Stocks and shares ISAs - anyone do them?(15 Posts)
Have you got an shares ISA? What did you put in it and are you happy with it?
I will do a cash ISA later but am thinking due to terrible interest rates I could move 5k from a couple of existing savings accounts into a shares one as welI. I don't know enough to trade myself so would like a ready made one although the fees seem highish on those, or perhaps an investment trust.
I know there isn't much traffic on here about these things but would appreciate any advice/ experiences.
I've got a few share ISAs with various providers. The best bit of advice I was given was to just buy a tracker rather than a managed fund. The cost of the fund will be much lower than a managed fund and in reality, it's very rare a fund manager will out perform the market in the long term.
The time to buy a stocks and shares ISA is when the stock market is low. It is madness to buy one now, when the stock market is at a record high. There is only one way for the value of your shares to go and that is down.
"The time to buy a stocks and shares ISA is when the stock market is low. It is madness to buy one now, when the stock market is at a record high. There is only one way for the value of your shares to go and that is down."
That's what I was told when the FTSE was at 3500. Fortunately I ignored it. It's 6600 today. That said, stocks and shares are definitely a long-term investment. They can drop quite dramatically, but, long-term, will pick up. If you're not in a rush, watch what, say, the FTSE, does over the next few months (or years, even). Try a 'virtual' investment and see how much your money would be worth it you had invested it.
Money in stocks and shares is not protected, however, so if the stock market should crash by, say, 50% (have a Google to see how often that happens) you will lose 50% of your money.
Don't forget that money in a deposit account will almost certainly not be earning more interest than the rate of inflation, so your investment will be going down there, too; although the 'pounds number' will protected - just not its value.
It's best to buy a 'Tracker' which just tracks the Stock Market. It saves fees when shares are bought and sold (ie 'fund management'). Managed funds rarely outperform Trackers, and what chance you'll pick the one that does?
Have a look at Martin Lewis and The Fool websites for general advice. Also look at discount brokers like Allenbridge and Willis Owen, who will save you fees.
Personally I wouldn't pay for advice on which funds to buy. I've never met anyone who knows what the market is going to do, despite what they claim, and I'm in my 50s.
I've just put this on a different thread so rather than write it again I'll copy and paste it.
I have a stocks and shares isa and I spent time researching penny stocks on the alternative investment market (aim). Not many can be invested in an isa from aim but it's worth finding those that can and doing a bit of research. Plus, the aim market is at a low (unlike the other markets) so it's a good time to find a few gems. I have only been using my isa for 2 years, and in that time with some good research I've gained £5,310 on a 11,200 investment. I needed my 11,000 out recently but left the £5000 in to carry on investing.
Have a look at LSE (London south east) to do some very basic research, and then when you see a company you like the look of, go to their official website to find out more about them. Be careful in aim though, do your research as it's quite a volatile market, but there is money to be made in the volatility.
Don't buy until you've really studied though. It's a great hobby if you have some spare time and is quite an addictive pastime, but be careful if that's where you choose to invest. You could choose some 'safer' shares from the ftse and then throw in a wildcard from the aim market if you don't want too much risk.
I'm big sure I've got your appetite for risk - the potential for big gain comes with similar potential for big loss - but I'd point out that the restrictions on shares being held in an ISA were removed on 5 August. You might find you're restricting yourself unnecessarily.
I have a couple of stocks and shares ISAs and they have done quite well so far - I've had them a few years now and they are in higher risk investments - AsiaPac and another international fund. I would say it is about having an overall balanced portfolio - most of my funds are in no risk investments - the stocks and shares ISAs are only a few % of the my total investments.
carolmillen - what do you call a 'no risk investment'?
Always buy your ISA funds through a fund supermarket or discount broker. Don't buy direct from the fund managers or you will be charged up to 5% fees. A good discount broker will not only rebate the up - front charge back to you, but often they will give you back a percentage of the commission fees they receive from the fund management company.
A good way to even out the peaks and troughs is to invest on a monthly drip-feed basis, rather than a lump sum.
Read the money section of the newspapers for investment suggestions.
Look at Hargreaves Lansdown's website for detailed information on hundreds of funds, as well as share prices.
I have one, which I started in about 1999/2000 or so, when I was working for a bank, so didn't have to pay any fees, and had a nice big salary, so had the cash to spare. It meant that I bought at the top of the market. I'd have probably kept on paying in, if I had stayed in that job.
My life isn't like that now, and soon after I opened it, there was 9/11 and the dotcom crash and stuff, and I've been unemployed and worked in jobs with a far lower salary.
Anyway, going by the last statement, I have, after about 14 years, not just broken even (rather than made a loss), actually made a slight profit, (we're talking a couple of hundred quid...) I've decided I'm just leaving it there until I really need the money, and maybe one day the market will go up. I have recently changed some of the funds it's in, as they were closing one of them. Trouble is, I don't actually find following markets that interesting, so ... I don't. It probably could be doing better than it does, but I just can't be bothered to put the time in to make relevant decisions.
(Can you tell I didn't work as a trader when I worked for a bank?)
My no risk investments are cash isas, ns&i savings certificates. Are you pulling me up about using the term 'no risk'?
Watching with interest.
Not pulling up, just wondering. A lot of people consider savings accounts to be no risk, without realising that they're steadily losing money through inflation.
There's also different ideas of what risk is - whether it's the risk of losing capital, or a measure of volatility.
I did it! Monthly payments into a Fidelity Moneybuilder UK All Share Tracker, in a stocks and shares ISA.
I'm delighted with myself, frankly.
Do it! Use a stocks and shares ISA and buy shares.Have made an average 39% annual return since 2007 starting with £1200. If it carries on at this rate it would be worth £2.5 million in 14 years time. I do think that an ordinary investor can make +20% gains as long as you ignore almost ALL the advice from the 'experts'.Their job is to extract money from you by telling you that the stock market is too complicated for you to understand and that only they are bright enough to make any money. It's BS. Quite simply buy and hold well managed, profitable companies making quality products that sell at an increasing rate and are at the beginning of their growth stage (think apple around about 2001). Only buy american companies, some european, no uk, sit back and check up on them in 20 years time. Have a look at stratasys (SSYS) as an example.
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