ISA deadline looming...advice needed

[BlackR8]

Hi all,

My first post in the finance section hoping for a bit of advice.

I have never taken advantage of an ISA and also have been pretty crap with money generally across many facets so with a day or so to go for the 18/19 deadline I am thinking of breaking this poor approach and maybe utilising the ISA allowance for both me and my partner.

My requirements i think are simply something that is hands off, lowish level of risk and modest returns i.e. beating inflation after fees would be good enough for me, ideal would be 4%+ growth

I need a full financial healthcheck but getting time with an IFA before the deadline is unlikely as I am also away at the moment. (Tried contacting a couple through the vouchedfor website a week back but no responses at all so will follow this up on my return).

I have done a bit of reading and the Vanguard Lifestrategy 60/80 fund seems to be the sort of thing that appeals at the moment but am completely new to this so was hoping for some pointers so whether im on the right tracks.

The things that are going through my head: -

- with a general economic slowdown or widely predicted recession looming, is now the wrong time to enter and better just wait it out?
- whilst i dont have any immediate plans for the money, my situation at times can be volitile so there is a chance i may need to access the money in next 1-3 years so how does this play out for this type of fund
- i have existing shares in a couple companies which have all lost a fair chunk of money over the last few years so is it better if i just transfer these into an ISA, although i have no idea if thats possible!

Any and all advice is appreciated. There is no burning bridge so if i dont take the leap now and wait so i can make a better informed choice thats also fine, but with the deadline looming for this years ISA i thought better ask the question than do nothing at all!

Thanks in advance

Edited by BlackR8 on Thursday 4th April 09:58

[JulianPH]

Vanguard is a good low cost provider.

You might want to consider more bond exposure to sit in line with what you have described though.

[JulianPH]

Sorry, just read your post more fully.

If you may need access in 1 - 3 years then this approach is not really for you.

These investments are designed for the long term with a typical recommendation that you have minimum 5 year to invest, ideally 10.

A cash ISA could therefore be a more suitable option, it doesn't offer the higher potential returns but equally it doesn't carry the potential to be lower in value if you need to access the money in the short term.

Just ask if there is anything else.

[Jambo85]

AIUI you can put cash in and secure the allowance, and then take a deep breath and do your research and invest it later, or change your mind and withdraw it. No rush.

[croyde]

Jambo85 said:

AIUI you can put cash in and secure the allowance, and then take a deep breath and do your research and invest it later, or change your mind and withdraw it. No rush.

This.

I just wish I had the spare cash to make use of the remaining £10k allowance I have until tomorrow.

Bought into a new fund 2 weeks ago and already over 5% up but then I tend to go high risk.

My profit was slashed by 50% about 4 or 5 months ago but it's now back to where it was. Just wish I had had the foresight to buy more of the same funds when they nose dived.

My current overall annual yield is 10%, I'm in it for the long term and would only expect to withdraw monies if there was an emergency.

[BlackR8]

Thanks for the prompt responses guys.

Based on what has been mentioned it sounds like its better to just use the allowance in holding area and then allocate it once I have got some IFA time.

Does Vanguard charge you to remove the funds if I dont end up using it?
Also is it a pretty simple process to do this, i am in a weak internet area abroad so not sure it can handle a complex money transfer process :0)

Also any recommendations of an IFA? And also any thoughts on the impending recession we keep hearing about!!

[Mr Pointy]

OP; with only 1 1/2 days to go you don't really have time to be noncing around wondering which fund to put the money in. Look at opening an ISA with Hargreaves Lansdown & stick the money in a a Stocks & Share ISA but unallocated. You can always move it later when you have done the research. I only suggest HL because the web platform is very efficient but they aren't the chepaest once you invest in a fund (there are no charges for uninvested sums).

[JulianPH]

Mr Pointy said:

OP; with only 1 1/2 days to go you don't really have time to be noncing around wondering which fund to put the money in. Look at opening an ISA with Hargreaves Lansdown & stick the money in a a Stocks & Share ISA but unallocated. You can always move it later when you have done the research. I only suggest HL because the web platform is very efficient but they aren't the chepaest once you invest in a fund (there are no charges for uninvested sums).

Good points Mr pointy!

[BlackR8]

I agree with this approach.

Ok will just stick money in unallocated. If after speaking to IFA etc if i decide to move money out of the HL unallocated ISA will there be any charge for withdrawel or transfer or infact any charge at all if I have it left in the HL platform unallocated (e.g. platform fee whilst i decide?)

[Mr Pointy]

BlackR8 said:

I agree with this approach.

Ok will just stick money in unallocated. If after speaking to IFA etc if i decide to move money out of the HL unallocated ISA will there be any charge for withdrawel or transfer or infact any charge at all if I have it left in the HL platform unallocated (e.g. platform fee whilst i decide?)

There's a £25 charge to transfer out as cash. I don't think there are many other charges if you haven't bought a fund or shares, other than £25 to close the account:
https://www.hl.co.uk/investment-services/isa/savin...

[BlackR8]

Mr Pointy said:

BlackR8 said:

I agree with this approach.

Ok will just stick money in unallocated. If after speaking to IFA etc if i decide to move money out of the HL unallocated ISA will there be any charge for withdrawel or transfer or infact any charge at all if I have it left in the HL platform unallocated (e.g. platform fee whilst i decide?)

There's a £25 charge to transfer out as cash. I don't think there are many other charges if you haven't bought a fund or shares, other than £25 to close the account:
https://www.hl.co.uk/investment-services/isa/savin...

Thanks. I think given the relatively high fees on HL it may be unlikely that I would invest there so its important to me to be able to move the funds out without a large payment. Do Vanguard allow you to do the same i.e. open a isa for 18/19 and leave it unallocated until I am ready.

[trickywoo]

BlackR8 said:

Thanks. I think given the relatively high fees on HL it may be unlikely that I would invest there so its important to me to be able to move the funds out without a large payment. Do Vanguard allow you to do the same i.e. open a isa for 18/19 and leave it unallocated until I am ready.

Unless you expect to be in a position to use all of the next tax year's ISA allowance there is no need to sweat the deadline now.

[croyde]

I use Fidelity.

Not sure if there is a charge for just using it for cash but it has a very simple web interface for adding cash, dealing and plenty of links to how your funds are doing, graphs, risks and how your funds are spread.

[Mr Pointy]

BlackR8 said:

Thanks. I think given the relatively high fees on HL it may be unlikely that I would invest there so its important to me to be able to move the funds out without a large payment. Do Vanguard allow you to do the same i.e. open a isa for 18/19 and leave it unallocated until I am ready.

Yes I believe they do having just looked at the website. I only suggested HL because I've used them & I haven't used Vanguard , but it does look quite straightforward. You'll need you NI number to open an account.

Don't forget you need to transfer the funds using a debit card or BACS transfer & the FasterPayments system has limits. Before now I've had to make a number of smaller transfers of £5k before & after midnight but your bank may be different. Bank transfers also takes 24 hours at least.

As has been said if you're not going to make payments next year then loosing this year's allowance is not such a big deal.

[bitchstewie]

Worth a read as it's from today: https://www.trustnet.com/news/7454278/premier-vang...

Go here to compare charges but don't overthink it too much http://www.comparefundplatforms.com/

IMO better to pay a bit more to somewhere like HL than shop solely on price and find you can't buy things you may want (IWEB leap to mind for this).

Edited by bhstewie on Thursday 4th April 18:32