Aprox £15k to invest.ISA + Stock & Shares ISA?

Bobby_Bouche

I have been reading for a few days and truth be told I am quite confused by ISA's (Stocks and Shares variant).
I have about £10k in a Halifax ISA from previous tax years earning hardly anything and I have about £2-5K I'd like to invest in a stocks and shares ISA.
The money may be tied up for 2-5 years.
As I am not clued up I'd prefer a Stocks and Shares ISA that is pre-picked as I'd not have enough knowledge to be able to choose myself.
I looked at Halifax and saw fees of £12 per year etc, and based on how little returns are these days that seems hardly worth the effort on such a small amount.
Ideally I'd like to sort my ISA out.
Any help or advice would be greatly appreciated.  

george4064

There are literally thousands of other threads asking the same question as what you are.

You can read loads of similar threads here: https://forums.moneysavingexpert.com/search?adv=1&search=&title=advice&author=&cat=17&tags=&discussion_d=1&within=6+months&date=

Also, for a more general read go here (in particular the section on Stocks & Shares ISA): https://www.moneysavingexpert.com/banking/

Have a read through some of those and post any questions you may have here.

Thrugelmir

2-5 years is too short a time frame to seriously invest. You'd be more secure opting for fixed term cash deposits to maximise your returns. 

grumiofoundation

Bobby_Bouche said:

I have been reading for a few days and truth be told I am quite confused by ISA's (Stocks and Shares variant).
I have about £10k in a Halifax ISA cash presumably from previous tax years earning hardly anything and I have about £2-5K I'd like to invest in a stocks and shares ISA.
The money may be tied up for 2-5 years. as in you are willing to 'tie it up' for 2-5 years
As I am not clued up I'd prefer a Stocks and Shares ISA that is pre-picked as I'd not have enough knowledge to be able to choose myself.
I looked at Halifax and saw fees of £12 per year etc, and based on how little returns are these days that seems hardly worth the effort on such a small amount. You don't know what the return will be?
Ideally I'd like to sort my ISA out. What type of ISA?
Any help or advice would be greatly appreciated.  

As said above 2-5 years is a very short time period - decent chance you would end up having less money. 

What are you planning to do with the money?
If for house purchase have you looked at lifetime ISA (cash)? 25% bonus on up to 4000 per year. 
If for retirement probably pension or S and S LISA best.

Bobby_Bouche

grumiofoundation said:

Bobby_Bouche said:

I have been reading for a few days and truth be told I am quite confused by ISA's (Stocks and Shares variant).
I have about £10k in a Halifax ISA cash presumably from previous tax years earning hardly anything and I have about £2-5K I'd like to invest in a stocks and shares ISA.
The money may be tied up for 2-5 years. as in you are willing to 'tie it up' for 2-5 years
As I am not clued up I'd prefer a Stocks and Shares ISA that is pre-picked as I'd not have enough knowledge to be able to choose myself.
I looked at Halifax and saw fees of £12 per year etc, and based on how little returns are these days that seems hardly worth the effort on such a small amount. You don't know what the return will be?
Ideally I'd like to sort my ISA out. What type of ISA?
Any help or advice would be greatly appreciated.  

As said above 2-5 years is a very short time period - decent chance you would end up having less money. 

What are you planning to do with the money?
If for house purchase have you looked at lifetime ISA (cash)? 25% bonus on up to 4000 per year. 
If for retirement probably pension or S and S LISA best.

Thanks for replies.
I am over 40 so lifetime ISA is a no go. Money was ideally to go towards a house but I already have a deposit for that. I thought S and S isa might be good but did not realize needed longer than 5 years initially etc.

theselfishaltruist

grumiofoundation said:

Bobby_Bouche said:

I have been reading for a few days and truth be told I am quite confused by ISA's (Stocks and Shares variant).
I have about £10k in a Halifax ISA cash presumably from previous tax years earning hardly anything and I have about £2-5K I'd like to invest in a stocks and shares ISA.
The money may be tied up for 2-5 years. as in you are willing to 'tie it up' for 2-5 years
As I am not clued up I'd prefer a Stocks and Shares ISA that is pre-picked as I'd not have enough knowledge to be able to choose myself.
I looked at Halifax and saw fees of £12 per year etc, and based on how little returns are these days that seems hardly worth the effort on such a small amount. You don't know what the return will be?
Ideally I'd like to sort my ISA out. What type of ISA?
Any help or advice would be greatly appreciated.  

As said above 2-5 years is a very short time period - decent chance you would end up having less money. 

What are you planning to do with the money?
If for house purchase have you looked at lifetime ISA (cash)? 25% bonus on up to 4000 per year. 
If for retirement probably pension or S and S LISA best.

Anything is better than the interest on a savings account. 2-5 years is enough time, considering your average mutual fund will go up about 6-7%. I don't believe there is a good chance of losing money. LOoking at the S&P 500 over the last five years shows increased by 50% from 2015 to today. 
Also, you can get a stocks and shares LISA, so you can invest in the market and still get the bonus. AJ Bell does one (I have one with them, although it's basically empty at the moment). 
No offence, but I just don't think the evidence supports your view here. Investing is nearly always better than savings, especially over 5 years. 

theselfishaltruist

Bobby_Bouche said:

grumiofoundation said:

Bobby_Bouche said:

I have been reading for a few days and truth be told I am quite confused by ISA's (Stocks and Shares variant).
I have about £10k in a Halifax ISA cash presumably from previous tax years earning hardly anything and I have about £2-5K I'd like to invest in a stocks and shares ISA.
The money may be tied up for 2-5 years. as in you are willing to 'tie it up' for 2-5 years
As I am not clued up I'd prefer a Stocks and Shares ISA that is pre-picked as I'd not have enough knowledge to be able to choose myself.
I looked at Halifax and saw fees of £12 per year etc, and based on how little returns are these days that seems hardly worth the effort on such a small amount. You don't know what the return will be?
Ideally I'd like to sort my ISA out. What type of ISA?
Any help or advice would be greatly appreciated.  

As said above 2-5 years is a very short time period - decent chance you would end up having less money. 

What are you planning to do with the money?
If for house purchase have you looked at lifetime ISA (cash)? 25% bonus on up to 4000 per year. 
If for retirement probably pension or S and S LISA best.

Thanks for replies.
I am over 40 so lifetime ISA is a no go. Money was ideally to go towards a house but I already have a deposit for that. I thought S and S isa might be good but did not realize needed longer than 5 years initially etc.

I think 2-5 years is a perfectly acceptable amount of time to invest money if you do it in the right places.
Also, I think with the pandemic, it might be a good time to invest. the FTSE is low at the moment, and so is the s&p500. Although, I think they will sink lower when the depression hits.. If/when that happens (and I cannot see any reason why it wont), that;s when you buy. 

MaxiRobriguez

theselfishaltruist said:

grumiofoundation said:

Bobby_Bouche said:

I have been reading for a few days and truth be told I am quite confused by ISA's (Stocks and Shares variant).
I have about £10k in a Halifax ISA cash presumably from previous tax years earning hardly anything and I have about £2-5K I'd like to invest in a stocks and shares ISA.
The money may be tied up for 2-5 years. as in you are willing to 'tie it up' for 2-5 years
As I am not clued up I'd prefer a Stocks and Shares ISA that is pre-picked as I'd not have enough knowledge to be able to choose myself.
I looked at Halifax and saw fees of £12 per year etc, and based on how little returns are these days that seems hardly worth the effort on such a small amount. You don't know what the return will be?
Ideally I'd like to sort my ISA out. What type of ISA?
Any help or advice would be greatly appreciated.  

As said above 2-5 years is a very short time period - decent chance you would end up having less money. 

What are you planning to do with the money?
If for house purchase have you looked at lifetime ISA (cash)? 25% bonus on up to 4000 per year. 
If for retirement probably pension or S and S LISA best.

Anything is better than the interest on a savings account. 2-5 years is enough time, considering your average mutual fund will go up about 6-7%. I don't believe there is a good chance of losing money. LOoking at the S&P 500 over the last five years shows increased by 50% from 2015 to today. 
Also, you can get a stocks and shares LISA, so you can invest in the market and still get the bonus. AJ Bell does one (I have one with them, although it's basically empty at the moment). 
No offence, but I just don't think the evidence supports your view here. Investing is nearly always better than savings, especially over 5 years. 

Using the last five years of US stocks only is a very narrow window to justify that 2-5 years is "enough time"

It might be, it might not be. Anyone who invested in the S&P500 in January 2006 (ie, 2 and a half years prior to the 2008 bear market) didn't see a positive capital return for six years.

Given we're about to see a seismic shift over the next 12-24 months of change in human behaviour, I'd suggest there's a strong case to argue the opposite to you. Prospect of sustained deflation is quite large, despite attempts to stoke inflation. Could result in significant losses over that time period. 

Agree with other posters. If the money is needed in 2-5 years, it shouldn't be invested unless the money is only supplementing what could be achieved without it. 

Bobby_Bouche

theselfishaltruist said:

grumiofoundation said:

Bobby_Bouche said:

I have been reading for a few days and truth be told I am quite confused by ISA's (Stocks and Shares variant).
I have about £10k in a Halifax ISA cash presumably from previous tax years earning hardly anything and I have about £2-5K I'd like to invest in a stocks and shares ISA.
The money may be tied up for 2-5 years. as in you are willing to 'tie it up' for 2-5 years
As I am not clued up I'd prefer a Stocks and Shares ISA that is pre-picked as I'd not have enough knowledge to be able to choose myself.
I looked at Halifax and saw fees of £12 per year etc, and based on how little returns are these days that seems hardly worth the effort on such a small amount. You don't know what the return will be?
Ideally I'd like to sort my ISA out. What type of ISA?
Any help or advice would be greatly appreciated.  

As said above 2-5 years is a very short time period - decent chance you would end up having less money. 

What are you planning to do with the money?
If for house purchase have you looked at lifetime ISA (cash)? 25% bonus on up to 4000 per year. 
If for retirement probably pension or S and S LISA best.

Anything is better than the interest on a savings account. 2-5 years is enough time, considering your average mutual fund will go up about 6-7%. I don't believe there is a good chance of losing money. LOoking at the S&P 500 over the last five years shows increased by 50% from 2015 to today. 
Also, you can get a stocks and shares LISA, so you can invest in the market and still get the bonus. AJ Bell does one (I have one with them, although it's basically empty at the moment). 
No offence, but I just don't think the evidence supports your view here. Investing is nearly always better than savings, especially over 5 years. 

As i said I cannot get LISA as i am over 40. I am 47.
Does AJ bell come with yearly fees though?
Many thanks.

dunstonh

If you invest for at least 5 years then there have been very few 5 year periods where you would have less than you paid in.  If you invest for 2 years then you are really tossing a coin as to whether you will have less in 2 years or more.      Time reduces risk of loss.   5 years should be your minimum.  Any of the above telling you that 2-3 years is fine are not posting in your best interests.

eskbanker

Bobby_Bouche said:

grumiofoundation said:

What are you planning to do with the money?

Thanks for replies.
I am over 40 so lifetime ISA is a no go. Money was ideally to go towards a house but I already have a deposit for that. I thought S and S isa might be good but did not realize needed longer than 5 years initially etc.

You didn't really answer the question about your intentions, which are obviously your own business but 2-5 years is a fairly broad range and it isn't clear (to readers on here) what the significance of that period is, which could compromise recommendations.

theselfishaltruist said:
Anything is better than the interest on a savings account. 2-5 years is enough time, considering your average mutual fund will go up about 6-7%.

'Your average mutual fund' might increase by that sort of margin over the long term, but over a 2-5 year window could easily be negative (or more positive than 6-7% annually for that matter).