Moving S&S ISA to cash ISA

Flugelhorn

3 years ago took out a S&S ISA, only invested the one year though as thought I would see how it did. Well hopeless really the 20K is now 17K. Have opened a cash ISA and pondering on moving the 17K there on the basis that at least it can't get any worse.

Just wondering is it better to stick it out and leave stuff in S&S? 

Mr_blibby

Impossible to offer an opinion without knowing what you have invested in and your appetite for risk etc.....at the moment putting 17k in a 3 year cash ISA at 5.5% (Virgin) compounding the interest would get you back pretty close to your £20k after 3 years with certainty and no additional fees..... but interest rates may go up a bit more and your S&S ISA may recovery and do better over that period....

Doctor_Who

Flugelhorn said:

3 years ago took out a S&S ISA, only invested the one year though as thought I would see how it did. Well hopeless really the 20K is now 17K. Have opened a cash ISA and pondering on moving the 17K there on the basis that at least it can't get any worse.

Just wondering is it better to stick it out and leave stuff in S&S? 

The past few years haven't been great for stock market investments, especially the past ~18 months, it really depended on what funds you were invested in. When do you need the money? Stock market investments should be held for at least 5-10 years, anything shorter and you risk losing money. If you sell out now you will crystallise a paper loss in to an actual loss. If you don't need the money it may be better to leave it in the S&SISA, although there are no guarantees it will recover soon.

Flugelhorn

don't really need the money - maybe better to leave it there a it longer  - on the other hand never seem to have picked the right moment for investing in S&S! 

boingy

You were just unlucky to invest at that time. In the long term it is likely to recover and do better than the same amount in a savings account but there may well be a period of "not much happening" before that. 

So it depends whether you are thoroughly demoralised and want something more certain. Stick or twist?

Doctor_Who

Flugelhorn said:

don't really need the money - maybe better to leave it there a it longer 

It doesn't have to be all or nothing, you could move a portion to a cash ISA? 

Flugelhorn

boingy said:

You were just unlucky to invest at that time. In the long term it is likely to recover and do better than the same amount in a savings account but there may well be a period of "not much happening" before that. 

So it depends whether you are thoroughly demoralised and want something more certain. Stick or twist?

definitely demoralised! Should have learned over the years - had endowment mortgages and similar for savings pots etc - all off which were memorably hopeless - only thing that ever worked well was the AVCs and that is probably because they have been there for ever 

wiseonesomeofthetime

I do not know much about the stock market, however, having invested some money in it in S&S ISAs for 2021-22, 2022-23, all I can say is that my riskier VLS 100 is far outperforming my safer VLS 80, mainly because the bulk of my initial £20k went into the 100% shares fund.

Currently, my combined VLS 100 shares are showing a paper profit of 4.15%, and my VLS 80 shares a paper loss of 2.15%

Could it be that the bulk of your S&S ISA leans towards the bonds market?

As a previous poster stated, in reality, you have not lost £3k of your investment yet, as the loss is numbers on a screen, however, should you move it, you will have crystalised that loss. That is something I did in, I think, the mid-2010s, when I saw my S&S ISA savings losing money and so withdrew it all for a conventional savings account. I wonder how much that ISA would have been worth today?

I am happy to leave my investments for the long haul. What you need to consider is what you want your funds for, when, and what risk you are prepared to take with it.

Good luck.

InvesterJones

Flugelhorn said:

3 years ago took out a S&S ISA, only invested the one year though as thought I would see how it did. Well hopeless really the 20K is now 17K. Have opened a cash ISA and pondering on moving the 17K there on the basis that at least it can't get any worse.

Just wondering is it better to stick it out and leave stuff in S&S? 

3 years is far too short a time to judge the return on equities, and bonds have recently suffered as a result of interest rate increases. Question is, if you knew that at the time, what's changed in your circumstances to make your goals different now? If nothing, then you'd presumably make the same choice again, so why change?

Flugelhorn

Usual thing, most people I suspect opening S&S ISAs etc don't really understand all this, yes it is all written down for the reading of but I haven't got a clue how a bond or equity works! Really just want everything more simple

I have an old AVC with the company - had it is since mid 90s. Hardly put anything in but now it is worth a great  many times any amount I ever put in it, so in mad moment chatting to the FA I opened the S&S ISA   

Doctor_Who

Flugelhorn said:

Usual thing, most people I suspect opening S&S ISAs etc don't really understand all this, yes it is all written down for the reading of but I haven't got a clue how a bond or equity works! Really just want everything more simple

I have an old AVC with the company - had it is since mid 90s. Hardly put anything in but now it is worth a great  many times any amount I ever put in it, so in mad moment chatting to the FA I opened the S&S ISA   

~30 years in the stock market tends to do that! However, over 3 years the ride can be quite bumpy.