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Mum's pot at breakeven and NS&I transfer.


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Posted (edited)

3 years ago my mother saw how well I'd managed exLTS's SIPP and asked me to do the same for her and I'd created a robust portfolio of diverse stocks paying a dividend >4%. £200k became £230k (along with the market so no ego involved) and then came Covid and the amount invested rapidly swung to £170k (£50k of that is with the NS&I yielding 2%) so the drop was more pronounced. Last Friday the portfolio returned to £199k and over the weekend I saught the agreement of my sisters to sell her entire holdings with the intention of putting the money into NS&I bonds and taking a haircut on the yield (most companies had stopped paying dividends and it seems we are on a long road to recovery, she's 74 and doesn't need the volatility). Well approximately 50 trades and two hours later 🤨 (negative review left on trusted reviews for HL regarding this and that my calls went unanswered) I have £142k cash (£8k left invested in penny /AIM shares) with £93k of that in a stocks and shares ISA. Question is it a simple process to transfer that into an NS&I Cash ISA paying a whopping 0.9% as I can't seem to find the answers online? 

Market is up again today, and for the life of me I don't know why - so we did breakeven.

Edited by longtomsilver
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14 hours ago, Popuplights said:

Well done for looking after your mum's Dosh. My portfolio, although quite a bit smaller had done similar, down 20% ish, and nearly broken even today. I have just this evening taken out cash ISAs from ns&I and dropped them into the s/s HL ones. I can't be doing with 0.9  %.

 

Well we'll be matching your withdrawal by putting her money into NS&I. At her age the risk/reward of having money tied up in the markets is too great. Withdrawing £500p/month will last her until 112 at 0.9% and if she shuffles off before then there'll be money to pay for her care. Like you and with half my life ahead of me I'll remain invested.

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11 minutes ago, longtomsilver said:

Well we'll be matching your withdrawal by putting her money into NS&I. At her age the risk/reward of having money tied up in the markets is too great. Withdrawing £500p/month will last her until 112 at 0.9% and if she shuffles off before then there'll be money to pay for her care. Like you and with half my life ahead of me I'll remain invested.

Well putting it like that, then why not? You can't take it with you. Although care home fees will soon decimate the pot @4k/month if that ever comes to pass.

That's one of the things the government should be looking at, the cross subsidy of council funded care home residents by those paying privately. But that is for another thread.

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  • 2 weeks later...
On 08/06/2020 at 11:41, longtomsilver said:

with £93k of that in a stocks and shares ISA. Question is it a simple process to transfer that into an NS&I Cash ISA paying a whopping 0.9% as I can't seem to find the answers online? 

I have a moribund cash ISA paying 0.000000000001 percent or similar generous sum. Of course NS&I 0.9 percent looks great in that context so I jumped at it. However... 

"We don’t currently accept transfers from other providers into our Direct ISA" 

:CryBaby:

 
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On 08/06/2020 at 11:41, longtomsilver said:

Question is it a simple process to transfer that into an NS&I Cash ISA paying a whopping 0.9% as I can't seem to find the answers online?

Do NS&I accept transfers into their ISA? Isn't it fresh money for the current tax year only?

 

Quote

 

Not for savers who:

  • want to invest their full allowance in a stocks and shares ISA and/or an innovative finance ISA
  • prefer to use their account at a branch or by post
  • have invested or plan to invest in a cash ISA from another provider this tax year
  • want to transfer in ISA investments from another provider
  • want a flexible ISA

https://www.nsandi.com/direct-isa

 

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9 hours ago, longtomsilver said:

Thanks @Funn3r and @Democorruptcy seems the government bank don't want to upset the city boys paying next to fuck all. May have to stick it in premium bonds instead 🙄

Obviously if you take it out of an ISA you lose the tax advantages which doesn't matter much now at low rates but if ever they went up it could matter more. Premium Bonds are one option as a holding place for some of it to drip feed it into an NS&I ISA but another is no notice Income Bonds The 1.15% was due to be cut in May but bizarrely they abandoned the cut when the BoE slashed the base rate to 0.1%. I suspect the "whopping" 1.15% might go soon.

Edited by Democorruptcy
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38 minutes ago, Democorruptcy said:

Obviously if you take it out of an ISA you lose the tax advantages which doesn't matter much now at low rates but if ever they went up it could matter more. Premium Bonds are one option as a holding place for some of it to drip feed it into an NS&I ISA but another is no notice Income Bonds The 1.15% was due to be cut in May but bizarrely they abandoned the cut when the BoE slashed the base rate to 0.1%. I suspect the "whopping" 1.15% might go soon.

Easier to give investors a haircut when the money is held by the government...?

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4 hours ago, Knickerless Turgid said:

Easier to give investors a haircut when the money is held by the government...?

 I'd pick NS&I over a bank because they state your money is guaranteed and they don't send out FSCS warning emails. Though in reality if we have a bail in, it may not help.

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