Funds for 2 ISA

edited 30 November -1 at 1:00AM in ISAs & Tax-free Savings
3 replies 1.2K views
Random47Random47 Forumite
51 Posts
edited 30 November -1 at 1:00AM in ISAs & Tax-free Savings
Been DYOR a bit for two ISA S/S. One for wife which will run for at least 6-7 years before part cash in for school fees. Other will be for me and run for minimum 10 years.


Wife risk averse so VGLS20, HSBC Global Strategy Cautious, BR Consensus 35 and given yr1 will be cashed in yr7 (yr2 in yr8...) I think best to be cautious as time in market not long.

I will be looking at VGLS60, HSBC Global Strategy Balanced, Terry Smith Fundsmith. Yr1 cashed in yr11, yr2 in yr12.... again for 2nd child schooling.

What are opinions of readers. I felt that while funds in each ISA are a bit similar they spread risk of a single fund not performing well.

Will be drip fed at £250 per fund per month (i.e. £750 into each ISA). Was looking to use Cavendish but Interactive Investor current pricing is cheapest fund provider when comparing funds. Happy for opinions on these as well.

Will be dong this today as I don't want to procrastinate anymore so early responses welcome.

Replies

  • xylophonexylophone Forumite
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    Six years for stocks and shares is on the short term side.

    The trouble with saving for school fees is that they tend to increase well in advance of inflation both while you are saving and when you are paying.

    Some schools have a payment in advance option which may be worth exploring.

    It might be worth considering a cash option for your part of your savings, using high interest current accounts and regular savings for as long as these are available.

    For example, it could be possible for you and your wife to open regular savers with First Direct, HSBC, M&S ( all of which pay 6% at the moment) and Nationwide (5%). It would be necessary to open current accounts as well.
  • Appreciate saving account option, but there are hoops to jump through, join account, only save x a month rate plummets after 12 months, etc.


    Agree 6-7 yrs in very short term on wife s/s ISA, but to be honest I would try to defer cashing in the relevant year and let it run (a bit dependant on work salary promotion....) and run for 10-12 years for uni. That why being equity low in the multi assest fund identified. There is also the option to discount private schooling for the senior years and keep funds running until Uni time (12 & 16 yrs respectively), though that depends on level of state school in the ares etc. (State school didn't do me no harm (or did it)).


    I guess whats important is that we start some decent level of putting away / investing. Maybe I wont like my kids when there older and the wife and I can keep it. Who knows!
  • xylophonexylophone Forumite
    38.6K Posts
    Part of the Furniture 10,000 Posts Name Dropper
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    (State school didn't do me no harm (or did it)).

    A jest, I assume....:)

    http://monevator.com/category/investing/passive-investing-investing/

    http://monevator.com/compare-uk-cheapest-online-brokers/

    may be worth a read.
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