S&S LISA transfer before bonus paid

Isaac_:)

I'm in the process of transferring my S&S LISA from Nutmeg to AJ Bell. Wondered if anyone knew if this would disrupt the payment of the bonus I've earned but not yet received, as I contributed to the Nutmeg LISA last week. Would the bonus be paid into the new account when it comes, or would it be advisable to wait until it's been paid into my Nutmeg account before initiating the transfer?

Alexland

Nutmeg should still claim and eventually forward your bonus alongside any distributions from your income producing ETFs (that would normally be transparently reinvested) to the new provider. It does take ages for them to do this during which time you can still login to the old account to see the balance go up and down.

Personally I would wait until the bonus is added before initiating the transfer. That would also reduce your AJ Bell trading fees to reinvest. Nutmeg have enough Goldman Sachs cash not to go belly up this tax year.

Alex

Isaac_:)

Alexland wrote: »

Nutmeg should still claim and eventually forward your bonus alongside any distributions from your income producing ETFs (that would normally be transparently reinvested) to the new provider. It does take ages for them to do this during which time you can still login to the old account to see the balance go up and down.

Personally I would wait until the bonus is added before initiating the transfer. That would also reduce your AJ Bell trading fees to reinvest. Nutmeg have enough Goldman Sachs cash not to go belly up this tax year.

Alex

Thanks Alex - I'll play it safe and wait until I've received the bonus.

Also true that I'd need to pay the £1.50 fee to invest the bonus when it came through - hadn't thought of that, so definitely makes sense to wait.

Alexland

If you are just buying into one fund then an extra £1.50 is not too bad. But if you are buying into exchange traded assets like ETFs to benefit from the capped fees then an extra £9.95 is worth avoiding.

Isaac_:)

Alexland wrote: »

If you are just buying into one fund then an extra £1.50 is not too bad. But if you are buying into exchange traded assets like ETFs to benefit from the capped fees then an extra £9.95 is worth avoiding.

True. Planning to keep it simple and stick it in a VLS fund, so I suppose it doesn't matter as much.