Setting up ISA investments with Vanguard

AlanB1976

Hi all

I got a couple of stupid questions and am hoping someone here can steer me. I don’t know too much on the subject. I’ve been reading up but so much is confusing and I haven’t found a clear answer. Never mind all the financial jargon slapping me on the side of the head.

Firstly, I’m looking at doing some investments as part of my ISA allowance that has the potential to return more than the cash ISAs. I was aiming at the Vanguard schemes due to their simplicity (probably something like the LifeStrategy40). Nowhere there can I see how they get badged under an ISA. Is that possible and how would I go about setting that up? It would initially be a lump sum (+-£15k) and then monthly contributions.

Then, I’m also looking at investing for my children. I don’t want anything under their name as I want control on what it gets spent on (not given to them when they turn 18). Please don’t go on about raising children to make good decisions. I think I was a decent person but made some really stupid decisions in my youth (just didn’t have the wisdom at that age). The idea is that my wife and I would support them with things like university, house deposits, etc.. So, anyway, is it possible to have multiple same investment schemes with the same organisation (e.g. 2 of the Vanguard60 investments where I put away for each – yea, I know I could have one and just track it myself but it would be a lot easier to not have to)? This would all be badged under my ISA as I wouldn’t have more than £15k to put away each year at the moment.

So, can anyone give me some friendly advise in how I go about setting that up?
Thanks
Alan

dunstonh

Nowhere there can I see how they get badged under an ISA.

Vanguard currently do not operate any tax wrappers themselves. You would have to use an investment platform to buy the vanguard funds on. Most platforms offer most tax wrappers. So, that is your next stage of research.

So, anyway, is it possible to have multiple same investment schemes with the same organisation (e.g. 2 of the Vanguard60 investments where I put away for each –

Yes there is. You can hold the investments unwrapped under a designation. Unless you are talking about a large amount or get paid dividends elsewhere, this would be an easy option. Technically, you wouldnt need a designation but some prefer it.

This would all be badged under my ISA as I wouldn’t have more than £15k to put away each year at the moment.

In which case, the answer to the earlier question turns into a no. Your ISA is your ISA. You could hold different funds for different objectives. e.g. VLS for money allocated for you and L&GMI for money allocated for the children.

ColdIron

Your wife could open an ISA account

AlanB1976

Thanks for the replies. just so I am understanding correctly, I can't have multiple investment types under my ISA wrapper (only a single one)?

Shashy

You can have multiple funds in a wrapper, presuming it comes under the allowance.

For example I have a Charles Stanley S&S ISA, within which I hold VLS80 and VLS60.

Nanpy

My advice would be to "chill out". My old man gave my brother about a quarter of the cost of a house as a wedding present when my brother got married, so they'd have a down payment on a home. Then a couple of years later my brother was back at home in his old bedroom after the marriage broke down.

You'll go crazy worrying about how your kids will spend your money.

Also, you don't know how your own finances will work out in the next ten or twenty years. You can't even predict what your own relationship status will be then.

Concentrate on saving as best you can for yourself, and keep your kids hungry. It'll serve them better in the long run.

But, that said, you can find several S&S ISA providers (eg Hargreaves Lansdown, Fidelity, iWeb - I am totally out of the loop as to which ones are preferred these days) - as you can open multiple ISAs in one year so long as you don't go over the maximum investment amount. Do whatever you want with the one designated for yourself. The others you invest in the same products for each of your children, so the only difference will be the charges - which HOPEFULLY shouldn't be that significant even over ten or more years. Make it clear in your will which accounts relate to which child, otherwise it'll all go to your spouse when the stress finishes you off.

But, really, probably not worth the micro-managing.

ColdIron

AlanB1976 wrote: »

Thanks for the replies. just so I am understanding correctly, I can't have multiple investment types (?) under my ISA wrapper (only a single one)?

Yes you can

You can hold shares in British American Tobacco and shares in HSBC but you cannot have 2 'pots' of shares in BATS

You can hold units in VLS60 and units in VLS40 but you cannot have 2 'pots' of units in VLS60

jimjames

Nanpy wrote: »

But, that said, you can find several S&S ISA providers (eg Hargreaves Lansdown, Fidelity, iWeb - I am totally out of the loop as to which ones are preferred these days) - as you can open multiple ISAs in one year so long as you don't go over the maximum investment amount.

That is just not true and is giving misleading information. You cannot fund more than one ISA of the same type per year so you cannot open a S&S ISA at HL and iWeb and pay into both.

funguy

If investing say £20,000 in a Vanguard ISA, where do they take their fees from? I don't want them taking the fees out of the ISA money - is it possible they can take it out a separate cash account so I can maximise the money in my ISA?

AlanP_2

funguy wrote: »

If investing say £20,000 in a Vanguard ISA, where do they take their fees from? I don't want them taking the fees out of the ISA money - is it possible they can take it out a separate cash account so I can maximise the money in my ISA?

Where does who take the fees from?

For the fund Vanguard are taking their fee out of the unit price effectively so no separate charge.

Wherever you hold your ISA will also want paying, some providers may allow you to pay from a cash account and some may not.

Who are you with, or thinking of using?

badger09

AlanP wrote: »

Where does who take the fees from?

For the fund Vanguard are taking their fee out of the unit price effectively so no separate charge.

Wherever you hold your ISA will also want paying, some providers may allow you to pay from a cash account and some may not.

Who are you with, or thinking of using?

Presumably funguy is thinking of using the Vanguard direct to customer ISA:cool:

https://www.vanguardinvestor.co.uk/investing-explained/isa

discussed at length here

https://forums.moneysavingexpert.com/discussion/5650537

It has a 0.15% platform charge on the first £250k

funguy wrote: »

If investing say £20,000 in a Vanguard ISA, where do they take their fees from? I don't want them taking the fees out of the ISA money - is it possible they can take it out a separate cash account so I can maximise the money in my ISA?

I've had a quick look on Vanguard's site and can't immediately see the answer. You could always ask them.