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scrappycocco

Do I Max Out My Stocks & Shares Isa

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Previous years I've had cash ISA doing very little so I'm thinking of turning to stocks and shares. Which are the safe plays for a 10k stocks and shares ISA? Presumably only being able to invest in the FTSE 100 for the ISA there isn't much choice.

My goal is to get out of cash into the safest investments possible to protect my deposit. To be honest if I wasn't in a long term tenancy I'd probably actively look for a property (this is what my saved cash is for after all) so I have somewhere to live if the SHTF. Ideally I want to guard against any sterling devaluation because I'm assuming interest rates will be held down for many years to try to keep property prices stable.

Unrelated to ISA, I've tried currencies and the rates my bank gave were terrible and I wouldn't trust moving into other currencies anywhere else. I've already got gold and the NSI index linkers.

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Previous years I've had cash ISA doing very little so I'm thinking of turning to stocks and shares. Which are the safe plays for a 10k stocks and shares ISA? Presumably only being able to invest in the FTSE 100 for the ISA there isn't much choice.

If your ISA provider limits you to the FTSE 100, I should look elsewhere.

My goal is to get out of cash into the safest investments possible to protect my deposit. To be honest if I wasn't in a long term tenancy I'd probably actively look for a property (this is what my saved cash is for after all) so I have somewhere to live if the SHTF. Ideally I want to guard against any sterling devaluation because I'm assuming interest rates will be held down for many years to try to keep property prices stable.

There's no safe investment, there are just degrees of risk. I won't try and educate you on that (plenty of people who know much more about it have written on the subject). Just one point to think on: if it's exclusively for a house, then consider housing-related investments. That way you hedge against house prices by holding assets likely to correlate with them.

FWIW, my own investments don't follow that advice. I'm sufficiently confident houses won't rise substantially in the near future that I don't feel the need to hedge. But that's a higher-risk strategy: it means I lose if I'm wrong.

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I max out my stocks and shares ISA every year but more than 50% of the money is sittin in cash in it at the moment waiting for opportunity.

The cash does earn interest but not tax free as an ISA.

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This is one of the questions i had in passing - you're allowed like 10k in a shares ISA, or 5k in a cash ISA - are you allowed to keep 10k in a shares ISA but just in cash, and does it earn any interest when you do?

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This is one of the questions i had in passing - you're allowed like 10k in a shares ISA, or 5k in a cash ISA - are you allowed to keep 10k in a shares ISA but just in cash, and does it earn any interest when you do?

You can keep £10680 in a stocks and shares ISA in cash. You're supposed to keep it "pending investment" but there's no time limit on how long you hold it for. However, although it does earn interest, it generally earns very little interest and what little it does earn is taxed. It's therefore not a very good strategy unless you are genuinely holding it pending investment.

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You can keep £10680 in a stocks and shares ISA in cash. You're supposed to keep it "pending investment" but there's no time limit on how long you hold it for. However, although it does earn interest, it generally earns very little interest and what little it does earn is taxed. It's therefore not a very good strategy unless you are genuinely holding it pending investment.

There is no limit to the amount you can have as cash in your stocks and shares ISA. If you have 100 grand in shares and liquidiate your portfolio you can keep the lot in cash whilst awaiting re-investment.

The interest you earn in hargreaves lansdowne tends to be comparable to bank rates and of course it is not tax free.

I wish they would just combine cash and stocks and shares ISA into one.

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You can keep £10680 in a stocks and shares ISA in cash. You're supposed to keep it "pending investment" but there's no time limit on how long you hold it for. However, although it does earn interest, it generally earns very little interest and what little it does earn is taxed. It's therefore not a very good strategy unless you are genuinely holding it pending investment.

Thanks, that's what i suspected.

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  • 334 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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