Transfer from Vanguard to iWeb

Aylesbury_Duck

I'm in the process of requesting a transfer of previous years' S&S ISA subscriptions from Vanguard to iWeb. I will be moving around £40k that's currently in VLS60. I intend to keep the sum in VLS60 on the new platform. When I complete the request, it asks me the following question:

How do you want the transfer to be made?
Cash only or Stocks and residual cash
If you want to transfer as cash only, you must instruct your current ISA manager if you want to sell any existing investments before transferring.

Do I elect to move it as cash and then once it's arrived, buy new VLS60 funds with it, or select the second option? Does the second option mean the VLS60 just moves across to iWeb?

Rollinghome

Aylesbury_Duck wrote: »

Do I elect to move it as cash and then once it's arrived, buy VLS60 funds with it, or select the second option? Does the second option mean the VLS60 just moves across to iWeb?

Check with Iweb that you can hold VLS60 on their platform - I'd be amazed if you couldn't - then transfer as stock. Otherwise you'll be out of the market for a time and will have to pay them a fiver to re-buy.

Aylesbury_Duck

Rollinghome wrote: »

Check with Iweb that you can hold VLS60 on their platform - I'd be amazed if you couldn't - then transfer as stock. Otherwise you'll be out of the market for a time and will have to pay them a fiver to re-buy.

Thanks. Yes, all the VLS products are available.

webjaved

What's the reasoning behind the transfer? I'm curious.

Aylesbury_Duck

webjaved wrote: »

What's the reasoning behind the transfer? I'm curious.

Because Vanguard charge me 0.15% platform fee to hold my £40k from previous tax years, which equates to £60 every year. To hold the same sum passively on iWeb will cost me a one-off account opening fee of £25. I don't plan to touch that £40k for another ten years, so I will save £575 over that period on that sum, more as I add to it with future years' transfers. Both platforms charge the same 0.22% fund fee so cost the same for that element.

I'll continue to use the Vanguard platform to invest my £20k p.a. on a monthly basis because there are no trading costs, whereas iWeb would charge me £5 a month to do the same. The plan is to build £20k p.a. in monthly instalments on Vanguard and transfer the lump into iWeb in April. Repeating that each year.

badger09

Aylesbury_Duck wrote: »

Because Vanguard charge me 0.15% platform fee to hold my £40k from previous tax years, which equates to £60 every year. To hold the same sum passively on iWeb will cost me a one-off account opening fee of £25. I don't plan to touch that £40k for another ten years, so I will save £575 over that period on that sum, more as I add to it with future years' transfers. Both platforms charge the same 0.22% fund fee so cost the same for that element.

I'll continue to use the Vanguard platform to invest my £20k p.a. on a monthly basis because there are no trading costs, whereas iWeb would charge me £5 a month to do the same. The plan is to build £20k p.a. in monthly instalments on Vanguard and transfer the lump into iWeb in April. Repeating that each year.

You've picked up my suggestion from another thread:)

I would transfer it as 'Stocks & residual cash'.

That way, you'll save £5:T buying it again on IWEB, but more importantly, you won't be out of the market at all.

Obviously, if you think VLS60 is going to drop dramatically in value over the next few weeks, transfer as cash & buy when the cash arrives.

I don't have a crystal ball though, and I doubt you do;)

Aylesbury_Duck

badger09 wrote: »

You've picked up my suggestion from another thread:)

I would transfer it as 'Stocks & residual cash'.

That way, you'll save £5:T buying it again on IWEB, but more importantly, you won't be out of the market at all.

Obviously, if you think VLS60 is going to drop dramatically in value over the next few weeks, transfer as cash & buy when the cash arrives.

I don't have a crystal ball though, and I doubt you do;)

Indeed, thanks for your advice, it made absolute sense and I've opened the account and sent the transfer form today.

[Deleted User]

Can someone share if they have done this successfully? How long does it take for the positions to move to iWeb?

Aylesbury_Duck

I have.  The original transfer back in November (when I started this thread) went wrong because it became impossible for Vanguard to disentangle previous and current years' subscriptions, so I cancelled it and began it again in the new tax year.  It did take several weeks but that was down to c-19 (I transferred right in the middle of the early lockdown period) and I suspect it will be a bit faster now.  As advised on here, I transferred it as stocks and residual cash, thereby avoiding the £5 trading fee and not having my investments out of the market at any point.

Just be aware that your Vanguard percentage gain/loss measurement doesn't come across to iWeb, and neither does iWeb mark your starting point, so it's a good idea to keep a manual record of both if you want to track your own performance.  I'm using iWeb as a passive dumping ground, so it's pretty easy to see how much I've gained/lost on the funds I moved across.  If you intend on investing in Vanguard in the future, you can ask them to keep your ISA open.  That's what I've done, so prior years' subscriptions just sit there in iWeb and the monthly and occasional sums I invest this year go into Vanguard.  

[Deleted User]

Thank you. I have ISA account with HL and looking to move it to iWeb from next year April and keep the HL account open for monthly savings.

Alistair31

I’m going through the process now and with a similar sum, although I went to cash as I am changing fund, process fairly smooth but it transpires that Vanguard forgot/failed to properly reference the transfer and as such iWeb cannot assign it to my account without further cross referencing, so as it stands my £38k is showing on neither platform.