Nutmeg ISA transfer

eskbanker

missymouse said:

All I know is that I have held it since 2016 and I don’t think it is doing great

my Vanguard one seems better

Are you just measuring performance by changes in unit values, and if so, is this a true like-for-like comparison based on equivalent risk ratings, asset allocation, etc?

artyboy

missymouse said:

All I know is that I have held it since 2016 and I don’t think it is doing great

my Vanguard one seems better

Are you comparing apples with apples though? For example, a nutmeg portfolio with a less than 10/10 risk profile, is unlikely to have performed as well as a (higher risk) 100% equity fund, which may be what the Vanguard ones are.

If you are switching for better performance, but without a clear understanding of whether you're also increasing your investment risk, then you could end up with a shock the next time there is a significant market correction... it comes down to how much immediate loss you can cope with in the pursuit of higher long term gain.

missymouse

I believe the charges are less in Vanguard

my Nutmeg is 3/5 risk

dunstonh

missymouse said:

I believe the charges are less in Vanguard

my Nutmeg is 3/5 risk

And what Vanguard funds will it be going into?

missymouse

Blended 60/40 fund

missymouse

The stocks are worth around £900 so is it best to cash in or transfer across so there is some diversification of portfolio 

it would mean a £40 fee.

perhaps I am over thinking and should just liquidate it all

missymouse

Long term investment 

eskbanker

missymouse said:

The stocks are worth around £900 so is it best to cash in or transfer across so there is some diversification of portfolio 

it would mean a £40 fee.

perhaps I am over thinking and should just liquidate it all

If it's only £900 that you're talking about (i.e. well below the annual £20K ISA contribution allowance) then I think I'd be tempted to simply sell up at Nutmeg, withdraw the cash to your current account and then open a new ISA at Vanguard, rather than getting bogged down in time-consuming transfers....

missymouse

The whole thing is around 12K and from another tax year so doesn’t affect my allowance of this year.

is that correct?

eskbanker

missymouse said:

The whole thing is around 12K and from another tax year so doesn’t affect my allowance of this year.

is that correct?

If you use the ISA transfer process then the value doesn't count towards your annual £20K contribution allowance, but if the money moves outside the ISA shelter en route then it does count towards that, so your overall plans for your 2024/25 ISA allowance may be relevant after all?