If you're investing for the long term I don't see why you'd pick a cash ISA over a broad based Stocks and Shares tracker ISA.
Some people are just risk adverse. Or they think they are. They hear the words "stocks & shares" and immediately think that they will lose ALL their money. Also think advisers & financial institutions are there to fleece them. Various mis-selling scandals hasn't helped but neither have the regulators with their "cautions" and wording and also the media. When Trumps tariffs hit the markets it was headline news. And I mean headline news. First item on the news bulletins with all the shock & awe that that brings. But as we know on here the falls that "Independence Day" brought have now been reversed & most people are up on where they were on April 2nd. But that isn't reported anywhere. To the general public Trumps tariffs wrecked their pensions & so telling them they should be putting more money into them fears them to death.
Much more education is needed.
Trump is a one trick pony. He operates only with threats and bluster. Not to say these increased tariffs won't be imposed, but they won't last long if they are.
Cash ISAs are great. A guaranteed rate of around 4% tax free shouldn't be dismissed. One the best things about Trading212 is you can move cash between a Cash ISA and a S&S ISA for free. Myself and RobLee7 took advantage of this when Trump was pushing ahead with Tariffs and were able to buy stock back at a far lower rate.
@cafctom if you're under 40 I would recommend opening a Lifetime ISA. The limit for it is only £4k a year but you receive a 25% bonus from the government each year if you don't withdraw from it until you reach 60. You can keep investing in it until you turn 50.
I personally would recommend a pension over Lifetime ISA if you aren't planning to take it out until retirement.
Lifetime ISA really needs a shakeup.
If you are only ever a 20% tax payer LISA's make a lot of sense,
Yeah that's true, if you're not though, I would argue it makes very little sense.
Cash ISAs are great. A guaranteed rate of around 4% tax free shouldn't be dismissed. One the best things about Trading212 is you can move cash between a Cash ISA and a S&S ISA for free. Myself and RobLee7 took advantage of this when Trump was pushing ahead with Tariffs and were able to buy stock back at a far lower rate.
@cafctom if you're under 40 I would recommend opening a Lifetime ISA. The limit for it is only £4k a year but you receive a 25% bonus from the government each year if you don't withdraw from it until you reach 60. You can keep investing in it until you turn 50.
I personally would recommend a pension over Lifetime ISA if you aren't planning to take it out until retirement.
Lifetime ISA really needs a shakeup.
You couldnt retire on a LISA. Suggesting that instead of a pension is insane.
Sorry I have worded that poorly, I meant that I would rather contribute my gross income into a pension than net of tax with the government bonus into a LISA (if I'm above a 20% tax band as pointed out above by Rob).
He's a one trick pony because he doesn't currently control the Fed. Once he's able to manipulate interest rates and the money supply he can cause carnage.
I am beginning to get the impression that the markets are shrugging off trump's nonsense now, fairly sure that whatever stupid decision he throws out today will be deferred, reduced, reversed soon enough. You can't plan for anything if you give his nonsense credence so best just ignore the twat and plough your own furrow.
To some extent yes. However businesses also have real problems planning for anything too. This creates an extra risk in any investment by business.
New announcement from Trump on EU tariffs at 30%. Markets to fall again ?
Is now “boy that cried wolf” territory? Do people believe these tariffs will actually be imposed?
Today the FT led with a story of big potatoes including Jamie Dimon warning that markets are complacent, they've decided that TACO (a coin termed by an FT columnist) is a thing, but they might find out that he follows through, just to show them who's boss, as he sees it. If these levels hold next week, I'll be looking to sell chunks of funds with US holdings, especially in my SIPP.
The thing that doesn't seem to get mentioned here enough is that while US stocks have recovered from April, the dollar most certainly hasn't, so my funds with US holdings are doing nowhere near as well as the indices, because the funds are priced in £s.
I am beginning to get the impression that the markets are shrugging off trump's nonsense now, fairly sure that whatever stupid decision he throws out today will be deferred, reduced, reversed soon enough. You can't plan for anything if you give his nonsense credence so best just ignore the twat and plough your own furrow.
To some extent yes. However businesses also have real problems planning for anything too. This creates an extra risk in any investment by business.
Agreed, but in this Alice in Wonderland environment, where nothing US related can be relied upon, what can you do but plough on?
I am beginning to get the impression that the markets are shrugging off trump's nonsense now, fairly sure that whatever stupid decision he throws out today will be deferred, reduced, reversed soon enough. You can't plan for anything if you give his nonsense credence so best just ignore the twat and plough your own furrow.
To some extent yes. However businesses also have real problems planning for anything too. This creates an extra risk in any investment by business.
Agreed, but in this Alice in Wonderland environment, where nothing US related can be relied upon, what can you do but plough on?
Stay in money market funds for a few months? They're still showing over 4% p.a. growth although I daresay that will ease back a bit.
New announcement from Trump on EU tariffs at 30%. Markets to fall again ?
Is now “boy that cried wolf” territory? Do people believe these tariffs will actually be imposed?
Today the FT led with a story of big potatoes including Jamie Dimon warning that markets are complacent, they've decided that TACO (a coin termed by an FT columnist) is a thing, but they might find out that he follows through, just to show them who's boss, as he sees it. If these levels hold next week, I'll be looking to sell chunks of funds with US holdings, especially in my SIPP.
The thing that doesn't seem to get mentioned here enough is that while US stocks have recovered from April, the dollar most certainly hasn't, so my funds with US holdings are doing nowhere near as well as the indices, because the funds are priced in £s.
New announcement from Trump on EU tariffs at 30%. Markets to fall again ?
Is now “boy that cried wolf” territory? Do people believe these tariffs will actually be imposed?
Today the FT led with a story of big potatoes including Jamie Dimon warning that markets are complacent, they've decided that TACO (a coin termed by an FT columnist) is a thing, but they might find out that he follows through, just to show them who's boss, as he sees it. If these levels hold next week, I'll be looking to sell chunks of funds with US holdings, especially in my SIPP.
The thing that doesn't seem to get mentioned here enough is that while US stocks have recovered from April, the dollar most certainly hasn't, so my funds with US holdings are doing nowhere near as well as the indices, because the funds are priced in £s.
You can get some US funds hedged back into US$.
They tend to have high fees, don't they?
I'm curious though; a good test might be if you could take a bog standard UK index fund tracking the S&P500 and compare its performance YTD to a hedged fund you like, and also to the S&P500 index itself. Would you be able to run the numbers on that?
New announcement from Trump on EU tariffs at 30%. Markets to fall again ?
Is now “boy that cried wolf” territory? Do people believe these tariffs will actually be imposed?
Today the FT led with a story of big potatoes including Jamie Dimon warning that markets are complacent, they've decided that TACO (a coin termed by an FT columnist) is a thing, but they might find out that he follows through, just to show them who's boss, as he sees it. If these levels hold next week, I'll be looking to sell chunks of funds with US holdings, especially in my SIPP.
The thing that doesn't seem to get mentioned here enough is that while US stocks have recovered from April, the dollar most certainly hasn't, so my funds with US holdings are doing nowhere near as well as the indices, because the funds are priced in £s.
The worry is that Sterling looks pretty wobbly too. If Labour's left get to dictate fiscal policy, which looks more and more likely, we could see quite precipitous falls in it's value.
New announcement from Trump on EU tariffs at 30%. Markets to fall again ?
Is now “boy that cried wolf” territory? Do people believe these tariffs will actually be imposed?
Today the FT led with a story of big potatoes including Jamie Dimon warning that markets are complacent, they've decided that TACO (a coin termed by an FT columnist) is a thing, but they might find out that he follows through, just to show them who's boss, as he sees it. If these levels hold next week, I'll be looking to sell chunks of funds with US holdings, especially in my SIPP.
The thing that doesn't seem to get mentioned here enough is that while US stocks have recovered from April, the dollar most certainly hasn't, so my funds with US holdings are doing nowhere near as well as the indices, because the funds are priced in £s.
The worry is that Sterling looks pretty wobbly too. If Labour's left get to dictate fiscal policy, which looks more and more likely, we could see quite precipitous falls in it's value.
Are there any currencies that DON'T look wobbly, aside from.the Chinese?
The birth of my first grandchild is imminent, and would like to set some sort of investment to mature at 18. NS&I children bonds that I did for my son seem to have stopped.
New announcement from Trump on EU tariffs at 30%. Markets to fall again ?
Is now “boy that cried wolf” territory? Do people believe these tariffs will actually be imposed?
Today the FT led with a story of big potatoes including Jamie Dimon warning that markets are complacent, they've decided that TACO (a coin termed by an FT columnist) is a thing, but they might find out that he follows through, just to show them who's boss, as he sees it. If these levels hold next week, I'll be looking to sell chunks of funds with US holdings, especially in my SIPP.
The thing that doesn't seem to get mentioned here enough is that while US stocks have recovered from April, the dollar most certainly hasn't, so my funds with US holdings are doing nowhere near as well as the indices, because the funds are priced in £s.
The worry is that Sterling looks pretty wobbly too. If Labour's left get to dictate fiscal policy, which looks more and more likely, we could see quite precipitous falls in it's value.
Are there any currencies that DON'T look wobbly, aside from.the Chinese?
The Euro and the Swiss Franc have been quietly appreciating over the last few months but I take your point.
The birth of my first grandchild is imminent, and would like to set some sort of investment to mature at 18. NS&I children bonds that I did for my son seem to have stopped.
Any advice would be appreciated.
Get him some premium bonds and every month he can have the excitement of the possibility of winning a huge prize AND the joy of posting on here that he hasn't won anything again. Win win! (or rather, lose lose)
The birth of my first grandchild is imminent, and would like to set some sort of investment to mature at 18. NS&I children bonds that I did for my son seem to have stopped.
Any advice would be appreciated.
Get him some premium bonds and every month he can have the excitement of the possibility of winning a huge prize AND the joy of posting on here that he hasn't won anything again. Win win! (or rather, lose lose)
(I'm not a qualified IFA, by the way)
No way imho. Long term investment so has to be some sort of share investment. Come in golfie.
If you're looking to put it into a Jnr stocks and shares ISA I don't think Hargreaves Lansdown will charge you any platform fees (to the best of my knowledge).
The birth of my first grandchild is imminent, and would like to set some sort of investment to mature at 18. NS&I children bonds that I did for my son seem to have stopped.
Any advice would be appreciated.
Get him some premium bonds and every month he can have the excitement of the possibility of winning a huge prize AND the joy of posting on here that he hasn't won anything again. Win win! (or rather, lose lose)
(I'm not a qualified IFA, by the way)
No way imho. Long term investment so has to be some sort of share investment. Come in golfie.
This. A low fee World tracker fund and leave it there.
The birth of my first grandchild is imminent, and would like to set some sort of investment to mature at 18. NS&I children bonds that I did for my son seem to have stopped.
Any advice would be appreciated.
Get him some premium bonds and every month he can have the excitement of the possibility of winning a huge prize AND the joy of posting on here that he hasn't won anything again. Win win! (or rather, lose lose)
(I'm not a qualified IFA, by the way)
No way imho. Long term investment so has to be some sort of share investment. Come in golfie.
@usetobunkin says he wants it to mature at 18 so depending on the amount we are talking about probably best investment would be a JISA. Turns into an ISA at 18 so the (now) grandchild can then decide what they want to do with it then.
Fund choice is another matter. Yes, a global fund of some sort but I'd split it into 2 or 3 funds. A typical global tracker will be 65% US based so might be a good idea balancing that out a bit. I like global equity income funds - the top ones at the moment are more UK weighted so a mix of the 2 will give a more balanced portfolio.
The birth of my first grandchild is imminent, and would like to set some sort of investment to mature at 18. NS&I children bonds that I did for my son seem to have stopped.
Any advice would be appreciated.
Get him some premium bonds and every month he can have the excitement of the possibility of winning a huge prize AND the joy of posting on here that he hasn't won anything again. Win win! (or rather, lose lose)
(I'm not a qualified IFA, by the way)
No way imho. Long term investment so has to be some sort of share investment. Come in golfie.
@usetobunkin says he wants it to mature at 18 so depending on the amount we are talking about probably best investment would be a JISA. Turns into an ISA at 18 so the (now) grandchild can then decide what they want to do with it then.
Fund choice is another matter. Yes, a global fund of some sort but I'd split it into 2 or 3 funds. A typical global tracker will be 65% US based so might be a good idea balancing that out a bit. I like global equity income funds - the top ones at the moment are more UK weighted so a mix of the 2 will give a more balanced portfolio.
Thanks very much for sharing your thoughts and expertise, it is greatly appreciated
The birth of my first grandchild is imminent, and would like to set some sort of investment to mature at 18. NS&I children bonds that I did for my son seem to have stopped.
Any advice would be appreciated.
Get him some premium bonds and every month he can have the excitement of the possibility of winning a huge prize AND the joy of posting on here that he hasn't won anything again. Win win! (or rather, lose lose)
(I'm not a qualified IFA, by the way)
No way imho. Long term investment so has to be some sort of share investment. Come in golfie.
@usetobunkin says he wants it to mature at 18 so depending on the amount we are talking about probably best investment would be a JISA. Turns into an ISA at 18 so the (now) grandchild can then decide what they want to do with it then.
Fund choice is another matter. Yes, a global fund of some sort but I'd split it into 2 or 3 funds. A typical global tracker will be 65% US based so might be a good idea balancing that out a bit. I like global equity income funds - the top ones at the moment are more UK weighted so a mix of the 2 will give a more balanced portfolio.
Thanks very much for sharing your thoughts and expertise, it is greatly appreciated
I'd agree with golf & others, a JISA seems to make sense, just be aware you will have no control of the funds once they reach 18.
JISA's didn't exist when my kids were born so I did a with profits savings plan with a friendly society, did reasonably well.
I've wondered about how I could set up something similar for my niece and nephew that only they can access once they get to a certain age and cannot be used as a piggy bank by their parents (I'd hope they wouldn't) in the meantime.
My niece is at the age where she's a moody teenager and I am confident her parents won't have done something like this for her, which is fine and their prerogative but I'd rather put some money somewhere sensible for her to be able to make use of when she leaves school as opposed to spending it on shit she doesn't want or need for birthdays and Christmases
My nephew is only a few weeks old but the same applies there
My guess is these things have to be opened and managed by parents as opposed to uncles but if someone knows otherwise please say
Starting to get really concerned about the UK economy and wondering about divesting some of my stocks and shares in the UK, problem is I'm not sure where else to put it.
I'm currently 15.3% of my portfolio in the UK, but that's only 4% of my total wealth (Inc home equity).
My primary concern is that I don't think the tax burden can get much higher, with ideas I'm hearing now being good politics but bad economics Which imo will lead to diminishing returns. Meanwhile this government is unable to cut (I think Rachel Reeves knew exactly that when she was upset), and economic growth is non existent, whilst debt spirals. There's very few levers the chancellor can actually pull, I don't envy her.
My main question is where else would I put the cash? I'm thinking of halving my UK exposure, moving a chunk into the Daxx which I've been underexposed too and maybe finally bite the bullet and buy a bit into gold...
Comments
Sorry I have worded that poorly, I meant that I would rather contribute my gross income into a pension than net of tax with the government bonus into a LISA (if I'm above a 20% tax band as pointed out above by Rob).
The thing that doesn't seem to get mentioned here enough is that while US stocks have recovered from April, the dollar most certainly hasn't, so my funds with US holdings are doing nowhere near as well as the indices, because the funds are priced in £s.
I'm curious though; a good test might be if you could take a bog standard UK index fund tracking the S&P500 and compare its performance YTD to a hedged fund you like, and also to the S&P500 index itself. Would you be able to run the numbers on that?
The Euro and the Swiss Franc have been quietly appreciating over the last few months but I take your point.
(or rather, lose lose)
(I'm not a qualified IFA, by the way)
Fund choice is another matter. Yes, a global fund of some sort but I'd split it into 2 or 3 funds. A typical global tracker will be 65% US based so might be a good idea balancing that out a bit. I like global equity income funds - the top ones at the moment are more UK weighted so a mix of the 2 will give a more balanced portfolio.
JISA's didn't exist when my kids were born so I did a with profits savings plan with a friendly society, did reasonably well.
My niece is at the age where she's a moody teenager and I am confident her parents won't have done something like this for her, which is fine and their prerogative but I'd rather put some money somewhere sensible for her to be able to make use of when she leaves school as opposed to spending it on shit she doesn't want or need for birthdays and Christmases
My nephew is only a few weeks old but the same applies there
My guess is these things have to be opened and managed by parents as opposed to uncles but if someone knows otherwise please say
I'm currently 15.3% of my portfolio in the UK, but that's only 4% of my total wealth (Inc home equity).
My primary concern is that I don't think the tax burden can get much higher, with ideas I'm hearing now being good politics but bad economics Which imo will lead to diminishing returns. Meanwhile this government is unable to cut (I think Rachel Reeves knew exactly that when she was upset), and economic growth is non existent, whilst debt spirals. There's very few levers the chancellor can actually pull, I don't envy her.
My main question is where else would I put the cash? I'm thinking of halving my UK exposure, moving a chunk into the Daxx which I've been underexposed too and maybe finally bite the bullet and buy a bit into gold...