Transfer Cash ISA to S&S ISA?

TooCautious

Hi All

First post so please go easy!

As the title says, I currently have about £60K in a cash ISA paying 1.4% which I don't, and hopefully won't, need access to for at least 5 years.

I'd like to leave between £5 and £10k here as a rainy day fund.

Would it be sensible to transfer the remaining amount into something like a Nutmeg managed S&S ISA?

Or is there something else I should be looking at? All advice welcome.



Many thanks
TooC

xylophone

Remember that the value of a stocks and shares portfolio can fall as well as rise - you say that you will need the £50,000 in perhaps five years time - what if the value had dropped?

https://monevator.com/understand-your-investment/

Before going into investing, prime yourself with knowledge. The following may be helpful as a beginning.

https://monevator.com/how-to-open-an-online-broker-account/

https://monevator.com/no-time-to-invest/

lisyloo

Is £5 to £10k enough?

How long would it take you to find another job?

eskbanker

TooCautious wrote: »

Would it be sensible to transfer the remaining amount into something like a Nutmeg managed S&S ISA?

Or is there something else I should be looking at? All advice welcome.

Many will agree that investing long-term money is sensible once you're covered for short-term/short-notice cash, but not many on here would recommend Nutmeg. As with other robo-advisers, they offer a superficially attractive package for the newbie investor, but it's poor value for money, in that there are much lower cost alternatives if you're happy to pick your own investment products.

The most frequently-expressed guidance on here is to choose one of the main global multi-asset funds for simple one-stop diversification (such as HSBC Global Strategy, Vanguard LifeStrategy, Blackrock Consensus and L&G Multi-Index) and then pick a low-cost platform on which to hold it.

As well as Monevator, other places to get going with your research include:
https://www.moneyadviceservice.org.uk/en/articles/investing-beginners-guide
https://www.hl.co.uk/beginners-guides/investing
http://diyinvestoruk.blogspot.com/

TooCautious

Thanks for your replies xylophone and lisyloo.


xylophone - I understand that there are risks with investing as opposed to putting money into a cash ISA but like everyone else I'd like (hopefully) to see a better overall return than 1.4%. The money would more likely be there for about 10 years.


lisyloo - I take your point but £10K would keep me going for several months. Given my expenses this is more than the usual 3 - 6 months emergency fund often recommended.


Is it a good idea to transfer £50K in one lump anyway?

xylophone

Is it a good idea to transfer £50K in one lump anyway?

Do you mean on the basis of drip feed/ lump sum?

https://www.ftadviser.com/Articles/2017/07/10/FTA-lump-sum

http://www.morningstar.co.uk/uk/news/166365/drip-feed-your-isa-for-an-extra-4.aspx