Stocks and shares ISA - any point

moneysaverz83

Hello


I put in about 1000 into stocks and shares isa April 2015. I think last year was worth 1200 something. Can't remember now with the downturn, haven't got statement yet. I haven't added to it, the dividend have just reinvested themselves. Via Charles Stanley, it's a vanguard life strategy 60 or 80 product,as recommended / popular here.



My Q is, if I have a personal pension also invested in stocks and shares, is there any point of s&s isa?



OK, I can access it sooner, but won't. OK, I get tax relief.



I'm at a point where I'd like to decide if to remove it and cash in or re-engage.



If I re-engage, I'll aim to put in 50 pcm from now on. Is this small sum worth iy6?



If I cash in, I'll either place into cash savings for emergency because I donf have a lot
Or overpay mortgage

Or pay off 0% credit card (about 1000 left)

Or pay student loan (about 5 or 6k left)



Stats: self employed, single, no dependants, good job, mortgage, I have other liquid assets (collectibles), personal pension in place



Final option - go on holiday

jimjames

moneysaverz83 wrote: »

My Q is, if I have a personal pension also invested in stocks and shares, is there any point of s&s isa?

OK, I can access it sooner, but won't. OK, I get tax relief.

I'm at a point where I'd like to decide if to remove it and cash in or re-engage.

1. Depends. Benefit is that S&S ISA is tax free inside and on way out. Pension gives tax relief on way in. So funds in pension are taxable when you draw the money, funds in ISA re tax free when you get the money out.

The longer you leave the money in the pension or ISA the longer is has to grow. Look up compounding returns.

eskbanker

It would normally be recommended on here that you establish an emergency fund in readily-accessible cash form before considering investment, so if you don't have a cash savings pot then that's something worth looking at.

I suppose the main question back to you is what's changed? Why did you consider S&S investment to be appropriate in 2015 but questionable now? If the recent downturn has made you lose your nerve then perhaps investment isn't for you, but people would typically be investing for the long term (10+ years) and so wouldn't be looking to bail out after 3-4, especially if that means crystallising losses as it may well do.

moneysaverz83

No, nothing like that. I'm a risk category 6 in my ppp. And I know all about compounding and taxation.



I just consider the amount in there to be too small.



I have also invested in collectible goods in the last couple of years which have increased in that time by many fold. So nowadays, 1000 doesn't feel that large. I can much more than ~200 in that time period with my hobby outside work.



I guess I've stuck with the isa for diversification element



I'm tempted to just stick it in cash isa or something so I have more for emergency

moneysaverz83

Fair point about bailing out now and crystallising losses after the recent few months.



I could just leave it in there and start saving cash separately to bulk up in emergency funds I guess

eskbanker

moneysaverz83 wrote: »

I just consider the amount in there to be too small.

Not an unreasonable view - it might seem different to someone bumping along on the minimum wage but as you refer to a good job while single with no dependents, it does beg the (perhaps a bit impertinent!) question of why you only have £1,000 put by from several years ago and would only be looking at 'aiming' to contribute £50/month in future, especially given your username?

jimjames

moneysaverz83 wrote: »

I'm tempted to just stick it in cash isa or something so I have more for emergency

For £1000 a cash ISA is a really bad idea. You could get 5% on that money with a regular saver or current account, way more than an ISA

kidmugsy

moneysaverz83 wrote: »

I have other liquid assets (collectibles)

It may be that collectibles are liquid assets until you really need the money.

Bravepants

kidmugsy wrote: »

It may be that collectibles are liquid assets until you really need the money.

Perhaps it's vintage whisky?!

moneysaverz83

kidmugsy wrote: »

It may be that collectibles are liquid assets until you really need the money.

No, they are actually liquid. If you know, you know. But they can be liquidated in days or weeks. Not that I intend to unless in a dire impending emergency

moneysaverz83

jimjames wrote: »

For £1000 a cash ISA is a really bad idea. You could get 5% on that money with a regular saver or current account, way more than an ISA

Good option. Which saver?
And what about p2p, are they still giving 7-10% or whatever