New ISA for current tax year

Albermarle

Also, if investing with Vanguard, is it okay to buy/sell funds/ITs from her current ISA with IWeb?

Not 100% sure what you mean with this question.
If you have an ISA with Vanguard, you can only buy Vanguard funds .
If she has funds in her current isa that are not Vanguard funds , then you will either have to leave them there or transfer them as cash and reinvest them .

badger09

Lokolo wrote: »

No reinvestment done via the platform so no cost.

Actually, in ACC funds, dividends are automatically reinvested within the fund, not via the platform:cool:

badger09

Robie wrote: »

Hi

These are probably the most stupid questions but here goes.

My wife has an ISA with IWeb and *hasn't* contributed to it yet this year. This is thinking of investing in Vanguard. So, is it better to invest directly with Vanguard (since their charges are low) or buy/sell Vanguard thru IWeb?

Also, if investing with Vanguard, is it okay to buy/sell funds/ITs from her current ISA with IWeb?

Thanks
Robie

If your wife's ISA is with IWEB, she hasn't contributed to it this year, and she want to invest in Vanguard funds then she can

a) add her ISA subscription to her IWEB ISA and buy Vanguard funds.
b) open a new ISA with Vanguard, pay her ISA subscription in, and buy Vanguard funds

IWEB will be cheaper, unless she's going to drip feed every month (that's a bit simplified, but you get the gist)

Whatever she decides to do with this year's ISAs money doesn't restrict what she can do with the investments currently held in IWEB. So if she wants to sell some or all & buy something different, she can do.

darkidoe

JohnRo wrote: »

The problem with iWeb is that their ISA isn't flexible, if the plan is to use the full £20K allowance plus all the dividends from the previous year then it simply won't be possible with them.

I'm stuck in an IT/ETF mindset, an ACC fund is the way to go at iWeb.

I assume by flexible you mean being able to take out the dividends from the ISA into a regular savings accounts and putting it back to the ISA without using up the yearly ISA subscription allowance.

I do use up the full 20K allowance and previous year's dividends for reinvestment yearly but I tend to leave my dividends within the ISA itself accumulating as cash until my next rebalance date (usually yearly).

JohnRo

darkidoe wrote: »

I assume by flexible you mean being able to take out the dividends from the ISA into a regular savings accounts and putting it back to the ISA without using up the yearly ISA subscription allowance.

Yeah, I'm using the CSD flexible ISA to withdraw dividends and bung them in an interest account until the time they're required to go back in. That doesn't affect the annual allowance.

I have iWeb accounts but only use the GIA so no (ISA) allowance issues to worry about there.

Lokolo

badger09 wrote: »

Actually, in ACC funds, dividends are automatically reinvested within the fund, not via the platform:cool:

Yes, that's what I said... lol "Reinvestment isn't done via the platform, so no cost"

Robie

badger09 wrote: »

If your wife's ISA is with IWEB, she hasn't contributed to it this year, and she want to invest in Vanguard funds then she can

a) add her ISA subscription to her IWEB ISA and buy Vanguard funds.
b) open a new ISA with Vanguard, pay her ISA subscription in, and buy Vanguard funds

IWEB will be cheaper, unless she's going to drip feed every month (that's a bit simplified, but you get the gist)

Whatever she decides to do with this year's ISAs money doesn't restrict what she can do with the investments currently held in IWEB. So if she wants to sell some or all & buy something different, she can do.

Thank you so much. You have answered my question very clearly and succinctly. I now know exactly what to do. :T

badger09

Lokolo wrote: »

Yes, that's what I said... lol "Reinvestment isn't done via the platform, so no cost"

My apologies. I completely misread what you'd posted:o

pochisoldi

talexuser wrote: »

Dividend reinvestment might be a factor, iWeb is £5 a trade, whereas Vanguard has free dealing, so which is better depends on the total amount invested and if the Vanguard platform is more than £20 a year assuming you only reinvest 4 times a year in iWeb - if your strategy is to buy and hold.

Are you sure about the iWeb charges?
In my experience with a non-ISA sharedealing account, automatic dividend reinvestment for shares (not funds) works out at around 2.44% per trade, with any "change" getting left in the related cash account.
Of course if the dividend payment goes over £205 then you are better off with £5/deal.

(Personally, with no CGT calculations to worry about in an ISA, I'd skirt the issue altogether and buy & hold accumulation units)