Stocks and shares ISA

joshparker1911

I currently have a trading 212 stocks and shares ISA I'm planing to start investing monthly anf hopefully have a nice pot for retirement. Is there a better/safer option or is trading 212 as good a choice as any?

Dazed_and_C0nfused

joshparker1911 said:

I currently have a trading 212 stocks and shares ISA I'm planing to start investing monthly anf hopefully have a nice pot for retirement. Is there a better/safer option or is trading 212 as good a choice as any?

Why ISA over pension?

Voyager2002

joshparker1911 said:

I currently have a trading 212 stocks and shares ISA I'm planing to start investing monthly anf hopefully have a nice pot for retirement. Is there a better/safer option or is trading 212 as good a choice as any?

I use them and they seem fine. As already posted, a pension plan (such as a SIPP) is likely to be a more effective way to achieve your goal because of the way the tax relief works.

In an ideal world you would have three pots:
a SIPP or other pension fund for money that you will not need until you are at least 55 (maybe that could also be your means of repaying your mortgage);
an S & S ISA for money that you will need before then, but not within the next five years;
a savings pot (perhaps a cash ISA?) with low-risk holdings for money that you might need at any time.

joshparker1911

Sorry should have clarified i have a work based pension this is something separate to aid early retirement and subsidise my private and then state pensions 

dunstonh

Sorry should have clarified i have a work based pension this is something separate to aid early retirement and subsidise my private and then state pensions 

That doesnt stop you using the pension wrapper instead of the ISA wrapper.     The pension wrapper beats the ISA wrapper in that scenario.  If you are under 40, then the LISA wrapper may be better still.

Jordan72

I have both Shares ISAs (with IG Index, iWEB and Trading 212), I also have a (non-ISA) trading account with Trading 212 (mainly for the 4.9% daily interest rather than trading, though I might do that too). Although I am retired I also have a comparatively small SIPP with Interactive Investor to which I still contribute in order to benefit from tax relief (until I'm 75). 

Although I have both, I prefer Shares ISAs to SIPPs because of the totally tax free environment of the former. I am aware I'm sacrificing *some* tax relief by not putting more into my SIPP, but I'm prepared to put up with that. I don't want to risk the possibility of 40% tax on SIPP drawdown, when it would be zero in respect ISAs. Also with a SIPP, there are ongoing managerial charges that do not apply with my Shares ISAs.

joshparker1911

It's the tax free element of the stocks and shares isa that were drawing me to it. If there's a better alternative and I can still chose my own investment I'm open to another option 

jimjames

joshparker1911 said:

It's the tax free element of the stocks and shares isa that were drawing me to it. If there's a better alternative and I can still chose my own investment I'm open to another option 

You can do exactly the same in a SIPP and get at least 20% tax relief too

joshparker1911

Wasn't aware of that, but looking at it this SIPP doesn't allow for early retirement in the same way the ISA does there's also taxation on 75% of the money by the looks of things once available unlike the ISA

Albermarle

joshparker1911 said:

Wasn't aware of that, but looking at it this SIPP doesn't allow for early retirement in the same way the ISA does there's also taxation on 75% of the money by the looks of things once available unlike the ISA

Typically most people will get 20% tax relief on contributions and pay 15% tax on withdrawal. It works out as a 6.25% tax advantage. However that is a minimum , and if you currently pay any 40% tax or are able to withdraw some of the pension tax free ( under your personal allowance) then the tax benefit is a LOT more.
However the downside is that the money is not accessible until your mid/late Fifties, but very few people retire before then anyway.

To answer your original question. T212 is an investment platform offering an ISA. There are numerous others doing the same, but fee structures can vary.
However the most important point is what investments you choose to buy and hold in the ISA, whichever platform you use.

dunstonh

joshparker1911 said:

Wasn't aware of that, but looking at it this SIPP doesn't allow for early retirement in the same way the ISA does there's also taxation on 75% of the money by the looks of things once available unlike the ISA

If you are a basic rate taxpayer whilst working and a basic rate taxpayer in retirement, then the pension wrapper beats the ISA wrapper by 6.25%.     You pay less tax with the pension than you do the ISA even though the ISA is tax free.