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  • FIRST POST
    • scoot65
    • By scoot65 6th Feb 18, 11:18 AM
    • 176Posts
    • 77Thanks
    scoot65
    Fund (my first) S&S ISA now, or wait a few days?
    • #1
    • 6th Feb 18, 11:18 AM
    Fund (my first) S&S ISA now, or wait a few days? 6th Feb 18 at 11:18 AM
    After reading and asking questions on this board over the past several weeks / months, I finally opted to open / fund a S&S ISA using VLS60.

    Last night I opened an account with iWeb and currently have 20k sitting there waiting for me to buy!

    Given the news I woke up to this morning, should I wait a couple of days or so to see if the prices drop further?

    This is my first investment as currently all my cash is in various 'high' interest accounts / cash ISA and really need to reduce my liquid cash amount with is currently 140k as I realise that it's losing value due to inflation etc.
Page 2
    • lpgm
    • By lpgm 7th Feb 18, 6:34 PM
    • 219 Posts
    • 113 Thanks
    lpgm
    As well as the newly opened VLS60 S&S ISA
    Originally posted by scoot65
    You're going to confuse everyone by talking about a Vanguard ISA. You've opened an IWeb ISA, and bought a Vanguard fund inside it. If you haven't subscribed the maximum 20,000, you're free to buy another fund. If you have, wait until the new tax year.
    • ValiantSon
    • By ValiantSon 7th Feb 18, 6:41 PM
    • 1,892 Posts
    • 1,754 Thanks
    ValiantSon
    You're going to confuse everyone by talking about a Vanguard ISA. You've opened an IWeb ISA, and bought a Vanguard fund inside it. If you haven't subscribed the maximum 20,000, you're free to buy another fund. If you have, wait until the new tax year.
    Originally posted by lpgm
    Thanks for clarifying.

    OP, your ISA is with iWeb, it isn't a Vanguard ISA, so you can but whatever funds you want within the ISA as long as you don't exceed the 20,000 combined ISA limit for the tax year.
    • scoot65
    • By scoot65 7th Feb 18, 6:51 PM
    • 176 Posts
    • 77 Thanks
    scoot65
    Quoting ValiantSon
    "I don't follow. You can only subscribe to one S&S ISA within any financial year. If you invest money in the Vanguard ISA after 5th April you will not be able to open another ISA with a different provider until 6th April 2019.

    If you want to invest in both VLS and HSBC in the next financial year then you can do so by opening an ISA on a different platform e.g. Cavendish (who will be cheapest) and then investing the money in VLS there, as well as HSBC. You can transfer your cash ISA to this new S&S ISA."

    Thanks for your reply....

    OK, I think I've got it now.

    In the 2018/19 financial year I can open S&S ISA and within that ISA invest in both VLS and HSBC (if I choose to invest in both funds).

    My current S&S ISA is via iWeb, can I not use iWeb again to invest in another S&S ISA in the 2018/19 financial year?

    Also, if I did open a new S&S ISA after April 5th, using the full ISA amount of 20k to invest in HSBC GS, can I, when my current 30k cash ISA (with Leeds Building Soc.) matures, transfer that cash in and invest in more of the same HSBC GS fund? Giving me a total of 50k in HSBC GS fund

    Many thanks for your time and patience.....
    • capital0ne
    • By capital0ne 7th Feb 18, 6:52 PM
    • 481 Posts
    • 237 Thanks
    capital0ne
    Also am I right in thinking that if I use the full 2018/19 S&S ISA allowance in the VLS60 S&S ISA, I therefore cannot later in the year open a HSBC GS S&S ISA and transfer in from a cash ISA to trade as this would mean I've traded with the VLS ISA and investing the cash in HSBD is also trading?
    Originally posted by scoot65
    You can transfer your cash ISA to any ISA provider that accepts transfers even if you have already opened and funded an ISA in the same tax year.

    The rule is very simple.

    Open as many ISAs as you like in any one tax year.

    Pay new money into only one of them.

    Transfer existing ISA funds to another ISA provider that accepts transfers - a transfer is not new money.

    good luck
    • capital0ne
    • By capital0ne 7th Feb 18, 6:56 PM
    • 481 Posts
    • 237 Thanks
    capital0ne
    Quoting ValiantSon
    My current S&S ISA is via iWeb, can I not use iWeb again to invest in another S&S ISA in the 2018/19 financial year?
    Originally posted by scoot65
    You can continue to use iWeb from year to year.
    Once you pay new money into an ISA platform you stick with that one for the remainder of the year.

    You can continue dealing in as many ISAs as you like but can only add new money to one of them.
    • scoot65
    • By scoot65 7th Feb 18, 7:06 PM
    • 176 Posts
    • 77 Thanks
    scoot65
    Looks like while I was writing my reply lpgm has kindly stepped in to clarify, many thanks.

    .....and with resulting replies, the penny's now dropped!!!


    To conclude, my ISA is with iWeb, so in the 2018/19 financial year I can buy 10k of VLS funds and 10k of HSBC funds .... and transfer in my 30k of cash ISA upon maturity in August (assuming transfers are accepted)


    Thanks to all who've helped. Again, it's much appreciated!
    Last edited by scoot65; 07-02-2018 at 7:14 PM.
    • ValiantSon
    • By ValiantSon 7th Feb 18, 7:20 PM
    • 1,892 Posts
    • 1,754 Thanks
    ValiantSon
    Quoting ValiantSon
    "I don't follow. You can only subscribe to one S&S ISA within any financial year. If you invest money in the Vanguard ISA after 5th April you will not be able to open another ISA with a different provider until 6th April 2019.

    If you want to invest in both VLS and HSBC in the next financial year then you can do so by opening an ISA on a different platform e.g. Cavendish (who will be cheapest) and then investing the money in VLS there, as well as HSBC. You can transfer your cash ISA to this new S&S ISA."

    Thanks for your reply....

    OK, I think I've got it now.

    In the 2018/19 financial year I can open S&S ISA and within that ISA invest in both VLS and HSBC (if I choose to invest in both funds).

    My current S&S ISA is via iWeb, can I not use iWeb again to invest in another S&S ISA in the 2018/19 financial year?
    Originally posted by scoot65
    Yes you can. Your referring to a "Vanguard ISA" made me think that you had an ISA with Vanguard Investor, who only sell their own funds. You can continue to use iWeb.

    Also, if I did open a new S&S ISA after April 5th, using the full ISA amount of 20k to invest in HSBC GS, can I, when my current 30k cash ISA (with Leeds Building Soc.) matures, transfer that cash in and invest in more of the same HSBC GS fund? Giving me a total of 50k in HSBC GS fund

    Many thanks for your time and patience.....
    Originally posted by scoot65
    Yes. That 30,000 is not new money into the ISA because it is already within an ISA wrapper, so you are simply allocating it differently, i.e. from cash to investments.
    • scoot65
    • By scoot65 7th Feb 18, 7:26 PM
    • 176 Posts
    • 77 Thanks
    scoot65
    Yes you can. Your referring to a "Vanguard ISA" made me think that you had an ISA with Vanguard Investor, who only sell their own funds. You can continue to use iWeb.



    Yes. That 30,000 is not new money into the ISA because it is already within an ISA wrapper, so you are simply allocating it differently, i.e. from cash to investments.
    Originally posted by ValiantSon
    Sorry for the confusion, at least we got there in the end
    • badger09
    • By badger09 8th Feb 18, 4:05 PM
    • 5,945 Posts
    • 5,283 Thanks
    badger09
    Sorry for the confusion, at least we got there in the end
    Originally posted by scoot65
    scoot65

    When you decide to move the contents of your cash ISA to IWEB, you must ask IWEB to do it for you, don't just move the money yourself!

    IWEB have a form on their website which you have to print off, complete & post to them. My experience is that it takes 2 - 3 weeks from posting the form to the cash being available in your IWEB ISA.
    • scoot65
    • By scoot65 8th Feb 18, 4:12 PM
    • 176 Posts
    • 77 Thanks
    scoot65
    scoot65

    When you decide to move the contents of your cash ISA to IWEB, you must ask IWEB to do it for you, don't just move the money yourself!

    IWEB have a form on their website which you have to print off, complete & post to them. My experience is that it takes 2 - 3 weeks from posting the form to the cash being available in your IWEB ISA.
    Originally posted by badger09
    Thanks for the info regarding transferring an cash ISA in. I'll make sure I'll do the correct paperwork process.
    • scoot65
    • By scoot65 8th Feb 18, 4:16 PM
    • 176 Posts
    • 77 Thanks
    scoot65
    Well...... I'm still waiting to see the VLS fund show up in my iWeb S&S ISA account. I bought the fund 1.45pm on 6th Feb and up now it's still showing as "Active - Your order is currently active and will be executed in line with our Order Handling Policy"

    Is 50 hours and counting the norm when using iWeb?
    • lpgm
    • By lpgm 8th Feb 18, 4:23 PM
    • 219 Posts
    • 113 Thanks
    lpgm
    You placed the order then, but you didn't do the deal. Vanguard probably did the deal last night at 2100. IWeb probably didn't get confirmation in time for the account update this morning. You'll probably see it tomorrow morning after 8ish. Probably. Unfortunately these things aren't done in real time.
    • IanManc
    • By IanManc 8th Feb 18, 4:34 PM
    • 542 Posts
    • 876 Thanks
    IanManc
    Well...... I'm still waiting to see the VLS fund show up in my iWeb S&S ISA account. I bought the fund 1.45pm on 6th Feb and up now it's still showing as "Active - Your order is currently active and will be executed in line with our Order Handling Policy"

    Is 50 hours and counting the norm when using iWeb?
    Originally posted by scoot65
    You placed the order on Tuesday afternoon. The deal will have taken place on Wednesday. With most funds everything would have been concluded, and your contract note would be available, between 8 and 9 this morning.

    However, deals with Vanguard take a day longer to appear, so if you look between 8 and 9 tomorrow you will see that everything's completed, and you will also get an email message from IWEB to say so.

    An order for a Vanguard fund placed with IWEB on a Tuesday afternoon was never going to appear on the site as completed on Thursday morning.

    The contract note will show that the deal was done on Wednesday. If the pending deals screen is showing that the deal is "Active" which you say it is, then everything is progressing normally and there's nothing to worry about.

    You'll soon get used to how it works. Hope this helps.
    • scoot65
    • By scoot65 8th Feb 18, 7:20 PM
    • 176 Posts
    • 77 Thanks
    scoot65
    Thanks for the detailed explanations, makes perfect sense. Obviously being investment newbie, I've a lot to learn!

    I look forward to logging into my iWeb account tomorrow.

    Thanks again, much appreciated
    • scoot65
    • By scoot65 9th Feb 18, 9:01 AM
    • 176 Posts
    • 77 Thanks
    scoot65
    I had a look this morning and you posters were correct, the funds are now showing in my iWeb account..... just short of a fiver down..... oh well this is just the start of my journey.

    I do have one other question and this regards the dividends.

    Currently my account is set as :-

    "Automatic Dividend Reinvestment' will enable dividends from UK and Irish CREST eligible stocks to be automatically reinvested into the source stock. Any remaining cash will be paid into your share dealing account. Please note a 2% commission (maximum 5) is payable on all dividend reinvestments."

    The other possible options are:-

    'Pay Away Immediately' will send collected dividend totals to your nominated bank account shortly after the dividend pay date.

    or

    'Pay Away 6-Monthly' will send collected dividend totals to your nominated bank account every 6 months, usually at the end of April and October of each year.

    or

    'Hold In Account' will retain the dividend in your share dealing account until you take further action.

    Given that iWeb charge 2% commission or up to 5 on all dividend reinvestments, I'm guessing that depending upon how often iWeb undertake these transactions, the costs could mount up.

    I'm wanting the value to accumulate, however all the 2% / 5 charges could certainly add up over time.

    Do you think I would be better having my dividends to be set to "'Hold In Account' will retain the dividend in your share dealing account until you take further action" ?

    Having said that, if the dividends are placed into the 'share dealing account' there will lose the ISA tax free wrapper advantage as they will not be in my S&S ISA account?

    Thanks for your patience
    • lpgm
    • By lpgm 9th Feb 18, 9:37 AM
    • 219 Posts
    • 113 Thanks
    lpgm
    I'm wanting the value to accumulate
    Originally posted by scoot65
    I presume you bought the 'ACC' version of the fund, rather than the INC version, so the dividends won't be paid out to you anyway.
    • scoot65
    • By scoot65 9th Feb 18, 10:28 AM
    • 176 Posts
    • 77 Thanks
    scoot65
    I presume you bought the 'ACC' version of the fund, rather than the INC version, so the dividends won't be paid out to you anyway.
    Originally posted by lpgm
    Yes, I made sure I was buying the 'acc' version for that very reason.

    Looks like the dividend information is generic information on the options for all accounts/ funds.

    I'm just going to leave it now and I'll be putting another lump sum in after April 5th ...........

    (My next task is to set up a SIPP to run along side my LGPS pension).

    Thanks again!
    • IanManc
    • By IanManc 9th Feb 18, 10:32 AM
    • 542 Posts
    • 876 Thanks
    IanManc
    Do you think I would be better having my dividends to be set to "'Hold In Account' will retain the dividend in your share dealing account until you take further action" ?

    Having said that, if the dividends are placed into the 'share dealing account' there will lose the ISA tax free wrapper advantage as they will not be in my S&S ISA account?

    Thanks for your patience
    Originally posted by scoot65
    The dividends won't move between IWEB accounts.

    You can choose your dividend option for each IWEB account you hold.

    For example, for your ISA if you choose that the dividends should remain in your account they will stay in your ISA as cash, available to invest or withdraw, until you decide to invest them in something or tell IWEB that you want to withdraw money from your ISA.

    If you had an ISA and an ordinary sharedealing account you could choose, for example, to hold your dividends in your ISA but to have your dividends from your ordinary sharedealing account paid out to your nominated bank account.

    But if you have ACC versions of funds then you won't be receiving dividends at all - they'll be reinvested within your funds.
    • scoot65
    • By scoot65 9th Feb 18, 10:48 AM
    • 176 Posts
    • 77 Thanks
    scoot65
    The dividends won't move between IWEB accounts.

    You can choose your dividend option for each IWEB account you hold.

    For example, for your ISA if you choose that the dividends should remain in your account they will stay in your ISA as cash, available to invest or withdraw, until you decide to invest them in something or tell IWEB that you want to withdraw money from your ISA.

    If you had an ISA and an ordinary sharedealing account you could choose, for example, to hold your dividends in your ISA but to have your dividends from your ordinary sharedealing account paid out to your nominated bank account.

    But if you have ACC versions of funds then you won't be receiving dividends at all - they'll be reinvested within your funds.
    Originally posted by IanManc
    Many thanks IanManc for the additional info. Much appreciated!
    • thenewcomer
    • By thenewcomer 12th Feb 18, 11:27 PM
    • 93 Posts
    • 20 Thanks
    thenewcomer
    Quoting ValiantSon
    "I don't follow. You can only subscribe to one S&S ISA within any financial year. If you invest money in the Vanguard ISA after 5th April you will not be able to open another ISA with a different provider until 6th April 2019.

    If you want to invest in both VLS and HSBC in the next financial year then you can do so by opening an ISA on a different platform e.g. Cavendish (who will be cheapest) and then investing the money in VLS there, as well as HSBC. You can transfer your cash ISA to this new S&S ISA."

    Thanks for your reply....

    OK, I think I've got it now.

    In the 2018/19 financial year I can open S&S ISA and within that ISA invest in both VLS and HSBC (if I choose to invest in both funds).

    My current S&S ISA is via iWeb, can I not use iWeb again to invest in another S&S ISA in the 2018/19 financial year?

    Also, if I did open a new S&S ISA after April 5th, using the full ISA amount of 20k to invest in HSBC GS, can I, when my current 30k cash ISA (with Leeds Building Soc.) matures, transfer that cash in and invest in more of the same HSBC GS fund? Giving me a total of 50k in HSBC GS fund

    Many thanks for your time and patience.....
    Originally posted by scoot65
    is cavendish cheaper than iweb?
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