which saving is better? (lloyds offer) will it effect help to buy isa

wakkaday

i already have the help to buy isa which the government tops up

i am considering investing in some lloyds shares when they become available but i am confused which one to select

i have no prior experience of stocks and shares

http://www.hl.co.uk/partners/search/lloyds/share-sale-ready#

Stocks & Shares ISA
Fund & Share Account

i am looking to invest around 2,000£ and hoping it will grow and then take out etc, which is the better deal..

thank you

ColdIron

wakkaday wrote: »

i have no prior experience of stocks and shares

Take this in the spirit that is intended, but maybe a high risk strategy of placing all your eggs in one basket would not be the wisest move you have ever made

As a bare minimum find out the difference between an ISA wrapped account and a non wrapped one. An ISA will shield you from tax but HL charge 0.45% pa of your portfolio. An unwrapped account costs nothing to maintain but you may be liable for tax

You do know that there are transaction charges to buy and sell these which include stamp duty? I would look into that as well before jumping in

bowlhead99

The government offer does not exist yet.

When it does:
HL charge a fee of 0.45% a year for holding lloyds shares in an S&S ISA account which is tax protected, or nothing for putting them in a "normal" account. Both the accounts are free to set up and have a charge to transfer out or close.

On the face of it, if you're only going to buy a couple of thousand pounds worth of shares and then later sell them, and you don't have any other investments and don't expect to make over £11000 gain or over £5000 of dividends in any one tax year, you probably don't need protection from tax because you're well within your allowances. So there is no need to pay extra for the tax-protected ISA account.

As someone with no experience in stocks and shares, you might not have heard that it's poor quality investing to put all you're eggs in one basket and just invest in one company. So some free advice is, it is.

What makes you think it will be better than investing in the other 10,000 large listed companies on the world's stock markets? Or putting your money into a fund that combines tour money with other people's and spreads your money across 50 companies, or even 500 companies around the world. You then reduce the risk of turning your £2000 into £200 or less.

If you think Lloyds is a great bargain why not buy it today instead of buying it later? The government will only offer it for sale at a higher price (less a small discount).

eskbanker

bowlhead99 wrote: »

As someone with no experience in stocks and shares, you might not have heard that it's poor quality investing to put all you're eggs in one basket and just invest in one company. So some free advice is, it is.

As someone who was previously advised to use funds to diversify when thinking of gold and/or trading in October 2014, this message maybe didn't take hold!

bowlhead99

eskbanker wrote: »

As someone who was previously advised to use funds to diversify when thinking of gold and/or trading in October 2014, this message maybe didn't take hold!

You can lead a horticulture.
But you can't make 'er think.

AnotherJoe

wakkaday wrote: »

i already have the help to buy isa which the government tops up

i am considering investing in some lloyds shares when they become available

Why? If you are planning to buy a house in the near future, shares are the last thing you should buy. Put your money in high interest current accounts,

wakkaday

thanks guys great advice

yes i want to get house first
just assumed the government deal on lloyds would be good as the post office ones which everyone talked about

Reckless_Saving

wakkaday wrote: »

just assumed the government deal on lloyds would be good as the post office ones which everyone talked about

Don't expect speculative jumps in the share price like the post office offer, Lloyds being already on the stockmarket are already priced based on current market forces. Government are likely will only be wanting to start the offer want the price passes the break even point of around 73p, so at today's price it would be cheaper to buy now rather than wait.