Do You Have Too Many Investing Accounts?
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- เผยแพร่เมื่อ 20 เม.ย. 2024
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I'd recommend most people try to keep it simple. I'd like to think I'm fairly financially literate (I mean, I am watching this video!). I've previously found myself seeking out the absolute best solution, with the minimal costs, etc, but I found it slightly overwhelming and stressful, over the last 6 months or so I've simplified my finances slightly, which has made me feel more free.
Many thanks! I like your approach showing what works for you👍
Always great video Toby.
Thanks Toby another great video keep it up .
Great as ever Toby, I heard a piece on R4’s Money Box 20.4.24 discussing the problems people are having opening more than one Isa, seemingly you’re asked if you’ve opened another one and stopped if you have. Apparently it’s about the providers systems not being updated, as in the old rules when only one Isa was allowed, the change was given to them too quickly for their systems to be sorted, anyway it’s worth a listen to for more details, hope the running’s going well, I’m doing a charity swim across the channel, in a relay, this year so appreciate the training and dedication needed.
Old systems and terms, unfortunately. In reality there is nothing ever stopping you from opening multiple ISAs anyway :)
If I hadn’t already of started on trading 212 I think invest engine would be all I needed.
Using a 90/10 portfolio now.
Good one, keep going Toby👍
Thanks 👍
Useful video! I has several accounts few years back but as I approach retirement I wanted to keep thing very simple for a reason you haven’t mentioned. If someth8ng happens to me it’s a lot easier for my wife to understand and manage the investment s on one platform than having to deal with several. For this reason I combined SIpp and isa to just one account. She has no interest in investing at all so I don’t want to leave a mess 😊.
Yes very interesting good point! Simple is always best.
Another great video, thanks Toby! Looking forward to the best SIPPs 2024 video!
At the moment, unless Vanguard makes their fees more competitive, once Invest Engine allows SIPP transfers I'm likely to move both my S&S ISA & SIPP to them. Rather a no brainer when they allow in-species transfers of Vanguard ETFs... can keep all my holdings and reduce fees substantially. No idea what Vanguard (UK) are playing at, they're going to haemorrhage customers the longer this drags on.
Definitely on the way soon.- I just need to sort out some other videos first :). Keep an eye out!
@@TobyNewbatt thanks mate, I really appreciate it! Shall keep an eye out for it and the other new ones! Keep up the great work
Exactly my plan
Only problem with investengine is in order to put money into the account you need to do Internet banking, which I don't do. Or do bank transfers into the account, which isn't a good option having to go to the bank everytime I want to put money into the account. Is trading 212 the same
Hi I have 2 ISA and one SIPP 😊great video
I have one platform (ii) and three accounts. However, because I'm in drawdown phase, I'm finding that the general investment account just slowly gets bed & isa'd into the ISA account. So by next tax year, I'll just have two accounts within one platform.
I used to have all kinds of stuff all over the place. I think as you get more experienced, you just consolidate naturally.
Perfection is reached, not when nothing more can be added, but when nothing more can be taken away.
Onevthingbyhatbis vital is to document where you have accounts. With everything being online and no paper post statements etc, your estate if you die suddenly, might never know about all your accounts. This may end up with lost money.
I've just a vanguard sipp and stock's isa it keeps it simple and that work's for me .
The 0.15% platform fee doesn't work very well compared to 0.00% though. I've stayed with Vanguard too, not sure why really.
@@larsenb4803 think the fee's are reasonable tbf.
@@larsenb4803 Firstly Vanguard is a massive, very well established asset management company and they do open ended index funds as well on their platform , which are easy for pound cost averaging. Also etfs aren't covered under the fca protection scheme unlike index funds
I like it 😊 very clear
Thank you! 😊
@TobyNewbatt I'm going one step further by trading futures and options and I think we can do this with a sipp! 🚶♀️ #investing #trading #sipp
Please can you add Fidelity platform to your spreadsheet if possible.
Great video, Toby. I am with you and like having a T212 and IE S&S ISAs to separate ETFs from individual stocks.
Although, with T212 soon releasing a Cash ISA and a SIPP, it's looking like it'll become "the only app you need" for a lot of people.
Thanks Tom! T212 are taking over the world soon and you're right they might end up with all the accounts!! :P
Any ideas on when the SIPP is being released on T212?
@@chrishardy3473 Summer apparently
@@TomsPersonalFinance interesting...
Do you think T212 will release a S&S LISA at some point?
Just a heads up, not all providers are allowing you to open an isa if you’ve already subscribed to another this tax year.
Thanks for letting us know - but why would you open a second ISA with the same provider? The rules are about opening multiple ISAs with different ones :)
I have a question please.
I wanted to transfer my funds from a different portfolio to a new portfolio I created. But it is still pending up till this moment.
One thing I recently found out is that you can do a partial transfer of your "live" pension (as well as your old pensions). Scottish Widows were charging 1%+ for my company pension so I asked them if I can transfer some of it to Vanguard but still keep the account open for my employer to make the monthly contribution. They said I can, provided that I keep the minimum amount in there to keep it open (£2 I think).
Yes, the great pensions rip off....auto enrolment schemes. As an aside I think it's £200 you need to keep in.
This should be advertised more widely. Partial transfers are the best way to maximise employer contribution but still manage things yourself.
I need to do some more follow videos on this topic of pensions - it's a bit of a minefield but it's one that quite frankly is taking most people for a ride
@@TobyNewbatt totally. ISA videos are pretty standalone, easy to digest and non controversial (apart from the dividend investors ....)
But pensions are the only tax free vehicle we have that will enable you to maximise wealth over the long term.
I'm sure you can pick a path through which will empower more people to take control. It's certainly more a video series more than a one shot hit.
Do you use or suggest any app to track all your investments?
T212 is the best
Hi Toby,
I was wondering which platform do you use for your LISA as I use Moneybox and i am not sure if there are the cheapest.
Great video by the way thank you
I dont have a LISA :)
Moneybox is good only for LISA
Although your broker may be covered by the FSCS, the actual companies you invest in (ie, BlackRock, Vanguard) will not be if they are not based in the UK. This means ETF's which are often based in Ireland are not covered, but UK based OEIC's (mutual funds) are. It's very unlikely big names like this would go bust, but may be something to consider.
I just posted a comment with a link to the Monevator article which talks about this (Sep 2023), but the comment was removed!
Thats correct - but again the fund itself (regardless of who runs it Vanguard/ Blackrock etc) is all valued based on the shares inside the fund :) If you want UK domiciled funds then be prepared for higher costs but then you may feel more secured. Very misunderstood though I think it's worthy of a more in depth video :)
@@TobyNewbatt Some index mutual funds are cheaper than equivalent ETFs (ishares US Equity Index D is 0.05%; HSBC FTSE All World Index C is 0.12%), though I realize some brokers charge more to invest in mutual funds, or don't offer them. I use iWeb and invest sporadically with largeish sums, so the £5 fee is ok though this might get too much if you're paying monthly into more than one fund/ETF.
At a tangent, something which doesn't get talked about much are transaction fees (not just the ongoing fee), which are not easy to find. Vanguard lists them for their funds & ETFs (you have to search a bit to find the link for: Vanguard Personal Investor costs and charges information). On iWeb you only get to see them on the final page before you make a trade. For instance, the HSBC fund above has TFs of 0.015% so the total with the OC is 0.135% whereas L&G Global 100 Index has an OC of 0.14% but TFs of -0.02% making a total of 0.12%!
@@TobyNewbatt Some index mutual funds are cheaper than equivalent ETFs (ishares US Equity Index, HSBC FTSE All World Index) though I realize the 'free' brokers don't offer them.
At a tangent, something which doesn't get talked about much are transaction fees (not just the ongoing fee), which are not easy to find. Vanguard lists them for their funds & ETFs and on iWeb you only get to see them on the final page before you make a trade.
@@TobyNewbatt Some index mutual funds are cheaper than equivalent ETFs though I realize the free investment platforms don't offer them.
At a tangent, something which doesn't get talked about much are transaction fees (not just the ongoing fee), which can be difficult to find. Vanguard lists them for their funds & ETFs and on iweb you only get to see them on the final page before you make a trade.
Some index mutual funds are cheaper than equivalent ETFs (ishares US Equity Index D, HSBC FTSE All World Index C) though I realize the free investment platforms don't offer them.
At a tangent, something which doesn't get talked about much are transaction fees (not just the ongoing fee), which are not easy to find. Vanguard lists them for their funds & ETFs and on iWeb you only get to see them on the final page before you make a trade.
Hi Toby,
Can you tell me if it is possible to transfer a one year fixed term cash isa to a S&S isa after 9 months or do you have to wait the full term of 1 year?
You need to check with the provider of the fixed term ISA as there might be penalties, as obviously you have committed to a fixed term. Then it's up to you to decide what you want to do.
Thanks Toby. I've been opening new accounts recently to make sure I'm below the £85k limit. Though it took me a while to figure out it's £85k cash in the account and the shares aren't part of that, their value depends only on the company performance? Also it looks like there is very low risk of a platform going bust but read share are held in CREST under the platforms name and the platform hold a list of who owns what, can't seem to find what are the risks of the platform not sharing that list, for whatever reason?
Any investment's true value is based on the underlying value of the shares inside of it (when talking funds/ ETFs etc.). If a platform or a manager were to go bust there would be time needed to find out the individual owners through good book keeping etc. But here in the UK there are a huge number and safeguards to ensure this process is kept too. Check out the CASS rules as well :)
A good example is Trading 212, technically in the custody chain Interactive Brokers hold your shares on behalf of Trading 212
@@TobyNewbatt Thanks 😁
Have you had to withdraw any of your emergency fund from T212? I'm curious how long the transfer takes. Is it almost instant or is it next working day like with building societies?
It's super quick. I actually can't remember if it was the same day or next one when I last used it. Either way quick enough to access any cash for me. If you need anything urgently this is where credit cards come into play.
I tried this as I have my money in Chip which is instant.
When you withdraw it says up to 3 working days but took 1
I like instant so keep my cash in Chip.Little bit less interest but more convenient for me
On 30K doesn't really make a lot of difference to be honest
Whats the argument for wanting a cash ISA in your opinion? I have a S&S ISA and a Cash ISA and thought of the Cash ISA as the emergency fund, easy access account. Whats your opinion? Does keeping cash in T212 perform the same as a Cash ISA ie TAX Free or is it more like a bank account?
Personally, a Cash ISA is only useful if you are going to breach your interest allowances - if you had a huge amount of cash it might be useful. BUT for me I don't want to use my ISA allowances getting eaten up with cash so prefer to use stocks & Shares. If your emergency fund is so big that it might be liable to interest charges then maybe I can see an argument - Otherwise I'd hold cash outside an ISA personally :).
Any cash outside of an ISA is liable to taxation on interest above your personal allowances.
@@TobyNewbatt many thanks for the clear and common sense answer!
It would be great to have a video showing how to set up a good portfolio on T212. After all of the recommendations I've set the account up with them but can't figure out to build the right fund portfolio on there. Still earning 5.2% though will I wait.
Thanks for the suggestion. I might do this one based around index funds!
@@TobyNewbatt that would be spot on 👌
Is there anything wrong with having a distribution portfolio. With this ETF on invest engine?
Of course not 👍.
Just remember to use an ISA to protect yourself from any tax on your dividends.
Thank you for the response.
I created the same portfolio you have in the accumulation portfolio.
S&P 500
Emerging market
Japan
Developed market ex UK
FTSE 100
All vanguard providers.
Hi toby do you still get interest on your money if you don't opt in on trading 212 and take it's best done in isa for tax purposes this was great video 👍👍
Yes but the rates are lower you can still get interest. And on your second point - if you want to protect interest from taxation (above your allowances) you will need to use some kind of tax protected account like an ISA or even Premium Bonds
@@TobyNewbatt thank you toby
I was thinking about diversification between brokerage accounts to lower the risk of a broker going bust, i know the investments are save, even if it goes bust, but there will be some period of time you'll be unable to trade (i expect) in case of a default. So, i am thinking about getting maybe 2 or 3 brokerage accounts, from now having just 1.
my exact line of thinking :)
You should probably be aware, and make others aware.
Uninvested cash earning interest from T212 is not FSCS protected.
Andy from be clever with your cash did a good article on this.
It depends if Trading212 puts your money into the QMMFs. When you agree to the 5.2% interest, Trading212 simply have the right to put that money into Money Market Funds to achieve that higher rate for you, although, this is not always the case and in my account it shows that all my uninvested cash is held in "banks", despite opting in for the higher rate. This means my cash would be protected under the FSCS in the unlikely event 212 fails. When you agree to the higher rate, it's your job, to read the small print and understand the slight potential risk to it, Toby shouldn't have to tell you, cheers🎉
I've made the details clear many times in my videos :)
And as commented below its not as simple as saying money is not protected. There is a difference between banks and QMMFs. As usual this is your own responsibility to opt in and decide if thats for you or not.
@@TobyNewbattnot trying to have a go, or start and argument.
Clearly I like your content as I am subscribed and a regular viewer.
All I’m saying is, in my opinion you should have highlighted the risks (like you would for any other investment type) in this video. You could have done it in a simple sentence or even referred back to a previous video.
I’ll rest my point. Take care and all the best to you both.
@@chrismunt8443 Thank you I appreciate it :)
It's hard to get things across correctly in the comments. I wanted to be clear there is no way I can cover every risk in every single video, nor can I cover every detail :)
Hopefully over the long term you can see that I cover the risks and have highlighted things before :)
When is Toby 212 launching?
😂😂😂 Anyday now...just no idea what it's going to sell
what would you say the minimum you should spend with hl?
Too expensive
@@ally-hi4ut yes i know but easier to use
Really depends on your own requirements and level of risk...but for me it makes no sense paying fees for small amounts of money. You just have to be strategic.
The ISA excel file you made, I entered my email address and got a reply from you but no excel file?
It should be sent as a link to a spreadsheet inside the email? any issues email me toby@tobynewbatt.com
@@TobyNewbatt thanks, I will try again.
So just to be clear. If a Broker goes BUST your cash up to £85,000 is protected, what about the shares u may hold? Will ur shares also go bust or are ur shares protected??
Your shares are valued based on the price of the shares - I hope I have made this point as clear as I can.
Shares are not 'protected' because their value can go up and down depending on what you are invested in.
What can happen though, is there could be a risk that some of your investments might need to get sold in the event of a platform/ broker going bust BUT this is covered up to £85,000 (on the part of the investment that might need to be sold to sort out administration)
@@TobyNewbatt Fanx bro. I enjoy the videos and look fwd to the next
Good stuff Toby .
All very relevant and thought provoking. If I could make a small suggestion loosing the rather annoying and distracting "background music "will help .
I currently use Fidelity and welcome any feedback you may have on said platform .
Mostly I find it very "ok "but a couple of little niggles have started to come to light 😢😢
Interesting I’ve not used fidelity before. Obviously a very solid global name in the investing game bit sounds like the platform needs a bit of work!
2
Hi toby could you please clarify the new isa rules regarding moving funds from 1 platform to another...
If i put this years allocation of 20k into vanguard for example but in 6 months time i decided i would like to move the funds to 212 as i would like to buy individual stocks or some other non vanguard fund would this movement of funds be within the current isa rules?
You could always move platforms - the issue before was about making NEW contributions to an ISA. In your example a transfer of funds does not count as NEW money and never did :)
The rules were often misunderstood, you could only contribute NEW money to one ISA, but you were fine to open another account and transfer money that has already been deposited elsewhere. I hope that makes sense.
Now you can contribute to as many as you like - and you can transfer whatever you like (but that part was never the issues :))
@@TobyNewbatt yes that makes perfect sense and thank you for your quick response and your content which I always watch and enjoy very much 😊
Why no Lifetime ISA?
For me personally I don't want to use my ISA allowance up with the LISA. I'm aiming to max out my S&S ISA each year and if I want something for a pension I can use a SIPP. Yes a LISA is slightly better than a SIPP but I prefer the flexibility of the S&S ISA :)
"How Many Investing Accounts Do You Need?" - Me: "YES".
This is what I answer when people say, how many chocolate brownies do you want.
@@TobyNewbatt I still like to invest a bit of cash into IFISA’s I know it can be high risk but not had any issues so far, put a bit of cash in and let automation do the work, don’t really see anyone do reviews on them though, “loadpad” “crowdproperty” “crowd2fund”
Values are going down in the stock market at the moment due to the middle east war
Damn it I was going to make this joke 😂😂😂
Try to make few research before letting anyone trade for you like I did ❤ Thank you Jesus, God bless America.
KISS
I don’t have enough money to have more than one investing account 😢😢😢
Haver you been investing in Tesla again :P