What is the best option for my requirements?

bubblycrazy

I currently have an interactive investor account which has approx £1500 of AIM shares. I've held these for years and don't intend on adding to them, and would like to cash them out within the next 18 months.
I would like to open a S&S ISA and purchase Vanguard LS60 or 80 and put in £50 per month with the intention of leaving it for 15-20 years and looking at it a few times a year.
I would also like the option to add additional funds in when I have spare money.

What would be the cheapest way to go about this, ideally with having the S&S ISA and shares in the same place?
How easy is it to move shares to a different provider? (Unless II works out the cheapest option but I don't think it does)

A_T

Unless you absolutely insist on using the same platform for shares and the Vanguard fund the cheapest way to hold a Vanguard LS fund in an ISA and pay in 50 per month would be with Vanguard Investor themselves.

AnotherJoe

Why would it be “ideal” to have the shares you’ll sell within 18 months, and the ongoing ISA investment held for 15 years, in the same place, when for the vast majority of the time the shares won’t be relevant since they’ll have been sold ?

bubblycrazy

I thought it would work out cheaper only paying one set of platform fees to hold both. I know II are not the cheapest considering I don't buy shares regularly.
From what I can see, vanguard investor has a minimum pay in of £100 pm?

Alexland

Yes minimum regular saving with Vanguard direct is £100 per month or a lump sum of £500. I guess you could keep setting up a regular payment then cancelling it to pay £100 every 2 months? They need a few weeks notice to cancel or setup a regular payment. Its hassle but probably your very cheapest option. Would only take a few mins each month.

Next cheapest would be Cavendish Funds Network who will accept £50 per month but charge 0.1% more which won't be much on the amounts we are talking about.

The easiest and cheapest option would be to see if you can find the extra £50 per month. Also if you can't decide which VLS to buy consider buying 50:50 of each to create a 'VLS70' but remember to rebalance periodically (trading funds is free on both platforms)

The II fees on a £1500 investment would make me cry at night. II are aimed at much bigger balances.

I wouldn't select my long term investment platform based on a short term requirement. Personally having made the decision to sell the shares I would just get on with it, close the II account and use the proceeds as a lump sum in the new account. Or if you need the money in the next 18 months stick it in a Nationwide 5% FlexDirect for 12 months.

Remember you can only contribute to one S&S ISA per tax year so if you have already contributed to an II ISA you will need to transfer it.

Alex

AnotherJoe

bubblycrazy wrote: »

I thought it would work out cheaper only paying one set of platform fees to hold both. I know II are not the cheapest considering I don't buy shares regularly.
From what I can see, vanguard investor has a minimum pay in of £100 pm?

But that’s only for 18 months, then all that would matter is the ISA fees. And you already have the shares where they are, why pay fees to mioe them in and out?

I’d just pick the ISA you want now and sell the shares in 18 months assuming you think they are going to really rise in that time. Care to say what they are ?

EdGasketTheSecond

ii are introducing a £22.50 per quarter charge for ISA's from 11th December so that is going to get v. expensive on £1500 of shares. Suggest you transfer out while there is a free window; at least I assume there is as the rates have changed.

Alexland

It's not much different from the current £20 a quarter charge. Actually paying that on £1500 shares I wouldn't just cry at night but probably in the morning too. So over 18 months the fee would be £135 or 9% - at least the sale trade would be included!

bubblycrazy

I've had the II shares since they were free to invest with (I think they were free?!)
At the time the fees came in I was going through a life changing event and money wasn't my main priority, then I had a few years when I was earning the most I've ever earned so I wasn't that concerned. Its only been the last 12-18 months when I've paid closer attention to my finances again that I've realised the mistake of sticking with them.

I'm thinking of giving the shares 6 months to improve and then maybe just getting rid. I've had them for so long and watched them rise and fall so much that I'd rather hold out and wait till they rise again rather than sell on the fall. I'm still in profit with them just not as much as I have been or will be. They have potential and tbh if they weren't costing me so much to hold I would probably keep them and forget about them for a few years more.

I guess a better question then is how do I go about changing shares provider and how much does it cost?

grey_gym_sock

bubblycrazy wrote: »

I guess a better question then is how do I go about changing shares provider and how much does it cost?

this is probably not worth the effort (given the small value of shares involved), but anyway ...

you can open a new ISA with another provider, purely to transfer your ii ISA into it. (while also opening another ISA with vanguard or cavendish or whoever; and this doesn't break ISA rules, providing you only pay new money into 1 S&S ISA in the same tax year - so, in the current tax year, that would be the vanguard/cavendish ISA.)

i think ii will charge you something to transfer out. they are giving some people free transfers out, but AFAICS that doesn't apply to people who are only seeing a price increase from £20 to £22.50.

for possible providers to use, you want somebody who doesn't charge for just having an ISA open, or (given the possibly short time-scale) for opening or closing it. so you just pay when (buying or) selling shares. most providers would also charge if you transfer out to yet another provider (but not if you sell and then just take out the cash). some providers which (i think) meet those criteria:

- IG group (except for an inactivity fee after 2 years' inactivity - however, receiving dividends counts as activity)

- saga share direct (service only available to over 50s)

- svs xo

you might need to check that those providers can handle the shares you hold. then ask them to open an ISA for you, and initiate a transfer, and they will contact ii.

Apodemus

With that sort of sum, why bother with the hassle of drip-feeding across? I would just sell the AIM shares and open the S&S ISA on your chosen new platform.