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Transfer from Vanguard to iWeb
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Aylesbury_Duck said:bogleboogle said:cloud_dog said:bogleboogle said:Am I right in thinking that once you hold >£16,666 (thus incurring an annual platform fee >£25 on Vanguard) there is no advantage to keeping your money with Vanguard vs iWeb (assuming iWeb hosts your preferred fund(s))?
If you ignore that fee then, if you make a single trade with iWeb, once a year, that equates to Vanguard platform charge on £3334. So, if you hold more than £3334, transferring it to iWeb and having to incur a £5 transaction fee, you will be better off. If you are retaining the investment and transferring in situ then there is no £5 iWeb transaction charge and you will be saving yourself the ongoing Vanguard 0.15% platform fee.
In other words, if you're like me and have a reasonable sum in Vanguard from prior years' subscriptions (c.£60k), my options are:
Leave it in Vanguard. Platform fee of 0.15%, £90 p.a., plus £132 p.a. in fund charges.
Move it to iWeb. Platform fee of zero, plus £132 p.a. in fund charges. I have paid £25 to open the account.
So if I leave that £60k sat untouched for 10 years, Vanguard will cost me £875 more in charges in that period. If I wanted to move investments around once a year, Vanguard wouldn't charge me for doing so but iWeb would, £5 each time. Still only £50 in those ten years so I'm still £825 up.
So my strategy, as kindly recommended by badger09 some time ago, is to dump prior years' money into iWeb and build my £20k allowance this year on Vanguard, because I drip-feed money in each month and Vanguard don't charge me for doing so, or for moving funds around. Then next April I will transfer the £20k to iWeb and the whole process begins again.0 -
bogleboogle said:Aylesbury_Duck said:bogleboogle said:cloud_dog said:bogleboogle said:Am I right in thinking that once you hold >£16,666 (thus incurring an annual platform fee >£25 on Vanguard) there is no advantage to keeping your money with Vanguard vs iWeb (assuming iWeb hosts your preferred fund(s))?
If you ignore that fee then, if you make a single trade with iWeb, once a year, that equates to Vanguard platform charge on £3334. So, if you hold more than £3334, transferring it to iWeb and having to incur a £5 transaction fee, you will be better off. If you are retaining the investment and transferring in situ then there is no £5 iWeb transaction charge and you will be saving yourself the ongoing Vanguard 0.15% platform fee.
In other words, if you're like me and have a reasonable sum in Vanguard from prior years' subscriptions (c.£60k), my options are:
Leave it in Vanguard. Platform fee of 0.15%, £90 p.a., plus £132 p.a. in fund charges.
Move it to iWeb. Platform fee of zero, plus £132 p.a. in fund charges. I have paid £25 to open the account.
So if I leave that £60k sat untouched for 10 years, Vanguard will cost me £875 more in charges in that period. If I wanted to move investments around once a year, Vanguard wouldn't charge me for doing so but iWeb would, £5 each time. Still only £50 in those ten years so I'm still £825 up.
So my strategy, as kindly recommended by badger09 some time ago, is to dump prior years' money into iWeb and build my £20k allowance this year on Vanguard, because I drip-feed money in each month and Vanguard don't charge me for doing so, or for moving funds around. Then next April I will transfer the £20k to iWeb and the whole process begins again.YNWA
Target: Mortgage free by 58.0 -
But since you can only pay into one S&S ISA per year you lose an entire year of saving every two years? (Year 0 - save up £20k in Vanguard S&S ISA, year 1 - pay that into the iWeb S&S ISA, year 2 - repeat the process --> so during year 1 you cannot pay anything into the Vanguard S&S ISA)0
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Aylesbury_Duck said:In my experience you're best doing one of two things:
Transfer it now, and stop adding to Vanguard until the transfer is complete or you'll just complicate matters.
Leave it until the new year and transfer it all then.
Also make sure you aren't contributing new money to two S&S ISAs in this year.
I will wait until April '21 and then transfer it out, and then still refrain from contributing to my new fund - FTSE Dev World ex-UK Equity Fund - with Vanguard, until the transfer is complete.
And yes, I will only contribute money to a S&S ISA with Vanguard, no one else. (But more than one fund with them is permitted I believe?).
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bogleboogle said:cloud_dog said:bogleboogle said:Am I right in thinking that once you hold >£16,666 (thus incurring an annual platform fee >£25 on Vanguard) there is no advantage to keeping your money with Vanguard vs iWeb (assuming iWeb hosts your preferred fund(s))?
If you ignore that fee then, if you make a single trade with iWeb, once a year, that equates to Vanguard platform charge on £3334. So, if you hold more than £3334, transferring it to iWeb and having to incur a £5 transaction fee, you will be better off. If you are retaining the investment and transferring in situ then there is no £5 iWeb transaction charge and you will be saving yourself the ongoing Vanguard 0.15% platform fee.Personal Responsibility - Sad but True
Sometimes.... I am like a dog with a bone0 -
bogleboogle said:
But since you can only pay into one S&S ISA per year you lose an entire year of saving every two years? (Year 0 - save up £20k in Vanguard S&S ISA, year 1 - pay that into the iWeb S&S ISA, year 2 - repeat the process --> so during year 1 you cannot pay anything into the Vanguard S&S ISA)Personal Responsibility - Sad but True
Sometimes.... I am like a dog with a bone0 -
Does the transfer from Vanguard to iWeb need to be completed before the end of the tax year? Or can I request a transfer of the 2020/2021 ISA on the 1st of April, and then open the new 2021/2022 in Vanguard on the 6th while the previous ISA is being transferred?
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You will need to open the IWeb ISA before you request them to initiate the transfer
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Aylesbury_Duck said: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.0
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jackhulk said:Aylesbury_Duck said: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.0
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