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Bad time to invest ISA Allowance with high Footsie?

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Normally invest my full ISA Allowance at the beginning of the tax year but couldn,t do so until now when the FOOTSIE has closed the year at its high level.
Do I just take a punt and go for it , or take out a cash ISA temporarily to use the allowance rather than lose it, and transfer to equities later. With a bigger iSA Allowance now, there,s rather more to risk losing than previously and in mid seventies time may not be on my side so easily now.
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Comments

  • fun4everyone
    fun4everyone Posts: 2,367 Forumite
    Tenth Anniversary 1,000 Posts Name Dropper Photogenic
    edited 29 December 2017 at 7:42PM
    **** it. Invest the lot on Jan 2nd and have some fun.
  • Seriously - You have only got until April anyway and what happens if it goes up further? You or I cant predict with any certainty if it will or not. If you are a bit worried just drip feed.
  • Oh No, another 'But it may all fall....' with that attitude you'll never invest. So what if it falls, you can buy more at a discount later on when the new ISA allowance becomes available, in fact why didn't you go for it on the 6th April, you've wasted almost a year of growth.

    I always pump in my full £20k on 6th Apriul, it's all worked along with a rebalance to minimise trading costs, then just leave it for another year - target is to provide a tax free income of £40k along with growth - should be there in a few years
  • ChesterDog
    ChesterDog Posts: 1,145 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    Primrose wrote: »
    Normally invest my full ISA Allowance at the beginning of the tax year but couldn,t do so until now when the FOOTSIE has closed the year at its high level.
    Do I just take a punt and go for it , or take out a cash ISA temporarily to use the allowance rather than lose it, and transfer to equities later. With a bigger iSA Allowance now, there,s rather more to risk losing than previously and in mid seventies time may not be on my side so easily now.

    You're not actually intending to invest in the FTSE 100 itself in some form are you?
    I am one of the Dogs of the Index.
  • talexuser
    talexuser Posts: 3,531 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    End of year rally is pretty "normal" without some disaster happening but we can't predict what will trigger the next fall. I can't put anything in till April 6th anyway so will hope for some dip just before then followed by a swift rally afterwards :rotfl:
    You could look for an undervalued sector on a contrarian basis but naturally with some risk. For mid seventies you are looking at mid eighties for a complete cycle and increased chance of making good money. The temporary cash isa might be a good idea, if the markets go up not so good, if there is bad news and a dip by then you will be happy.
  • I have yet to fill up my annual pension allowance, but I will and I'll put it into the same 70/30 mix that I've had for a while. It is folly to try to time the markets. If you have a specific spending need for the money then put it in the bank, but if it is for the long term then get it into the market.
    “So we beat on, boats against the current, borne back ceaselessly into the past.”
  • Ifts
    Ifts Posts: 1,960 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker Name Dropper
    Primrose wrote: »
    Do I just take a punt and go for it , or take out a cash ISA temporarily to use the allowance rather than lose it, and transfer to equities later.

    If you are worried about the "use the allowance rather than lose it" - You can still use your ISA allowance by paying it into a S&S ISA and leave it there as a cash balance until you are ready to buy equities.

    Admittingly not very MSE as even with low cash ISA rates you would be earning something on the £20K until you are ready to buy equities.
    Never let the perfume of the premium overpower the odour of the risk
  • A_T
    A_T Posts: 975 Forumite
    Part of the Furniture 500 Posts Name Dropper
    ChesterDog wrote: »
    You're not actually intending to invest in the FTSE 100 itself in some form are you?

    +1

    I'm an ardent investor in indexes but the FTSE100 is bottom of my list.
  • A_T
    A_T Posts: 975 Forumite
    Part of the Furniture 500 Posts Name Dropper
    capital0ne wrote: »

    I always pump in my full £20k on 6th Apriul, it's all worked along with a rebalance to minimise trading costs, then just leave it for another year - target is to provide a tax free income of £40k along with growth - should be there in a few years

    Just out of interest where does the 20K suddenly appear from? What's it been doing in the meantime?
  • When I was a kid my Dad quoted "sell in May and go away". On this site you I only seem to see "buy and don't try to time the market", not even taking into account the OP's comment about his age.

    Primrose - if you want serious comments given your age I think you need to explain more about your situation. Do you need this money to live on, or are you concerned about the worst happening and your heirs inheriting on a dip?
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