Stocks & Shares ISAs Do-it for-me providers

neil7 · 23 September 2018 at 9:57AM

Hello
I would like to open a new Stocks & Shares ISAs with a Do-it for-me provider, my motivation is that my Nationwide ISA is 1.10%, could I improve on this?

I appreciate Stocks & Shares ISAs can rise and fall, I am open to some risk. I cannot lock my money in long term, maybe the next 1-2 years is ok, but not 5+ years. I can invest the full amount.

I am new Stocks & Shares ISAs Do-it for-me providers, if anyone would like to offer input about cost effective routes, quality providers and ways to go forward that would be great. Of-course the final decision is mine, helpful feedback much appreciated.

I put 10k into Nationwide isa in this years allowance, could i shift this into a new isa and would it still count as 10k for the year?
thanks

Alexland · 23 September 2018 at 10:23AM

Even low risk S&S investments are not suitable for a timeframe of less than 5 years. Stick to cash. Checkout the best buy tables for good rates.

ColdIron · 23 September 2018 at 11:28AM

neil7 wrote: »

I appreciate Stocks & Shares ISAs can rise and fall, I am open to some risk. I cannot lock my money in long term, maybe the next 1-2 years is ok, but not 5+ years.

2 years or even less is not a suitable timeframe for investing precisely because 'Stocks & Shares ISAs can rise and fall'. When you need the money in the short term it could be worth less than you put in and you have no time to wait for it to recover. Cash would be more suitable for your time span

dunstonh · 23 September 2018 at 11:50AM

I appreciate Stocks & Shares ISAs can rise and fall, I am open to some risk. I cannot lock my money in long term, maybe the next 1-2 years is ok, but not 5+ years. I can invest the full amount.

In which case, you shouldnt be using investments. A typical stockmarket crash can take up to 2 years to recover. A larger one can take 3 years. (ignoring the fact that it is possible there may never be a recovery or it could take decades).

So, if your term is less than a stockmarket recovery then you should not invest at all.

anandp · 23 September 2018 at 11:01PM

Agree with the others here. S&S is not suitable for a 2yr timeframe.

With Brexit around the corner, I'd recommend this even less, and that's irrespective of which side of the debate you stand on. Uncertainty isn't great for markets.

A half-way house might be better for you: something like an IFISA perhaps. If so, I'd recommend Kuflink: https://www.kuflink.co.uk/isa/

neil7 · 26 September 2018 at 7:26PM

Many thanks really helpful. I am ok to lock in for 1 year, is Innovative Finance ISA the best route?
Does MSE have a section on Innovative Finance ISA? I cannot locate?
My 10k in nationwide; can i close this account and still use the 20k in the year for my new ISA product?

neil7 · 26 September 2018 at 7:29PM

is the best option for 1 year Kuflink IFISA?

Alexland · 26 September 2018 at 9:02PM

We have £500 each in Kuflink auto select diversified loans (mainly for the introductory bonuses) and have so far been generally impressed by their offering. Where I have seen individual properties in areas I know their valuations look reasonable. The customer service is friendly and they are a professional outfit with skilled underwriters.

However we don't really have a need for short term cash savings (other than emergency money) and P2P lending is not FSCS protected so there is a risk of 100% loss and delays getting access to the money if the loan repayments are delayed or Kuflink becomes insolvent.

Still it might serve your needs - just don't invest more than you are willing to lose and spread your investments across multiple properties. I understand that Kuflink have only once had a loan go bad and they covered the loss themselves as their shareholders have provided around £4m of supporting capital into the business.

There is a video tour of their office and CEO interview at:

https://m.youtube.com/watch?v=5Ff1UXCBVF8

Ps if you decide to proceed you should transfer your cash ISA into the IFISA using the new provider's ISA transfer form. You can then continue to contribute a further £10k up to the £20k limit.

Alex

jdanthony · 27 September 2018 at 9:27PM

Cash ISA's are a waste of time, you would be far better with your idea of stock and shares ISA. Spread your money over a portfolio of several different companies to reduce your overall risk.

Alexland · 27 September 2018 at 9:49PM

jdanthony wrote: »

Cash ISA's are a waste of time, you would be far better with your idea of stock and shares ISA. Spread your money over a portfolio of several different companies to reduce your overall risk.

Do you have any relevant qualifications to be offering such terrible advice? For whatever reason the OP is unable to commit to a medium or long term investment as they expect to use the money in the next few years. It is well understood in the financial services industry that S&S investments (even diversified mixed assets) are not suitable for short periods of time as the risk of crystallising a loss is unacceptably high.

Also in another posting you mentioned that your S&S ISA experience was getting back 'far less' than you contributed. Why didn't you mention this risk in your post here? Was the cause of your loss that it was a short term investment so didn't have time to recover?

jdanthony wrote: »

Only drawback with the S&S ISA is you can get back far less than you put in, I learnt the hard way. You stand more chance if you spread the investment over half a dozen companies and probably in different sectors.

https://forums.moneysavingexpert.com/showthread.php?p=74841069

Alex

daveyjp · 27 September 2018 at 10:23PM

Unless you are in danger of having to pay tax on interest payments, why bother with ISAs when you can get fixed saving rates of over 2% if you are prepared not to touch the money for 1-3 years.

Stocks & Shares ISAs Do-it for-me providers

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