Stocks and shares ISA
Discussion
HSBC offer a stocks and shares ISA, would it be wise to put my £20,000 yearly allocation in to one of those this financial year or just plain stupid given the current market situation?
I'm no market expert so I'm thinking how HSBC will manage the ISA, in terms of some stock and shares will likely become valueless due to some/many companies going bust, whereas some stocks and share prices may rocket from current values back to where they once were pre-covid 19.
I'm no market expert so I'm thinking how HSBC will manage the ISA, in terms of some stock and shares will likely become valueless due to some/many companies going bust, whereas some stocks and share prices may rocket from current values back to where they once were pre-covid 19.
GroundZero said:
Planning to put in my yearly allowance of £20k and leaving it in there for about 3 years before possibly requiring it for a house move.
Have you decided what your attitude to risk is? Are you more concerned with the capital preservation or trying to see gain on the sum invested? In other words, why are you looking to invest this money, which has a dedicated use, for a fairly short period?You might want to look at funds which are at the less adventurous end of the scale (Vanguard Lifestrategy 20/40/60 would be examples of this) given the short investment timescale.
As to whether now is a good time to invest, well everyone is trying to guess the answer to that question & a lot of smart people don't know the answer (on account of not having a crystal ball). The usual response is to make regular investments in the hope you don't go all in just as the markets tank again.
I think I'm going to play it safe. My attitude to risk when it comes to my hard earned is on the low side, so the money is going to be put in an ISA with another bank that is offering a better rate.
Stocks and shares ISA, given the current situation seems like peering in to a big black hole, not knowing what beast lies beneath.
Stocks and shares ISA, given the current situation seems like peering in to a big black hole, not knowing what beast lies beneath.
GroundZero said:
I think I'm going to play it safe. My attitude to risk when it comes to my hard earned is on the low side, so the money is going to be put in an ISA with another bank that is offering a better rate.
Stocks and shares ISA, given the current situation seems like peering in to a big black hole, not knowing what beast lies beneath.
Just do keep in mind that investing in "stocks and shares" isn't binary.Stocks and shares ISA, given the current situation seems like peering in to a big black hole, not knowing what beast lies beneath.
If you look at something like Vanguard's LifeStrategy or Intelligent Money as two examples there is a range of products from cautious through to full stock market exposure.
I fully agree that if you don't think you have the appetite for any of this then cash may be the best options.
But equally please don't see it as "peering into a big black hole" or if it is think of there as being degrees from peering through to leaping in wearing lead boots
colin79666 said:
If it’s for a house move and if you haven’t owned property before then get a lifetime isa.
Cheers. I did notice such an ISA but we aren't first time buyers anymore. I wonder though if the government/banks will need to create future incentives to get the housing market moving again in the next few years?
GroundZero said:
Cheers. I did notice such an ISA but we aren't first time buyers anymore.
I wonder though if the government/banks will need to create future incentives to get the housing market moving again in the next few years?
Kind of already have - super low interest rates. If millions are out of work however it will slow the market even if values stay fairly level. I wonder though if the government/banks will need to create future incentives to get the housing market moving again in the next few years?
Hope this doesn't come across offensive; it sounds like you are new to the investing game.
An HSBC S&S ISA can mean many things; an ISA is a tax-free wrapper and HSBC offer multiple products inside this ISA (typically funds from their own Asset Management division). As mentioned above, your best choice will depend on your risk appetite.
If I were you, I'd reach out to JulianPH on this Forum (he answers many questions in the sticky thread on the top of the Finance page). They manage a bunch of active and passive (tracker) funds which will meet your risk appetite - he can help you take a wise decision and educate you along the way.
If I have overstepped, I apologise in advance, trying to help.
An HSBC S&S ISA can mean many things; an ISA is a tax-free wrapper and HSBC offer multiple products inside this ISA (typically funds from their own Asset Management division). As mentioned above, your best choice will depend on your risk appetite.
If I were you, I'd reach out to JulianPH on this Forum (he answers many questions in the sticky thread on the top of the Finance page). They manage a bunch of active and passive (tracker) funds which will meet your risk appetite - he can help you take a wise decision and educate you along the way.
If I have overstepped, I apologise in advance, trying to help.
Thanks for that reply.
No offense taken, my risk mindset has always been quite low when it comes to my savings and as such I've never wanted to explore options that involve a possibility that my funds could be lower than what I put in to the account come 'maturity'.
As we are in strange times for this year's ISA allowance, I just wanted to question the risk on the stocks and shares ISA. For me it seems like staring in to a big black hole, but I just wondered if it would have been a given that because many stock and share prices have bottomed, whether this is a "buy now" no brainer?
Or whether the risk that some/many of these companies would go bust would is just too high?
But any way, I have now gone with a fixed rate ISA with Barclays.
No offense taken, my risk mindset has always been quite low when it comes to my savings and as such I've never wanted to explore options that involve a possibility that my funds could be lower than what I put in to the account come 'maturity'.
As we are in strange times for this year's ISA allowance, I just wanted to question the risk on the stocks and shares ISA. For me it seems like staring in to a big black hole, but I just wondered if it would have been a given that because many stock and share prices have bottomed, whether this is a "buy now" no brainer?
Or whether the risk that some/many of these companies would go bust would is just too high?
But any way, I have now gone with a fixed rate ISA with Barclays.
Op, fwiw this is what I have been doing..I'm a relative noob/amateur too.
I have a LISA...when interest rates were higher on current/regular savers I would use them through the year then just before the end of tax year, move £4k into the LISA to receive the £1k govt bonus.
I am also saving for a property so my current split roughly is as follows:
7% invested into a Vanguard LS(S&S ISA) that I drip feed monthly..have significantly increased contributions to take advantage of the COVID induced downturn e.g: lower prices but accept the higher risk that comes with investing Vs bank accounts
Rest (over 90%) in cash across current accounts and the LISA.
That allocation split will change over next few months as I ramp up the cash going into the VLS.
I was v conservative getting to my current cash levels so am taking a bit more risk now...but eyes fully open as I take the plunge.
I have a LISA...when interest rates were higher on current/regular savers I would use them through the year then just before the end of tax year, move £4k into the LISA to receive the £1k govt bonus.
I am also saving for a property so my current split roughly is as follows:
7% invested into a Vanguard LS(S&S ISA) that I drip feed monthly..have significantly increased contributions to take advantage of the COVID induced downturn e.g: lower prices but accept the higher risk that comes with investing Vs bank accounts
Rest (over 90%) in cash across current accounts and the LISA.
That allocation split will change over next few months as I ramp up the cash going into the VLS.
I was v conservative getting to my current cash levels so am taking a bit more risk now...but eyes fully open as I take the plunge.
Edited by VR99 on Sunday 12th April 09:34
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