How to calculate cost with monthly deposits into S&S ISA?

idkwhattosay

cricidmuslibale said:

Just as an aside to this rather interesting discussion, I'm happy to pay £3.75 (or even a little bit more) for a pint of good ale these days but I'm definitely not paying £3.75 for a mere cup of coffee, no matter how fancy it may be!

Some people like beer, other people like coffee.

masonic said:

The technique of equating costs to the price of the regular consumption of an over-priced beverage is a marketing ploy to make significant costs accrued over a period of time seem insignificant. One of the best things you can do for your finances is cut down on the over-priced coffee habit. It's almost as bad for your wallet as smoking.

The Vanguard fees are 0.15% on the amount invested with no trading fees. I assumed you were paying in £20k at the start of each tax year (£20,000 x 0.15% = £30).

If you are only investing £500 per month, then your average balance in year one would be about £3000 and go up by £6000 per year, so it would be cheaper for 13 years. In year one the cost would be £4.50 vs £120 (£115 saving), in year two, it would be £13.50 vs £120 (£106 saving).

If you want to hold both HSBC and Vanguard low risk multi-asset funds (not sure why you would), then the cheapest way to do that is at Charles Stanley Direct (0.35% per year and no trading fees). In year one the cost would be £10.50 vs £120 (£109 saving), in year two, it would be £31.50 vs £120 (£88.50 saving).

If you're not interested in saving £200 over 2 years, I fear you've come to the wrong forum.

Yes I agree, no issues there. I was just implying, but haven't explained it clearly, that if tomorrow you decide you want to change your investments or buy stock in a company without any additional fees, then paying a few quid extra per month for the privilege is worth it. People change their mind all the time.

masonic

idkwhattosay said:

masonic said:

The technique of equating costs to the price of the regular consumption of an over-priced beverage is a marketing ploy to make significant costs accrued over a period of time seem insignificant. One of the best things you can do for your finances is cut down on the over-priced coffee habit. It's almost as bad for your wallet as smoking.

The Vanguard fees are 0.15% on the amount invested with no trading fees. I assumed you were paying in £20k at the start of each tax year (£20,000 x 0.15% = £30).

If you are only investing £500 per month, then your average balance in year one would be about £3000 and go up by £6000 per year, so it would be cheaper for 13 years. In year one the cost would be £4.50 vs £120 (£115 saving), in year two, it would be £13.50 vs £120 (£106 saving).

If you want to hold both HSBC and Vanguard low risk multi-asset funds (not sure why you would), then the cheapest way to do that is at Charles Stanley Direct (0.35% per year and no trading fees). In year one the cost would be £10.50 vs £120 (£109 saving), in year two, it would be £31.50 vs £120 (£88.50 saving).

If you're not interested in saving £200 over 2 years, I fear you've come to the wrong forum.

Yes I agree, no issues there. I was just implying, but haven't explained it clearly, that if tomorrow you decide you want to change your investments or buy stock in a company without any additional fees, then paying a few quid extra per month for the privilege is worth it. People change their mind all the time.

Yes it's perfectly ok to want access to a wide range of investment options if you think your strategy may evolve. As shown in my above post, you can have that benefit without paying over the odds by opting for a percentage based fee in the early years. II only becomes a cheaper option when you have >£35k invested and only then if you are disciplined and make sure all your trades are covered by regular investing and trading credits. There is no guarantee II won't put up its prices before your investments build up to that level. When the time comes iWeb should also be considered alongside II - it has a one-off opening fee, then £5 per trade and £0 monthly fee.

cricidmuslibale

"Some people like beer, other people like coffee."  I enjoy both beer and coffee (at different times of the day) but I also know that brewing good real ale takes a lot of time and skill and the very finest natural ingredients. Thus it is naturally considerably more expensive than coffee to produce - plus one has to add the cost of excise duty as well as VAT - and therefore I understandably refuse to pay the equivalent price of a pint of normal strength bitter (where I live) for a product such as a standard size mug of coffee that probably costs at the very most (and I'm being very generous here) half the price of a pint of beer to produce, the VAT on top notwithstanding!

ChilliBob

3.75 for a good pint? Guessing you don't live in London! Totally agree, for me the worst is tea, I love tea but resent paying £2.50 for a brew on the go or something!

As regards the thread, would iweb not be worth considering? £100 one off fee, not annual. Its where I have my SS ISA

masonic

ChilliBob said:

3.75 for a good pint? Guessing you don't live in London! Totally agree, for me the worst is tea, I love tea but resent paying £2.50 for a brew on the go or something!

Yes, a very nice cup of tea can be made for less than 10% of that price.

ChilliBob said:

As regards the thread, would iweb not be worth considering? £100 one off fee, not annual. Its where I have my SS ISA

It's been mentioned earlier in the thread, although it was an easier sell when that fee was £25 a month ago.