How safe is my ISA

jjgold

guys thanks for all the replies

I want to hold 100k+ with Halifax in various funds and shares
I understand if the fund or share goes bust then I would lose what I held
What happens if somehow Halifax went bust? What would happen to the funds I held?

Keep_pedalling

jjgold wrote: »

guys thanks for all the replies

I want to hold 100k+ with Halifax in various funds and shares
I understand if the fund or share goes bust then I would lose what I held
What happens if somehow Halifax went bust? What would happen to the funds I held?

If a fund wend bust the underlying assets would still be there so you would not loose everything in that situation.

For your last question see post #11

EdGasketTheSecond

Assuming you are invested and not in cash then its the nominee you should be worrying about; not the platform.

Audaxer

ColdIron wrote: »

What is the alternative, managing maybe 10 or more platforms? It's a balance between risk and practicality. There comes a point when the cost of mitigating against small risks becomes disproportionately high in terms of both expense and administration

I agree splitting between 10 or more platforms is not practical, but I don't see a problem splitting a large portfolio between about 3 platforms. As some people use the 'bucket' approach with separate Growth, Income and Wealth Preservation portfolios, then they could easily have a different portfolio on each platform. But each to the own - its just a case of understanding the risks and whatever people feel more comfortable with.

Alexland

It's really not that difficult managing circa 10 investment accounts. In our family I manage our 4 pensions, 2 LISAs, 2 ISAs and my son's JISA so that's 9 investment accounts of which 3 are currently over the limit.

As our assets grow over the next 10+ years I expect to open 2 more pensions and maybe 2 more ISAs to bring us up to 11 or 13 accounts of which around 2/3 will be over the limit.

Alex.

ColdIron

Audaxer wrote: »

I agree splitting between 10 or more platforms is not practical, but I don't see a problem splitting a large portfolio between about 3 platforms. As some people use the 'bucket' approach with separate Growth, Income and Wealth Preservation portfolios.

For sure, I do something similar. What I don't do is chop them into £50K chunks and parcel them out to stay within the FSCS limits. I use different providers to take advantage of their charging structures etc not for any perceived safety advantage

then they could easily have a different portfolio on each platform.

Depends upon the size of the portfolios. A £50K SIPP in drawdown would be a sorry result after a lifetime of work. I have an ongoing Bed & ISA project and am comfortable keeping both accounts on the same platform let alone spreading each account across platforms

But each to the own - its just a case of understanding the risks and whatever people feel more comfortable with

I completely agree

Glen_Clark

EdGasketTheSecond wrote: »

Assuming you are invested and not in cash then its the nominee you should be worrying about; not the platform.

They are both inter-dependent, because it depends on the platform's records of who owns what. In the case of electronic records they are reconciled daily, and duplicated in several secure locations. Whether they are still vulnerable to cyber attack from North Korea etc I don't know.
I read nobody has lost any money in any British Building Society for over 150 years - and there used to be hundreds. But that doesn't mean they couldn't so we are advised not to go over the compensation limits. But then there is no cost and little complication in multiple Building Society Accounts. Unlike Share Platforms.

Audaxer

ColdIron wrote: »

Depends upon the size of the portfolios. A £50K SIPP in drawdown would be a sorry result after a lifetime of work. I have an ongoing Bed & ISA project and am comfortable keeping both accounts on the same platform let alone spreading each account across platforms

I've only just opened a SIPP with £2,880 (which will be grossed to £3,600) as I'm retired. I'll probably go the other way and Bed and SIPP from an ISA each year, although not looked into that yet as to how it works. It will take a good few years for the SIPP to build up to anything substantial, but I think it's worth it for the tax benefits, although not sure when it will be worth starting drawdown.

ColdIron

Audaxer wrote: »

I've only just opened a SIPP with £2,880 (which will be grossed to £3,600) as I'm retired. I'll probably go the other way and Bed and SIPP from an ISA each year, although not looked into that yet as to how it works. It will take a good few years for the SIPP to build up to anything substantial, but I think it's worth it for the tax benefits, although not sure when it will be worth starting drawdown.

The rebate and protection from ongoing taxes make this a bit of a no brainer, but £2,880 isn't a life changing sum so if possible I'd look at funding the SIPP from non tax sheltered money to minimise your tax liability. £900 of each of your £2,880 contributions can be taken tax free (ultimately or annually) and this could be usefully deployed into an ISA, further reducing your tax exposure. At least you won't be have to be troubled by the £50K limit with this part of your strategy

Audaxer

ColdIron wrote: »

The rebate and protection from ongoing taxes make this a bit of a no brainer, but £2,880 isn't a life changing sum so if possible I'd look at funding the SIPP from non tax sheltered money to minimise your tax liability. £900 of each of your £2,880 contributions can be taken tax free (ultimately or annually) and this could be usefully deployed into an ISA, further reducing your tax exposure. At least you won't be have to be troubled by the £50K limit with this part of your strategy

Yes, I could do that, but I was thinking that if I was fully invested in the next few years, and taking income from my portfolio, then it would have to be moving £2,880 each year from my ISA into the SIPP to get the £720 tax credit. Do you think it is still worth doing it that way, as a higher amount of my funds will obviously be subject to tax eventually when I do start drawing out the funds?