aju
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Post by aju on Jun 3, 2017 17:21:38 GMT
Ok so I've got my strategy I want to start lending my £1999 into the new ISA when it arrives but I just sent £10 to my holding account, a test, and blow me if it didn't go straight to Classic as I have this set up as "new money is transferred to Classic". I want it to come from new money not use money from classic or plus. After all I have £20000 waiting to be fed in in <2000 chunks to limit exposure.
So I want to turn that off - can I do this. At the moment I can't see way to turn off new money being directed to Classic. I can change it to Plus but that's not what I want to do.
Anyone any ideas.
Basically I wanted to be able to set up the ISA and direct my money into it as soon as its set up on June 15th I think it is. I don't want to set it up then have to wait another day or 2 for the money to be transferred, faster payments is fast, my £10 came in pretty quick < day but I want more control if its possible.
Also I'm confused, if I'm not mistaken the limit on an ISA is 20000 but if I am putting 20000 in lending can be made from existing money as well what stops me from loading > 20,000 in a given year?.
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Greenwood2
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Post by Greenwood2 on Jun 3, 2017 19:48:44 GMT
You have to transfer funds from existing ISAs, not just add funds in excess of £20,000. But there is nothing to stop you moving as much old invested ISA money as you like to Zopa.
There isn't a 'holding account' on Zopa now so any money you add will go to one product or another (whichever you have selected).
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aju
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Post by aju on Jun 3, 2017 22:53:28 GMT
I suspected this might be the case, thanks
Interestingly it is still named in the system as a holding account.
So if I've got this right, what I have to do is as follows.
1. Wait until ISA products arrive. (June 15th is projected date) 2. Choose a new product Zopa PlusISA - CoreISA(3.9%)/PlusISA(6.1%) ( Manage - Add another product) 3. Turn on "Invest New money in PlusISA" option ( Manage - Destination for money you transfer in) 4. Make sure "Invest repayments back in the same product" is still set ( Manage - Destination for monthly repayments) 5. Move £1999 into Holding account from my bank. 6. Wait until money is on the queue and no longer in holding. 7. Repeat for CoreISA and alternate until funded at levels required.
Need to still analyse what split of my £20000 year total I want to use on each product.
Anyone see an issue with this method? - its a long time since I funded zopa since the changes to the tools.
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Post by GSV3MIaC on Jun 4, 2017 7:01:34 GMT
Assuming those three ISAs look like the same one IFISA as far as the rules/ taxman are concerned.
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ashtondav
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Post by ashtondav on Jun 4, 2017 8:16:55 GMT
Psychologically I too feel like that. However, I am sure from my o level statistics course there was some mention that diversification was not worthwhile beyond a certain point. TBH, I may be confusing things so please ignore if I'm barking up the wrong bean pole!
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aju
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Post by aju on Jun 4, 2017 9:11:35 GMT
Assuming those three ISAs look like the same one IFISA as far as the rules/ taxman are concerned. I assumed the products were within one isa but thinking about it you may have a point in that case. Anyone any thoughts ?
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angrysaveruk
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Post by angrysaveruk on Jun 4, 2017 9:12:47 GMT
Psychologically I too feel like that. However, I am sure from my o level statistics course there was some mention that diversification was not worthwhile beyond a certain point. TBH, I may be confusing things so please ignore if I'm barking up the wrong bean pole! Basically you can think of diversification as related to 1 / sqrt(n) . So going from 1 investment to 4 investments you halve the risk then going from 1 to 16 you quarter the risk, 1 to 64 you have an eigth of the risk 1 to 256 a 16th of the risk and so on. At any point in the you have to quadruple the number of investments to halve the standard deviation. So if you have 64 investments the marginal decrease in risk is small if you add another investment but if you only have 1 it is considerable. Note: This is not investment advice and makes some very wild stastical assumptions about your investments.
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Post by GSV3MIaC on Jun 4, 2017 11:15:10 GMT
It also assumes that the things you diversify into are not correlated .. which is where it gets complex. Lending £1000 to the same guy twice is not diversification .. if you do it via separate platforms, you eliminate some of the risk, but obviously not as much as if it was two separate borrowers. But then if they are both borrowing to develop property, you are not diversified against a property crash. Even worse if both properties are for student accommodation, or below sea level. 8>.
I'm all for putting your eggs in multiple baskets, as long as some of the eggs are oranges, some are bacon, some are gold bars, and as long as some of the baskets are boxes, or shipping containers (unfunny in-joke there), etc. And yes, diversification is a PITA (multiple logins and spreadsheets to add everything up) .. it's much EASIER to have all your cash in IceSave, and all your Shares with Madoff. My advice would be to not go there, but that isn't advice. 8>.
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