts he will be getting somewhat more than 1.3% and no risk!

No risk maybe, but no chance of growing those savings to a decent level over the long term either by being that ultra cautious.

bigfreddiel

saver861 wrote: »

Yes but if OP sticks the money into high interest current accounts he will be getting somewhat more than 1.3% and no risk!

Huge risk, what if inflation goes up to 3%, as it surely will?

fj

bigfreddiel

2010 wrote: »

Once you come out of cash savings (ISA or not) you risk your capital with all other investments.
Investments can go DOWN as well as up.

You can minimise risk with a balanced portfolio, of bonds and equities.

Just keep it simple, keep it low cost and avoid individual shares.

Go for a simple tracker based bunch of four or five funds.

Fj

bigfreddiel

darkidoe wrote: »

Do you dump in one lump sum into the S&S ISA in one go each year or spread over the year? I am wary of jumping into the market with the old cash isa and this year's allowance all at once.

I think even with the full ISA allowance every year, it would take 25-30 years to become a millionaire. Would be in for a bumpy ride though.

Lump sum investing or drip feed makes no difference.

The important part is knowing your investment strategy and your objective. Decide that and you are 90% there, the money bit is just the enabling of your strategy.

See my earlier posts for more.

Good luck fj

agent69

bigfreddiel wrote: »

what if inflation goes up to 3%, as it surely will?

But not anytime soon

atush

Keep it in an isa, ut put it in S&S isa instead.

Put future savings in cash (current accounts) and pensions

darkidoe

bigfreddiel wrote: »

Lump sum investing or drip feed makes no difference.

The important part is knowing your investment strategy and your objective. Decide that and you are 90% there, the money bit is just the enabling of your strategy.

See my earlier posts for more.

Good luck fj

Diversifying asset allocation is my biggest hurdle. I am still experimenting to form my ideal portfolio. Need to do some reading as well. I think it will get easier when I switch platforms to see what the new platform has to offer in terms of etf/funds.

Chivas69

Thanks for all the suggestions!
The other thing we've been toying with is paying off the remainder of our mortgage (£45000), but as the total rate of our mortgage is 1.5% we'd be better off keeping it and gaining more in interest !
Got a couple of days off now to have a good look through stuff!
We both pay the lower tax rate of 20%

bigfreddiel

darkidoe wrote: »

Diversifying asset allocation is my biggest hurdle. I am still experimenting to form my ideal portfolio. Need to do some reading as well. I think it will get easier when I switch platforms to see what the new platform has to offer in terms of etf/funds.

This the hard bit, but don't sweat over it too much just keep it simple and cost effective. Cheers fj