Intelligent Money - your investment questions answered

[highpeakrider]

JulianPH said:

highpeakrider said:

That’s fantastic, thank you

No problem, it is looking to be an exciting year and a great opportunity for PHer Private Clients who have not yet met Nik to get together at some very special events!

Think I fancy Donnington, saw Senna win the European GP and Red 5 crash his mondeo in the a Tocca touring car championship , we were stood on the banking where he hit the bridge.

Showing my age now, great circuit should be a great day.

[JulianPH]

highpeakrider said:

JulianPH said:

highpeakrider said:

That’s fantastic, thank you

No problem, it is looking to be an exciting year and a great opportunity for PHer Private Clients who have not yet met Nik to get together at some very special events!

Think I fancy Donnington, saw Senna win the European GP and Red 5 crash his mondeo in the a Tocca touring car championship , we were stood on the banking where he hit the bridge.

Showing my age now, great circuit should be a great day.

In that case (unless you decide otherwise) Donnington it is!

I should be there too, so it would be great to meet up.

Obviously there are two dates to choose from at this circuit, but I'll leave that detail to you and Nik.

[Gallons Per Mile]

JulianPH said:

Just to let everyone know, Nik will be in touch with all our PHer Private Clients offering complimentary VIP hospitality tickets to the race of your choice in this year's Intelligent Money British GT Championship.

Ooh wow, thanks Julian! Rather looking forward to this You've just made my night shift slightly more exciting!

[Phooey]

What happens to a JISA, or what choices do the parents have when the child turns 18? Say for example the child doesn't know about it and the parents want to continue paying into it until he/she reaches 25... Can it all be kept hush hush or does Nik come knocking on the door asking for a signature to transfer it on his/her 18th birthday?

[JulianPH]

Gallons Per Mile said:

Ooh wow, thanks Julian! Rather looking forward to this You've just made my night shift slightly more exciting!

Happy to have brightened up your night shift!

[JulianPH]

Phooey said:

What happens to a JISA, or what choices do the parents have when the child turns 18? Say for example the child doesn't know about it and the parents want to continue paying into it until he/she reaches 25... Can it all be kept hush hush or does Nik come knocking on the door asking for a signature to transfer it on his/her 18th birthday?

Technically, the child can take control of where it is invested at 16, but cannot access until 18.

Of course they have to know it exists in the first place though!

You can't make any more contributions to it after they turn 18, though there is nothing stopping you putting money into a different adult account for them.

Cheers

[dave_xyz]

Hi Nik & Julian,

I have a few old / deferred pensions that I'm looking to consolidate, and have been following this thread with interest.

I'm thinking of transferring them into an IM SIPP - but before I do that I have a couple of questions:

One of the pensions is currently invested in a 'with profits' fund. Another has a 'benefit underpin' associated with contracting out of SSP. Both are defined contribution pensions - can I simply transfer these or would I need independent advice first?

Lastly how easy is it to transfer existing pensions to IM? Is it as simple as providing the providers and account details and you do all the rest?

Thanks in advance,

Dave

[JulianPH]

dave_xyz said:

Hi Nik & Julian,

I have a few old / deferred pensions that I'm looking to consolidate, and have been following this thread with interest.

I'm thinking of transferring them into an IM SIPP - but before I do that I have a couple of questions:

One of the pensions is currently invested in a 'with profits' fund. Another has a 'benefit underpin' associated with contracting out of SSP. Both are defined contribution pensions - can I simply transfer these or would I need independent advice first?

Lastly how easy is it to transfer existing pensions to IM? Is it as simple as providing the providers and account details and you do all the rest?

Thanks in advance,

Dave

Hi Dave

Thank you for thinking of us with this.

With regard to any potential benefits from your existing schemes then it is certainly worth your whilst getting in touch with Nik ([e-mail]) who will be able to let you know exactly what these are before you consider a switch (there is no charge for this, regardless of the outcome).

You do not need to use (or pay) a financial adviser first, or at any point.

Moving them over is all online and take just a few minutes. Yes, you simply put in the details you mentioned and we do all of the rest.

Please give me a shout if there is anything else and pop Nik a quick message if you would like an evaluation before switching.

Cheers

Julian

[Phooey]

JulianPH said:

Technically, the child can take control of where it is invested at 16, but cannot access until 18.

Of course they have to know it exists in the first place though!

You can't make any more contributions to it after they turn 18, though there is nothing stopping you putting money into a different adult account for them.

Cheers

Cheers. Would it therefore be possible then for your JISA to automatically roll or transfer into an adult ISA (in the child's name - once they reach 18) still without him/her knowing?

[JulianPH]

Phooey said:

JulianPH said:

Technically, the child can take control of where it is invested at 16, but cannot access until 18.

Of course they have to know it exists in the first place though!

You can't make any more contributions to it after they turn 18, though there is nothing stopping you putting money into a different adult account for them.

Cheers

Cheers. Would it therefore be possible then for your JISA to automatically roll or transfer into an adult ISA (in the child's name - once they reach 18) still without him/her knowing?

A junior ISA automatically becomes a normal (adult) ISA when the child turns 18.

If they don't know about the existence of the JISA then they will not know about the existence of their adult ISA!

However, technically (and legally) this is all their money and so if you start making lump sum payments you cannot claim you just forgot about it.

You would probably be better to move to monthly contributions (if you are not doing so already) a few years before they turn 18 and then these can continue into their converted "adult" ISA after 18, giving you the ability to say you forgot to cancel the Direct Debit.

[superlightr]

JulianPH said:

Phooey said:

JulianPH said:

Technically, the child can take control of where it is invested at 16, but cannot access until 18.

Of course they have to know it exists in the first place though!

You can't make any more contributions to it after they turn 18, though there is nothing stopping you putting money into a different adult account for them.

Cheers

Cheers. Would it therefore be possible then for your JISA to automatically roll or transfer into an adult ISA (in the child's name - once they reach 18) still without him/her knowing?

A junior ISA automatically becomes a normal (adult) ISA when the child turns 18.

If they don't know about the existence of the JISA then they will not know about the existence of their adult ISA!

However, technically (and legally) this is all their money and so if you start making lump sum payments you cannot claim you just forgot about it.

You would probably be better to move to monthly contributions (if you are not doing so already) a few years before they turn 18 and then these can continue into their converted "adult" ISA after 18, giving you the ability to say you forgot to cancel the Direct Debit.

although I would imagine once they are 18 and adults they become the client there would be a need for IM to have introductory letter/summary of account sent to them so that there is full disclosure of the funds held on their behalf?

[mikeiow]

Or just allow it to close off and exist (maybe hidden for some future use - "oh, you need a car/deposit/etc? I forgot, we opened this savings account when you were little - I hope this helps"......!).

.....then have a 'grown up' conversation about money, and have them "consciously on board" and appreciating the things you are doing to help them in their futures - get them to understand ISAs and how they can be used, and get them to open it whilst you perhaps help fund it.....

Just a thought ;-)

[JulianPH]

superlightr said:

although I would imagine once they are 18 and adults they become the client there would be a need for IM to have introductory letter/summary of account sent to them so that there is full disclosure of the funds held on their behalf?

We send a notification to the parent prior to the child's 18th birthday informing them the the ISA will be moved on that day from their account to a dedicated account for the child/adult.

This contains the login details for this new account that they should pass onto their child.

At this point some parents will want their "Nik" to come round and discuss/explain along side them exactly what has been achieved, how x has grown into y and the value of long term investing and using compound returns to your advantage (and how debt does the exact opposite). Others may be somewhat forgetful in getting round to this!

[JulianPH]

mikeiow said:

Or just allow it to close off and exist (maybe hidden for some future use - "oh, you need a car/deposit/etc? I forgot, we opened this savings account when you were little - I hope this helps"......!).

.....then have a 'grown up' conversation about money, and have them "consciously on board" and appreciating the things you are doing to help them in their futures - get them to understand ISAs and how they can be used, and get them to open it whilst you perhaps help fund it.....

Just a thought ;-)

Exactly!

As mentioned above we are happy to help play a part in this process. It is a valuable opportunity to instil financial awareness at an early age, which is a valuable gift to be able to impart on your children.

[Jackals]

Hi Julian & Nik,

Is there any technical issues at the moment with your online access? I couldn't get into my account earlier (stating database issues and then not finding my account), now managed to log in and my portfolio is down nearly 6% since yesterday afternoon? The value is based on the close yesterday correct? I'm invested in the IM Index 100 and the US market were up yesterday (albeit slight).

Maybe i'm just overacting

[JulianPH]

Jackals said:

Hi Julian & Nik,

Is there any technical issues at the moment with your online access? I couldn't get into my account earlier (stating database issues and then not finding my account), now managed to log in and my portfolio is down nearly 6% since yesterday afternoon? The value is based on the close yesterday correct? I'm invested in the IM Index 100 and the US market were up yesterday (albeit slight).

Maybe i'm just overacting

Hi Jackals

I've just logged in to mine and can see the same thing.

Something is obviously not right (my PH Equity down even more that this too).

Let me get on to the tech team ASAP as I can only assume an error in data feeds.

Thanks for letting us know about this, I'll be back shortly.

[JulianPH]

First update, there is a system bug whereby the latest data feed is showing the book value (the value at the end of the first trading day of investment) rather than the current value.

This, ironically, shows you the growth you have received to date, though as a minus number (so your 6% fall in IM Index 100 and my 7%+ fall in PH Equity is actually the growth we have received).

I am quite happy to learn that I did not lose a serious amount of money over the last 24 hours (though running this I knew that anyway and that it must have been a data feed error) and am still up 7%+ over 8 weeks.

We have put up a warning message for all clients on this and are removing yesterdays figures (this should be done in the next 20 minutes) before uploading the correct data.

Serious apologies for anyone this has spooked. Technology eh? Isn't it great.

Thank you once again Jackals for bringing this glitch to my/our attention.

[superlightr]

JulianPH said:

First update, there is a system bug whereby the latest data feed is showing the book value (the value at the end of the first trading day of investment) rather than the current value.

This, ironically, shows you the growth you have received to date, though as a minus number (so your 6% fall in IM Index 100 and my 7%+ fall in PH Equity is actually the growth we have received).

I am quite happy to learn that I did not lose a serious amount of money over the last 24 hours (though running this I knew that anyway and that it must have been a data feed error) and am still up 7%+ over 8 weeks.

We have put up a warning message for all clients on this and are removing yesterdays figures (this should be done in the next 20 minutes) before uploading the correct data.

Serious apologies for anyone this has spooked. Technology eh? Isn't it great.

Thank you once again Jackals for bringing this glitch to my/our attention.

i saw this and thought ah bummer its a down part of the market...... even more excited to hear its just a feed freek out and is likely to bounce back just as quick !


ps its back mostly Yah !! - although some of the funds are still showing 15/1/20 as the last update.


a quick question you may have answered before. with a S&S isa just in the process of it being transferred to IM - if I want to change it from the index to one of the optimum is there a charge from IM for the transfer? - I understand that there may be a CGT/tax in a gain ( but if its less then 2 weeks there wont be much on a £35k)

thx

Edited by superlightr on Tuesday 21st January 14:38

[JulianPH]

superlightr said:

i saw this and thought ah bummer its a down part of the market...... even more excited to hear its just a feed freek out and is likely to bounce back just as quick !


ps its back mostly Yah !! - although some of the funds are still showing 15/1/20 as the last update.


a quick question you may have answered before. with a S&S isa just in the process of it being transferred to IM - if I want to change it from the index to one of the optimum is there a charge from IM for the transfer? - I understand that there may be a CGT/tax in a gain ( but if its less then 2 weeks there wont be much on a £35k)

thx

Edited by superlightr on Tuesday 21st January 14:38

Hi superlightr

Yes, just a feed freak that has now been quickly restored having been brought to our attention (thank you once again Jackals).

All IM Index portfolios (and PH Equity) are actually up on the day.

IM Optimum has had to be reset back to the 15th in order to be properly repopulated (give it a hour or so).

I personally apologies for any concern this has caused and hope that our speed of action in putting this software glitch right gives some measure of reassurance that we are not complete idiots and that when things go wrong (as they sometimes do) we are quick to put them right and take it firmly on the chin rather than try to blame others.

There is no charge whatsoever to switch between portfolios and you can do this for free whenever you like. If it is within a GIA you are correct that this is a CGT event, though as you state that does not necessarily mean there is actually any tax to pay.






Edited to add - When you mentioned CGT I assumed you were referring to a GIA, but obviously you state an ISA. There is no CGT whatsoever within an ISA so switching investment is always completely free of both charges (with IM, anyway) and tax.

Cheers

Edited by JulianPH on Tuesday 21st January 15:10

[superlightr]

JulianPH said:

There is no charge whatsoever to switch between portfolios and you can do this for free whenever you like. If it is within a GIA you are correct that this is a CGT event, though as you state that does not necessarily mean there is actually any tax to pay.






Edited to add - When you mentioned CGT I assumed you were referring to a GIA, but obviously you state an ISA. There is no CGT whatsoever within an ISA so switching investment is always completely free of both charges (with IM, anyway) and tax.

Cheers

Edited by JulianPH on Tuesday 21st January 15:10

thank you
i was indeed getting mixed up - yes did realise with ISA there is no CGT/Tax but thank you for confirming and also no charges for switching Isa within IM from one to another. Im keen to keep the ISA as an index 60 or 40 for a bit then go into the optimum defensive longer term.

Yes GIA was also in the back of my mind as thats our next step but after getting the ISA moved to IM and was pre-thinking and typed before brain was engaged ! haha.

Edited by superlightr on Tuesday 21st January 15:34