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Original poster

£20k to put into a stocks and shares ISA. But which one?

26 replies

Queenofscones · 20/03/2023 10:53

I've had a couple of windfalls in the last few months: an inheritance, a refund from HMRC and a win on the Premium Bonds. So for the first time ever I have £20,000 to invest in an ISA and only a few days to work out which one.

I'm retiring next year and will take professional advice from an IFA to sort out what to do with my private pension fund and workplace pension funds. For now I just want to make use of my £20k ISA S+S allowance. I can transfer to another fund at a later date if necessary. Is there a quick and prudent choice?

OP posts:
Hoppinggreen · 20/03/2023 10:55

We use Hargreaves Lansdown

Cherryblossoms85 · 20/03/2023 10:56

I like the fidelity website, really easy to pick funds.

Dontfuckingsaycheese · 20/03/2023 10:58

Santander were offering a fixed 2-year for something like 4.3% when I was looking. That was good enough for me! Almost £2k in interest in two years. Yep that’ll do me. 😉

Original poster
Queenofscones · 20/03/2023 11:40

Is the Santander a stocks and shares ISA? I don't want Hargreaves Lansdowne's admin charges etc: they are expensive for a single investment like this.

Currently looking at Vanguard: no idea which to choose.

OP posts:
shattered25 · 20/03/2023 11:44

Hoppinggreen · 20/03/2023 10:55

We use Hargreaves Lansdown

I was looking at them too. Similar situation to you OP. I was thinking of putting it in a 5 year high interest investment account. Then in 5 years use it as deposit for a house :3

Norwichknowall · 20/03/2023 11:54

Vanguard is a good/ cheap option.

The life strategy funds are a good option. The higher the percentage in the name (eg 60%) the higher the risk but also the higher the potential returns. The vanguard funds are all reasonably reliable/ safe options though.

Original poster
Queenofscones · 20/03/2023 12:08

Thanks. It's Vanguard I've been thinking about. They have low fees and are a known quantity but it seems such an obvious choice. Unfortunately that was how Equitable Life looked when I took out a private pension with them in the 80s and that buggered up my plans badly. The Credit Suisse situation has demonstrated yet again that even the most trusted and venerable of institutions can crumble unexpectedly.

OP posts:
HermioneWeasley · 20/03/2023 12:12

Have you had advice that an ISA is the best thing to do with the money? When are you likely to want to access it?

oldwhyno · 20/03/2023 12:19

Assuming you've already decided that the stock market is the right place for the money based on when you might want to have the money back again (5-10 years), have a read here as some brokers are offering cashback deals:

monevator.com/compare-uk-cheapest-online-brokers/

Also check the broker will be good value for money for the amount of ISA investment you're planning to have. If it's just the £20k it's likely to be one of hte percentage fee brokers.

Then read here to help choose an actual fund to invest in:

monevator.com/low-cost-index-trackers/

wherehasthespringgone · 20/03/2023 13:57

You could just pop the £20k into an easy access cash ISA before 5 Apr and then transfer it to a stocks and shares ISA when you've had chance to properly consider the options/take advice.

FWIW - I also use Hargreaves Landsdown and have a mix of funds - I generally keep c60-% in 'balanced managed' funds with the remainder split between different higher risk funds with a balance of UK and global funds.

Original poster
Queenofscones · 20/03/2023 14:59

wherehasthespringgone · 20/03/2023 13:57

You could just pop the £20k into an easy access cash ISA before 5 Apr and then transfer it to a stocks and shares ISA when you've had chance to properly consider the options/take advice.

FWIW - I also use Hargreaves Landsdown and have a mix of funds - I generally keep c60-% in 'balanced managed' funds with the remainder split between different higher risk funds with a balance of UK and global funds.

But then I'd lose this year's £20k allowance and never be able to get it back. And because I'm retiring that could be very important. I'm running out of years left to put my money into interest-free products.

OP posts:
wherehasthespringgone · 20/03/2023 15:07

My understanding is that you wouldn't lose the allowance - you can transfer ISAs from one type (eg cash) to the other (eg S&S) without losing the benefits/allowance as long as you fill in the providers form for transferring it - so as long as you invest it in any ISA before 5 Apr you can transfer it to S&S after that and retain the benefit of the allowance (and have next year's allowance too).

www.gov.uk/individual-savings-accounts/transferring-your-isa

Original poster
Queenofscones · 20/03/2023 15:08

I have enough coming in on a monthly basis to more than cover my bills. I have easy-access money stashed in Premium Bonds.

OP posts:
ErrolTheDragon · 20/03/2023 15:12

But then I'd lose this year's £20k allowance and never be able to get it back.

No, she's saying you could put this years into a cash isa now, that can then be transferred to S&S later if you need more time to think.

But you're probably fine with vanguard.

FlowerArranger · 20/03/2023 15:14

Keep it simple. Split it between 2 or 3 Vanguard tracker funds, and/or their life strategy fund. Their charges cannot be beaten.

MrsMorton · 20/03/2023 15:14

Best not to deposit all in one go OP with stocks & shares but I get you're after your ISA allowance.

Original poster
Queenofscones · 20/03/2023 15:15

wherehasthespringgone · 20/03/2023 15:07

My understanding is that you wouldn't lose the allowance - you can transfer ISAs from one type (eg cash) to the other (eg S&S) without losing the benefits/allowance as long as you fill in the providers form for transferring it - so as long as you invest it in any ISA before 5 Apr you can transfer it to S&S after that and retain the benefit of the allowance (and have next year's allowance too).

www.gov.uk/individual-savings-accounts/transferring-your-isa

Sorry, was reading quickly (at work) and mistook what you were saying. Saw 'cash' and assumed that one couldn't transfer from a cash ISA to a S+S one. Now I see that I can. I have several cash ISAs from over the last 20+ years, all earning very little. When I took them out some of them were 6 and 7%!

Will go through things tonight and just move them somewhere for the short term with this year's £20k. Possibly a higher-paying Cash ISA for a year, after which the IFA can advise me. Cheers.

OP posts:
PlainSkyr · 20/03/2023 15:21

I use Vanguard and Nutmeg for ISA for me & my DH. Just spreading the risk hence both. Nutmeg does well with its automatic fund management options. Vanguard is cheap and you pick where to invest. I'd look at both before deciding.

You can put the money into the ISA account before 5th April and take your time to research & invest in funds.

Mummikub · 20/03/2023 21:41

I follow a lot of Mr Money Mustache's advice and have mine and DH's vanguard funds through Fidelity.

Fairymights · 21/03/2023 20:02

Have a look at Boring Money

Taciturn · 21/03/2023 20:37

An ISA is just a wrapper. You can set up the account with a provider, make the subscription before the end of the tax year, but decide which fund to put it in at a later date and even change the fund as economic and personal circumstances change, within the wrapper. You might even want more than one (eg half in equities and half in a bond fund).

Which provider you use with depend on the range of funds and other products on offer. Fidelity and vanguard only offer their own whereas Hargreaves Lansdowne and AJ Bell are platforms which offer a range from a number of providers plus direct investments. Shop around based on your needs, custody fees and trading costs.

Original poster
Queenofscones · 21/03/2023 21:10

Thank you, this is all very useful — and good to know that I can just put the money into the wrapper and then work out what to invest it in at a later date.

OP posts:
hattie43 · 21/03/2023 21:12

I use vanguard

NewmummyJ · 21/03/2023 21:16

Interactive Investor. I just chose to buy shares in FTSE 100. Good luck!

Tearsofthemushroom · 22/03/2023 10:12

I use both Vanguard and Nutmeg. Vanguard is cheaper but Nutmeg is much more user friendly.

If you are retiring soon you might want to consider topping up your pension instead and benefiting from the additional tax benefits. Have a look at Meaningful Money on YouTube, in particular he has a program looking at pensions vs ISA investment.

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