Stocks & Shares ISA, Add in a lump sum or better to ladder in? 3 February 2022 at 10:14AM in ISAs & tax-free savings 3 replies 191 views

daymouse

I've already got a Stocks & Shares ISA which i add to monthly and is doing well. I've just received some inheritance and want to add it to my Stocks & Shares ISA so wondering if im better just chucking everything all in one go or am i better laddering in say £1k a month?

dunstonh

Statistically, lump sums results in greater returns over the long term in more periods than phasing does.  It's around 2/3rd of periods have lump sum better and 1/3rd has phased better.

You wont know in advance which option is best. So, playing the odds, you would go with lump sum.   If you are nervous about doing that then it would suggest you are investing above your risk profile and you should change the investments as sooner or later you are going to be 100% invested.

Albermarle

It's not based on science but maybe something inbetween is possible . Say 40% now ; 30% in a couple of months and 30% in 6 months .

Alexland

If you chose the S&S provider before you knew about this inheritance you may wish to consider if they are still suitable for the larger account valuation. There may be other providers who could transfer across the account and offer you better value for your new requirements.