Is a S&S Vanguard Isa the cheapest?

Jaguar_Skills

I currently deposit a fairly significant amount of my wages into my pension as I am a HRT payer but I wanted to start saving into a S&S Isa as well to bridge any gap between retirement and pension draw down.

The Vanguard ISAs seem to be cheap and I will be investing in their funds (my pension is a mix of the lifestratgy 80 and Blackrock 100) and like the idea of it being spread.

I think this time I will go for LS100 as I am only 31 so should have enough time to ride any waves and can always reduce risk the closer to 50 I get.

I also like the fact that you can remove the money whenever you need it as potentially we may look to move house in the next 10 years or so and this could be used to reduce LTV on next property.

Any thoughts welcome before I go ahead and open it.

ColdIron

It's not the cheapest but it depends on you. Percentage fee providers like Vanguard are good for small pots or frequent purchases. Fixed fee is good for larger lump sums. Which camp are you in? If you just dump your ISA allowance into one fund every year and leave it then someone like iWeb (£25 opening + £5 per transaction) would be hard to beat, especially after the first year, if cost alone was your metric.

Jaguar_Skills

I haven't quite worked out what I am going to do yet. To start with it will be a £5,000 drop as I put £20k + into pension. Also sal sacrifice will be introduced into workplace pension soon and I will probably try to use that as far as possible.

ColdIron

If I was a young higher rate taxpayer I'd forget the ISA and be maximising my pension, especially via salary sacrifice. The tax breaks are doubtful to remain as they are forever and you have plenty of time to make provision to fund early retirement. Make hay while the sun shines