Moving S&S Isa to Cash Isa

[ShipwreckSunset]

We have about £70k in s&s isas that was supposed to be long term savings. It has gone down in value. over last year. I am now thinking that we may use a substantial chunk eg £50k towards mortgage when fix ends in 2025. In the meantime, I’m wondering whether to tfr (if possible?) to a fixed rate cash Isa to be certain of a 2-3% return rather than risk further loss. Is that possible/crazy?

How long term were you thinking? I wouldn't withdraw now if I'd planned on leaving it in for another 5 years or so. The market will bounce back, given time.

Remember you can only pay in £20k (I think it is) each tax year without paying tax so you may need to think what to do with the rest.

Does your S&S ISA provider have fixed term return funds? Those are basically the same thing.

@letitcomedown I'm not sure, it is HL, I will check, I didn’t realise these were a thing.

It looks like there are 2 year fixed cash Isas at 4.2% that accept transfers in. I suppose the question is do I think the s&s isa will go up by more than this amount pa over next 2 years (poss not).

The £20,000 annual allowance quoted above isn't an issue if you wish to complete an ISA transfer. If you want to transfer from a stocks and shares ISA to a cash ISA, you complete a transfer form with the new provider who will request the funds from your old provider (do not draw out yourself direct as you will loose your built up allowance). Whether this is the right thing to do and which option you will get the best return from over the duration is anyones guess as you cannot predict the future.

Sit tight OP, now is NOT the time to switch. Stop looking and stop looking.

Talking shit. Transfer don’t count. Stop guessing

Yes, my mistake. I overlooked the transfer bit.

I still don't think it's a great time to pull out money if you've planned on leaving it long term.

You are right, I do need to stop looking!

The global economy will get better. Do not switch. Stop looking is the only way!

You'd be insane to come out - even if it drops more.

I'm a professional investor (ie other people give me their money)

@Sunsetintheeast i suppose I am looking at the prospect of a guaranteed increase over 2 years in cash isa vs uncertainty/loss in s&s isa, which given losses already sustained seems more likely. Potentially investing for longer (original plan) but may have to use on mortgage depending on rates in 2 years.

It’s the change of strategy that costs you. I’d leave it alone, but I’m more confident it will
cone good. In the end it WILL outperform, the cash doesn’t stand a chance.

Losing money is the hardest part of investing…. But hopefully it’s not invested in property funds! If it’s equities, sit tight, don’t look at it, and remember it’s only a loss when you sell.