ETF in a GIA

MoneyMan01

I have so much reading to do. There seems to be about 15 things you need to be aware of if investing in an ETF via GIA.

What does everyone else do? What is the best way to invest? I appreciate there is leg work that is needed, which I am educating myself on. But, in the meantime, what investment options are there which comes with less hassle?

InvesterJones

MoneyMan01 said:

I have so much reading to do. There seems to be about 15 things you need to be aware of if investing in an ETF via GIA.

What does everyone else do? What is the best way to invest? I appreciate there is leg work that is needed, which I am educating myself on. But, in the meantime, what investment options are there which comes with less hassle?

 Use ISA and SIPP to avoid having to hold anything close to threshold producing amounts of stocks in GIA. Hold gilts there instead.

MoneyMan01

InvesterJones said:

MoneyMan01 said:

I have so much reading to do. There seems to be about 15 things you need to be aware of if investing in an ETF via GIA.

What does everyone else do? What is the best way to invest? I appreciate there is leg work that is needed, which I am educating myself on. But, in the meantime, what investment options are there which comes with less hassle?

 Use ISA and SIPP to avoid having to hold anything close to threshold producing amounts of stocks in GIA. Hold gilts there instead.

As per the above, I have maxed my ISA allowance. I may need a mortgage, so pension contributions at source is something I fear will have an impact on the amount that would be lended.

gilts is something I am looking at on another thread.

Are there any other investment items that are less hassle in the interim, whilst I learn, that I can put my money?

InvesterJones

MoneyMan01 said:

InvesterJones said:

MoneyMan01 said:

I have so much reading to do. There seems to be about 15 things you need to be aware of if investing in an ETF via GIA.

What does everyone else do? What is the best way to invest? I appreciate there is leg work that is needed, which I am educating myself on. But, in the meantime, what investment options are there which comes with less hassle?

 Use ISA and SIPP to avoid having to hold anything close to threshold producing amounts of stocks in GIA. Hold gilts there instead.

As per the above, I have maxed my ISA allowance. I may need a mortgage, so pension contributions at source is something I fear will have an impact on the amount that would be lended.

gilts is something I am looking at on another thread.

Are there any other investment items that are less hassle in the interim, whilst I learn, that I can put my money?

I suppose if you really want no hassle, and you're looking to buy a mortgage, then a lower interest NS&I product might be worth looking at. They're still above CPI inflation, and if you keep the returns low enough then everything can be done via tax code changes without you needing to do anything.

wmb194

MoneyMan01 said:

I have so much reading to do. There seems to be about 15 things you need to be aware of if investing in an ETF via GIA.

What does everyone else do? What is the best way to invest? I appreciate there is leg work that is needed, which I am educating myself on. But, in the meantime, what investment options are there which comes with less hassle?

Savings accounts. Stop worrying and go for it. Once you get into it's not that hard.

MoneyMan01

I shall dive in!

MoneyMan01

In theory, could you invest, and then say at tax year end you made £499 in dividends, and/or your capital grew by £2,999, you could sell the profit, be within your allowances, and then start again the following tax year. Thus removing any tax implications, removing all requirement of admin work?

eskbanker

MoneyMan01 said:

In theory, could you invest, and then say at tax year end you made £499 in dividends, and/or your capital grew by £2,999, you could sell the profit, be within your allowances, and then start again the following tax year. Thus removing any tax implications, removing all requirement of admin work?

You'd still need to keep all the relevant records anyway, so wouldn't eliminate all admin work, and would incur additional effort in making extra transactions....

MoneyMan01

I'd need to monitor, but I was thinking that it takes away having to worry about ERI, having to check what is UK based etc, if you aren't going beyond your allowances?

Would just mean a case of monitoring your growth / dividends, and then just carrying out the transactions?

InvesterJones

MoneyMan01 said:

In theory, could you invest, and then say at tax year end you made £499 in dividends, and/or your capital grew by £2,999, you could sell the profit, be within your allowances, and then start again the following tax year. Thus removing any tax implications, removing all requirement of admin work?

If you sold only the profit, then your capital gains would be a fraction of the allowance available, and there's no guarantee you'd make the same or less in a future year.