S&S ISA transfer and general advice.

AnotherJoe

Given you are almost certainly a high rate tax payer I'd say you should look at putting at least some of those proposed annual investments into a pension, be that your current company or perhaps a standalone SIPP you can keep going over multiple job moves.
Thats because, though the money is indeed tied up, there's a massive 40% uplift to be gained, with probably only a 15% tax loss on withdrawal, and it seems rude not to take advantage of some of that . Especially as it may not last forever.

lpgm

Rawhy wrote: »

Hmm, if you look at the example on page 4 of https://static.halifax.co.uk/assets/pdf/filestore/CostAndCharges.pdf , for "Farouk the Fund Fan", they've added the 0.5% transaction cost to the total charges. *** Please correct me if I'm wrong.

It isn't an extra platform charge. Look on the first page, under fund charges. It says: "If you invest in a fund, you will also pay ‘Ongoing Charges’ and transaction costs to the fund manager each year for looking after the fund and buying and selling other assets that the fund invests in. This is taken from the value of the fund and the exact amount varies."

Rawhy

lpgm wrote: »

It isn't an extra platform charge. Look on the first page, under fund charges. It says: "If you invest in a fund, you will also pay ‘Ongoing Charges’ and transaction costs to the fund manager each year for looking after the fund and buying and selling other assets that the fund invests in. This is taken from the value of the fund and the exact amount varies."

Ooooh, I see. So even if I go with ii, I'll still incur this transaction fee. However, if I buy this particular Vanguard fund on the Vanguard platform, then this transaction fee of the fund (not platform) is waived (so says their charges here: https://www.vanguardinvestor.co.uk/content/documents/legal/vanguard-full-fund-costs-and-charges-2018.pdf ). Is this correct?

lpgm

Rawhy wrote: »

Ooooh, I see. So even if I go with ii, I'll still incur this transaction fee. However, if I buy this particular Vanguard fund on the Vanguard platform, then this transaction fee of the fund (not platform) is waived (so says their charges here: https://www.vanguardinvestor.co.uk/content/documents/legal/vanguard-full-fund-costs-and-charges-2018.pdf ). Is this correct?

It isn't a fee - that term is misleading. It's what the fund itself pays brokers to buy and sell shares. It's nothing to do with the platform - some show it; some don't. Vanguard doesn't waive it - look at the small print, note 3.

londoninvestor

And in fact Vanguard couldn't waive it, because it isn't a charge payable by you (the investor) to Vanguard. As lpgm says, it's what the fund pays to third parties when buying and selling holdings in the course of operating its portfolio - mostly brokerage charges, but also things like stamp duty for UK shares.

For that fund it's shown as 0.00% on the document. It won't be exactly zero, but everything's rounded to 2 decimal places, so you can take it as "below 0.005%" - which is plausible for a large passive fund.

The key thing is that the eventual transaction cost will have the same impact on your returns whichever platform you invest through, whatever approach they take to showing an estimate in their projections. (Halifax seem to have just done a blanket 0.5% when they estimate.)