Stocks n Shares ISA

Fletch

Striker
With bank accounts earning F.A interest now and losing value do many On here bother with shares ISAs ?
Never had one so don’t know much about them
 


With bank accounts earning F.A interest now and losing value do many On here bother with shares ISAs ?
Never had one so don’t know much about them
Aye. As long as the money you’re putting in isn’t earmarked for anything within the next couple of years. General principle is you should give investments 5yrs timeframe in case there’s a down turn early on.
 

Fletch

Striker
Prob be leaving it in 7yr that’s why wasn’t sure if too late or not as realise they normally long term investments
 
I'm saving into one. It's for retirement but when I started it, I had two chronic health conditions. I thought saving money into something I could withdraw from rather than putting it all into a pension was a wise move in case anything bad happens health wise and I need to access the money before I retire. It's split between a fund that invests in the top FTSE companies, so generally a safe bet and a more risky one that invests in small/medium European companies.

They usually say you need to invest for five years to ride out the initial bumps. Probably best to get some professional advice if you are unsure. They'll help you work out your attitude to risk and what would suit you best.
 

Darlo1973

Striker
As I posted in another thread earlier today.

Well worth considering especially considering savings account interest rates are the square root of bugger all.

Simplest way is just to setup a monthly standing order (£50-100 a month or whatever you can afford) into a low cost tracker ( The Vanguard LifeStrategy funds are very popular) and then forget about it for at least 10 years. The route to insanity is checking up on the valuation of it every day. I'd look for a fund which has a wide exposure to the UK, US and other markets so that a bad performance in one sector doesn't wipe you out. Any money purely in the London FTSE would have done badly last year but the US market still did well despite the pandemic and Trump (or maybe because of Trump). Don't touch individual shares unless you are prepared to lose all of your money.

The disadvantage of a S&S ISA compared to a pension is that you don't get the tax back but you can access the money at any time.


7 years is a little on the low side but as long as you steer clear of high risk areas then you should still be able to get an average of 5% a year. Just be prepared for some big drops due to domestic/world events but the long terms trend is always upwards.
 

Fletch

Striker
As I posted in another thread earlier today.




7 years is a little on the low side but as long as you steer clear of high risk areas then you should still be able to get an average of 5% a year. Just be prepared for some big drops due to domestic/world events but the long terms trend is always upwards.

What thread was that on mate ?
 

JJH

Striker
I have a vanguard 60% as well i think. Last year took a hit, but as said peaks n troughs over time. Mine will be in for 20 years alongside pension.
Have a 60% and 100% one.
average over the 3 Yrs is 25%
tempted to put this years allowance in before April.
Very easy to deal with .
Changed the management fee to come out of another account rather than the investment accounts
 

Fletch

Striker
So basically is it just same as a pension but no govt tax relief added ?
Already set up a vanguard life strategy SIPP pension for the wife but can’t pay much into it as is capped at earnings
 
So basically is it just same as a pension but no govt tax relief added ?
Already set up a vanguard life strategy SIPP pension for the wife but can’t pay much into it as is capped at earnings
But you don’t pay tax when you take it out, unlike a pension. And you can take it out when you like, unlike a pension. If you want to retire before 57 best to do a bit of both.
 

42

Striker
So basically is it just same as a pension but no govt tax relief added ?
Already set up a vanguard life strategy SIPP pension for the wife but can’t pay much into it as is capped at earnings

If you're a basic rate tax payer, and if your pension will be greater that the personal tax allowance then in effect with an ISA all youd be losing out on is the tax break on the 25% lump sum you can take from pension in exchange for greater flexibility as you can draw down what you want & when you want.
 

Fletch

Striker
Have a 60% and 100% one.
average over the 3 Yrs is 25%
tempted to put this years allowance in before April.
Very easy to deal with .
Changed the management fee to come out of another account rather than the investment accounts
When people quote % are you referring to shares % compared to cash ?
 

Paninaro

Midfield
Yep use iWeb put just over a grand in every month for the last year and a half (what my mortgage payment used to be) - spread over 3 funds
Took a massive hit during first lockdown, but about 10% up at end of year
 

droppedshoulder

Goalkeeper
I’ve gone for a Vanguard s&s isa aswell, it’s a great flexible platform. £100 per month and any other lump sum’s I can drop in aswell. I plan to leave there for 10 years, and must stop checking it weekly.
 

Titus

Striker
So basically is it just same as a pension but no govt tax relief added ?
Already set up a vanguard life strategy SIPP pension for the wife but can’t pay much into it as is capped at earnings

They're set up in various ways mate. Some will have a few investment parameters where you can throw money in to be divided based on risk, dividends etc. Alternatively you could essentially set it up like a regular share trading platform, with tax advantages.
When people quote % are you referring to shares % compared to cash ?

Equities:bonds
 
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As I posted in another thread earlier today.




7 years is a little on the low side but as long as you steer clear of high risk areas then you should still be able to get an average of 5% a year. Just be prepared for some big drops due to domestic/world events but the long terms trend is always upwards.
Obviously I don’t know every fund performance, but, I think if you picked a selection, you’d be pushed to find any that weren’t in profit after 7yrs.
 

Hank Scorpio

Striker
With bank accounts earning F.A interest now and losing value do many On here bother with shares ISAs ?
Never had one so don’t know much about them

I know they can be expensive, but it’s honestly worth getting an IFA mate. A good one will tell you exactly what to do and prepare a plan for retirement (which I am guessing from your previous posts is what you are trying to do?)
 

Northern_chappy

Central Defender
They are good if you know what you are doing or get lucky. But a couple of bad picks and you will wish your capital was back in the bank earning FA interest. Do a lot of research before buying shares and never take as gospel what people say on investing/share forums.
 

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