Getting started with investing: S&S ISA?

fistfulofsteel

I have a lot of cash savings (mostly cash ISAs) earning an average of 4.9% and am wondering about investing some of them for a better return, while still keeping a few years of expenses in cash. I've already put a decent amount this year into my SIPP but am reluctant to put all my eggs in that basket as I won't be able to access until 57 at the earliest. I'm 36 and self employed in an industry that's unlikely to exist in 20 years, so am looking for a way to put money aside to get me through my late 40s / early 50s. Is the S&S ISA the best option?

I already have a cash ISA account with Trading 212 so is it as simple as opening an S&S ISA with them and putting money into a big mainstream fund? My SIPP is split between Vanguard LS60 and LS80: are these also available for S&S ISA investing?

I've heard you should only invest money you don't need access to for a long time, so at what point do people usually start moving money back into cash if they think they're approaching a point where they'll need it?

InvesterJones

Well done - sounds like you've done good research already. Yes, it's possible to invest in the same funds - ISA vs SIPP is just the wrapper around it.

The point of having a cash buffer is you get to chose when you need the money whether to take it from your stocks and shares, or cash - if the investments are doing well then take it from stocks and shares (which is psychologically hard), if they're not, cash - but with the intention of selling stocks and shares to rebuild the cash buffer later. Or half and half. If you know in advance when you'll need the money then moving what you need out of stocks and shares in the lead up will stabilise prices - if you're concerned about price fluctuations then drip-withdrawing over a few months might be calmer.

ColdIron

fistfulofsteel said:

I already have a cash ISA account with Trading 212 so is it as simple as opening an S&S ISA with them and putting money into a big mainstream fund? My SIPP is split between Vanguard LS60 and LS80: are these also available for S&S ISA investing?

Open ended funds (OEICs) such as VLS60 and VLS80 can be held in an ISA but not with Trading 212 who only offer shares, investment trusts and ETFs

wmb194

ColdIron said:

fistfulofsteel said:

I already have a cash ISA account with Trading 212 so is it as simple as opening an S&S ISA with them and putting money into a big mainstream fund? My SIPP is split between Vanguard LS60 and LS80: are these also available for S&S ISA investing?

Open ended funds (OEICs) such as VLS60 and VLS80 can be held in an ISA but not with Trading 212 who only offer shares, investment trusts and ETFs

T212 offers ETF versions of these but they are denominated in euros (listed in Italy and Germany) and they have a slightly different asset mix to the UK OEICs, IIRC more euro bonds and less exposure to UK equities.

Albermarle

I have a lot of cash savings (mostly cash ISAs) earning an average of 4.9% and am wondering about investing some of them for a better return,

In the long run, investing should normally give better returns than cash. However nothing is guaranteed in the short to medium term ( which means 5 to > 10 years, opinions vary).
Normally trying to time the market is very difficult, but with cash interest rates at nearly 5% ( higher than inflation) and stock markets a bit 'toppy' especially in the US, I would not be diving in head first at the moment, but that is just a personal opinion and no harm in getting started at least.