Vanguard to ISA potential tax liabilities, help please

[Baghelpplease]

Currently have quite a bit (but under the ISA annual threshold) in a Vanguard Life strategy 40% equity fund.

Am unsure if I should move it to a normal ISA, and if there would be any tax to pay? Have made a loss compared to what have put in but am just very unsure and not sure where/how to check.

If there is a loss, there is no CGT to pay.
Have you paid into any other ISA's this year?
If not, put the whole lot if under £20k into a S&S ISA with Vanguard as you have planned.

No, nothing else paid in to any other ISAs. Thank you v much for your reply.

Sorry @Marmight I was going to put it into a cash ISA with the intention of making some interest on it. Vanguard don't offer a cash ISA and am a bit wary of the stocks and shares one giving further losses.

Not sure if this is the best plan.

Unless you really need to spend the money now, do not take it out of the S&S ISA.

If you leave it there it's likely to grow again. If you take it out you crystallise the loss.

If you want to build up cash savings, leave the ISA alone and save in cash separately out of monthly income.

Thanks @BarbaraofSeville I don't need to spend it, but I really worry that it's dropped a few k over the 3ish years I've had it, when I could be getting 5% on it?

I feel like I don't have enough to risk it. I am able to save £1,000 or so a month from January though, as opposed to £300 at present. So maybe should just leave it alone.

I wish I was more clued up.

How old are you?
What are your investment goals?
When do you intend to access it?
You didn’t give enough Info.
Long term results indicate that the stock market gives the best returns on investment-here’s an example: https://www.ii.co.uk/analysis-commentary/cash-or-shares-what-data-tells-us-about-where-invest-ii528374

You have not made any loss unless you decide to sell now while the price is lower than your buying price. Equity investments can fluctuate quite a bit and are meant for long term. There is no tax on any gains inside an ISA wrapper.

Age - 43

Investment goals - I don't have any, argh, is this eg when do I intend to retire etc?

What it's for - nothing specific. Mortgage is paid off.

I just can't get my head around putting it in a cash ISA and benefitting from the interest vs seeing it going down and down. But I hear what you are all saying and understand that that is a short term, blinkered view.

Vanguard Life strategy 40% equity fund equity fund has been especially poor performing over the last couple of years at least.
It's only 40% equities and 60% bonds which have been dreadful recently.
I currently have the Vanguard Life strategy 80% fund which has performed far better and is not that much more riskier.
Generally the longer you are going to invest, the higher the % value on the Vanguard Life strategy you should go for.
Thats why you need to have a rough idea/goal for this investment type

Thanks @Marmight is it possible to move to the 80% without penalty do you know please? I will have a look.

Is it worth me speaking to an IFA do you think?

@Baghelpplease
I have moved my investments between funds within the Vanguard online account before without penalty.
You sell at the offered sell price and then buy the new fund.
There may be a difference between a fund buy/sell price but this is how platforms make money.
I can't remember if there is a small charge to buy. I don't think there is but its best to check.
But please read up on the new funds if you are going to buy. You need to understand the risks and make sure they are the right investments for you

I wouldn't bother with an IFA. But again that is my choice and you need to decide for you.

Thank you @Marmight that's really helpful. I appreciate everyone's input and will stop panicking!

If you sell the 40% fund you'll lose money I think. Say you put in £10k and it's now worth £9k, you'll lose £1000 as you'll get £9k so will only be able to buy £9k worth of the new fund.

I listen to the Meaningful Money podcast and they're not really a fan of lifestyle funds. They say to just buy a few different index trackers and you can take money out of the one that has performed the best when you need it, put it in savings and use that money to fund the next few months to a year or two, or any large purchases.

I've split roughly 50/50 between FTSE Global All Cap Index Fund and S&P 500 and the average growth over about 18 months since I put in is about 8% which isn't great as cash would nearly be this amount, but it should average more than that over time.

Thank you @BarbaraofSeville , I will check out the podcast. I really want to be stricter with saving in 2024, and also up my pension contributions/savings standing order so that I don't notice it type thing, can't spend it if already allocated.

The Meaningful Money podcast is excellent. They recently did a financial 'operating system' series that would be a great place to start.

That sounds perfect, thank you @CatusFlatus