The Money Thread...

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That's not a growth
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PostRe: The Money Thread...
by That's not a growth » Fri Mar 17, 2017 3:32 pm

I remember reading in the past the LISA is good if you know for certain you're going to buy a house, but H2BISA is better if you might not. I'll need to read into it a lot more to figure out if I'm going to transfer my H2BISA.

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Curls
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PostRe: The Money Thread...
by Curls » Fri Mar 17, 2017 3:44 pm

It all depends how much money you're willing to put in....

If you're happy just putting in £200 a month then, HTB isa is better as they won't take any money back off you if you don't buy.

However if you are almost definitely saving that money for a mortgage, then LISA is better, as you can transfer your Help to Buy Isa over (I've saved £4400 in that now after opening it from day one (Dec 2015) when including the initial £1000 deposit.) and then add an extra £4000 for the 2017-2018 financial year.... Where as if you stuck with help to buy you can only add £200 a month. (2400 a year)

That means by April 2018...I'll have £8600 in my Lifetime Isa compared to £6000 that I would save from sticking with HTB ISA. Obviously you need to aquire these funds to input, so if you don't have the income to save back £4000 in one year, there probably isn't too much point in saving....except for the fact that with the LISA you can put your deposit down on a more expensive house.

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PostRe: The Money Thread...
by That's not a growth » Fri Mar 17, 2017 4:37 pm

That's true, but putting money in a H2BISA doesn't stop you putting money else where if you can save more than 200 a month. I need to compare scenarios about if i were to buy in, say, 12 months, 24 months, 36 months and 48 months and see how each option compares.

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PostRe: The Money Thread...
by Glowy69 » Sat Mar 18, 2017 1:07 pm

Got my free £110 for switching to the co op bank last week, 28 days after I opened the account. 8-)

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PostRe: The Money Thread...
by Meep » Mon Apr 17, 2017 9:11 pm

Hi there, I have a question regarding balances.

I tried ordering something from a site and the payment was approved but the order failed when the site failed to load afterwards (no order on the store account or email confirmation). However, the amount has been deducted from my "available balance". How long will it remain like this? Will it just reset itself after a certain time and the funds are not taken?

I tried finding out but there is no information on Nationwide than seems relevant.

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PostRe: The Money Thread...
by Errkal » Wed Apr 19, 2017 2:10 pm

I would call the company you were buying from, it sounds like the payment was made and the order failed on their side. The payment and order are 2 seperate things in reality and the website just brings the two sides together.

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PostRe: The Money Thread...
by Lotus » Mon Apr 24, 2017 3:41 pm

Has anybody opened one of these Lifetime ISAs? Or are you planning to? My understanding is that only a handful of providers offer them at the moment, and that uptake has been fairly slow. Any thoughts on pros and cons?

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PostRe: The Money Thread...
by Glowy69 » Mon Apr 24, 2017 3:44 pm

Meep wrote:Hi there, I have a question regarding balances.

I tried ordering something from a site and the payment was approved but the order failed when the site failed to load afterwards (no order on the store account or email confirmation). However, the amount has been deducted from my "available balance". How long will it remain like this? Will it just reset itself after a certain time and the funds are not taken?

I tried finding out but there is no information on Nationwide than seems relevant.


About 5 days, it should have gone back on by now.

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PostRe: The Money Thread...
by Lagamorph » Mon Apr 24, 2017 4:17 pm

Lotus wrote:Has anybody opened one of these Lifetime ISAs? Or are you planning to? My understanding is that only a handful of providers offer them at the moment, and that uptake has been fairly slow. Any thoughts on pros and cons?

I think the main reason uptake has been slow is because the banks are somewhat reluctant to offer them as there's little profit to be made in them.
I am planning to open one as I'm under the age limit for them but it's going to take time for all of the banks to really offer them.

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PostRe: The Money Thread...
by Grumpy David » Tue Apr 25, 2017 7:45 am

Lagamorph wrote:
Lotus wrote:Has anybody opened one of these Lifetime ISAs? Or are you planning to? My understanding is that only a handful of providers offer them at the moment, and that uptake has been fairly slow. Any thoughts on pros and cons?

I think the main reason uptake has been slow is because the banks are somewhat reluctant to offer them as there's little profit to be made in them.
I am planning to open one as I'm under the age limit for them but it's going to take time for all of the banks to really offer them.


Unless you are planning to buy a house with it in the near future, you're better off using it as a back up pension and buying stocks with it rather than using it to save cash.

Only problem is the 3 stock providers all charge higher fees than my regular ISA. 0.45% doesn't sound that bad but it's not 0.45% of the profit, but on the entire value of the portfolio. My ISA cost with Charles Stanley Direct is 0.25% so almost half.

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PostRe: The Money Thread...
by Curls » Fri Apr 28, 2017 5:09 pm

Can someone help me to understand Stocks and share ISA. I've read something on moneysavingexpert that has totally confused me...

A. You don't pay capital gains tax (CGT) on gains made within an ISA - great if you exceed the £11,300 annual CGT allowance.

CGT is a tax you'll have to pay on the gain you make when selling things such as shares, a second home (you don’t pay capital gains on selling your first home) and jewellery.

So if you buy shares at £1,000 and then sell them for £1,500, you’ve made a £500 gain. You might then have to pay tax on that. But it’s important to understand that...

You’re allowed to make £11,300 of gains this tax year (2017/18) tax-free outside an ISA. So you would ONLY gain using a stocks & shares ISA in a year where you were making total gains over £11,300.


So is this saying that unless I'm making investments of over 11,500 i gain nothing?

Now I have 1k to invest and dont know what to do with it...I already have my Help to buy Isa and a regular saver I'm maxing out. I thought a stocks and shares ISA/LISA may be the best option but I just don't understand them?

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PostRe: The Money Thread...
by Grumpy David » Sat Apr 29, 2017 7:39 am

Curls wrote:Can someone help me to understand Stocks and share ISA. I've read something on moneysavingexpert that has totally confused me...

A. You don't pay capital gains tax (CGT) on gains made within an ISA - great if you exceed the £11,300 annual CGT allowance.

CGT is a tax you'll have to pay on the gain you make when selling things such as shares, a second home (you don’t pay capital gains on selling your first home) and jewellery.

So if you buy shares at £1,000 and then sell them for £1,500, you’ve made a £500 gain. You might then have to pay tax on that. But it’s important to understand that...

You’re allowed to make £11,300 of gains this tax year (2017/18) tax-free outside an ISA. So you would ONLY gain using a stocks & shares ISA in a year where you were making total gains over £11,300.


So is this saying that unless I'm making investments of over 11,500 i gain nothing?

Now I have 1k to invest and dont know what to do with it...I already have my Help to buy Isa and a regular saver I'm maxing out. I thought a stocks and shares ISA/LISA may be the best option but I just don't understand them?


Currently, yes, there is no difference between you putting £1000 into an investment account or into an ISA investment account. However you would still use the ISA anyway.

It's not saying it's investing over £11,500 its saying gains over £11,500. If you bought £1000 worth of shares and the value went up significantly to £12,500, you've gained £11,500 and are still within the limits so no CGT is due. If it was worth £21,500 you're £10,000 over the limit so the sale has CGT due on £10,000 of the gain. There would be no tax due if within the ISA.

Successive governments could change the rules on this e.g. Merge CGT allowance into income tax allowance effectively eliminating it for most people. Best to stick into an ISA.

What is your time frame for the money? When will you need to spend it? Stock and shares can go down, but the longer the timeline, the more you reduce the volatile nature of investing.

I have my normal ISA with Charles Stanley Direct and I use that platform to invest in Vanguard Lifestrategy 80 fund. What were you thinking of buying?

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PostRe: The Money Thread...
by Curls » Sat Apr 29, 2017 6:41 pm

I've no idea to be honest. I was just going to browse the net and see what reccommended, its all a very new concept to me and so different to my normal tatics of saving.

I don't necessarily need the money so I could invest for 5 years, I'd prefer an account where I have the ability to withdraw sooner though.

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PostRe: The Money Thread...
by Grumpy David » Sat Apr 29, 2017 7:13 pm

Curls wrote:I've no idea to be honest. I was just going to browse the net and see what reccommended, its all a very new concept to me and so different to my normal tatics of saving.

I don't necessarily need the money so I could invest for 5 years, I'd prefer an account where I have the ability to withdraw sooner though.


You can cash out whenever, just that the price could be worth more or less than what you paid for it.

Globally diversified portfolio of index shares and bonds is the right way to go. Vanguard Lifestrategy funds would be my starting point. You can vary the percentage of shares to bonds to increase/decrease appetite to risk.

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PostRe: The Money Thread...
by KingK » Sat Apr 29, 2017 11:13 pm

Curls wrote:I've no idea to be honest. I was just going to browse the net and see what reccommended, its all a very new concept to me and so different to my normal tatics of saving.

I don't necessarily need the money so I could invest for 5 years, I'd prefer an account where I have the ability to withdraw sooner though.

Stay away from shares. For now anyway if that's your outlook. Honestly, if you don't know what you're doing and will follow a recommendation all you will do is lose money more times than not.

I worked at a stockbrokers for 11 years. Sure I saw people make money but many people lost. Think about it logically - if someone has tipped a stock online or in the press, that will usually move the price up. As more and more people follow that tip then the price is likely to rise. The tipster sees his investment gain. If you come along a while later and buy, then sure, you may see it rise in value. But all the short term investors who bought before you may well start selling to take their profits. This forces the price down. You could be left high and dry wondering whether to sell earlier than you wanted to.

If you are going to invest in a company you need to investigate it properly. What profits are they making? Are those profits increasing year on year and expected to continue to do so? Do they have a dominant product that is likely to remain so? Maybe they are expanding into new territories. Is the Exec Mgmt a well thought of group who know what they're doing? Etc

You could pretend to invest. i.e. pick a share and imagine you've bought £1k's worth. Then track its performance over the next few weeks and monitor for announcements and results. Don't fret that you could have made £200 profit or whatever if the price rises as until you're in the position of owning shares and sitting on any sort of minor profit (or loss) you won't appreciate the "should I sell now or hold on?" pressure.

I don't mean to sound condescending and hope you understand why I've said the above. Shares are long term investments and self selection can be very risky. You could consider buying into a unit trust which invests in a multitude of different shares. That protects you more from a bad stock but of course is likely to return less than investing in a single stock if that stock was a high flier

Good luck. If you do invest then only invest what you can afford to lose.

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PostRe: The Money Thread...
by Grumpy David » Wed May 17, 2017 7:20 am

Vanguard now offer ISA and non ISA accounts directly. Makes it quite comfortably cheaper to open an account directly than via a trading platform website like Hargreaves Lansdown.

http://monevator.com/vanguard-direct-uk/

Yearly costs directly are 0.37% whilst the best elsewhere that I can find is 0.47% (both figures include fund charge and platform charge).

If you're looking to open an S&S account, there's a clear no brainer option that got even clearer.

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PostRe: The Money Thread...
by Glowy69 » Sun Jul 09, 2017 3:13 pm

Anyone used the resolver tool for PPI on the moneysavingexpert website?

I had car finance a long time ago and I'm nearly certain the twats would have put it on, along with a small loan. Anyone had any success.

Is there anywhere that documents the accounts you've had pre the 6 years on your credit file?

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PostRe: The Money Thread...
by Knoyleo » Sun Jul 09, 2017 3:48 pm

Pension question: Why would my pensionable pay be less than my gross pay? There's a few hundred pounds deducted for some reason, but I can't work out why. Everything I've seen online says that pensionable pay can be gross pay plus any benefits/bonuses, so surely you'd expect it to be a bit higher? Not that I've actually earned any bonuses from my current employer yet.

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PostRe: The Money Thread...
by Slayerx » Sun Jul 09, 2017 4:21 pm

Knoyleo wrote:Pension question: Why would my pensionable pay be less than my gross pay? There's a few hundred pounds deducted for some reason, but I can't work out why. Everything I've seen online says that pensionable pay can be gross pay plus any benefits/bonuses, so surely you'd expect it to be a bit higher? Not that I've actually earned any bonuses from my current employer yet.


The only thing I could find suggests it might be "releif at source"

Relief at Source

This is when the employer deducts the pension contribution from the employee’s net pay, after the employer has deducted PAYE tax, National Insurance, etc. That’s why we call this ‘net’. For example, if a 1% employee contribution is to be paid using this method, the employee pays a contribution of 0.8% and we reclaim the additional 0.2% from HMRC in respect of basic rate tax. Employees who are higher or additional rate taxpayers then need to reclaim any additional relief through their self-assessment tax returns. More information is available from HMRC.

Not sure what the benefits are, as you say most pensions are deducted gross.

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PostRe: The Money Thread...
by Knoyleo » Sun Jul 09, 2017 4:26 pm

Think this might be a question for HR tomorrow. The only other thing I've seen mentioned is that some employers exclude the first £x of pay from contribution schemes, but it seems kind of arbitrary, and I hadn't realised this actually happened/was a part of my scheme.


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