Full ISA Guide Discussion Area

Archi_Bald

Assuming you are talking about this ISA: http://www.policemutual.co.uk/media/108403/gisa_combined_kfd__cropped__01-2014.pdf

There is no need to open a new one each year, you just continue to making your monthly deposits.

As to the performance of this ISA: It looks a really terrible product to me because the initial and ongoing charges are horrific. You would most likely do a lot better if you just put your money into a bog standard cash ISA, or even a normal regular savings account.

ringwood

I'm a newbee to this forum
But I am generally savvy in regard to all ISA bits and bobs
I have 3 questions:-
When are the various banks/building socs going to start advertising their rates for 2014/15?
Should I wait till 7th/8th/9th April 2014 to see if new and better rates come on line?
Should I also take up my £5940 OR wait until the new £15k Nisa is
available in July14?

Malinois

Archi_Bald wrote: »

Assuming you are talking about this ISA:
There is no need to open a new one each year, you just continue to making your monthly deposits.

As to the performance of this ISA: It looks a really terrible product to me because the initial and ongoing charges are horrific. You would most likely do a lot better if you just put your money into a bog standard cash ISA, or even a normal regular savings account.

Hi,
the performance looks pretty good? Also the payments go straight out of my pension so I really won't miss it. I am planing on doing one each year all leading up to my 65th birthday.

I am currently 46 and I have just got a job with the NHS. I have joined their pension scheme and really want to begin prepping for my retirement. I am currently in receipt of my police pension as I was injured on duty and I get that for life.



Mal

Archi_Bald

Malinois wrote: »

the performance looks pretty good?

I am not sure how you conclude that because I wasn't able to find anything about the actual performance. Where did you find these actual performance figures, can you post a link please?

I am just going by their charges, listed in their "Important Information" pamphlet.

3.5% initial charge to start up an investment is just about exactly 3.5% too much since you can get thousands of funds through about a dozen different ISA providers with no initial charge.

An annual charge of 0.5% is roughly double of what you can get with the best ISA providers. Add to that the 0.75% that they withhold to "cover the cost of providing the guarantee", and you are paying 4 times as much in annual charges than you need to. Plus, they say "our charges may turn out higher than expected" - and they can basically charge whatever they like.

Granted, you have a guarantee that you get the sum you paid in back, provided you cash out on specific dates. This is something you don't get if you go the DIY route with a tracker fund.

But the likelihood that your investment will grow by a fraction of what it could grow by is huge.

Malinois

Hi,
I am not allowed to post links as I am a newbie. If your Google PMAS ISA then go to the page there is a tab listing performance history for the past 5 years.


Mal

ColdIron

http://www.policemutual.co.uk/news/life-fund-performance-q4-2013

Archi_Bald

Thanks for that link, ColdIron. I see several issues:

1. the performance figures shown are "gross of tax and charges". So they are quite meaningless because they don't show how the ISA performed. Charges could be anything, but all we know is that they are at least 1.25% per annum.
   .
2. leaving this aside, these numbers are way below what an FTSE 250, FTSE 100 or FTSE All Share tracker would have delivered over the last 5 years.
   
   .
3. the loss in 2011 is pretty much a mystery. There was no reason for a well managed portfolio to make a loss in 2011.

I did some quick calculations, using the performance figures of the PM fund, applied to FTSE indexes. I am sure the picture would be similar for other respectable indexes.

FTSE All Share Index
would be £2,575. It was actually £3,533 on 31/12/2013, 37% more.

FTSE 100
would be £5,151. It was actually £6,730 on 31/12/2013, 30% more

FTSE 250
would be £8,919. It was actually £16,020 on 31/12/2013, 79% more

So I will stick with my view that the PM ISA is a terrible product. If you have already deposited, you are pretty much committed to it for this year though because you can't deposit into more than one S&S ISA per financial year, and a transfer would just cost you money.

harryjackson

Hello I see you have posted a lot on these forums. I'm asking for a small bit of help regarding my ISA. I currently have money in a Santander ISA. The money in the ISA is not needed in the immediate future but buying my first property is a possibility. I would really appreciate a bit of help I'm a 20 year old male who likes to keep on top of his finances and be money 'savvy'
Thank you

Harry Jackson

Archi_Bald

OK, first bit of help: do not post your email address on a public internet forum unless you want to be spammed to death. Don't use your real name as your nickname, either. Don't post the same stuff twice on the same forum.

If you want any help, you need to ask questions.

I am happy to comment on posts but I am not going to PM or email anyone, sorry. It is to your advantage if you ask your questions in public since lots of people will have an opportunity to post their opinions and knowledge.

lynnejk

Just looking for a bit of advice.


As I am now a non-taxpayer am I right to assume there isn't really any point in putting my money into an ISA at the moment as the rates seem so low.


I am in the situation where I cannot tie up any money long-term as our work isn't secure so need access without penalty.


The best current accounts seem to be the 12 month ones with Nationwide and the new one starting with TSB to earn 5%. The best after that is Santander if over £3000.


Have I missed something or do I seem to be on the right lines?


Thanks a million
Lx