Quantcast
Menu Off Menu On

The truth about Innovative Finance ISAs

22/03/2018

suspicious21.jpg

What exactly IS an Innovative Finance ISA? This ISA season we look at just what's in these so-called cash alternatives. easyMoney claims its Innovative Finance ISA can offer ‘inflation-busting interest rates’ because it has ‘no costly branch networks to maintain’ and doesn’t need to worry about the ‘significant maintenance expenses of out-dated computer systems’.

This is nonsense. In the end, it's debt, it's not protected by the Financial Services Compensation Scheme and you're exposed to more risk than you think.

"For investors frustrated by the poor returns on cash ISAs but also concerned about the current volatility of the stock market, an Innovative Finance ISA could be an ideal solution."

Lending Works

"The easyMoney Innovative Finance ISA is aimed at investors across the UK who have had enough of the poor interest rates offered by cash ISAs and are nervous about the potential volatility of most Stocks & Shares ISAs." 

easyMoney

 

This is how the innovative finance industry sells itself – a gentle middle ground between the volatility of stock markets and the security of cash. Even better, many sell themselves on giving one in the eye to the big guys, to those greedy banks and investment managers. 

And it seems that people like what the innovative finance industry is saying. Statistics published in August 2018 by HMRC, show the amount of money invested in Innovative Finance ISAs rose from £36m to £290m in just a year.

 

Andrew de Candole, CEO of easyMoney said:

Financial services in the UK are in desperate need of a shake-up. Like European air travel 23 years ago, the ISA market is crying out for someone to give everyday investors more for their money.

We wouldn’t necessarily dispute that the financial services industry needs a bit of a shake-up. For some time, providers have acted as if no-one other than my Dad would ever contemplate buying a financial product. However, we are also distinctly wary about overblown claims – and this is why we worry about some of these innovative finance ISAs.

Let’s look in a little more detail.

 

As we see it, there are a number of important things to note:

  • They are not cash. They are not even close to cash.

easyMoney claims its ISA can offer these ‘inflation-busting interest rates’ because it has ‘no costly branch networks to maintain’ and doesn’t need to worry about the ‘significant maintenance expenses of out-dated computer systems’.

This is nonsense. It can offer these ‘inflation-busting interest rates’ because the product isn’t invested in cash.

Investors are taking a risk that they can lose capital, which isn’t the case with a cash savings account.

 

  • The income comes from loan repayments, not ‘interest’ as such

With an innovative finance ISA, the provider takes your money and lends it to other people. These may be individuals – Zopa, RateSetter – or it may be companies – FundingCircle, ThinCats – or, as in easyMoney’s case, it may be property developers. The income you receive is dependent on those people making those repayments. People tend to be better than companies at repaying loans, but Zopa still estimates a default rate of close to 5% for its 2018 loan book. That means almost 5% of the loans it makes aren’t paid back.  

Some providers have measures in place to help if those people don’t make the repayments. EasyMoney has some charge over the property, Lending Works has a slush fund. Either way, the money you receive is not guaranteed.

What's next?

Join the thousands of people who get our weekly musings on money, great products, top tips and a dollop of opinion.

Sign up for Holly's blog

Want to know more?

Freddy.JPG

Financial fright night: How to avoid investment scams

Watch out for finance fraud horror this Halloween. We're arming you to deal with fraudsters on the phone, tax haven honeytraps, and cryptocurrency up in smoke. Reader beware, your wallet's in for a scare...

Financial fright night: How to avoid investment scams

fraud alert.jpg

Phone ringing? 7 ways to spot and avoid pension scams

They call you, out of the blue. They seem nice, she’s called Angela, and she just really wants to help you get the most out of your pension. But all is not what it seems.

Phone ringing? 7 ways to spot and avoid pension scams

Learn the Tribal Way

What are other people doing? Learn from their experiences.

If you know your shares from your SIPPs but could still use a few tips, you might be an Intrepid Investor. Take a look at our specialised Learning Path for an ISA MOT and some fund ideas.

Intrepid Investors
  • The rates aren’t always very good for the risk you’re taking

In the stock market, the value of the stocks you own can go down, as Carillion shareholders are about to find out. However, if you had your money in a FTSE 100 tracker (which gives you access to a range of the UK’s largest companies), the most your investment has ever dropped is 50%. And that was in an ‘end-of-the-world-as-we-know-it’ scenario - the Global Financial Crisis. Oh, and if you’d stayed invested, you’d have recovered your money and then some by now and been paid dividends while you were waiting.

There’s also quite a big upside - If you’d invested in the average UK All Companies fund over the past five years, you’d have made 43.8%. The best fund would have made you 133%. You may also have received dividends of 3-4%.

With peer to peer you get an interest rate, but that’s it. You can’t get more and you won’t get all your money back if someone defaults on their loan repayments. If I were lending to a property developer, I think I’d like a little more than a 4-5% interest rate to take that risk.  N.b. RateSetter pays over 7%, which seems much more realistic compensation for the risks taken.

 

  • Some are distinctly better than others

With Lending Works, it is made very clear that capital is at risk. There are credit checks in place for borrowers to ensure creditworthiness and investors will always be diversified across a large number of loans to minimise the impact of any one default. To date, it says, ‘every payment of capital and interest has been paid to lenders on time since we launched in 2014’. For this, investors get 6% p.a. over five years or 4.5% p.a. over three years in the Lending Works ISA.

As of August 2018, the easyMoney ISA 'pays up to 7.28%' interest rate and claims to ‘lend directly to property professionals, secured by UK property’. This could literally be anyone. It could be a half-built scheme on reclaimed land in Greenford. You just have to rely on their property guy. Again I say, I’d like a little more than 4% to take that risk.  

 

  • You aren’t covered by the Financial Services Compensation Scheme

The FSCS covers you for up to £85,000 if your financial services provider goes bust. It was introduced when people were all nervous about the banks to make sure they didn’t withdraw their money. This is important protection, particularly when you’re investing with smaller businesses and companies. https://www.fscs.org.uk/.

Peer to peer lending is now regulated, but it still doesn’t have FSCS protection.

The verdict? treat with caution.

You can ask us any questions about Innovative Finance ISAs (or anything else) this ISA season here. 

If you'd like weekly Boring Money tips and info, scroll down to sign up for the newsletter in the text box below.

Related Questions

Got a Question?

  • I'm looking to start investing and I'm torn between Evestor and Vanguard Lifestrategy. The entry requirements are much higher for Vanguard (£500 upfront and £100/month) while Evestor starts at £1. Is there any benefit of stretching my investment to use the Vanguard fund? Also do you know if I miss a monthly payment, will I be charged?

    Charlie | UK | 30/07/2019 | 9

    • Stocks and Shares ISA
    • Robo Adviser
    • Online Investment Platforms
    • GIA
    Michael Akinwotu's Response

  • I am confused about financial services compensation: I have a SIPP and an ISA with AJ Bell Youinvest, and am about to inherit a sizeable sum. I am already over the £85,000 financial services compensation limit. Should I be worried? Should I set up accounts with multiple platforms, to be covered by the compensation scheme?

    Emma | London | 22/07/2019 | 1

    • Private Pension
    • Stocks and Shares ISA
    • Cash
    Anna Sofat's Response

  • My brother is 17 and I have instilled in him to save. He puts £40 a month in and 10% of what he earns. I want him to save for short term and long term. What are the best accounts for him?

    Christine | Birmingham | 19/07/2019 | 2

    • Stocks and Shares ISA
    • Lifetime ISA
    Pete Matthew's Response

  • I am torn between investing in my ISA, and putting money into a personal pension. I know about pension grossing up, and the 25% tax free cash. However I will inevitably pay tax on the 75% which is not tax free. Whereas with the ISA, I don't get the grossing up benefit, but won't pay any tax. What do you think?

    Christopher | Staffordshire | 18/07/2019 | 1

    • Private Pension
    • Stocks and Shares ISA
    • Lifetime ISA
    Helena Wardle's Response

  • I have an inheritance to invest of £150,000. I am not paying into a pension at the moment but have £125,000 in my pension pot, and have fairly substantial money in Stocks and Shares ISAs. Should I put more into stocks and shares over a 10 year period, add to my pension funds, or invest in bricks and mortar with no mortgage?

    Mark | West Midlands | 12/07/2019 | 3

    • Stocks and Shares ISA
    • Workplace Pension
    • Mortgage
    Simon Bullock's Response

  • If I allow the transfer of my Baillie Gifford Scottish Mortgage Trust ISA, will it just go into a bigger Hargreaves Lansdown ISA pot? Meaning that when Hargreaves Lansdown as a whole falls, my investment is worth less?

    John | Lothian | 12/07/2019 | 3

    • Stocks and Shares ISA
    David Stone's Response

  • I am thinking of setting up a SIPP to diversify my investments and spread the risk. I'm nervous about doing my own investments, so I don't really know where to begin. Are there SIPPs which do it for you? Or if not, should I continue investing in my previous workplace pension?

    Holly | Sussex | 03/07/2019 | 0

    • Private Pension
    • Stocks and Shares ISA
    • Workplace Pension
    Lesley James's Response

  • I can't decide between getting a Junior ISA with a robo investor like Wealthify, or investing via Interactive Investor with an investment trust for my son's JISA. I want to invest ethically and am happy to research investment trusts myself. The fees seem similar and both have fund managers. What should I do?

    Rick | Sussex | 01/07/2019 | 2

    • Junior ISA
    • Sustainable Investing
    Simon Bullock's Response

  • My son has a savings plan with Witan Jump that is now being closed and transferred to Hargreaves Lansdown. However, Hargreaves informs me that I cannot transfer all the money (£26,000) into a Junior ISA account, because it's more than the £20,000 yearly ISA allowance. I would like to keep the remaining money invested, but would appreciate some advice as to how I could invest it for my son.

    Isabella | Kent | 19/06/2019 | 0

    • Junior ISA
    Lesley James's Response

  • I have put the full allowance into my daughter's JISA. If for some reason I passed away, would the amount over £3000 per year be liable for inheritance tax?

    PB | Derby | 18/06/2019 | 2

    • Junior ISA
    • Inheritance
    Tommy Watson's Response

  • I have opened my first Stocks and Shares ISA, and have a company pension on the new standard 5%/3% contributions. I have enough easy access savings to cover emergencies so I was wondering what would be a next good step, add to S&S ISA or open a SIPP for retirement?

    Kevin | Strathclyde | 14/06/2019 | 10

    • Private Pension
    • Stocks and Shares ISA
    • Cash
    Pete Matthew's Response

  • My husband and I are new to investing and would like to make a minimum 10 years investment in Stocks and Shares ISAs, plus an ongoing £500 each a month. We're really keen on investing in ESG funds/companies only. To 'diversify', would it be better if one of us uses a robo-adviser and the other a traditional platform? For one to go active and the other passive approach? One higher risk than the other?

    Emma | Herefordshire | 13/06/2019 | 6

    • Stocks and Shares ISA
    • Sustainable Investing
    • Mortgage
    Simon Bullock's Response

  • I work for my company which funds my SIPP directly. I will be receiving compensation in the coming months - is it possible to pay SIPP contributions from the compensation payment? If pension significant contributions are not possible, what might we consider when looking for a tax efficient home for the compensation?

    Andy | Lancashire | 12/06/2019 | 3

    • Private Pension
    • Stocks and Shares ISA
    • Workplace Pension
    David Stone's Response

  • As a U.S. passport holder as well as a British citizen living in the UK, are there certain things I can't invest in?

    Megan | Scotland | 11/06/2019 | 0

    • Private Pension
    • Stocks and Shares ISA
    • Shares
    Zoë Dagless's Response

  • I have an ISA with Investec Click and Invest which is closing down, and I have to find somewhere else to invest the money. Which are some providers of a similar nature? I am considering either medium risk or high risk accounts.

    Michael | Surrey | 10/06/2019 | 0

    • Stocks and Shares ISA
    Holly Mackay's Response

  • We were very sad to learn recently that Investec's Click and Invest was to be closed. We'd prefer to keep our ISA with a managed service, such as the one offered by Click and Invest, but will consider the DIY option if that proves to be the best on offer. Which platforms are well regarded ISA providers? I'd rather not go with a digital start-up offering, but a more established player.

    Mr & Mrs S. | Sussex | 30/05/2019 | 3

    • Stocks and Shares ISA
    Holly Mackay's Response

  • I’m in my 30s and live in London. I have savings in cash but I’ve never tried any ISAs, stocks etc. before. I am looking for some suggestions as to the types of products I should use to begin investing. Instinct is telling me to keep 50% of my savings in a safe investment, 30% in a medium risk investment, 10% in higher risk, and keep 10% for emergencies. I’m making nothing keeping the cash in the bank!

    Lisle | London | 30/05/2019 | 5

    • Private Pension
    • Stocks and Shares ISA
    • Lifetime ISA
    • Cash
    Tommy Watson's Response

  • I'm in my late 30s, have a mortgage, a baby, no outstanding loans or credit cards, three pensions, and two Cash ISAs. I’d like to invest to renovate our house, help fund our children’s education and help them onto the property ladder, and retire as soon as possible! I considered a LISA but thought I might be better paying off more of the mortgage. I'm also confused about using a platform for a Stocks and Shares ISA. Any advice would be appreciated! Keep up the good work, I’m impressed with how refreshingly approachable your website is.

    Nick | Berkshire | 29/05/2019 | 2

    • Stocks and Shares ISA
    • Junior ISA
    • Lifetime ISA
    • Pension
    • Mortgage
    Catherine Morgan's Response

  • Baillie Gifford is closing down its Investment Trust ISA and I am being forced to move elsewhere. Do I need to use an Investment Trust for my ISA? What is the most tax-efficient way to access Baillie Gifford's Scottish Mortgage where the majority of Investment Trust ISA was held?

    Andrew | Renfrewshire | 23/05/2019 | 1

    • Stocks and Shares ISA
    David Stone's Response

  • I want to invest in one specific company’s shares. What’s the cheapest way to do this via an ISA?

    Peter | Lincolnshire | 21/05/2019 | 0

    • Stocks and Shares ISA
    • Online Investment Platforms
    Anna Sofat's Response

  • I am a self-employed 55 year old, with only a state pension. What can I do to increase my money for retirement?

    Sandra | Dumfries and Galloway | 21/05/2019 | 1

    • Private Pension
    • Stocks and Shares ISA
    • Lifetime ISA
    • State Pension
    • Pension
    • Workplace Pension
    Helena Wardle's Response

  • I currently have a Stocks & Shares ISA and a Junior ISA with Wealthsimple. I am considering changing these to Vanguard, but I am unsure if transferring across providers is a simple process. Also can you only pay into one of each type of ISA per year?

    Philip | County Antrim | 21/05/2019 | 2

    • Stocks and Shares ISA
    • Junior ISA
    Tommy Watson's Response

  • I'm 52 and want to retire at 55. I have a mortgage, but the interest rate is very low, and a Stock & Shares ISA into which I invest each month. The performance of the Stocks & Shares ISA has been mixed, and I'm nervous about Brexit/Trump/China. Should I pay off my mortgage or keep paying into the Stocks & Shares ISA?

    Paul | Glamorgan | 21/05/2019 | 0

    • Stocks and Shares ISA
    • Cash
    • Mortgage
    Lesley James's Response

  • We have just retired to France. Our pensions cover our expenses but we also have £230k which we would like to invest for a monthly income. Could you please explain the low-risk options we might want to consider?

    Keith | France | 10/05/2019 | 2

    • Private Pension
    • Stocks and Shares ISA
    • Online Investment Platforms
    • Pension
    David Stone's Response

  • I have just received a letter from JP Morgan saying that they will no longer offer ISA accounts from the end of September 2019. I have an ISA with them and seem to have a choice of transferring the ISA to another company "as is" or liquidating and reinvesting. Any thoughts?

    David | Staffordshire | 09/05/2019 | 0

    • Stocks and Shares ISA
    • Online Investment Platforms
    Phoebe Smith's Response

  • I've been reading about Beaufort Securities, and how they potentially didn't ring-fence investor money properly. What is the best way to avoid this happening to my money?

    Jenny | Greater Manchester | 29/04/2019 | 4

    • Stocks and Shares ISA
    • GIA
    • Other
    Anna Sofat's Response

  • I'm a 30 year old woman earning a reasonable salary with a low cost lifestyle. I have saved almost £8,000 and want to start investing. I like the idea of using a robo-investor like Wealthify, but I'm not sure if it's better to start with a Stocks and Shares ISA instead? Should I go with a Stocks and Shares ISA or a Robo Advisor, or both?

    Kate | London | 29/04/2019 | 6

    • Stocks and Shares ISA
    • Robo Adviser
    • Online Investment Platforms
    Pete Matthew's Response

  • I am a British/Irish citizen living in Malta and have between £5k-£10k to invest for 5 years. Clearly, ISAs are out as there is a requirement to be a UK resident. I am happy to accept a medium level of risk, and would appreciate some info on where to put this to maximise returns.

    Phil | Malta | 25/04/2019 | 4

    • Stocks and Shares ISA
    • Robo Adviser
    • Online Investment Platforms
    Zoë Dagless's Response

  • I've a Cash ISA with about £80k in it, so I'm considering moving £50k into a Stocks & Shares ISA. I'm 73, retired, married, a house-owner and would like to utilise my savings better. What would you recommend?

    Barry | Berkshire | 18/04/2019 | 1

    • Stocks and Shares ISA
    • Cash
    • Online Investment Platforms
    Helena Wardle's Response

  • I am a beginner investor and would like to invest in a "socially responsible" Stocks & Shares ISA. I have looked into the Nutmeg and Wealthify funds. Is there information about any other such providers on your website? And do you have any advice about how to compare the "socially responsible" criteria on the different funds?

    Joy | Glamorgan | 16/04/2019 | 1

    • Stocks and Shares ISA
    • Robo Adviser
    • Sustainable Investing
    Phoebe Smith's Response

  • I have a young boy who will be turning 4 this month. He is British. I want to save some money for this innocent boy, for when he comes of age, but I live in Uganda and I am not in touch with his mum. Can I open a Junior ISA for him?

    Dennis | Uganda | 11/04/2019 | 0

    • Junior ISA
    Zoë Dagless's Response

  • I am 52 with money languishing in a low savings account. Now I'm neurotic about entering into Stocks and Shares, due to seeing how many investors have exited the stock market thanks to Brexit, and with companies going bust etc. But I need to make my money work for me as my pension pot is low. Can I put the money into an Instant Access ISA and drip feed this into a Stocks and Shares ISA?

    Helen | London | 09/04/2019 | 2

    • Stocks and Shares ISA
    • Cash
    Lesley James's Response

  • I'm in my very early 20s, and earning well. I have no debts or dependants. I have a Stocks and Shares ISA, and am weighing up the pros and cons of a General Investment Account vs a Private Pension. What should I keep in mind?

    Cecily | Berkshire | 08/04/2019 | 0

    • Private Pension
    • Stocks and Shares ISA
    • Lifetime ISA
    • GIA
    • Workplace Pension
    Tommy Watson's Response

  • I've got a Stock and Shares ISA with Moneybox. I recently invested a lump sum with them, and I'm making regular weekly investments. When I invested, the share price was quite high. Should I have drip fed money into the account rather than depositing a lump sum?

    Tim | West Midlands | 05/04/2019 | 1

    • Stocks and Shares ISA
    Mark Dampier's Response

  • Our 16 year old son has inherited a significant sum. He wants to go to Drama School and pursue a career in acting, which we know means he is likely to be low paid/short of cash. I wondered how best to help him organise his savings/investments to help fund him through drama school/the early years, whilst trying to discourage him from simply dipping into his capital?

    Mo | West Sussex | 04/04/2019 | 4

    • Stocks and Shares ISA
    • Junior ISA
    • Inheritance
    Pete Matthew's Response

  • I intend to retire in autumn, aged 60 and would like to leave my son and grandson as comfortable as possible when I'm gone. I have talked with several IFAs, but given my risk adverse nature, their fees seem to eat up most of the benefit they offer. Do IFAs normally bring sufficient benefit to low risk strategies, to make it worthwhile? Or am I better off cautiously investing myself, and saving the fees?

    Stephen | North Yorkshire | 01/04/2019 | 0

    • Private Pension
    • Stocks and Shares ISA
    Catherine Morgan's Response

  • Where can I get a good Junior ISA?

    Rebeccah | Greater London | 27/03/2019 | 3

    • Junior ISA
    Holly Mackay's Response

  • I am self employed (40) with no private pension, earning £50,000 a year. I have savings and can make a lump sum investment. I know nothing about Stocks or Shares. What is the best way forward for pension and tax reduction? Desperate Anna

    Anna | London | 25/03/2019 | 0

    • Private Pension
    • Stocks and Shares ISA
    Holly Mackay's Response

  • For the last 9 months I've drip fed just over £10,000 into a Moneyfarm Investment ISA... it has been a very volatile year as you know. Moneyfarm seem to have done a good job of protecting my capital... however I haven't really made much in the way of gains... If I wanted, would I be able to transfer the whole lot to another platform where the fees are lower? I know you're not allowed to give regulated advice - but I'm uncertain if I should transfer the whole lot in one go, or drip feed.

    Robert | UK | 14/03/2019 | 3

    • Stocks and Shares ISA
    • Robo Adviser
    Holly Mackay's Response

  • I have about £100 monthly extra I want to invest, but I am not sure if my ISAs represent good value. I thought I could put the money in a higher risk investment, as it is money I can invest over 5-10 years, and had thought Nutmeg might be a good option as I have little investment experience. Am I right in thinking I can only contribute to one Stocks & Shares ISA at a time in my name? I could just put more money into my existing ISAs. What do you think?

    Colin | Lothian | 11/03/2019 | 0

    • Stocks and Shares ISA
    • Robo Adviser
    • Online Investment Platforms
    Holly Mackay's Response

  • I am 47 and I would now like to open an investment ISA for growth for at least 10 years. I am tempted by the Vanguard LifeStrategy 80 due to the low fees and strong reputation. I would also consider investing in a couple of other Vanguard funds as well. Would this be advisable or relatively unnecessary, if I'm already investing in the LifeStrategy fund? I have also been looking with interest at Nutmeg, Wealthify, IG and AJ Bell Youinvest. Is there any provider that would stand above the others as most suitable in my circumstances?

    Matt | South Yorkshire | 11/03/2019 | 3

    • Stocks and Shares ISA
    • Robo Adviser
    • Online Investment Platforms
    Holly Mackay's Response

  • If my son increases his pension contribution, I have read it may affect the amount he can borrow on a mortgage. Is this correct? Should he take a SIPP out as well? Is there any advantage in maxing out his managed Nutmeg Lifetime ISA in the next financial year?

    Richard | Hertfordshire | 06/03/2019 | 3

    • Private Pension
    • Stocks and Shares ISA
    • Lifetime ISA
    • Pension
    • Mortgage
    Holly Mackay's Response

  • I’m 36 years old, earn £85k, and have about £40k savings in the bank, mainly in an old ISA that I’ve done nothing with. I have a five year old daughter and would like to put my savings somewhere clever so they start to do something useful by the time she starts at an independent secondary school and fees go through the roof. Any bright ideas please?

    Milly | Berkshire | 22/02/2019 | 2

    • Stocks and Shares ISA
    • Junior ISA
    • Shares
    • Online Investment Platforms
    Catherine Morgan's Response

  • I recently came across your blog and it has been a great introduction to learning about my personal finances. I was wondering if you could recommend any additional resources (websites, books, online help) for beginners and that are tailored to the UK market. I am in my early 20's and I'm looking to further my knowledge of money, and foster a greater relationship with it. In addition to that, I'd like to know your opinions on how the possible outcomes of Brexit will affect the market and potential personal finance investments.

    Rita | London | 23/01/2019 | 0

    • Stocks and Shares ISA
    • Robo Adviser
    • Online Investment Platforms
    Phoebe Smith's Response

  • I’m a 20 something year old woman who’d like to learn more about investing. Do you have any books or reading material that gives a complete beginner a better understanding of how investing works?

    Precious | Surrey | 03/01/2019 | 0

    • Stocks and Shares ISA
    • Online Investment Platforms
    Phoebe Smith's Response

  • From my retirement I received a lump sum of money and a monthly pension. I have £100,000 that I do not need for the foreseeable future... One of my main concerns with Financial Advisers are their costs... All I want is simply to see this money grow to its potential, sensibly and above inflation... Therefore my next thoughts are Stocks and Shares ISAs... My only concerns here are the current Brexit problems - I saw the FTSE drop this past week. I cannot find any information out there to assist with my decision making if this is certainly a good time to invest... I am aware that I can place £20,000 for this year. Come April 2019 I place another £20,000 and so on until the £100,000 has been utilised. Do I have to place it into the same fund or can I choose another different fund with a different company?... Please can you help to ease some of this burden, which has proved an awful part of my retirement and made me frightened to spend any money.

    Katherine | Derbyshire | 02/01/2019 | 0

    • Private Pension
    • Stocks and Shares ISA
    • Cash
    • Robo Adviser
    • Online Investment Platforms
    • Workplace Pension
    Helena Wardle's Response

  • I often find that my monthly salary is spent on things I don't need or just saved up; without accumulating much. So what can I do with my money to make money? I am not expecting you to tell me where and when to invest but simply what to read, and I guess I really would like to know how you became an expert, where did you start? I feel like investment is something so big I can barely even touch it, and I would greatly appreciate any words of advice you could share with me.

    Beth | London | 07/12/2018 | 4

    • Stocks and Shares ISA
    Holly Mackay's Response

  • I'm the sole carer for my chronically ill and elderly mum, as well as a full-time police officer. I have no other family apart from her. Due to mum's condition, and the fact that I'm exhausted performing both roles, the only option is to go part-time, as mum won't accept help from anyone else. To allow me to go part-time, I will need about £25,000 until March 2020 when I will be retiring. I’m confident of getting another job shortly thereafter. In January 2021, I will receive a commutation lump sum of about £50,000. I have a sizeable fund portfolio under an ISA wrapper with Hargreaves Lansdown. That is doing very well, so I don't really want to sell any of these funds and 'lend myself money' from that. My ideal funding solution would be a bond-type IOU agreement, where 'someone' lends me the money. Are you aware of a peer-to-peer site that could assist? Thanks

    Dave | Hertfordshire | 27/11/2018 | 1

    • Stocks and Shares ISA
    • Online Investment Platforms
    • Other
    Holly Mackay's Response

  • I am 35 and working part time on a reasonable salary. I've recently taken out a Stocks & Shares ISA with Wealthify (from reading the recommendations on Boring Money) where I pay in £40 per month. However, I'm wondering if I should be doing more? Should I be diversifying and using more than just Wealthify? Or is it better to increase the amount into Wealthify?

    Holly | Sussex | 17/10/2018 | 1

    • Stocks and Shares ISA
    • Online Investment Platforms
    Lesley James's Response

  • I am 25 and starting to seriously financially plan out my future. I would really welcome a 'sense check' on my thinking as well as some help on which investment choices to make. My goals are: To invest for 15 years - my risk appetite is very high (i.e. I could afford to lose all my money). Goal 1 - More Important: To have an investment pot of £1,500,000. Goal 2 - Less Important: To be mortgage free. My plan is: 1) Open an annual Stocks and Shares ISA each of the next 15 years. 2) Open Share trading/dealing account. 3) Reduce my mortgage term to 6 years by 2025. I appreciate the above is a lot to go though, but I'd welcome any help and guidance.

    Mo | London | 15/10/2018 | 3

    • Stocks and Shares ISA
    • Shares
    • Online Investment Platforms
    • Funds
    • Other
    Holly Mackay's Response

  • The recent Metro article which Holly participated in has really inspired me and made me think that investing in shares is something which I would like to do. Unfortunately I am completely thrown about where to start. I would be grateful for any advice you could pass my way. Realistically, I would only have about 2k to invest, so any tips would be gratefully received.

    Sarah-Jane | London | 12/09/2018 | 3

    • Stocks and Shares ISA
    • Cash
    • Online Investment Platforms
    Holly Mackay's Response

  • Any advice for two young people trying to get themselves a home? My girlfriend and I are saving for a house together. Currently house prices in our area are a ridiculous £300k. The max we can get from banks is about £220k, meaning somehow saving up a whopping £80k deposit. This would take us about 8 years (and house prices are increasing faster than we're saving!) That's not to mention solicitors fees, stamp duty, the cost of moving, furnishing the house, white goods, and any repairs or renovations. It all just seems impossible!!

    Joe | Buckinghamshire | 23/08/2018 | 0

    • Stocks and Shares ISA
    • Lifetime ISA
    • Cash
    • Mortgage
    Kate Fitzpatrick's Response

  • I have cash saved in ISAs and savings accounts - probably a 30% deposit on a property - first time buyer. I am at least 12 months away from getting a permanent job, so at least 12 months away from buying a property. What can I do with the cash in the meantime? Best just to leave it in cash for now, or invest a portion in stocks and shares ISAs?

    Malti | London | 25/07/2018 | 2

    • Stocks and Shares ISA
    • Lifetime ISA
    • Cash
    • Mortgage
    Holly Mackay's Response

  • I'm nearly 30 and looking to open a private ready made pension, and also an investment ISA for retirement funds or towards a property, but very unsure what risk level to choose (low to medium, or medium to high)? Any comments or advice welcome.

    Susan | West Midlands | 24/07/2018 | 1

    • Private Pension
    • Stocks and Shares ISA
    Cherry Reynard's Response

  • Hello Are there any specific pensions you would recommend, with low charges, which I can set up for my 11 yr old son? I am already paying the maximum into a Junior ISA. Anita

    Anita | West Sussex | 18/06/2018 | 3

    • Private Pension
    • Junior ISA
    Richard Allum's Response

  • Can I move an old Child Trust Fund?

    Suzanne | Greater London | 08/05/2018 | 0

    • Junior ISA
    Holly Mackay's Response

  • I would like to open a Junior shares ISA for my Grandson for about £50/month. How do I go about it and can you recommend some reliable companies?

    Roger | Surrey | 26/04/2018 | 2

    • Junior ISA
    • Shares
    Holly Mackay's Response

  • I am very lucky to have just received a gift which I want to invest for our retirement. My husband and I aim to retire in around five years. We have 11 more years of school fees to fund, then hopefully university fees for two after that. I've put together a plan for us - can you have a look and see if it makes sense?

    Fiona | UK | 18/01/2018 | 6

    • Private Pension
    • Stocks and Shares ISA
    • Junior ISA
    • Shares
    • Cash
    • Online Investment Platforms
    Holly Mackay's Response

  • We have four grandchildren (2 English living in UK, and 2 Irish living in Eire). We have decided to start savings plans for their futures. Their ages are 18yrs, 11yrs, 8yrs and 4yrs respectively. My age is 75yrs, and my wife is a little older. What should we do, please?

    John | Buckinghamshire | 01/01/2018 | 1

    • Junior ISA
    • Lifetime ISA
    • Shares
    • Funds
    • Inheritance
    Martin's Response

  • Have you a review on Halifax Stocks and Shares ISA?

    Moira | London | 21/10/2017 | 6

    • Stocks and Shares ISA
    Dr Richard Bradley's Response

  • My mother is 84 and has around £35,000 in cash, realised when she moved to a smaller house. She would like to invest it and draw income that would be slightly higher than the natural yield - say around £2,000. What is the best vehicle for that please?

    Ed | Sussex | 18/09/2017 | 4

    • Stocks and Shares ISA
    • Cash
    Boring Money's Response

  • I have a delightful 12 year old daughter and she has just opened her first bank account. I am dreadful with money but I would like to know what I should teach her so that she does not pick up my bad financial habits. Do you have some top tips of things to teach our children so they are wise and responsible with money please?

    Louise | Greater London | 11/09/2017 | 1

    • Junior ISA
    • Shares
    • Cash
    Lesley James's Response

  • I've got £20,000 from an endowment policy (astonishing, I know), and I'm looking into how best to invest to get a reasonable return without excessive risk. Any thoughts much appreciated!!

    Penny | Peterborough | 09/08/2018 | 1

    • Stocks and Shares ISA
    • Cash
    • Online Investment Platforms
    • Life Insurance
    Boring Money's Response

  • How risky is a Stocks and Shares ISA?

    Alexandra | Greater London | 06/09/2017 | 2

    • Stocks and Shares ISA
    Holly Mackay's Response

  • Should I be even thinking about the stock market?

    Lysa | Greater London | 06/09/2017 | 0

    • Stocks and Shares ISA
    • Shares
    Holly Mackay's Response

  • Pensions vs ISA - which one is best?

    Roderick | Greater London | 06/09/2017 | 0

    • Stocks and Shares ISA
    • Junior ISA
    • Lifetime ISA
    • Pension
    Holly Mackay's Response

  • Hi, I am 67 years old and I want to know the best way to invest £10,000 for growth rather than income. I would like to do this online and to be able to save money on fees.

    Rohan | Greater London | 06/09/2017 | 0

    • Stocks and Shares ISA
    Holly Mackay's Response

Sign up for Holly's blog

Stay up to date

Our free weekly blog with Holly's
no-nonsense opinions, tips & food for thought.
If you change your mind, you can unsubscribe at any time. We'll never share your details and you can unsubscribe any time.