Stocks & Shares ISAs
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Just wanted to post something regarding Cavendish, as it seems there may or may not be a hidden charge there not mentioned in the article.
Both the article and Cavendish state 0.25% in fees, being a humble peasant with only 1K to invest low cost is important so I went to Caven.
Upon opening the article it appears there is an annual 45 GBP "investor fee" that has apparently been in place for a few years now, this was not mentioned in the article(despite it being "updated April 2017") or on Cavendishs main site.
Confusingly a document said the 45 GBP fee is waived for Cavendish, but the Cavendish account page says it will be charged, hence why I am mentioning it here.
Being with Cavendish, you won't pay the £45GBP Investor Fee. That is a mistake in the text I'd wager.0 -
Hi
Forgive my ignorance regarding S&S ISAs...
Is it worthwhile putting a small amount (£50 or £100 per month into a Halifax S&S ISA towards my retirement? Or is this too little to be worth doing?
Other info - I have a HTB ISA, pension which I pay extra into, and savings for the short term.
I understand I could lose every penny - but won't bother if the charges are large in proportion to the tiny amount I can save at the moment.
Advice welcomed.
I think it depends on your age & the type of lifestyle you want at Retirement ...
For example, a basic example with a crude calculation ... if I want to retire at 65 and I live to 85-ish that's 20 years of retirement.
If I'm enjoying a lifestyle now on an £80K salary ... that's a Pension Pot of £1.6M.
Given there's variables like you won't be paying a mortgage anymore etc etc - but you get the idea.
Take that £1.6M figure, divide it by the number of years you are away from 65 to get your annual savings figure to achieve a decent Pension Pot, then divide that by for a Rough Guide as to how much you should be saving per month to keep you in the lifestyle you're accustomed to !
Hope it helps ...0 -
Although the £1.6m figure above is purely illustrative, anyone looking to accumulate a 7-figure pension pot needs to be aware of the tax implications of exceeding the £1m lifetime allowance....
To the poster asking about S&S ISAs for retirement, if you're under 40, consider a Lifetime ISA to benefit from the 25% government bonus as well as investment growth.0 -
I doubt it helps. The idea that to be able to spend £80k a year for 20 years you need to put away £80k a year for 20 year is complete bollards. It presumes zero investment growth over the four decades.
Take that £1.6M figure, divide it by the number of years you are away from 65 to get your annual savings figure to achieve a decent Pension Pot, then divide that by for a Rough Guide as to how much you should be saving per month to keep you in the lifestyle you're accustomed to !
Hope it helps ...
The whole point of investing (in S&S ISAs or pensions or other tax efficient vehicles) for retirement is to get investment growth to increase your wealth in real terms beyond the amount you are able to throw into a piggy bank from your ongoing salary.
If you think that is going to totally fail and leave you with zero or negative investment growth in real terms over forty years or more, then, sure thing: prepare for the worst outcome and divide your total spending needs in retirement by how many years you have left until retirement, and save that amount in an account or investment which only returns an amount close to inflation. But that's not how most people do it.0 -
Thanks for your thoughts...I'm over 40, and about 15 to 20 years away from retiring. No LISA for me.
So it's not a good idea to save in an ISA unless I can put more in?0 -
OK, I wrongly assumed from your reference to HTB that you were younger (you look it!Thanks for your thoughts...I'm over 40, and about 15 to 20 years away from retiring. No LISA for me.
So it's not a good idea to save in an ISA unless I can put more in?
)
If you're planning to buy a property, with all the costs that that entails, then you may find it a better use of your surplus monthly £50-100 to save in a regular saver account in preparation for buying a home, but to answer your question, you can put it in a S&S ISA for the long term instead. In terms of charges, you'll want a low-cost platform that doesn't charge for regular transactions, see http://monevator.com/compare-uk-cheapest-online-brokers/ for a comparison of costs....0 -
No that's not the case. I'd say it is a good idea to start as early as you can and put in what you can afford. The more you invest and the longer it has to grow the better. The main thing is that you start and get into the habit.So it's not a good idea to save in an ISA unless I can put more in?
Just make sure you use a platform that doesn't have fixed fees but charges a percentage so it's not excessive.Remember the saying: if it looks too good to be true it almost certainly is.0 -
"However, dividend income received on shares held in a stocks & shares ISA will be tax-free. (Older investors may remember when there was a 10% tax deducted from dividends at source which couldn't be reclaimed, which meant a stocks & shares ISA wasn't quite tax-free - this was abolished in April 2016.)"
Is it possible to clarify withdrawing dividend income from a 'S&S ISA', as I'm not sure how critical that 'held in' wording is! I understand that dividend payments are tax-free while being accumulated in the ISA, but are they when you try and withdraw them?
If you are just withdrawing the income from dividends in a 'S&S ISA', will they be regarded as 'income' and therefore be taxable if you have already exceeded the basic £11,000 allowance, or can they be offset against the £5,000 dividend allowance? (I believe I'm right in thinking it's only the 'Cash ISA' that can be totally ignored for tax purposes?)
(I have been trying to make the comparison with withdrawing income from dividends accumulated in a 'SIPP', where they will always be regarded as 'income' and will be liable to tax, if you are already over your £11,000 allowance!)
Would be very grateful if this can be clarified for me.0 -
Income from ISAs whether retained in the ISA or withdrawn is tax free as are capital gains.0
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Where is the best place for honest reviews of funds that's not in the pocket of the manager/firm.
I'm reviewing my current holdings and finding that some on the Charles Stanley foundation list are an absolutely no no, on fundexpert.
Is there a good impartial starting point?0
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