Stock and Share ISA - Withdrawing ?

hermante

haswod said:

When I say "shortly" I mean 1-2 years time.

What do you mean sticking to cash deposits ? I should not go through an ISA ?

What happens if your 3K drops to 2K? Do you still want to withdraw?
You can withdraw the money one day later if you like.
If it goes up to 6K and you withdraw, what are you going to do with the money?

eskbanker

haswod said:

eskbanker said:

haswod said:
To be honest, my question to withdraw everything without any fee is because I know I will be leaving UK shortly. I just wanted to make sure that I will have my money back without any fee.

If it's that important to you to avoid fees then you're presumably hoping to get all of your money back, and therefore if you'll be looking to withdraw 'shortly' then you'd be best sticking to cash deposits and steering well clear of investments....

When I say "shortly" I mean 1-2 years time.
What do you mean sticking to cash deposits ? I should not go through an ISA ?

Using an ISA is fine but use a cash ISA if you have plans for the money in 1-2 years, which is indeed short term in the context of investing.  Taxable accounts may offer better rates though, so ISAs aren't the be all and end all, especially with a small pot....

tropic_of_Username019 said:

eskbanker said:

haswod said:
To be honest, my question to withdraw everything without any fee is because I know I will be leaving UK shortly. I just wanted to make sure that I will have my money back without any fee.

If it's that important to you to avoid fees then you're presumably hoping to get all of your money back, and therefore if you'll be looking to withdraw 'shortly' then you'd be best sticking to cash deposits and steering well clear of investments....

I'd disagree with that. Does haswod have an investment time horizon of 10+ years (i.e. won't spend the money in less than 10 years' time), but expects to leave the UK in 1-2 years? In that case, they can sensibly go for long-term investments. After leaving the UK, they might well want to cash in their ISA investments, but would then be reinvesting the cash in broadly similar investments, probably in their destination country (using whatever tax wrappers make sense there). Their investments might be showing losses or profits at the point of leaving the UK (who knows?), but that is irrelevant, since they'd be switching to very similar investments at that point, not genuinely divesting.

I said "might well", because there could also be reasons to retain UK-based investments after leaving the UK, depending on a number of factors. That's a bit complicated.

OP can obviously clarify but it seemed clear to me from the quoted text that they intended to withdraw the funds when leaving the UK, but yes, I'd agree that if they have other plans then alternative approaches may be appropriate....

haswod

hermante said:

haswod said:

When I say "shortly" I mean 1-2 years time.

What do you mean sticking to cash deposits ? I should not go through an ISA ?

What happens if your 3K drops to 2K? Do you still want to withdraw?
You can withdraw the money one day later if you like.
If it goes up to 6K and you withdraw, what are you going to do with the money?

As I said, my plan is to leave UK. When I will leave, I will have to capture the best moment to withdraw my money from my ISA to my new currency bank account, and there are 2 parameters to be taken into account:
- Sterling pound has to be strong compared to the other currency
- I have to get maximum benefits from my S&S ISA

This will be probably complicated to withdraw everything at the best moment, but that's the game! 

haswod

Using an ISA is fine but use a cash ISA if you have plans for the money in 1-2 years, which is indeed short term in the context of investing.  Taxable accounts may offer better rates though, so ISAs aren't the be all and end all, especially with a small pot....

eskbanker, with a Cash ISA can I invest in Stock & Shares ? 

From my understanding, in the cash ISA you invest in low risk but low efficiency. So why would that be better from a short term view ?

Alexland

No a Cash ISA can only hold cash, but many S&S ISAs can have a cash balance of uninvested money earning no or negligible interest.

Eskbanker is just saying that S&S investment is not suitable for short term (less than 5 years) as there is an unacceptable probability of withdrawing less than you contributed or could have earned if making the same contributions into a cash account.

https://www.nutmeg.com/nutmegonomics/increasing-your-chances-of-positive-portfolio-returns-the-facts-about-long-term-investing/

haswod

Thanks for the details Guys.