Unwrapped feeder account

NotSkint · 11 June 2017 at 5:29PM

Hi all after people's opinions/strategies on the following;
I have approx £200K in a general unwrapped S&S account which is to feed both my wife's and my S&S ISA accounts, to their annual limit over the next 5 years. The S&S ISAs won't be touched for at least another 12 years, and then only ad hoc for a bit of fun spending, taking into account market conditions at the time.
The unwrapped account is currently in cash and I am fighting with myself as to whether it should or shouldn't be invested.
I can't get my head around whether timescales are too short for investment, as the money will be removed in the next 1 to 5 years and that is a short time for investing. However, if I could just put the lot into the S&S ISAs now to invest then I would, as it would be invested for the long term. So should I just treat the unwrapped account as an extension of the ISAs and not worry about the investment timescale or not? Obvious proviso is that it is a taxed account and treated as such. What would your strategy be?

Linton · 11 June 2017 at 5:51PM

IMHO as long as you have plenty of cash in an emergency fund you should treat the unwrapped account as an extension of the ISA accounts. Then when you sell in the unwrapped account to buy in the ISA account you could buy the same funds or use it as an opportunity to rebalance.

One possibility if your portfolio is a mixture of bonds or similar and equity is to put the lower growth part in the unwrapped and the higher growth investments in the S&S ISA. In this way you are minimising any CGT and reducing the time required to protect all of your portfolio from tax,

Do you have also have money in pensions?

NotSkint · 11 June 2017 at 6:05PM

Thanks Linton,
I am leaning towards just investing it and treating it as an extension of the ISA; it is just the mindset of it not being invested for long even though it kind of will be because it will be bed & breakfasted.
Yes I do have pensions all sorted; SIPPs to run down between 55 and 60 for when my DB pension starts. My wife is slightly behind on her SIPP but we are making up for that over the next 7 years or so.
I also have at least 2 years expenditure in cash for any emergencies.

Unwrapped feeder account

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