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Smart SS ISA
andy mac
Posted: 19 May 2017 15:14:21(UTC)
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Are there any other platforms offering a smart SS ISA
While looking at the Vanguard ISA I noticed that it is a smart ISA so that may be a benefit, but are there any other smart SS ISA?
Redundant (Old Timer?)
Posted: 19 May 2017 18:07:33(UTC)
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My understand is an ISA is an ISA be it cash or stocks and shares or funding - all have to obey the same HMRC rules. So I would love to know what a smart ISA is - my gut feel is that it is just US marketing by Vanguard and nothing special.
Alan Selwood
Posted: 19 May 2017 18:15:49(UTC)
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Is it the ISA that is "smart" or the ETF in which you invest?

A smart ETF could be one where there is something more than market capitalisation of each component that determines the % of the fund each stock represents.

For example, it could be based on broker average estimates of next year's dividends, rather than plain market cap. Or it could be based on the expected growth in earnings per share. Or a momentum strategy where the biggest share prices increases over the last x months determines the proportion of the fund, on the assumption that what went up the most went up for a good reason and will probably encourage others to buy in the future.

I haven't come across a Smart ISA (if I work out how to invent one, I'll let you know!)
markus
Posted: 19 May 2017 18:35:19(UTC)
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andy mac;46922 wrote:
Are there any other platforms offering a smart SS ISA
While looking at the Vanguard ISA I noticed that it is a smart ISA so that may be a benefit, but are there any other smart SS ISA?


Do you mean flexible ISA in that it allows you take some of that years subscriptions out & put them back in before the ISA yr has finished without distorting the annual subscription amount. eg. invest £20k in April, take £5k out in August for hols; put the £5k back in November

There are a few around - Barclays, Share centre, nutmeg, suspect there are others on page 2 of google search.
andy mac
Posted: 19 May 2017 18:52:33(UTC)
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my understanding of a smart Isa is that it is more akin to bank account in so far as what is in it at the end of the year is what is protected hence forth

An example would be
I open a smart ISA ( cash or SS) by putting in 12K 2 months later I have an inexpected bill so I withdraw 5K, Now with a normal ISA I only have a balance of 8K to put in ( ie 20K max is 12K and 8K allowance not used)With a smart allowance I can put the 5K back and still have my balance of 8K to use.
So in effect it is like a deposit account you can put in and take out but you must never exceed the 20K as a total.

If my understanding of that is correct it means that you can be earning while you are holding money against a bill perhaps

Any profits made does not count against the 20K deposit total either

see http://www.moneysavingex...m/savings/flexible-ISAs

or another example
Tony has £30,000 in his cash ISA which is made up of £25,000 from previous years and £5,000 from money deposited in the current tax year, meaning he can still put £15,000 in of this year's allowance. If he withdraws £1,000 he can put in a further £16,000 in this tax year: the £1,000 he took out, plus the remaining £15,000 allowance.

You can take money out of a cash ISA at any point, and return it in the same tax year (by 5 April), without it reducing your current year's allowance, which is £20,000.

From the description Vanguard use ( they use smart ) but I think they actually mean flexible

Do other platforms offer flexible ISAs

I have done a quick google re flexible ISAs and the share centre offers flexible ISAs, Virgin does flexible cash ISA

There may be more
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