Good or bad idea to open a Stocks and Shares ISA right now?

mikedigitales · 3 Apr 2020 at 16:28

I've been looking at using my ISA allowance before the 5th to open a S&S ISA - had a read, and looked at a few of the options I've seen discussed here previously like Vanguard and easy options like Nutmeg. Could any wiser heads give me any clarity on anything to avoid right now, I'm not risk adverse, but am aware that things are a bit 'different' right now and lots of the info I'm reading was probably not written when Covid-19 was tearing the world up.

new boy · 3 Apr 2020 at 19:48

Stick it an a cash isa and you should be able to transfer it to a s&s isa when things are more settled without loosing your allowence for the year.

moon man · 3 Apr 2020 at 21:57

definitely try the trading the stock market thread , ive had some terrible advice from my motley fool emails lately ,guessing the bottom of this is very tricky , i hope to jump in on the lower end of the recovery curve

Jokester · 3 Apr 2020 at 22:05

You can move the funds into a S&S ISA account without actually investing into any funds as well.

Adam · 3 Apr 2020 at 22:47

If you don't know what you are doing I'd keep the money in the bank until things settle down. You could end up being 10% up or down within a few days given the volatility. I sold out of my S&P500 tech ETF up but lost about 15% of the profits when this all kicked off. There is talk of a quick market recovery once we hit the peak of the cases in the US.

Theophany · 3 Apr 2020 at 22:56

If you won't need the money for a long time put it in the market through a managed fund or multi asset tracker fund.

If you may need it, take advantage of the £20,000 allowance and put it in cash ISA and assess investing it at a later date. Your annual ISA contribution is on a 'use it or lose it' basis so cash is better than nothing, because once it's in, it's tax exempt!

The_Abyss · 4 Apr 2020 at 00:54

Poorly educated post. You might as well ask if you should open a shopping bag or not. An ISA is not an investment - the contents of it are.

Look at what you're trying to achieve, rather than promote a perceived solution.

peterwalkley · 4 Apr 2020 at 09:57

moon man said:
definitely try the trading the stock market thread , ive had some terrible advice from my motley fool emails lately ,guessing the bottom of this is very tricky , i hope to jump in on the lower end of the recovery curve

Motley Fool ... just unsubscribe and block them as spam. I looked at them years ago, but they'd ramp a company up one day and then run it down a day or two later. Make up your minds ffs ! I think their "advice" is about as good as randoms you can find on facebook or in the street. Anyone decent isn't going to hand out advice for free: so ask yourself what they have to gain - other that a mailing list of suckers and advertising revenue.

BennyC · 4 Apr 2020 at 11:40

Adam said:
There is talk of a quick market recovery once we hit the peak of the cases in the US.

I can't really understand the logic behind thinking that markets will recover more quickly now than they did in 2008? Given how broad & far reaching the impact of this is by comparison.

This isn't meant to come across as argumentative but rather inquisitive

I expect UK banks to, following the measures they've had to implement following the financial crisis so that they can weather the storm, so to speak. But that travel (airlines especially) and most retail sectors to remain severely impaired for at least a year or two before any real signs of global recovery start to appear.

darkgen · 4 Apr 2020 at 13:23

I currently have 25k in a Vanguard account. I'm just going to sit on it for the next few months and see how things shake out before dipping the toes.

Ironic Namesake · 4 Apr 2020 at 17:53

Probably best to wait a while, and drip feed monthly when you do decide to enter (depending on the amount)

I remember opening my SIPP with £10k investment just before the 2008 crash and it dipped probably 40% or so from memory. Took a while to recover ... not even sure where it's at now as I've not been able to contribute for the last 5 years or so.

mikedigitales · 4 Apr 2020 at 20:28

Ace thanks for the replies, I'll be cash ISAing it I think for this year, and have a look again in a few months then (hopefully...)

ShiWarrior · 5 Apr 2020 at 10:21

tax year ends today, i opened up a Flexible Cash ISA yesterday, and put money in it straight away (only a little just to open it)

might be worth doing before tomorrow

Zatoichi.uK · 6 Apr 2020 at 11:41

Started a lifestrat Vanguard account a month ago. Not sure if I should continue for now really. Only £200pm but I was always planning to be in it for 5+ years.

booyaka · 6 Apr 2020 at 11:47

Zatoichi.uK said:
Started a lifestrat Vanguard account a month ago. Not sure if I should continue for now really. Only £200pm but I was always planning to be in it for 5+ years.

so what's changed? Why are your considering stopping it?

This is the very good time to be paying regular premiums into an ISA/pension etc

https://www.vanguardinvestor.co.uk/...hts/how-it-works/what-is-pound-cost-averaging

Zatoichi.uK · 6 Apr 2020 at 11:49

booyaka said:
so what's changed? Why are your considering stopping it?

This is the very good time to be paying regular premiums into an ISA/pension etc

https://www.vanguardinvestor.co.uk/...hts/how-it-works/what-is-pound-cost-averaging

Nothing yet, it's just my first venture into anything beyond a current account and there are a lot of unknowns currently. I'm sure it will even out over time, just a little nervous I guess.

Skeptic · 6 Apr 2020 at 12:08

To everybody waiting for the 'bottom' or an 'upward trend': the markets are significantly down from their high, what more of a drop do you want? This thread is a perfect example of why most people lose money, and should probably stick to a regular saver. Maybe the bottom was two weeks ago and you've missed the best bit of the recovery. Maybe it wasn't. You don't - and can't - know, and neither can I. Either invest or don't, but timing is a fool's game unless you are stunningly lucky.

Street · 6 Apr 2020 at 12:23

Skeptic said:
Either invest or don't, but timing is a fool's game unless you are stunningly lucky.

The old saying, it's about time in the markets, not timing the markets fits well.

Zatoichi.uK said:
Started a lifestrat Vanguard account a month ago. Not sure if I should continue for now really. Only £200pm but I was always planning to be in it for 5+ years.

I'm still paying into mine. It just means I get more for my money at the moment compared to before.

darkgen · 6 Apr 2020 at 12:31

^ As above; I think it's time to slip a few k across a few of the LifeStrat blends.

Theophany · 7 Apr 2020 at 17:57

Skeptic said:
To everybody waiting for the 'bottom' or an 'upward trend': the markets are significantly down from their high, what more of a drop do you want? This thread is a perfect example of why most people lose money, and should probably stick to a regular saver. Maybe the bottom was two weeks ago and you've missed the best bit of the recovery. Maybe it wasn't. You don't - and can't - know, and neither can I. Either invest or don't, but timing is a fool's game unless you are stunningly lucky.

Also totally pointless if you're buying mutual funds. Typical settlement period for trades is anything from T+3 to T+5, by which point you've already missed the best of the rally or the worst of the trough.