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    • thegentleway
    • By thegentleway 7th Aug 18, 4:37 PM
    • 109Posts
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    thegentleway
    Investment advice
    • #1
    • 7th Aug 18, 4:37 PM
    Investment advice 7th Aug 18 at 4:37 PM
    Hi,

    I'm 33 with 115k savings. I own and manage one student HMO and was saving up for another but don't feel like it's a good time to invest into student market where I live. I'm therefore looking to invest elsewhere. I'm thinking of putting a little bit into P2P and splitting the rest between stock market and a property company like VITA student !!!!! offer 7% NET assured rental. Hopefully this sounds like a sensible portfolio split.

    For the stock market:
    I have 20k in cash ISA, can this be transferred to S&S ISA? What are good platforms for someone interested in passive trackers? After the initial lump sum I'll be making monthly payments ~1k.

    Thanks for the help.
Page 1
    • Linton
    • By Linton 7th Aug 18, 5:37 PM
    • 9,560 Posts
    • 9,763 Thanks
    Linton
    • #2
    • 7th Aug 18, 5:37 PM
    • #2
    • 7th Aug 18, 5:37 PM
    A cash ISA can easily be transferred to an S&S ISA. Just ask your chosen S&S platform to arrange a transfer-in. Dont withdraw the money yourself from your cash ISA - it will lose its ISA status

    As to platforms, most of the ones discussed on this forum would be fine. There are differences in charges, facilities, and efficiency, but in the overall scheme of things the differences are relatively small.

    I assume the 20K was from previous years contributions whereas the 1K/month will be new money in the current year. You are limited to 20K total new money/year ISA contributions.

    Regarding your other plans, your investment in VITA sounds rather risky to me as it may well not be covered by the FSCS protection scheme. 7% "assured" sounds attractive but it cannot mean there is a guarantee. Many schemes with allegedly certain returns have failed to deliver the goods. If you really want to invest in such things I suggest you split your money amongst a number of them as you dont want to lose everything if the company were to go busrt.
    • thegentleway
    • By thegentleway 7th Aug 18, 5:54 PM
    • 109 Posts
    • 74 Thanks
    thegentleway
    • #3
    • 7th Aug 18, 5:54 PM
    • #3
    • 7th Aug 18, 5:54 PM
    A cash ISA can easily be transferred to an S&S ISA. Just ask your chosen S&S platform to arrange a transfer-in. Dont withdraw the money yourself from your cash ISA - it will lose its ISA status

    As to platforms, most of the ones discussed on this forum would be fine. There are differences in charges, facilities, and efficiency, but in the overall scheme of things the differences are relatively small.

    I assume the 20K was from previous years contributions whereas the 1K/month will be new money in the current year. You are limited to 20K total new money/year ISA contributions.

    Regarding your other plans, your investment in VITA sounds rather risky to me as it may well not be covered by the FSCS protection scheme. 7% "assured" sounds attractive but it cannot mean there is a guarantee. Many schemes with allegedly certain returns have failed to deliver the goods. If you really want to invest in such things I suggest you split your money amongst a number of them as you dont want to lose everything if the company were to go busrt.
    Originally posted by Linton
    Thanks Linton, that's good news about transferring previous cash ISAs (it is from previous contributions).

    I've been looking into platforms but I'm a bit confused by charges. It seems flat fees would be more cost effective for me. It looks like there are 3 charges that would apply:
    a. annual fee
    b. dealing fee
    c. regular investing fee
    So for monthly investments I'm looking at a + 12 x (b + c) annual cost? Or does the regular investing fee including the dealing fee?

    Understood about VITA, I don't really want to invest in such things, it just seemed like a good return. It also allows me to sell after 5 years, which would work well for me as I will probably be buying at house then. What 5 year investments would be less risky?
    • Linton
    • By Linton 7th Aug 18, 6:18 PM
    • 9,560 Posts
    • 9,763 Thanks
    Linton
    • #4
    • 7th Aug 18, 6:18 PM
    • #4
    • 7th Aug 18, 6:18 PM
    Thanks Linton, that's good news about transferring previous cash ISAs (it is from previous contributions).

    I've been looking into platforms but I'm a bit confused by charges. It seems flat fees would be more cost effective for me. It looks like there are 3 charges that would apply:
    a. annual fee
    b. dealing fee
    c. regular investing fee
    So for monthly investments I'm looking at a + 12 x (b + c) annual cost? Or does the regular investing fee including the dealing fee?
    Originally posted by thegentleway
    It is b or c, not b and c. Some platforms have lower transaction charges if you invest frequently and regularly.

    Understood about VITA, I don't really want to invest in such things, it just seemed like a good return. It also allows me to sell after 5 years, which would work well for me as I will probably be buying at house then. What 5 year investments would be less risky?
    The issue isnt the timescale but rather the dependence on one single company. If you invest in funds you are probably investing in hundreds of separate companies. One going bust wont matter. With offers like VITA one going bust really does matter. The added risk is that offerings like VITA's are probably not regulated nearly as rigorously (if at all) as fund investments or cash deposits. So your chances of compensation should something go wrong are minimal.


    Its a general rule that the higher the return the higher the risk. If there was no risk VITA should have no problem getting money at less than 7% from the institutional investors.
    • thegentleway
    • By thegentleway 7th Aug 18, 6:35 PM
    • 109 Posts
    • 74 Thanks
    thegentleway
    • #5
    • 7th Aug 18, 6:35 PM
    • #5
    • 7th Aug 18, 6:35 PM
    It is b or c, not b and c. Some platforms have lower transaction charges if you invest frequently and regularly.
    Originally posted by Linton
    Makes sense, thanks for explaining. Looking like Halifax Share Dealing works out the cheapest.

    The issue isnt the timescale but rather the dependence on one single company. If you invest in funds you are probably investing in hundreds of separate companies. One going bust wont matter. With offers like VITA one going bust really does matter. The added risk is that offerings like VITA's are probably not regulated nearly as rigorously (if at all) as fund investments or cash deposits. So your chances of compensation should something go wrong are minimal.

    Its a general rule that the higher the return the higher the risk. If there was no risk VITA should have no problem getting money at less than 7% from the institutional investors.
    Originally posted by Linton
    Understood. I won't be investing in one single company but I'm a bit reluctant to put all my savings in funds as they are for long term investment and I will need access to some of my savings in ~5 years time.
    • AlanP
    • By AlanP 8th Aug 18, 12:55 PM
    • 1,221 Posts
    • 880 Thanks
    AlanP
    • #6
    • 8th Aug 18, 12:55 PM
    • #6
    • 8th Aug 18, 12:55 PM
    I'm a bit surprised that at the amounts you are talking about a % fee broker isn't cheaper.

    At say 0.25% on your 20k it would be 50 per year and if it was 32k at the start of the next year it would be 80 per year. Not totally accurate I know as the balance will be increasing gradually as you add your 1k per month and asset values will go up and down but OK as a ballpark.
    • thegentleway
    • By thegentleway 8th Aug 18, 1:01 PM
    • 109 Posts
    • 74 Thanks
    thegentleway
    • #7
    • 8th Aug 18, 1:01 PM
    • #7
    • 8th Aug 18, 1:01 PM
    I'm a bit surprised that at the amounts you are talking about a % fee broker isn't cheaper.

    At say 0.25% on your 20k it would be 50 per year and if it was 32k at the start of the next year it would be 80 per year. Not totally accurate I know as the balance will be increasing gradually as you add your 1k per month and asset values will go up and down but OK as a ballpark.
    Originally posted by AlanP
    Halifax is 12.50 a year and 2 for regular investment so only 36.50 for a year with 12 monthly payments. What % of your savings have you got in funds?
    Last edited by thegentleway; 08-08-2018 at 1:32 PM.
    • AlanP
    • By AlanP 8th Aug 18, 9:27 PM
    • 1,221 Posts
    • 880 Thanks
    AlanP
    • #8
    • 8th Aug 18, 9:27 PM
    • #8
    • 8th Aug 18, 9:27 PM
    Halifax is 12.50 a year and 2 for regular investment so only 36.50 for a year with 12 monthly payments. What % of your savings have you got in funds?
    Originally posted by thegentleway
    Thanks for that, hadn't realised they were so cheap.

    Depends on how many funds are being purchased each month then I guess.

    Sorry, don't understand your last point re % of savings in funds?
    • thegentleway
    • By thegentleway 9th Aug 18, 9:54 AM
    • 109 Posts
    • 74 Thanks
    thegentleway
    • #9
    • 9th Aug 18, 9:54 AM
    • #9
    • 9th Aug 18, 9:54 AM
    Thanks for that, hadn't realised they were so cheap.

    Depends on how many funds are being purchased each month then I guess.

    Sorry, don't understand your last point re % of savings in funds?
    Originally posted by AlanP
    Yes, they are super cheap! I'm a complete newb so probably going to stick to one, maybe two funds.

    I was just wondering how much of their savings people put into funds.
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