You don't need to be an 'investor' to invest in Singletrack: 6 days left: 95% of target - Find out more
Just sorting out the wife's finances. Blind leading the blind springs to mind. She has reasonable money in a cash ISA which is earning nothing. I'm thinking it'll do better in the long term in S&S ISA. I've been happy with my Fundsmith so going with the same for some of it but I was thinking it might be too many eggs in one basket so mixing things up a bit and still keeping a little rainy day cash. She also wants a LISA next year too. I'm aware there is a limit of one cash ISA and one S&S ISA per year. Will you get one LISA as well or is that one of your cash or S&S allowance? Can we transfer some of the cash ISA into a new Fundsmith account this tax year then some into another new S&S ISA next tax year? Will that need to be into the LISA or can it be another new S&S ISA? No interest from either of us in regular share dealing so looking to put it all into simple, long term funds so any recommendations there would be nice.
Martin Lewis at MoneySavingExpert is all you need to know.
Worth noting that the rules for Tax on Savings is changing, and you are no longer taxed on the first £1k interest earnings. So as interest rates are around 1% at the moment, you can have £100k in savings without being taxed!
(S&S ISA is probably (brexit worries aside) going to do better than 1%, so still worth putting money in)
Why a LISA? I may be completely wrong, but cannot it only be used to purchase a first property or be cashed in at 65? If you're using it to fund a house purchase then crack on, but if retirement is your aim then surely a SIPP would be the better bet, and leave your full ISA allowances intact.
http://www.moneysavingexpert.com/savings/lifetime-ISAs
Why a LISA? I may be completely wrong, but cannot it only be used to purchase a first property or be cashed in at 65? If you're using it to fund a house purchase then crack on, but if retirement is your aim then surely a SIPP would be the better bet, and leave your full ISA allowances intact.
http://www.moneysavingexpert.com/savings/lifetime-ISAs
/p>
AllthePies suggested a Vanguard global tracker the other day. I'd go with that rather than Fundsmith.
LISA are pretty restrictive.
I'd max out pension allowance first (£40k/year) and then ISA (£20k/year).
Remembering LISA is only available to under 40s also (bloody ageist).
Also most are not carrying LISA's. Nationwide for example refuse to, saying they're too complicated. Rules can change on them also so there's a risk factor or may not get anywhere near as much as originally promised.
As for regular cash ISAs, given the £1k tax free allowance on savings interest and the pathetic interest rates, you can save a lot in regular savings before tax and still leave the ISA allowance in case you're seriously loaded.
Anyone know if you will be able to deposit money in a Help To Buy ISA and another non-risk ISA when the new tax year starts?
Currently, i believe you can only deposit in a htb ISA, but going forward that £2400 over 12 months leaves masses of my ISA allowance untouched.