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Post by celticelvis on Dec 12, 2017 13:50:25 GMT
Hi all, I have bee a lurker here for some time but have finally come out the woodwork.
I have funds invested in the usual suspects, zopa, TC, MT etc.
I also have a terrible ISA with my bank earning a whopping 0.55%.
I have read lots of posts on this forum which have been very helpful and I will be transferring my ISA to an IF ISA.
Are there any experts out there who can help advise a little on this.
I am looking at opening new accounts with ABLRate, Proplend, Relendex and HNWLending. I've also heard good things about LW but at 5.5% it is much lower than the others mentioned.
Basically should I stick it all in one ISA like ABLRate or spread it across 3 or 4 IF ISA's?
If multiple ISA's is the way to go can anyone suggest the easiest way for me to do this? Should I open one IF ISA, and transfer all of my banks ISA to one IF ISA and then open a 2nd IF ISA and transfer some funds from IF ISA 1 to IF ISA 2 etc or should I open 4 different IF ISA's and transfer 25% of my current Bank ISA to each of the 4 IF ISA's?
I hope that all make sense to you lol.
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pom
Member of DD Central
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Post by pom on Dec 12, 2017 14:33:55 GMT
I'd say open 4 (or however many you want, definitely more than one tho) and do partial transfers into each, staggering slightly so you have a "last" one that can be for all the funds, to catch the last bits of interest (assuming it's all old money - if your cash ISA includes this years allowance that will all have to be transferred to the same IFISA)
As for which ISAs...well there are reasons LW is a lower rate, I think it's fair to say you're a lot less likely to lose capital with them than some of the others(and remember capital losses inside an IFISA can't be offset against tax) and they're probably more liquid than many (tho I've never yet sold any of my LW loans so don't really know). Whichever you choose I'd say that if at all possible go with platforms you've used previously so you're familiar with their quirks, dealflows, minimum bids, liquidity etc to minimise the chance of ending up with money stuck somewhere you don't want it.
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Post by celticelvis on Dec 12, 2017 16:09:36 GMT
Thanks for the advice Pom. I have not yet added this years allowance to my ISA. Shall I add this after I've transferred my current ISA savings or before to my current bank ISA?
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pom
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Post by pom on Dec 12, 2017 16:26:54 GMT
Not much point paying it into your cash ISA first, because you can't split this years money across multiple ISAs of the same type, only across different types - so if you paid it into your cash ISA first it could still only be transferred into one IFISA, in which case you might as well pay it straight in and keep it simple. If you don't want to put it all into one IFISA then you could then put the excess into a cashISA and then split it between as many IFISAs as you want next April (or you could put some in a S&S ISA, but doesn't make sense if you plan to later move it to an IFISA). If you are going to do that you should probably either use a new ISA that's flexible and then you can withdraw it again to invest somewhere else until the end of the tax year, or just leave it til the last minute.
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Post by celticelvis on Dec 12, 2017 16:31:00 GMT
Not much point paying it into your cash ISA first, because you can't split this years money across multiple ISAs of the same type, only across different types - so if you paid it into your cash ISA first it could still only be transferred into one IFISA, in which case you might as well pay it straight in and keep it simple. If you don't want to put it all into one IFISA then you could then put the excess into a cashISA and then split it between as many IFISAs as you want next April (or you could put some in a S&S ISA, but doesn't make sense if you plan to later move it to an IFISA). If you are going to do that you should probably either use a new ISA that's flexible and then you can withdraw it again to invest somewhere else until the end of the tax year, or just leave it til the last minute. Thank you Pom, great advice.
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ilmoro
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'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Dec 13, 2017 0:12:45 GMT
Should also point out that the strategy of opening one IFISA then transferring needs to take into account the fact that some charge for transfers out eg Ablrate.
As another aside if you pay current year money into a flexible ISA of any kind you can withdraw it and invest it in another ISA of a different type without having to do a transfer but any interest earnt would have to be moved via normal transfer procedures. New money invested in a flexible ISA then withdrawn does not count towards that years subscription total but the ISA opened does count as the one for the year of that type.
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Post by celticelvis on Dec 13, 2017 13:13:11 GMT
Should also point out that the strategy of opening one IFISA then transferring needs to take into account the fact that some charge for transfers out eg Ablrate. As another aside if you pay current year money into a flexible ISA of any kind you can withdraw it and invest it in another ISA of a different type without having to do a transfer but any interest earnt would have to be moved via normal transfer procedures. New money invested in a flexible ISA then withdrawn does not count towards that years subscription total but the ISA opened does count as the one for the year of that type. Thanks for the tip on the charges for transfers.
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Post by wiseclerk on Dec 14, 2017 8:23:38 GMT
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Post by celticelvis on Dec 14, 2017 10:55:32 GMT
Amazing, this is so helpful. There are no words to say how helpful everyone is on this forum.
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zlb
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Post by zlb on Dec 20, 2017 20:05:24 GMT
Amazing, this is so helpful. There are no words to say how helpful everyone is on this forum. I've read in two places now on this forum that if one has used up the annual allowance then one can open a second IfISA in the year, but which doesn't require an initial deposit, which can then have a previous year's allowance transferred-in. Do you know whether this is true? ( I've seen this from contributors who've tried to establish this with official sources, such as HMRC, who I have found are often not able to agree with one statement of fact or another, even if it's on their website). I can see you have a minimum holding in this table, but is that a mandatory first deposit, or a transfer amount?
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david42
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Post by david42 on Dec 20, 2017 21:46:37 GMT
I've read in two places now on this forum that if one has used up the annual allowance then one can open a second IfISA in the year, but which doesn't require an initial deposit, which can then have a previous year's allowance transferred-in. Do you know whether this is true? ( I've seen this from contributors who've tried to establish this with official sources, such as HMRC, who I have found are often not able to agree with one statement of fact or another, even if it's on their website). I certainly hope that is true because it is what I have done. I used this year's allowance for an ISA on one platform, then I opened an ISA with another platform and funded it by transferring in ISA money from previous years. I understand that you can open any number of ISAs each year, but you can only put new money into one IFISA each year. There are no restrictions on transferring ISA money from previous years.
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IFISAcava
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Post by IFISAcava on Dec 20, 2017 23:20:13 GMT
I've read in two places now on this forum that if one has used up the annual allowance then one can open a second IfISA in the year, but which doesn't require an initial deposit, which can then have a previous year's allowance transferred-in. Do you know whether this is true? ( I've seen this from contributors who've tried to establish this with official sources, such as HMRC, who I have found are often not able to agree with one statement of fact or another, even if it's on their website). I certainly hope that is true because it is what I have done. I used this year's allowance for an ISA on one platform, then I opened an ISA with another platform and funded it by transferring in ISA money from previous years. I understand that you can open any number of ISAs each year, but you can only put new money into one IFISA each year. There are no restrictions on transferring ISA money from previous years. I've done it 15 times. It is completely fine.
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IFISAcava
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Post by IFISAcava on Dec 20, 2017 23:27:55 GMT
Hi all, I have bee a lurker here for some time but have finally come out the woodwork. I have funds invested in the usual suspects, zopa, TC, MT etc. I also have a terrible ISA with my bank earning a whopping 0.55%. I have read lots of posts on this forum which have been very helpful and I will be transferring my ISA to an IF ISA. Are there any experts out there who can help advise a little on this. I am looking at opening new accounts with ABLRate, Proplend, Relendex and HNWLending. I've also heard good things about LW but at 5.5% it is much lower than the others mentioned. Basically should I stick it all in one ISA like ABLRate or spread it across 3 or 4 IF ISA's? If multiple ISA's is the way to go can anyone suggest the easiest way for me to do this? Should I open one IF ISA, and transfer all of my banks ISA to one IF ISA and then open a 2nd IF ISA and transfer some funds from IF ISA 1 to IF ISA 2 etc or should I open 4 different IF ISA's and transfer 25% of my current Bank ISA to each of the 4 IF ISA's? I hope that all make sense to you lol. I have all these 5. I think diversifying by platform v good plan. Reduces platform risk and allows better loan diversication as more options. HNW has high minimum (£5000 per loan so depends on the sums you are talking about. LW is lowish rate but completely hands off so reasonable as part of diversified portfolio and grosses up before tax to a good return for the (low) risk. Go for it.
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IFISAcava
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Post by IFISAcava on Dec 30, 2017 12:16:23 GMT
Hi all, I have bee a lurker here for some time but have finally come out the woodwork. I have funds invested in the usual suspects, zopa, TC, MT etc. I also have a terrible ISA with my bank earning a whopping 0.55%. I have read lots of posts on this forum which have been very helpful and I will be transferring my ISA to an IF ISA. Are there any experts out there who can help advise a little on this. I am looking at opening new accounts with ABLRate, Proplend, Relendex and HNWLending. I've also heard good things about LW but at 5.5% it is much lower than the others mentioned. Basically should I stick it all in one ISA like ABLRate or spread it across 3 or 4 IF ISA's? If multiple ISA's is the way to go can anyone suggest the easiest way for me to do this? Should I open one IF ISA, and transfer all of my banks ISA to one IF ISA and then open a 2nd IF ISA and transfer some funds from IF ISA 1 to IF ISA 2 etc or should I open 4 different IF ISA's and transfer 25% of my current Bank ISA to each of the 4 IF ISA's? I hope that all make sense to you lol. I have all these 5. I think diversifying by platform v good plan. Reduces platform risk and allows better loan diversication as more options. HNW has high minimum (£5000 per loan so depends on the sums you are talking about. LW is lowish rate but completely hands off so reasonable as part of diversified portfolio and grosses up before tax to a good return for the (low) risk. Go for it. Note that HNW now has an autolend option where you diversify across 15 loans, paying 7%. Makes it an option for those with smaller sums given the £5000 minimum per loan.
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