Fund (my first) S&S ISA now, or wait a few days?

lpgm

You placed the order then, but you didn't do the deal. Vanguard probably did the deal last night at 2100. IWeb probably didn't get confirmation in time for the account update this morning. You'll probably see it tomorrow morning after 8ish. Probably. Unfortunately these things aren't done in real time.

scoot65

Thanks for the detailed explanations, makes perfect sense. Obviously being investment newbie, I've a lot to learn!

I look forward to logging into my iWeb account tomorrow.

Thanks again, much appreciated :beer:

scoot65

I had a look this morning and you posters were correct, the funds are now showing in my iWeb account..... just short of a fiver down..... oh well this is just the start of my journey.

I do have one other question and this regards the dividends.

Currently my account is set as :-

"Automatic Dividend Reinvestment' will enable dividends from UK and Irish CREST eligible stocks to be automatically reinvested into the source stock. Any remaining cash will be paid into your share dealing account. Please note a 2% commission (maximum £5) is payable on all dividend reinvestments."

The other possible options are:-

'Pay Away Immediately' will send collected dividend totals to your nominated bank account shortly after the dividend pay date.

or

'Pay Away 6-Monthly' will send collected dividend totals to your nominated bank account every 6 months, usually at the end of April and October of each year.

or

'Hold In Account' will retain the dividend in your share dealing account until you take further action.

Given that iWeb charge 2% commission or up to £5 on all dividend reinvestments, I'm guessing that depending upon how often iWeb undertake these transactions, the costs could mount up.

I'm wanting the value to accumulate, however all the 2% / £5 charges could certainly add up over time.

Do you think I would be better having my dividends to be set to "'Hold In Account' will retain the dividend in your share dealing account until you take further action" ?

Having said that, if the dividends are placed into the 'share dealing account' there will lose the ISA tax free wrapper advantage as they will not be in my S&S ISA account?

Thanks for your patience

lpgm

scoot65 wrote: »

I'm wanting the value to accumulate

I presume you bought the 'ACC' version of the fund, rather than the INC version, so the dividends won't be paid out to you anyway.

scoot65

lpgm wrote: »

I presume you bought the 'ACC' version of the fund, rather than the INC version, so the dividends won't be paid out to you anyway.

Yes, I made sure I was buying the 'acc' version for that very reason.

Looks like the dividend information is generic information on the options for all accounts/ funds.

I'm just going to leave it now and I'll be putting another lump sum in after April 5th ...........

(My next task is to set up a SIPP to run along side my LGPS pension).

Thanks again!

scoot65

IanManc wrote: »

The dividends won't move between IWEB accounts.

You can choose your dividend option for each IWEB account you hold.

For example, for your ISA if you choose that the dividends should remain in your account they will stay in your ISA as cash, available to invest or withdraw, until you decide to invest them in something or tell IWEB that you want to withdraw money from your ISA.

If you had an ISA and an ordinary sharedealing account you could choose, for example, to hold your dividends in your ISA but to have your dividends from your ordinary sharedealing account paid out to your nominated bank account.

But if you have ACC versions of funds then you won't be receiving dividends at all - they'll be reinvested within your funds.

Many thanks IanManc for the additional info. Much appreciated!

thenewcomer

scoot65 wrote: »

Quoting ValiantSon
"I don't follow. You can only subscribe to one S&S ISA within any financial year. If you invest money in the Vanguard ISA after 5th April you will not be able to open another ISA with a different provider until 6th April 2019.

If you want to invest in both VLS and HSBC in the next financial year then you can do so by opening an ISA on a different platform e.g. Cavendish (who will be cheapest) and then investing the money in VLS there, as well as HSBC. You can transfer your cash ISA to this new S&S ISA."

Thanks for your reply....

OK, I think I've got it now.

In the 2018/19 financial year I can open S&S ISA and within that ISA invest in both VLS and HSBC (if I choose to invest in both funds).

My current S&S ISA is via iWeb, can I not use iWeb again to invest in another S&S ISA in the 2018/19 financial year?

Also, if I did open a new S&S ISA after April 5th, using the full ISA amount of 20k to invest in HSBC GS, can I, when my current 30k cash ISA (with Leeds Building Soc.) matures, transfer that cash in and invest in more of the same HSBC GS fund? Giving me a total of 50k in HSBC GS fund

Many thanks for your time and patience.....

is cavendish cheaper than iweb?

thenewcomer

why did you choose to invest on Vanguard fund via iweb and not via vanguard directly?

ValiantSon

thenewcomer wrote: »

is cavendish cheaper than iweb?

It depends on how you use it and what the value of the investment is. If you are making regular payments then iWeb could get expensive at £5 per trade. Cavendish don't charge a trading fee. If you just buy in one lump sum then Cavendish will probably be more expensive because they charge 0.25% of the value of your investment.

Vanguard Investor is only a good option if you are only going to buy Vanguard funds. If you are going to buy from any other providers then Vanguard isn't an option.

thenewcomer

thanks valiant.