Savings or Pension?

Beddie

winkowinko said:

Hello, OP here again. Don't worry, I have completely disregarded the post made by @Greb46 a few days ago.

Back to my original post/goal, I think I have found a bit of a strategy for what I would like to do. As someone who is very familiar with cash ISA's, but a total newbie to S&S ISAS and SIPP's I thought I would run it past you guys here to see if my plan makes sense.

I have a fixed cash ISA that is due to mature in August this year (total £78k). I intend to transfer this to the S&S ISA Vanguard FTSE all cap index fund. I assume this will be relatively straightforward but have never transferred from cash ISA to S&S ISA. 

Over the next few years, I plan to gradually drip-feed some of those funds from the S&S ISA into a SIPP (still investing in the same FTSE all cap fund, but open to suggestions). I understand that I can't transfer from ISA to SIPP directly, and would need to withdraw/ then deposit.

I am still undecided about how much of the S&S ISA I will move to the SIPP before retirement. Logic tells me to eventually move all/most of it, because of the tax relief bonus it will receive. Would that be sensible, or would I be better off holding some back in the ISA?

In addition to this maturing ISA, I still have an emergency fund of around £20k which I was planning to put into a cash ISA in April. I guess it makes sense to spread my money around a bit and retain some of it as cash?

Just to recap my personal situation - aged 45. My partner and I have a mortgage, although only she contributes to it as I put down 50% deposit when we bought the house. So essentially my 50% is paid for, although it's probably wise for me to hold some cash back in case she has trouble paying the mortgage at some point - still 23 years to run on it.
I currently work part-time and earn around £27k. I have a workplace pension (NEST) where I contribute 8%, and my employer contributes the minimum 3%. They will (currently) not budge on this figure.

Is my plan making general sense, or are there any glaring errors in it?

All sounds good, but be aware you have chosen a higher risk fund as it's all equities. If you don't need the money for 10 or 20 years that should be fine, but you could also consider something like HSBC global strategy or Vanguard LifeStrategy funds. They have funds with differing levels of risk. Worth having a read about the various funds, as you're new to the investing game. At least that way you've done your research and should be happy with your choices.

Albermarle

I have a fixed cash ISA that is due to mature in August this year (total £78k). I intend to transfer this to the S&S ISA Vanguard FTSE all cap index fund. I assume this will be relatively straightforward but have never transferred from cash ISA to S&S IS

It is straightforward to transfer cash from a Cash to a S&S ISA. You open the S&S ISA and ask them to transfer in the cash ISA.
When the money arrives you will then have to choose/buy the investment(s) so make sure beforehand that the S&S ISA provider you chooses, has the investments you want available.

As the previous poster says, a 100% equity fund is quite risky, in that in the short and medium term it could be rather volatile. Not everybody has the stomach for riding out 30% falls in their money, even if most likely it will all come good in the long term.

winkowinko

Beddie said:

winkowinko said:

Hello, OP here again. Don't worry, I have completely disregarded the post made by @Greb46 a few days ago.

Back to my original post/goal, I think I have found a bit of a strategy for what I would like to do. As someone who is very familiar with cash ISA's, but a total newbie to S&S ISAS and SIPP's I thought I would run it past you guys here to see if my plan makes sense.

I have a fixed cash ISA that is due to mature in August this year (total £78k). I intend to transfer this to the S&S ISA Vanguard FTSE all cap index fund. I assume this will be relatively straightforward but have never transferred from cash ISA to S&S ISA. 

Over the next few years, I plan to gradually drip-feed some of those funds from the S&S ISA into a SIPP (still investing in the same FTSE all cap fund, but open to suggestions). I understand that I can't transfer from ISA to SIPP directly, and would need to withdraw/ then deposit.

I am still undecided about how much of the S&S ISA I will move to the SIPP before retirement. Logic tells me to eventually move all/most of it, because of the tax relief bonus it will receive. Would that be sensible, or would I be better off holding some back in the ISA?

In addition to this maturing ISA, I still have an emergency fund of around £20k which I was planning to put into a cash ISA in April. I guess it makes sense to spread my money around a bit and retain some of it as cash?

Just to recap my personal situation - aged 45. My partner and I have a mortgage, although only she contributes to it as I put down 50% deposit when we bought the house. So essentially my 50% is paid for, although it's probably wise for me to hold some cash back in case she has trouble paying the mortgage at some point - still 23 years to run on it.
I currently work part-time and earn around £27k. I have a workplace pension (NEST) where I contribute 8%, and my employer contributes the minimum 3%. They will (currently) not budge on this figure.

Is my plan making general sense, or are there any glaring errors in it?

All sounds good, but be aware you have chosen a higher risk fund as it's all equities. If you don't need the money for 10 or 20 years that should be fine, but you could also consider something like HSBC global strategy or Vanguard LifeStrategy funds. They have funds with differing levels of risk. Worth having a read about the various funds, as you're new to the investing game. At least that way you've done your research and should be happy with your choices.

I have looked at the Vanguard LifeStratergy funds, and whilst they have the exposure to bonds that I ideally would like, I have read that the shares are heavily weighted to UK stocks. By 'heavily' I mean disproportionately, like 25% in FTSE companies, whereas the UK only makes up around 4% of the global market.
I thought diversity (equal spread) was considered to be a safer/wiser option?

Beddie

winkowinko said:

Beddie said:

winkowinko said:

Hello, OP here again. Don't worry, I have completely disregarded the post made by @Greb46 a few days ago.

Back to my original post/goal, I think I have found a bit of a strategy for what I would like to do. As someone who is very familiar with cash ISA's, but a total newbie to S&S ISAS and SIPP's I thought I would run it past you guys here to see if my plan makes sense.

I have a fixed cash ISA that is due to mature in August this year (total £78k). I intend to transfer this to the S&S ISA Vanguard FTSE all cap index fund. I assume this will be relatively straightforward but have never transferred from cash ISA to S&S ISA. 

Over the next few years, I plan to gradually drip-feed some of those funds from the S&S ISA into a SIPP (still investing in the same FTSE all cap fund, but open to suggestions). I understand that I can't transfer from ISA to SIPP directly, and would need to withdraw/ then deposit.

I am still undecided about how much of the S&S ISA I will move to the SIPP before retirement. Logic tells me to eventually move all/most of it, because of the tax relief bonus it will receive. Would that be sensible, or would I be better off holding some back in the ISA?

In addition to this maturing ISA, I still have an emergency fund of around £20k which I was planning to put into a cash ISA in April. I guess it makes sense to spread my money around a bit and retain some of it as cash?

Just to recap my personal situation - aged 45. My partner and I have a mortgage, although only she contributes to it as I put down 50% deposit when we bought the house. So essentially my 50% is paid for, although it's probably wise for me to hold some cash back in case she has trouble paying the mortgage at some point - still 23 years to run on it.
I currently work part-time and earn around £27k. I have a workplace pension (NEST) where I contribute 8%, and my employer contributes the minimum 3%. They will (currently) not budge on this figure.

Is my plan making general sense, or are there any glaring errors in it?

All sounds good, but be aware you have chosen a higher risk fund as it's all equities. If you don't need the money for 10 or 20 years that should be fine, but you could also consider something like HSBC global strategy or Vanguard LifeStrategy funds. They have funds with differing levels of risk. Worth having a read about the various funds, as you're new to the investing game. At least that way you've done your research and should be happy with your choices.

I have looked at the Vanguard LifeStratergy funds, and whilst they have the exposure to bonds that I ideally would like, I have read that the shares are heavily weighted to UK stocks. By 'heavily' I mean disproportionately, like 25% in FTSE companies, whereas the UK only makes up around 4% of the global market.
I thought diversity (equal spread) was considered to be a safer/wiser option?

You're right, so if you don't like that mix go for the HSBC ones, or other similar multi-assets funds - many other providers out there, these were just examples. Also, it doesn't have to be all one fund, so carry on with your research until you're happy with where to invest.