S&S Isa - I dont know what to do.

markinessex

Hi everyone - this is my first post, so please excuse my ignorance in all things financial :embarasse

I have a S&S ISA with the Halifax - I have had it for a fews years and it's currently got about £29K in it. Having seen money dissappear from it due to the drop in share prices.

Should I:

A: stick with it and hope for the shares to go back up
Or
B: take my money out and stuff it in my high interest account, and then take out a new Money ISA.

This may seem like a dumb question, but I really have no idea what to do.

Many thanks for any replies.
Mark

dunstonh

Having seen money dissappear from it due to the drop in share prices.

Is it invested in shares or invested in unit linked funds?
If unit linked funds, is it invested in stockmarket funds, fixed interest funds, property or other?

Without knowing about your investments there is no way for anyone to answer. One thing is fairly clear though. Halifax investments are generally rubbish. Your real alternatives are DIY or IFA.

If you could DIY then you wouldnt be asking these questions so maybe get an IFA to give you advice on what you should do.

markinessex

Hi,

The ISA I have is managed funds, including stock market investment funds.

I think this is the actual one "UK FTSE All Share Index Tracking Fund"

So would it be worth cashing this ISA in and then either starting a Cash ISA or speaking to a IFA?

Mark

dunstonh

The FTSE all share tracker is a medium/high risk fund. Its generally good at what it does in that you will consistently get mid table performance. So, you know where you will be from that point of view. However, the medium/high risk nature means it is typically above the risk profile of most inexperienced investors. In the techs stock crash (and prolonged other issues) that fund dropped nearly 45% in value. So, it is volatile.

The idea of using a stocks and shares ISA is good but it sounds like what you have now is either above your risk profile or you need a bit of teachingon how these work so you can then decide if you accept the risk or not (or both learning and above risk profile).

Single fund investing is also typical tied agent, low skilled investment advice. Its putting all your eggs in one basket. A more cautious investor may have some stockmarket exposure but not 100% but maybe 20-40%. So, you have a spread of funds to achieve that.

Moving to cash is like jumping from one extreme to the other. On a crude risk scale of 1-10, the FTSE tracker is 7 but cash is 1. There are plenty of options in between. Now whether you decide to research yourself and make the changes yourself or use an IFA is only something you can decide. Hopefully, you wont be using a bank insurance agent again.

How long do you intend to hold on to the money you have invested so far? If its less than 5 years then moving into cash ISA may be the right thing to do. If its more than 5 years then investing is typically still good.

markinessex

I am not planning on spending the money - it is for long term investment purposes, i.e. for when I retire.

As you have said the ISA I have is very volatile, and is depressing to see my investment drop down almost £6k (hindsight is a great thing). I think I will do some research and find an alternative.

Thank you for the great advise. Just need to do some research, lucky I have some free time at work.

Thanks again.
Mark

dunstonh

it is for long term investment purposes, i.e. for when I retire.

stocks and shares ISA makes sense then.

However, you seem to have confirmed that its an issue not of the ISA but the investment funds you are in being above your risk profile. A tweak to the funds and moving it to a fund supermarket should resolve that.

markinessex

Can you "move" the ISA fund? I heard Martin on the radio on Friday and he mentioned that you can move cash ISA, but didn't know if I could do it with a Stocks and Share ISA.

dunstonh

Yes, you can transfer stocks and share ISAs just as easily. In fact, its probably easier and quicker as I find most turnaround in around a week.