Investment ideas

Zoe02

Hi All,

I currently have my ISA in funds in Vanguard global funds, i have used this year's allowance.

I have some cash in instant access accounts 156k paying around 5%.

I am not near retirement but pay in £1500 into my pension currently.

Is it worth putting more money into the vanguard funds outside ISA.

gravel_2

It's a choice. 156k for most people is a big lump to hold in cash if you don't plan to spend it soon. 5% is, in recent terms, a good rate but it is expected that rates will fall sooner or later. It is possible to outperform 5% p/a through investments, equally it is possible to materially underperform. Also with investing outside of the ISA or pension wrapper you will need to concern yourself with capital gains and dividend taxes.

dunstonh

Is it worth putting more money into the vanguard funds outside ISA.

If it meets your objectives then yes.  Also, don't forget the pension tax wrapper (which is better than ISA and unwrapped if the maturity process meets your objectives)

Albermarle

Zoe02 said:

Hi All,

I currently have my ISA in funds in Vanguard global funds, i have used this year's allowance.

I have some cash in instant access accounts 156k paying around 5%.

I am not near retirement but pay in £1500 into my pension currently.

Is it worth putting more money into the vanguard funds outside ISA.

As a very rough guideline ( taking into account we know very little about you, not even your age)

Cash is good for potential short term expenditure ( within next 5 years) and as a buffer to investment volatility. 
S&S ISA is good for money not needed for a few years ( preferably minimum 7 or 8 years or longer)
Pension is good for money for retirement.

Then when you have decided the best vehicle ( or a mix of them ) then you can decide the best investments to hold in the latter two options.

ChilliBob

If you do put money into a GiA remember to consider you will need to report on it, at some point, to HMRC. So, keep track of investments, dividends etc. Oh and go for an Inc fund over an acc for easier record keeping! 

Zoe02

Albermarle said:

Zoe02 said:

Hi All,

I currently have my ISA in funds in Vanguard global funds, i have used this year's allowance.

I have some cash in instant access accounts 156k paying around 5%.

I am not near retirement but pay in £1500 into my pension currently.

Is it worth putting more money into the vanguard funds outside ISA.

As a very rough guideline ( taking into account we know very little about you, not even your age)

Cash is good for potential short term expenditure ( within next 5 years) and as a buffer to investment volatility. 
S&S ISA is good for money not needed for a few years ( preferably minimum 7 or 8 years or longer)
Pension is good for money for retirement.

Then when you have decided the best vehicle ( or a mix of them ) then you can decide the best investments to hold in the latter two options.

I am in my Mid 30's 

Currently no plan but in the future might have expenses such as renovation works etc. 

Bostonerimus1

For the long term I would make extra pension payments before opening a GIA account...and obviously use any ISA allowance you have first too. Having cash can be comforting (especially if it's earning 5%), and that should be part of everyone's financial plan, just decide how much you need ie 6 months, 1 year, 2 years etc. and if you have any near term things you want to buy or need to do like house repairs set that money aside in cash.

ShinyStarlight1

ChilliBob said:

If you do put money into a GiA remember to consider you will need to report on it, at some point, to HMRC. So, keep track of investments, dividends etc. Oh and go for an Inc fund over an acc for easier record keeping! 

Do you have to report any gains in a GIA regardless of how much profit they’ve made? I thought there was a threshold.

ColdIron

ShinyStarlight1 said:

ChilliBob said:

If you do put money into a GiA remember to consider you will need to report on it, at some point, to HMRC. So, keep track of investments, dividends etc. Oh and go for an Inc fund over an acc for easier record keeping! 

Do you have to report any gains in a GIA regardless of how much profit they’ve made? I thought there was a threshold.

That'll be the Annual Exempt Amount, currently £3,000 though there is speculation regarding this 'allowance' and the rates

Read this and the pages either side

https://www.gov.uk/capital-gains-tax/allowances

But you also have to consider dividends

https://www.gov.uk/tax-on-dividends

You will need to keep complete and accurate records in either case