Swapping Investment Plan

thriftylynny

Bit of advice needed please . Basically , i am wanting to jump ship completely from my Prudential Prufund Investment Risk Managed 3 to Vanguard LS60 . I have already transferred over a Prudential ISA to a VLS60 S & S ISA, ,also drip fed from the PRU into the ISA last year & just done the same for current tax year. This leaves me with around 55k left in the prufund & obviously have already maxed out my ISA allowance for this year . My original intention was just to keep the prufund going & drip feed from it into the ISA in the same manner each year until i'd withdrawn all of the funds . n My personal choice would be to have all of my investment held within the Vanguard LS in one account ultimately . However i am now thinking going down this route is going to take me 3 years to gradually syphon all the money out, when i'd really prefer to take all of the investment out asap ! What i am wondering now is ,would it possible for me to open a VLS60 general investment account, if this exists(?) to run alongside the ISA or just run with my original yearly drip feeding plan? . My investment is intended to top up my retirement (in around 4/5 years) & I have looked at the Vanguard Target Retirement Funds but am preferring the Life Strategy Fund . Also my current income is below the income tax threshold i am unsure if withdrawing large amounts would possibly make me liable for tax ? Any thoughts please i'd be grateful !

jimjames

Yes you can have an investment account outside the ISA wrapper. You can then sell chunks each year to put inside your ISA up to the allowance

dunstonh

What i am wondering now is ,would it possible for me to open a VLS60 general investment account, if this exists(?) 

No it doesnt exist exactly as you have worded it but it is achievable.    All platforms offer a GIA.   You just invest in your chosen investments (VLS60 in your case) in the GIA of your chosen platform.

 My investment is intended to top up my retirement (in around 4/5 years) 

Any reason you are not using the pension wrapper instead of the ISA wrapper?  (pension trumps ISA and GIA in most scenarios).

thriftylynny

Thank you both both for your replies ..to be perfectly honest dunstonh at age 62 i'm not sure if it's worth me paying into a pension or even how i would go about it if it were possible ?? Don't know if my explanation helps but I took early retirement 3 years ago & already take income from my two DB pensions (6120 p/a) & top this amount yearly from some cash savings , so can't make further contributions to those .Apologies for my ignorance here but what sort of pension would i benefit from paying into , do you mean a SIPP ? i am sure you are correct with regards to pension benefiting me more but i would be worried that a pension would tie up my investment & that at least with an ISA i'd be able to withdraw funds if i ever needed it . I am possibly not thinking it through correctly am i ?!!

dunstonh

to be perfectly honest dunstonh at age 62 i'm not sure if it's worth me paying into a pension or even how i would go about it if it were possible ?

If its not worth it then why are you paying into the ISA?

Both share the same investments, same charges and get the same returns (where same investments are used). The only difference is the tax efficiency.  If you can set up an ISA then you can set up a pension.   All the platforms offer ISAs, GIAs and SIPPs.

.Apologies for my ignorance here but what sort of pension would i benefit from paying into , do you mean a SIPP ?

It would possibly be a SIPP but it could be a stakeholder pension or personal pension.   If you use a platform, then its likely to be a SIPP (but not all platforms use SIPPs).  However, type doesnt really matter nowadays.

 i am sure you are correct with regards to pension benefiting me more but i would be worried that a pension would tie up my investment & that at least with an ISA i'd be able to withdraw funds if i ever needed it 

Absolutely no difference in tie in as you are aged over 55.

 I am possibly not thinking it through correctly am i ?!!

You need to stop thinking of pension as a product and think of it as a tax wrapper. just like the ISA.    You will get more money from paying into the pension than you will an ISA. And if need be, you could draw it immediately.