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Answers to YOUR Questions

See what's bugging others. 

And what our experts say.

I have cash ISA that is maturing next week. Can I transfer a cash ISA to a Stocks and Shares ISA with another provider? Will I still keep my £20,000 annual allowances for Stocks and Shares ISA?

Shreekant , UK

18 October 2020

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Anna Stoughton

Hi Shreekant! Yes, you can transfer your cash ISA into a Stocks and Shares ISA and keep this year’s 2020/2021 ISA allowance provided that the cash ISA is from a previous tax year. Not all ISA providers have to allow “transfers in” however. If the cash ISA is maturing from a previous tax year then you can choose how much you wish to transfer into a S&S ISA. To confirm, if you withdraw the funds from your matured cash ISA this year and then invest into a S&S ISA, you will lose the allowance – it must be a transfer.

Please note that you cannot open two different ISAs that are of the same type in the same tax year (tax years run April to April). For example, opening two Stocks & Shares ISAs in the same year is a “no no”! You can however open a Stocks & Shares ISA and a Cash ISA within this tax year and split your £20k ISA allowance between the two, for example, invest £15k into a Stocks & Shares ISA and £5k into a Cash ISA.

With ISAs it’s a “use it or lose it” policy. If you don’t fully utilise your £20,000 this year, it’s not rolled over to the next. Take a peruse through our Best Buy table here to see which provider may be best for you. Hope that helps clear up your ISA situation!

 

Just be aware...

We are not regulated to give personal financial advice - This isn’t full-fat regulated financial advice. Boring Money is a publisher and not regulated by the FCA. 

This means we can't help with specific personal circumstances or recommend specific investment products. It also basically means that if we say something daft, you have no recourse to come back and complain.

We’re only allowed to give you a steer or share an opinion or tell you the facts - That said, we promise that our answer to you is an independent unbiased perspective with no commercial gain to make. If you need regulated financial advice, you can find a good adviser via sites such as Unbiased & Vouchedfor.

I currently have my children's Stocks & Shares ISA's with H&L however I am not that savvy with investing so I am thinking of moving it over to Wealth Simple and allowing them to do it for me. Would you recommend this or are there other roboadvisors you would suggest? I am happy to leave the money in long term until they are about 18 so looking at an 'ambitious' risk. I also have the same account with H&L and will potentially swap also.

Funmi, LDN

12 October 2020

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Holly Mackay

Fidelity has recently announed no fees on Junior ISAs - they also have ready-made investment options. If you want to keep it super simple I would look at Nutmeg, Wealthify or Wealthsimple - you can read more about them on our Best Buys pages. 

Hi! All going well I will be selling my flat next month and will be left with a large sum (£150,000) before I purchase my next home. Do you have a recommendation as to where I could put this money to best use during that time (like 4-6 months) Thanks!

Matt, MLN

18 September 2020

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Anna Stoughton

Hey Matt!

As you are looking to save a sum over the very short term, I would not suggest that you invest this cash sum. Instead, I would ensure that you have utilised your ISA allowance (if not, consider putting £20,000 into a cash ISA) and then spread the money between a couple of banks so that you are fully utilising the Financial Services Compensation Scheme (FSCS). The FSCS protects your money up to £85,000 per bank. Please be aware that if you set up a cash ISA and then withdraw it, you could lose your allowance for the year if it is not a flexible ISA. I know that interest rates are currently extremely low, but as your time period is so short it’s most likely the safest option for holding your next house deposit.

One opportunity you may want to consider is NS&I, for example premium bonds or income bonds – check out the website here https://www.nsandi.com/easy-access-saving/ -  Hope that helps and good luck!

Hi Holly, thanks for the guide on how to save for retirement. A key question for me and my fifties friends is, how much retirement income do we need (aka when can we afford to retire?) We’ve found the PLSA-suggested ‘retirement living standards’. What do you think of them?

Rory, Ham

28 August 2020

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Susie Bewell

“How much will I need to retire” is a question asked of us frequently but understanding how much you need to save to retire is difficult to define as not everyone is the same. It is often only when you are nearing retirement that you would really understand what your income needs will be and often that may be too late to plan. For an investor in their thirties, understanding what income needs will be at age 68 is almost impossible to imagine.

Fortunately, over the years, experts have devised useful rules of thumbs to follow to help us on our way to successful retirement planning. Most experts suggest that you will need 70-80% of your pre-retirement income after you retire. It is assumed that mortgages, debts and dependents are a thing of the past, leaving you with lower expenses.

I think the PLSA Retirement Living Standards do really well to capture what different incomes in retirement would cover, all the way down to what holidays or gifts for members of the family might look like. I particularly liked the examples given that highlight costs you might not have thought of – help with maintenance around the house, for example.       

Of course everyone if different, but this is a nice way to get you thinking about what could be important to you, and put some “meat on the bones” of your plan.

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