2022/23 ISA year - have you dropped £20k in yet?
Discussion
Start of the tax year and another chance to lock away £20k per person.
Has anyone dropped in £20k into a cash isa today and then hold it there or move to S&S in due course.
Is anyone doing 1/12th drip feed into a cash ISA or S&S ISA
Is anyone opening a S&S ISA for their kids and maxing the allowance this year
Has the cost of living squeeze resulted in whatever you used to be able to put away into tax free savings decreased or to the point it’s literally not possible as things stand.
Has anyone dropped in £20k into a cash isa today and then hold it there or move to S&S in due course.
Is anyone doing 1/12th drip feed into a cash ISA or S&S ISA
Is anyone opening a S&S ISA for their kids and maxing the allowance this year
Has the cost of living squeeze resulted in whatever you used to be able to put away into tax free savings decreased or to the point it’s literally not possible as things stand.
Following with interest, first year I’ve ever had spare cash to do something with.
Maxed out Marcus cash ISA 0.7% last year but would like to be at least trying to beat inflation this tax year.
Looking at a Vanguard LS to start paying regularly into for myself and then another for my son.
Maxed out Marcus cash ISA 0.7% last year but would like to be at least trying to beat inflation this tax year.
Looking at a Vanguard LS to start paying regularly into for myself and then another for my son.
I’m planning to drop £20k in today into a cash ISA but then drop feed that 1/12th into S&S ISA (not sure which one though to be honest).
Lots speak of vanguard and not so much of Hargreaves’s land down. But also. Is it better to go in much harder sooner or 1/12 or back end loaded? Crystal ball for sure - this is for medium to long term investment but like nearly everyone it’s not a value I want to lose, but if in a savings account inflation is what 8-10% so doing nothing I’m possibly losing up to £2k by doing nothing.
Lots speak of vanguard and not so much of Hargreaves’s land down. But also. Is it better to go in much harder sooner or 1/12 or back end loaded? Crystal ball for sure - this is for medium to long term investment but like nearly everyone it’s not a value I want to lose, but if in a savings account inflation is what 8-10% so doing nothing I’m possibly losing up to £2k by doing nothing.
Having just about filled up last years allowances for my wife and I at the beginning of the week I'll do the same again this year and put a monthly amount in that achieves the same thing by this time next year with some ad hoc bonuses as and when - means I've bought at all points and seems to have done me fairly well. Due to some decent results at work it might be that it happens much quicker this year so not entirely sure what to do with anything above the limit, but I suppose I can do some research here as it's not likely to be much of a tax burden - variable comp makes it hard to up pension to compensate as you don't really know where you'll be until you're there.
Previous couple of years I've done a 50/50 split between Fundsmith and Vanguard products, I put a years allowance in LS60 last March then starting to just funnel it into Global all cap, but given I bought at a decent low on the LS60 line I've just left it and let the Global All Cap slowly come up to that level - I think this year I'll do the same - Fundsmith and Global All Cap - then depending on how FS does vs a quality index like the iShares one I may switch next year to get the lower fees and possible similar return given how closely FS is to that sort of index now. Obviously FS fee's only really get grim when you have large amounts in there, which I am not at yet.
Personally don't really care if it goes up or down in the short term (and its been a fair few grand down at points!) I've looked at returns based on fairly modest gains and the prospect of having a large lump in 10-15 years is the idea.
Previous couple of years I've done a 50/50 split between Fundsmith and Vanguard products, I put a years allowance in LS60 last March then starting to just funnel it into Global all cap, but given I bought at a decent low on the LS60 line I've just left it and let the Global All Cap slowly come up to that level - I think this year I'll do the same - Fundsmith and Global All Cap - then depending on how FS does vs a quality index like the iShares one I may switch next year to get the lower fees and possible similar return given how closely FS is to that sort of index now. Obviously FS fee's only really get grim when you have large amounts in there, which I am not at yet.
Personally don't really care if it goes up or down in the short term (and its been a fair few grand down at points!) I've looked at returns based on fairly modest gains and the prospect of having a large lump in 10-15 years is the idea.
Edited by okgo on Wednesday 6th April 10:40
Welshbeef said:
I’m planning to drop £20k in today into a cash ISA but then drop feed that 1/12th into S&S ISA (not sure which one though to be honest).
Lots speak of vanguard and not so much of Hargreaves’s land down. But also. Is it better to go in much harder sooner or 1/12 or back end loaded? Crystal ball for sure - this is for medium to long term investment but like nearly everyone it’s not a value I want to lose, but if in a savings account inflation is what 8-10% so doing nothing I’m possibly losing up to £2k by doing nothing.
On average, drip feed underperforms all in at once 2/3 of the time.Lots speak of vanguard and not so much of Hargreaves’s land down. But also. Is it better to go in much harder sooner or 1/12 or back end loaded? Crystal ball for sure - this is for medium to long term investment but like nearly everyone it’s not a value I want to lose, but if in a savings account inflation is what 8-10% so doing nothing I’m possibly losing up to £2k by doing nothing.
If I were planning to drip feed, I wouldn't do the cash ISA thing, I'd invest into the ISA 20,000/12 each month.
Returns on the cash ISA are negligible, and in the unlikely event I see another opportunity for the money in the cash ISA, I can't get at it without wasting the ISA allowance.
edit: and in answer to the OP, yes, went in at 8:00 this morning.
A more interesting question might be who was selling yesterday to realise capital gains.
xeny said:
A more interesting question might be who was selling yesterday to realise capital gains.
I did. Do you think it's a sensible move or not?I cashed in enough of my GIA to realise about £10k of taxable gains & of those released funds £20k will go into an ISA today. I will probably buy the same fund in the ISA that I cashed out of in the GIA & hence be out of the market for just a few days with that portion but I'l have to find a home for what's left in the GIA. At most I think I'll miss out on 30 days of gains/losses.
Mr Pointy said:
I did. Do you think it's a sensible move or not?
Depends how long you anticipate having assets outside a tax shelter(i.e. in a GIA), and how much CG you have or can project/guess/hope having embedded in them.If you can see that a few steady years of bed&ISA will get everything inside an ISA, then it is probably unnecessary.
If you anticipate you'll be generating cash fast enough that you will have a taxable investment account for the foreseeable future, then the ultimate saving in CGT liability when you do want to realise the assets makes it attractive.
Apart from some extra admin and transaction costs that should be smaller than the tax liability and having a small fraction of assets out of the market, what are the downsides? One might preferentially hold OEICs in the GIA to avoid stamp duty.....
And nothing to stop anyone dropping cash into their SIPP on the assumption that you will have Relevant UK earnings in the coming year.
Ie. If you ‘know’ that you will be making a chunky SIPP contribution this year, you technically don’t have to wait until you have earned that amount before you put whatever your choose to put in in, and you’ll get your ‘tax relief’ before you have actually suffered the tax liability through PAYE…
Ie. If you ‘know’ that you will be making a chunky SIPP contribution this year, you technically don’t have to wait until you have earned that amount before you put whatever your choose to put in in, and you’ll get your ‘tax relief’ before you have actually suffered the tax liability through PAYE…
Dropped £20k into the lifestrategy 40 this morning as trying hard to reduce cash holdings at the moment given inflation and tax implications. Even earning 1.5% with chase does nothing to stop it being eroded considerably for the foreseeable future.
As ever those who take a frugal approach in the good times rarely get rewarded when things go south.
As ever those who take a frugal approach in the good times rarely get rewarded when things go south.
Splitting my allowance for this tax year between S&SLISA (VEVE - £4k + £1k bonus when it arrives) and S&SISA ( FTSE Global ALL Cap - £16k). The initial £4k will be invested immediately, don't see the value in drip feeding a relatively small figure, for the S&SISA I am undecided whether to invest the full £16k in one hit or £8k lump sum + £8k drip-fed over the next 6 months
Welshbeef said:
Has anyone dropped in £20k into a cash isa today and then hold it there or move to S&S in due course
No need for a cash ISA, you can keep cash in a S&S ISA.There is no rule that says 6 April is the best time to invest, whether in an ISA or anything else. I'm keeping my powder, and allowance, dry for later.
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