Vanguard isa

[Chipper]

My wife and I need to max our isa out. I’ve only just started to invest this year into Isa’s with vanguard £7000 in 60/40 .

I was up just under 6% just before covid kicked in and at the worst point i was down 30%. Its currently 22.04 % down but ive spoken to two FA and they are advising me to keep going now while its low.

Half of me wants to hold back investing at this time as it looks like its going to get a lot worse before it improves but by doing this i will lose this years allowance.

So whats pistonheads thoughts on investing ?

[greygoose]

Chipper said:

My wife and I need to max our isa out. I’ve only just started to invest this year into Isa’s with vanguard £7000 in 60/40 .

I was up just under 6% just before covid kicked in and at the worst point i was down 30%. Its currently 22.04 % down but ive spoken to two FA and they are advising me to keep going now while its low.

Half of me wants to hold back investing at this time as it looks like its going to get a lot worse before it improves but by doing this i will lose this years allowance.

So whats pistonheads thoughts on investing ?

Can you not put the remaining allowance into the ISA and keep it as cash, without buying whichever fund you want, then if the market falls you can buy then? Or invest some now and some later, or just drip feed on a monthly basis.

[loskie]

invest now, it will recover

BUT



Make sure you keep enough cash reserves, possibly a bit more than normal.

[Chipper]

I think I’m going to jump in ( famous last words ) and max both ours and just drip feed per month for after April.

[Vergis]

Vaguard is over rated. Look elsewhere imo. Fundsmith comes to mind.

[I 8 a 4RE]

greygoose said:

Can you not put the remaining allowance into the ISA and keep it as cash, without buying whichever fund you want, then if the market falls you can buy then? Or invest some now and some later, or just drip feed on a monthly basis.

This is the right answer to this question. Case closed.

Vanguard is widely accepted as (one of) the best platforms due to available funds and ETFs.

If you want to “catch up” you can drop feed the remaining £13k allowance in the coming weeks / months.
Next tax year, just drip feed it (bi-)monthly in yours and your wife’s ISAs (you need separate accounts but on Vanguard you can link them and see all when logging into one).

It will be the tortoise strategy, but last time I read the story, he still won the race!

[Simpo Two]

I 8 a 4RE said:

If you want to “catch up” you can drop feed the remaining £13k allowance in the coming weeks / months.

Almost; the current FY only has a week to go; after that he'll have another £20K to 'spend'.

[JulianPH]

Simpo Two said:

I 8 a 4RE said:

If you want to “catch up” you can drop feed the remaining £13k allowance in the coming weeks / months.

Almost; the current FY only has a week to go; after that he'll have another £20K to 'spend'.

Hi mate, I think the point was to get it into the ISA right now and then drip feed from the cash account within the ISA.

I trust all is good with you.

[I 8 a 4RE]

Yeah what Julian said.
As long as the cash is on the account in the ISA wrapper, it doesn’t matter when you invest it into the market.

[Simpo Two]

I 8 a 4RE said:

Yeah what Julian said.
As long as the cash is on the account in the ISA wrapper, it doesn’t matter when you invest it into the market.

Right. As written it implied 'drip-feed into the ISA' when it meant 'drip feed the cash already in the ISA into investments'. Rather different things

[Mr Pointy]

Simpo Two said:

I 8 a 4RE said:

Yeah what Julian said.
As long as the cash is on the account in the ISA wrapper, it doesn’t matter when you invest it into the market.

Right. As written it implied 'drip-feed into the ISA' when it meant 'drip feed the cash already in the ISA into investments'. Rather different things

Yup. Precision of language is sometimes important.

[addey]

Apologies for a very slight thread highjack....

I have a couple of Vanguard S&S Isas set up in my daughter's names. I opened them in 2018 and I realised today that they have just sat as cash, as I never actually got round to selecting one of the lifestrategy funds for them to be invested in to - oops! Although not sure if that has ended up being a good thing in light of what has happened recently?

Anyway, now I've realised my error, am I right to follow the advice above and start moving a regular monthly amount from cash to the 80/20 fund or something like that? Or chuck it all in now? Only talking £4k or so each, and looking at 10/12+ years respectively

I'm a bit clueless about this stuff to be honest so appreciate any guidance

[AllyM]

addey said:

Apologies for a very slight thread highjack....

I have a couple of Vanguard S&S Isas set up in my daughter's names. I opened them in 2018 and I realised today that they have just sat as cash, as I never actually got round to selecting one of the lifestrategy funds for them to be invested in to - oops! Although not sure if that has ended up being a good thing in light of what has happened recently?

Anyway, now I've realised my error, am I right to follow the advice above and start moving a regular monthly amount from cash to the 80/20 fund or something like that? Or chuck it all in now? Only talking £4k or so each, and looking at 10/12+ years respectively

I'm a bit clueless about this stuff to be honest so appreciate any guidance

You’d probably find your accounts down on 2018 valuations for all of the Lifestrategy funds, therefore if you accept you should have gone in back then, then now is the time, none like the present. If you have 10+ years to run think about 80/20 or minimum 60/40. There’s a sale on. You could even buy in over, say, 6 months, if that brings you a little bit of comfort. I’d probably just go all in on if you’re only talking £4K, though.

Remember, the cash in your VG accounts has been, and will continue to be, subject to inflation if you don’t take action to get it going.

[TheGreatSoprendo]

Vergis said:

Vaguard is over rated. Look elsewhere imo. Fundsmith comes to mind.

Does anyone have any recommendations for S&S ISA providers that have lower lump sum limits that Vanguard's £500 and Fundsmith's £1000?

[lizardbrain]

I half remember someone saying vanguard paid interest on cash in their ISA. But I can’t find the rate anywhere or interest added?

Can anyone else confirm this is actually the case, and hownits administrated?

[Kickstart]

lizardbrain said:

I half remember someone saying vanguard paid interest on cash in their ISA. But I can’t find the rate anywhere or interest added?

Can anyone else confirm this is actually the case, and how its administrated?

It's currently just under 2% but it varies - if you have a look at the Vanguard website under the cash fund and look at the distributions section you can pro rata it from the Oct 22 payment