Happy Sunday guys! Hopefully this info is useful to know in the run up to ISA season. If you’re looking for a stocks and shares ISA provider Trading 212 are offering 1 free share valued up to £100 when you open an account using the following link: trading212.com/promocodes/MITCH
One thing that slightly confuses me about long term investing. And I’m probably missing something. Say I put in all this effort to save lots and let it compound over time. But if I shouldn’t touch this money ever (even say in 10 years) that means I can only enjoy it when I’m way older and have less energy..
Well first off, it's your choice when you dip into it. Secondly, it's to have a secure/worry-free retirement.. I know I'd rather have a retirement with money to do as I please, than a retirement knowing I'd spent it all 20 years prior.
Another great video Mitch! One KILLER is you can't transfer shares from an invest account into an ISA, you have to sell and then rebuy. I am currently moving part of my portfolio from HL because you're spot on, they SO bloody expensive! I love my T212 account :)
@@MitchShoesmith T212 are introducing a shared transfer scheme by 31st March, so I'm 100% moving my HL over to my invest account to save fees, then I'll sell in my T212 invest account and rebuy in my ISA, it's a shame it takes 2 weeks to transfer as this will mean I miss the 2023/2024 Capital Gains allowance.
I thought if you bought shares and the fee was £11.95 , then when you sell, you are charged another £11.95 fee, I didn't realize that they take it every month , while holding the shares !
The £11.95 is just a dealing fee, it’s not a monthly fee, apologies if that didn’t come through correctly. The monthly fee on Hargreaves’s Lansdown is 0.45% up to £250k
Yeah HL is quite expensive, but there are ways to control the fees There are no dealing fees if you top up via direct debit, so you can add to your existing shares or ETF positions for no extra dealing fee. The platform fee is also capped at £45 per year for shares/ETFs. So, whilst it is relatively expensive compared to T212 and I don't use HL myself, the fees can be controlled quite significantly.
@@TomsPersonalFinance I agree, it is easy to make HL seem expensive, but since I don't buy single stocks and instead pay 0.07% on my fund. Hardly expensive.
Yes you still pay those, it’s free to deposit funds via instant bank transfer and standard bank transfer. It’s free to deposit funds via card up to £2000 then there is a charge to do this.
Hey! Just to confirm this is correct, I think I said in the video something like “all deposits above £2K”, but this is only the case if you deposit via card payment. Bank Transfer is free 👌🏼 thanks for calling this out!
Great video!!! just have one question about ISA+tax free... I cannot invest in: say 10k in a cash ISA and 10k in a stocks and shares ISA (per tax year), is that right?
Hi, im new and late to this. Amy advice would be apprciated Im 38 and can afford to save 500 a month for the next year. This will get me on way to a deposit. Am i better going investment isa or is there abetter option. Thanks
No just savings to then maybe try make them work for me. I was gonna get mortgage. Just decided to rent and save 250 instead of 500 for a start anyway.
Thanks for the video! The only minor caveat I’d make with point 4 (don’t invest short term money into an ISA), it can be an ok move to do so if your S&S ISA is a ‘flexible’ one. Very few are, but vanguards is for example. So for example say you were saving and investing £1000 a month in a global index fund for long term goals and £500 a month in a money market fund for ‘house renovation’, then there could be a nice use case for doing this all through your S&S ISA as opposed to doing your house renovation fund through a bank savings account where usually rates are slightly lower of course
Great content Mitch, I have recently come across the Junior SIPP which looks interesting. It may be worth exploring when the time comes. The advantages of a Junior SIPP: Tax-free investing - Like most child pensions, money in a Junior SIPP is free from UK income and capital gains tax. Inheritance tax savings - Making payments to a Junior SIPP could help to reduce inheritance tax bills. Pension tax relief - Each time you add money to a child’s pension, the government automatically adds 20% in pension tax relief. The Junior SIPP allowance this tax year (2023/24) is £3,600. This includes any tax relief added by the government. You can pay in up to £2,880 every year and the government would add £720.
Hello everybody...a quick check, when you were showing us the limit of capital gains, that was under the column for disabled people and the other trustees was on the right...so, everything was halved the amount you were talking about, and I just want to check that you got that as you are rewatching the video :) I am also super curious if you build a nice cash cow portfolio with an ISA and then decide to leave inheritance to your kids, whether or not you would be paying any taxes...if u could do a video on this I'd be thrilled ^_^
Hi Mitch, just came across your channel and i find it incredibly helpful....if i can save 500 pounds for a month for the next 5 years how would i be able to utilise that money? I jave not opened any isa accounts as yet as i am new to investing and currently learning from your channel. Thanks
Hey Kerry, great question. I guess it would depends what your financial goals are and what you’d like to use the money for, I always think about my investments as a long term financial play for retirement but also short term financial security too should I need a windfall of cash quickly for whatever reason.
Would you be allowed to say put £20,000 into a chip cash isa and then pull all of that out and put it into a vanguard s&s isa if the interest rates were to drop in a single tax year?
Great video full of useful information. Thankyou. One question i can't seem to find an answer for. Could I invest £20k into a stocks and share isa this tax year. Then transfer my full £9k from my now pointless help to buy isa and it not contribute to the £20k per year limit? (P.s not invested anything into an isa this tax year)
Thanks! Simple answer is if you can get the help to buy isa money moved into a Stocks and Shares ISA before the end of this tax year (you have until 5th April), your £20k allowance resets on the 6th. Could that work?
@MitchShoesmith Hi thanks for taking the time to respond. What I'm asking is would it contribute as part of that £20k or be in addition to it. (Considering already in an isa and just transferring over) So potentially have £29k in there this tax year
Love your advise, you have earned a new subscriber for sure. With regards to a child's stocks and share isa, any idea on the best provider for this? My son is 5 months old. Want to get this sorted for him. Thanks, Jason
Thanks for answering a question about whether a person can pay into previous years S&S ISAs, called Money Helper (the Government run advice service) they hadn't a clue. Thanks again Mitch!
Hi, im completey new to investments but am i a favorable postion at present. I have no ISA, dont own property 33 and no debt. I have 10k in savings (cash) and have a income whixh allows me to invest arounf 250/300 per month.. i just don't no where to start. Can i open both invest engine and 212 and a LISA and as long as dont exceed 20k use the 3 together.. just trying to figure out where to go from here thanks in advance
Happy Sunday guys! Hopefully this info is useful to know in the run up to ISA season. If you’re looking for a stocks and shares ISA provider Trading 212 are offering 1 free share valued up to £100 when you open an account using the following link: trading212.com/promocodes/MITCH
Good vid as ever Mitch - how I wish I had TH-cam when I was starting out!!
Thanks Andy!
One thing that slightly confuses me about long term investing. And I’m probably missing something. Say I put in all this effort to save lots and let it compound over time. But if I shouldn’t touch this money ever (even say in 10 years) that means I can only enjoy it when I’m way older and have less energy..
Well first off, it's your choice when you dip into it.
Secondly, it's to have a secure/worry-free retirement..
I know I'd rather have a retirement with money to do as I please, than a retirement knowing I'd spent it all 20 years prior.
You can withdraw your money whenever you want to
Does anyone else want an after eight right now?
Another great video Mitch! One KILLER is you can't transfer shares from an invest account into an ISA, you have to sell and then rebuy. I am currently moving part of my portfolio from HL because you're spot on, they SO bloody expensive! I love my T212 account :)
Thanks Tom! Really good point to make actually, one that would’ve been worthwhile mentioning in the video 👊🏼
@@MitchShoesmith T212 are introducing a shared transfer scheme by 31st March, so I'm 100% moving my HL over to my invest account to save fees, then I'll sell in my T212 invest account and rebuy in my ISA, it's a shame it takes 2 weeks to transfer as this will mean I miss the 2023/2024 Capital Gains allowance.
I thought if you bought shares and the fee was £11.95 , then when you sell, you are charged another £11.95 fee, I didn't realize that they take it every month , while holding the shares !
The £11.95 is just a dealing fee, it’s not a monthly fee, apologies if that didn’t come through correctly. The monthly fee on Hargreaves’s Lansdown is 0.45% up to £250k
not £762 to HL for the year , Cheers @@MitchShoesmith
Yeah HL is quite expensive, but there are ways to control the fees
There are no dealing fees if you top up via direct debit, so you can add to your existing shares or ETF positions for no extra dealing fee.
The platform fee is also capped at £45 per year for shares/ETFs.
So, whilst it is relatively expensive compared to T212 and I don't use HL myself, the fees can be controlled quite significantly.
@@TomsPersonalFinance I agree, it is easy to make HL seem expensive, but since I don't buy single stocks and instead pay 0.07% on my fund. Hardly expensive.
Hi. I thought there were no fees with Trqding 212 if you credit your account via bank transfer?
You are correct. Its only on card payments after first £2000
Yes you still pay those, it’s free to deposit funds via instant bank transfer and standard bank transfer. It’s free to deposit funds via card up to £2000 then there is a charge to do this.
Hey! Just to confirm this is correct, I think I said in the video something like “all deposits above £2K”, but this is only the case if you deposit via card payment. Bank Transfer is free 👌🏼 thanks for calling this out!
Great video!!! just have one question about ISA+tax free...
I cannot invest in:
say 10k in a cash ISA and 10k in a stocks and shares ISA (per tax year), is that right?
Thanks!! Yeah you can split your allowance between a cash ISA and stocks ISA, so £10k in each for a maximum deposit of £20k per tax year.
Great Vid Mitch, super helpful for those that are just starting out/thinking of starting out! Such a great channel for UK investors!
Thanks dude, appreciate it!
Hi, im new and late to this. Amy advice would be apprciated Im 38 and can afford to save 500 a month for the next year. This will get me on way to a deposit. Am i better going investment isa or is there abetter option. Thanks
Hey, are you saving for a deposit on a house?
No just savings to then maybe try make them work for me. I was gonna get mortgage. Just decided to rent and save 250 instead of 500 for a start anyway.
Hi Mitch, thinking of starting investing now at the age of 21. I am thinking of putting aside £600 a month into s&p500. What are your thoughts? Thanks
Hey, that’s pretty much what I did at the same age, I’m 28 now and it’s worked out pretty well so far!
@@MitchShoesmith great, thanks mate, looking forward to the journey!
Thanks for the video! The only minor caveat I’d make with point 4 (don’t invest short term money into an ISA), it can be an ok move to do so if your S&S ISA is a ‘flexible’ one. Very few are, but vanguards is for example. So for example say you were saving and investing £1000 a month in a global index fund for long term goals and £500 a month in a money market fund for ‘house renovation’, then there could be a nice use case for doing this all through your S&S ISA as opposed to doing your house renovation fund through a bank savings account where usually rates are slightly lower of course
100% agree with you - great point!
Is it possible to invest in SP500 through vanguard not using an ISA? The reason I ask is because I've already maxed out my ISA Elsewhere. Thanks
Great content Mitch, I have recently come across the Junior SIPP which looks interesting. It may be worth exploring when the time comes.
The advantages of a Junior SIPP:
Tax-free investing - Like most child pensions, money in a Junior SIPP is free from UK income and capital gains tax.
Inheritance tax savings - Making payments to a Junior SIPP could help to reduce inheritance tax bills.
Pension tax relief - Each time you add money to a child’s pension, the government automatically adds 20% in pension tax relief.
The Junior SIPP allowance this tax year (2023/24) is £3,600. This includes any tax relief added by the government. You can pay in up to £2,880 every year and the government would add £720.
Hello everybody...a quick check, when you were showing us the limit of capital gains, that was under the column for disabled people and the other trustees was on the right...so, everything was halved the amount you were talking about, and I just want to check that you got that as you are rewatching the video :)
I am also super curious if you build a nice cash cow portfolio with an ISA and then decide to leave inheritance to your kids, whether or not you would be paying any taxes...if u could do a video on this I'd be thrilled ^_^
8:50 I can relate. My first year's insurance was almost 3 grand
Ouch!! First year insurance is a killer
Lovely upload
Hi Mitch, just came across your channel and i find it incredibly helpful....if i can save 500 pounds for a month for the next 5 years how would i be able to utilise that money? I jave not opened any isa accounts as yet as i am new to investing and currently learning from your channel.
Thanks
Hey Kerry, great question. I guess it would depends what your financial goals are and what you’d like to use the money for, I always think about my investments as a long term financial play for retirement but also short term financial security too should I need a windfall of cash quickly for whatever reason.
hi. what name have this app.... ,,calculator,, ... in video minut 9,23 thanks
If you google compound calculator you’ll find it
Would you be allowed to say put £20,000 into a chip cash isa and then pull all of that out and put it into a vanguard s&s isa if the interest rates were to drop in a single tax year?
As far as my understanding goes, no. In this case, you have already used up your 20000 allowance for the year.
Great video full of useful information. Thankyou.
One question i can't seem to find an answer for.
Could I invest £20k into a stocks and share isa this tax year.
Then transfer my full £9k from my now pointless help to buy isa and it not contribute to the £20k per year limit?
(P.s not invested anything into an isa this tax year)
Thanks! Simple answer is if you can get the help to buy isa money moved into a Stocks and Shares ISA before the end of this tax year (you have until 5th April), your £20k allowance resets on the 6th. Could that work?
@MitchShoesmith
Hi thanks for taking the time to respond. What I'm asking is would it contribute as part of that £20k or be in addition to it. (Considering already in an isa and just transferring over)
So potentially have £29k in there this tax year
Great video, thanks.
I have a project for 5 years to cash out, what is a rigth thing to invest.
I am aware of is not financial advice.
Thanks
Hey! Thanks! Unfortunately I can’t tell you what to invest in, this is something you’d have to consult a professional on if you’re unsure.
With HL, if you pay into funds and not etfs (Lifestrategy or Global All Cap for example) you dont pay any dealing fees
At least they don’t commit daylight robbery on all products then 😆
@@MitchShoesmith it's a shame there isn't more competition in the Lifetime ISA market. Would happily not be with HL if Vanguard offered one
Love your advise, you have earned a new subscriber for sure.
With regards to a child's stocks and share isa, any idea on the best provider for this? My son is 5 months old. Want to get this sorted for him.
Thanks,
Jason
Hi Jason, I haven’t looked into the accounts, I know Vanguard do one but would definitely do some research on different providers 👌🏼
@@MitchShoesmith thanks mate
Also, love your investment journey. I am on mine too, started the year with 15k, up to 18k, going 💪
@@Jason-xw8tx love to hear it! Keep up the great work!
@@MitchShoesmith keep up the good advice and I'm sure I will ha!
Such an underrated channel. Fantastic information thank you.
Thanks Adam!
By who ?
thank you
Good video
Thanks!
Thanks for answering a question about whether a person can pay into previous years S&S ISAs, called Money Helper (the Government run advice service) they hadn't a clue. Thanks again Mitch!
Hi, im completey new to investments but am i a favorable postion at present. I have no ISA, dont own property 33 and no debt. I have 10k in savings (cash) and have a income whixh allows me to invest arounf 250/300 per month.. i just don't no where to start. Can i open both invest engine and 212 and a LISA and as long as dont exceed 20k use the 3 together.. just trying to figure out where to go from here thanks in advance