Transferring to new provider

TOMM546

I have a Stocks and Shares ISA and I’d like to transfer to a new provider (Nutmeg) for a simple Robo-advisor. 

It’s estimated to take 15-30 days to make the transfer. 

I know economy is in wild times, my concern is during the transfer my amount will drop heavily in value. 

Is the actual transfer value made instantly or can it be made anytime over the 30 days. 

Should I wait a few months or will it not make much difference?

SFindlay

Why are you currently with? I suspect with going to Nutmeg you arent doing a straight "in specie" transfer? If that's the case the products you hold will  be sold over that 15-30 day period transferred as cash and then re-invested so it's going to be in lap of goods what happens between time you sell and buy. 

TOMM546

Transferring from Scottish Widows as their fee’s are high. Although no transfer fee’s. 

I’m not really sure on the type of transfer, I’m amateur in all of this. But from my research Nutmeg/Wealthify Robo-advisor accounts seem to suit me better. 

I’m have limited knowledge is stock market other then knowing nobody can predict it. 

But I’d assume people with better knowledge would know if transferring Stock share ISA now  is a silly move or not given the economic madness 

Albermarle

But I’d assume people with better knowledge would know if transferring Stock share ISA now  is a silly move or not given the economic madness 

It does not matter if you transfer during good or bad times . The issue is if you transfer during a period of high volatility . For now we seem to be past this point and markets are relatively stable ( but who knows for how long) . As you are with SW then your money will be in SW insured funds , which will not be available with Nutmeg , so the transfer will have to be in cash . Although the process may take anything from a few days to a few weeks , you will not be out of the market for more than a few days probably. 

TOMM546

That’s great thanks.  I’ll likely go ahead with the transfer. 

I have under £10k to transfer.
I will start adding to this monthly although won’t reach my £20k allowance by April 2021. 

Would it be sensible to just transfer the entire amount? 

Alexland

Are you sure you want that much money in an expensive and financially unstable Robo advisor like Nutmeg who charge a minimum of 0.45% plus ETF fund manager costs? For £20k that would be £90 pa in management costs and growing if you see positive market returns and continue to contribute.

By comparison if you moved your S&S ISA to Halifax Share Dealing they would charge £12.50 pa plus £2 per scheduled trade so assuming 12 trades a year that would be £36.50 if investing in a single multi asset fund such as the Vanguard LifeStrategy or HSBC Global Strategy series which both have very similar asset allocations and costs to Nutmeg's ETF portfolios. As they are proper OEIC funds they are also FSCS protected.

In terms of your question I would just transfer in one go and accept the time out of the market until you can reinvest. Your account is getting to a valuation where fixed platform charges are advantageous so best to get it right first time to avoid further transfer in future.

If you must go with Nutmeg remember there are usually various cashback signup offers.

TOMM546

Thanks for the advice.

..No I’m not sure at all. 

I’m only considering Nutmeg/Wealthify based on articles from websites such as this - as a good beginner ‘do it all for you’ account. 

(And has made me realise how expensive the fee’s with Scottish Widows are) 

Alexland

We have had small accounts with Nutmeg and Wealthify and they are fine for playing with and getting some signup cashback along the way but with the amounts of money you are taking about would be more suited to fixed price accounts as those percentage fees can get very expensive.

Often we suggest people start with percentage fees (e.g. Vanguard Investor at 0.15%) and transfer to a platform with fixed fees once the account gets big enough to pass the break-even point for that to be cheaper. If you want to invest in one diverse mixed asset fund each month then Halifax Share Dealing are the currently cheapest at £12.50 pa then £2 per month. Still it is a bit more complicated than a Robo and you would have to select a fund but over the long term high fees eat away at returns. The other nice thing about being on a proper DIY platform is that you can often move your standard investments in-specie between platforms without time out of the market.

It's also worth considering if additional pension or lifetime isa (if under 40) contributions may be more beneficial for your circumstances.

TOMM546

Appreciate a DIY platform is more beneficial but I really have no knowledge of the markets and where to invest or which fund to select etc hence why I was looking at a Robo account. Somewhere that is managed for me and I can and drip feed into for the next 5-10yrs 

dunstonh

(And has made me realise how expensive the fee’s with Scottish Widows are)

Scottish Widows is profitable and will be there in the future (in some form or another).   Robo-advisers are loss making and need sugar daddies to keep them afloat in the hope one day they may become profitable.  Either they do, or the sugar daddy pulls out deciding enough is enough.   At the moment, most robo-advisers are increasing their losses year on year and showing no sign of the curve flattening.    Some believe that robo-advisers are the future. However, the number thinking that appears to be in decline as the profitable end of the market is not moving to robo-advisers.  Just the small loss making stuff (like yours for example)

There are profitable options with lower charges.

TOMM546

More confused then before now. 

I’ve been basing my decision to move only on articles on ISA from websites such as this. 

I’ve been making low but steady profit with Scottish Widows for several years but I can see the fee’s are a lot higher then many other suggested platforms.