Invesment Question

ColdIron

Aidanmc said:

@MoneyMan01Have you considered ETF's at all?

Yes

https://forums.moneysavingexpert.com/discussion/6543137/etf-in-a-gia/p1

Aidanmc

ColdIron said:

Aidanmc said:

@MoneyMan01Have you considered ETF's at all?

Yes

https://forums.moneysavingexpert.com/discussion/6543137/etf-in-a-gia/p1

Oh right....i never looked at this thread before

masonic

MoneyMan01 said:

But I've already used my allowance this year. It's my understanding that I wouldn't be able to transfer anything in until next year, right?

Also, I was just about to proceed with the HSBC fund on HSBC's platform, and noticed in the fees there is a Annual management fee (maximum) of 0.10% - Is this on top of the 0.25% platform fee and the 0.13% OCF?

Has anyone used them before and can confirm?

AMC is probably part of the OCF, since there is already a separate platform fee.

Regarding the Bed & ISA, you'd probably be best transferring the cash into InvestEngine and adding to your existing investment. If you are investing £1k per month, you could just invest directly into the InvestEngine ISA from April.

FIREmenow

MoneyMan01 said:

Thanks

So for the HSBC fund, on the basis of say £1,000 a month, option 4 with Dodl/AJ Bell would be the cheapest, coming in at a cost of £45.60 per year.

Option 1 is second for HSBC, costing £46.80 p/a.

Option 3 would come in at £75.60 p/a.

The Vanguard option would cost £45.60 p/a.

I'd probably look at moving most of it each April, into an ISA. 

Anything remaining outside the allowance, I'd move to iWeb in April (to a GIA).

If I'm moving from a GIA on say HSBC's platform, to iWeb, can you do that as a transfer and does that still cost the £5 purchase fee? Or, would I have to sell, and repurchase via iWeb, thus including the £5 purchase fee?

Also, I understand platforms charge a yearly %, in this case, HSBC charge 0.25%, I can see it says that charge happens every quarter, but my plan would be to move it from their platform, to iWeb, after 12 months. Are the platform charges every quarter from when you open the account, or are there set dates? I ask because I am trying to grasp when the best time to move the money across would be?

Hi, just a correction to the Dodl fee - the platform fee is 0.15% or £12, whichever is higher, meaning any monthly fee less than £1 is rounded up to £1. You don't pay £12 plus 0.15%.  £12k fee for a year is £18 (over the minimum). So in your calculations above Dodl would be £33.60.

Annual calculations are good for comparison, but the percentage fees will actually be lower than this if you are starting from zero. If you are drip feeding monthly then only the last month will have the full £12k in and the highest fees. Interest is usually calculated daily at one 365th of the interest rate, then paid monthly/quarterly etc. 

If you want to know fees exactly you can use a regular savings calculator and the interest gained, is just fees lost in this case. (Dodl will just be the flat £12 in this case as the total for the year will be rounded up from £9.75

Mentioning as you might find the fees are so low when drip-feeding that you could go longer than a year between transfers and still be saving compared to the iWeb transaction fees.

MX5huggy

If you used VEVE (plot if on a graph with HSBC All World and you’ll see little difference) its fee is 0.12% plus Vanguard platform fee of 0.15 so 0.27 in total. 

LHW99

MoneyMan01 said:

But I've already used my allowance this year. It's my understanding that I wouldn't be able to transfer anything in until next year, right?

It depends what you mean. To clarify:

You can transfer in from another existing ISA (ie previous financial years' money), even if you have added the maximum to the ISA in this financial year.

You can't transfer from another taxable account (eg maturing fixed rate bond) if you have already added the maximum £20k to the ISA this financial year.

Of course if you have / have planned to only put in, for example, £15k to some ISA this financial year, then you still have £5000 contribution that could be transferred in from a taxable account elsewhere.

MoneyMan01

Yes, I think the person I was responding to misunderstood. I've actually already maxed my ISA allowance this year, hence why I've gone down this route to begin with. Otherwise, it would all be in the ISA.

MoneyMan01

FIREmenow said:

MoneyMan01 said:

Thanks

So for the HSBC fund, on the basis of say £1,000 a month, option 4 with Dodl/AJ Bell would be the cheapest, coming in at a cost of £45.60 per year.

Option 1 is second for HSBC, costing £46.80 p/a.

Option 3 would come in at £75.60 p/a.

The Vanguard option would cost £45.60 p/a.

I'd probably look at moving most of it each April, into an ISA. 

Anything remaining outside the allowance, I'd move to iWeb in April (to a GIA).

If I'm moving from a GIA on say HSBC's platform, to iWeb, can you do that as a transfer and does that still cost the £5 purchase fee? Or, would I have to sell, and repurchase via iWeb, thus including the £5 purchase fee?

Also, I understand platforms charge a yearly %, in this case, HSBC charge 0.25%, I can see it says that charge happens every quarter, but my plan would be to move it from their platform, to iWeb, after 12 months. Are the platform charges every quarter from when you open the account, or are there set dates? I ask because I am trying to grasp when the best time to move the money across would be?

Hi, just a correction to the Dodl fee - the platform fee is 0.15% or £12, whichever is higher, meaning any monthly fee less than £1 is rounded up to £1. You don't pay £12 plus 0.15%.  £12k fee for a year is £18 (over the minimum). So in your calculations above Dodl would be £33.60.

Annual calculations are good for comparison, but the percentage fees will actually be lower than this if you are starting from zero. If you are drip feeding monthly then only the last month will have the full £12k in and the highest fees. Interest is usually calculated daily at one 365th of the interest rate, then paid monthly/quarterly etc. 

If you want to know fees exactly you can use a regular savings calculator and the interest gained, is just fees lost in this case. (Dodl will just be the flat £12 in this case as the total for the year will be rounded up from £9.75

Mentioning as you might find the fees are so low when drip-feeding that you could go longer than a year between transfers and still be saving compared to the iWeb transaction fees.

Thanks for this.

I actually proceeded with the fund via HSBC's GIC platform.

It hasn't actually gone through yet by the looks of things, and is on "pending". I may look into whether I can cancel that and get it through Dodl in this case.

Is that going to cause issues, and does anyone know if this is possible / done something similar in the past?

Maynardkj

Having opened a Stokes & Shares ISA last April for the first time what happens at the end of the year? Am I correct in assuming unlike Cash ISA's there is not a maturity date and its interest rate devalued, that you move the ISA to another New ISA with best interest you can find. You also get 20k worth of ISA to open each…

in Stocks & shares ISA limits

george4064

LGGG ETF is even cheaper at 0.10% TER