Stocks n Shares ISA

Ned Land said:
I just don’t see much point in them when you can get better rates with cash.
I suppose it’s different if you need a fixed income?

I don’t really understand how bonds work as I’m a member of a DB pension scheme and my investments are a side bet.
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I suppose if you take vanguards target retirement funds which shifts the balance from equity to bonds automatically as you near retirement (which a lot of DC pensions operate the same way). If you're using cash the you'd have to do it your self transferring out & moving to cash which might be more of a faff. Also for the benefit of the fund managers, bonds are tradable & which fixed term bank deposits aren't.
 


42 said:
I suppose if you take vanguards target retirement funds which shifts the balance from equity to bonds automatically as you near retirement (which a lot of DC pensions operate the same way). If you're using cash the you'd have to do it your self transferring out & moving to cash which might be more of a faff. Also for the benefit of the fund managers, bonds are tradable & which fixed term bank deposits aren't.
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Some people think that ‘lifestyling’ towards retirement is an outdated strategy. Although everyone has different requirements.

ifamagazine.com

Do we need to rethink the risk around asset classes & the 'lifestyling' in pensions? verdict from IFAs after a turbulent two weeks - IFA Magazine

One went so far as to say 'lifestyling' should be renamed 'lifestealing', while another says "lifestyling was always a lazy, horrific idea." Another suspects
ifamagazine.com ifamagazine.com
 
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SpiritofBurnden said:
The website doesn't work on either my iMac or my iPhone.

Just get the four squares endlessly rotating in the centre of the screen and not much else.
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It works on my iPhone. Annual performance:

YearCapital return by NAVIncome return by NAVTotal return by NAVBenchmark
Logon or register to see this image
202317.22%0%17.22%17.29%
2022-8.28%0%-8.28%-8.18%
202122.27%0%22.27%22.41%
202014.15%0%14.15%14.27%
201922.82%0%22.82%22.98%
2018-2.96%0%-2.96%-2.78%
201712.77%0%12.77%12.91%
201629.33%0%29.33%29.48%
20155.67%0%5.67%5.76%
201412.11%0%12.11%12.36%
201324.21%0%24.21%24.62%
201211.39%0%11.39%11.68%
2011-5.61%0%-5.61%-5.37%
201015.52%0%15.52%15.92%
2009*----
* Since Inception 23 Jun 2009
 
ChrisK said:
S&S isa seem a great way to build a pot over a longish time, any recommendations in Vanguard once you got ur pot and you need a bit stability and a maybe an option to take money out, while pot still does ok?
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Depends on if you want a guaranteed income with zero risk of capital loss (apart from inflation) but even if you are retired then you could still be looking at 20+ years of equity growth so changing to a fund which produces a monthly income might be a good idea.
 
Darlo1973 said:
Depends on if you want a guaranteed income with zero risk of capital loss (apart from inflation) but even if you are retired then you could still be looking at 20+ years of equity growth so changing to a fund which produces a monthly income might be a good idea.
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Guessing income (ie dividends) from a S&S ISA are tax free? That would be one advantage over say a SIPP or other pension pot in drawdown, I think.
 
Ned Land said:
It works on my iPhone. Annual performance:

YearCapital return by NAVIncome return by NAVTotal return by NAVBenchmark
Logon or register to see this image
202317.22%0%17.22%17.29%
2022-8.28%0%-8.28%-8.18%
202122.27%0%22.27%22.41%
202014.15%0%14.15%14.27%
201922.82%0%22.82%22.98%
2018-2.96%0%-2.96%-2.78%
201712.77%0%12.77%12.91%
201629.33%0%29.33%29.48%
20155.67%0%5.67%5.76%
201412.11%0%12.11%12.36%
201324.21%0%24.21%24.62%
201211.39%0%11.39%11.68%
2011-5.61%0%-5.61%-5.37%
201015.52%0%15.52%15.92%
2009*----
* Since Inception 23 Jun 2009
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Many thanks.

Which particular Vanguard fund do they relate to?
 
The Great Soprendo said:
Guessing income (ie dividends) from a S&S ISA are tax free? That would be one advantage over say a SIPP or other pension pot in drawdown, I think.
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Pension is more tax efficient. If you put in £80, the government tops it up to £100. But then when you draw it down the government takes £20 for every £100 you withdraw over the personal allowance (which is currently £12,570). You can also withdraw 25% of the pension tax free in a lump sum.

The main advantage the ISA has is the flexibility in that you can take it whenever you want regardless of age, and don't need to worry about tax, but you'll get more out of a pension than an ISA, more so if you can utilise a work place salary sacrifice scheme & get the additional NI benefit.
 
42 said:
Pension is more tax efficient. If you put in £80, the government tops it up to £100. But then when you draw it down the government takes £20 for every £100 you withdraw over the personal allowance (which is currently £12,570). You can also withdraw 25% of the pension tax free in a lump sum.

The main advantage the ISA has is the flexibility in that you can take it whenever you want regardless of age, and don't need to worry about tax, but you'll get more out of a pension than an ISA, more so if you can utilise a work place salary sacrifice scheme & get the additional NI benefit.
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Also a SIPP isn’t included in your estate when you die iirc, but an ISA is.

Edit: if under 75.
 
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Ned Land said:
Sorry the data isn’t much use without the fund ID!

In the vanguard SIPP account, I have 90% world ex-U.K. and 10% emerging markets.

FTSE Developed World ex-U.K. Equity Index Fund(VDWXEIA)​

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Cheers! Looks like you've had some healthy returns on your investment over the years.

I've now managed to get the website to work on my iPhone now.

It's very impressive. Really clear explanations of the investments, potential returns and the risks associated with them.
 
slightburns said:
none of them can beat bitcoin, has been thus for 10+ years
none of them can beat bitcoin, has been thus for 10+ years
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Looks like it's trading around half of its record high price from a couple of years ago, so your assertion depends entirely on when you bought some.

Plus you could put funds in your ISA that expose you to bitcoin indirectly, if you really want to.
 
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42 said:
I suppose if you take vanguards target retirement funds which shifts the balance from equity to bonds automatically as you near retirement (which a lot of DC pensions operate the same way). If you're using cash the you'd have to do it your self transferring out & moving to cash which might be more of a faff. Also for the benefit of the fund managers, bonds are tradable & which fixed term bank deposits aren't.
Click to expand...
Been bit bad publicity about life styling pensions recently , saying they de-risk far too much in the latter years
Edit -
In that vanguard site it’s easy enough to switch the funds yourself
So say if had £100k pot sitting in 80%, if close to retirement you can easily switch all (or whatever %) to a 60% fund , if want , few options you can do .
Think the lifestyle ones often de risk it down to 30% or summit once retired which means it prob won’t grow and exposed to bonds too much , think anyway
Disclaimer I know FA
 
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Fletch said:
Been bit bad publicity about life styling pensions recently , saying they de-risk far too much in the latter years
Edit -
In that vanguard site it’s easy enough to switch the funds yourself
So say if had £100k pot sitting in 80%, if close to retirement you can easily switch all (or whatever %) to a 60% fund , if want , few options you can do .
Think the lifestyle ones often de risk it down to 30% or summit once retired which means it prob won’t grow and exposed to bonds too much , think anyway
Disclaimer I know FA
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I think with drawdown options now there's little point derisking unless you're taking an annuity. Better for most people to keep invested (or at least more invested) in stocks and shares, despite the greater risks.

What most people don't realise is that if they just choose the default investment in their company pension it will probably automatically lifestyle in later years. So many people just leave pensions well alone because they don't understand them enough.
 
The Great Soprendo said:
I think with drawdown options now there's little point derisking unless you're taking an annuity. Better for most people to keep invested (or at least more invested) in stocks and shares, despite the greater risks.

What most people don't realise is that if they just choose the default investment in their company pension it will probably automatically lifestyle in later years. So many people just leave pensions well alone because they don't understand them enough.
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I recently found out our works one is a generic life styling one - royal London . Luckily I’ve got 3/4 of a final salary one (got kicked out) so not as exposed otherwise would prob need advice to move it

I still think prob need to de risk slightly as you approach and start retirement, so not as exposed if was a crash, just not as much as the generic life styling ones do . IMO 60% seems the right level when retired , just my opinion though and I’m not that clued up
 
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Fletch said:
I recently found out our works one is a generic life styling one - royal London . Luckily I’ve got 3/4 of a final salary one (got kicked out) so not as exposed otherwise would prob need advice to move it

I still think prob need to de risk slightly as you approach and start retirement, so not as exposed if was a crash, just not as much as the generic life styling ones do . IMO 60% seems the right level when retired , just my opinion though and I’m not that clued up
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It just goes back to your appetite for risk. I've got a decent public sector DB pension, so my investment fund is purely to fund a lifestyle between 58 & 68 until state pension & misses works pension kicks in, so from that point I think I do need a bit of lifestyling in there given its just for about 10 years rather than the 20+ year most have with their pension.
 
42 said:
It just goes back to your appetite for risk. I've got a decent public sector DB pension, so my investment fund is purely to fund a lifestyle between 58 & 68 until state pension & misses works pension kicks in, so from that point I think I do need a bit of lifestyling in there given its just for about 10 years rather than the 20+ year most have with their pension.
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Just read an article where someone’s pension has dropped a third in the last 2 years because of lifestyling
 

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