S&S ISA £50k

Zarjaz

I have £50k to invest following retirement. I won't need the money for at least 10 years. 

I am looking for a low cost S&S ISA - a low/medium risk multi asset fund with no more than 60% in equities. I use Vanguard for my SIPP, and like the platform - but they have many, many funds and I have little idea which might suit. Or, indeed, other options. I have a S&S ISA with Nutmeg already, though their charges seem rather high.

Thoughts?

solidpro

The obvious suggestion is £20k this year, £20k next year and £10k in 2024 into a VLS60 on the Vanguard platform you already access?

Zarjaz

Yes - I think £20k before April, then £20k after April is right. 

Lump sum, or split it into 8 monthly sums before April?

george4064

Zarjaz said:

Yes - I think £20k before April, then £20k after April is right. 

Lump sum, or split it into 8 monthly sums before April?

Statistically speaking, lump sum will achieve a higher return. But if you prefer you can drip feed it in.

TheMilkmansDad

george4064 said:

Zarjaz said:

Yes - I think £20k before April, then £20k after April is right. 

Lump sum, or split it into 8 monthly sums before April?

Statistically speaking, lump sum will achieve a higher return. But if you prefer you can drip feed it in.

unfortunately you can put £50k in a ISA in a year, hence he split.

dunstonh

You can put the excess over the ISA allowance into a GIA and then bed & ISA it each year until its fully in the ISA.  Or you can consider using the pension wrapper as well (which beats both ISA and GIA as long as timescale is suitable)

older_and_no_wiser

You are sort of drip feeding by putting £20K in each year over 3 years....but it's a very slow drip. ;-)

Personally, I would put the whole amount in (up to the ISA limit) each year. As mentioned, statistically you should get a higher return over the 10 year period. 

If you deposit the full 20K now for this year's ISA allowance, maybe put the remaining amount into a savings account with a good rate of interest. There are a few that will pay around 1.85% for instant access or 2.95% (e.g. Ford Money) if you can leave it for a 1 year term....before investing the next 20K.

Albermarle

Lump sum, or split it into 8 monthly sums before April?

This question has been asked many many times. The real answer is that you will only ever know what was best with hindsight.

eskbanker

Zarjaz said:

I am looking for a low cost S&S ISA - a low/medium risk multi asset fund with no more than 60% in equities. I use Vanguard for my SIPP, and like the platform - but they have many, many funds and I have little idea which might suit.

What funds do you have in your SIPP and how did you select them?  I don't use Vanguard's platform but would expect it to support fund selection using criteria like those you specify?

Zarjaz

dunstonh said:

You can put the excess over the ISA allowance into a GIA and then bed & ISA it each year until its fully in the ISA.  Or you can consider using the pension wrapper as well (which beats both ISA and GIA as long as timescale is suitable)

I'm already using a Vanguard SIPP for the money I am making since retirement from my main job. 

Zarjaz

eskbanker said:

Zarjaz said:

I am looking for a low cost S&S ISA - a low/medium risk multi asset fund with no more than 60% in equities. I use Vanguard for my SIPP, and like the platform - but they have many, many funds and I have little idea which might suit.

What funds do you have in your SIPP and how did you select them?  I don't use Vanguard's platform but would expect it to support fund selection using criteria like those you specify?

It's a Target Retirement 2030 Fund.

I've now found the VLS funds, which look like one will suit.