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Saltyrob
Posted: 10 November 2012 17:21:28(UTC)
#1

Joined: 10/11/2012(UTC)
Posts: 5
Hi,

I am encouraging my son to start thinking about pensions/long term saving and am thinking along the lines of a monthly investment trust savings plan held in an ISA wrapper.At present he could only afford fifty pounds a month,not much but its a start, but the costs would appear to be pretty steep for such small amounts. Can you offer any ideas on how a savings plan could be held in an ISA wrapper with low costs.

Many thanks,

Rob
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Narendra Dhariwal
Posted: 10 November 2012 20:58:35(UTC)
#2

Joined: 29/03/2010(UTC)
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Try monthly investment through Alliance Trust Savings monthly option in an ISA or SIPP OR investment plan.Costs £1.50(one pound fifty pence).Choose whichever trust you fancy.Cheap enough for me.
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P L
Posted: 11 November 2012 13:01:46(UTC)
#4

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If you decide on an Investment trust then I would suggest you also look at the cost of going direct to the manager rather than use a broker and invest using their own investment plan. Often this works out cheaper.
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AA
Posted: 12 November 2012 12:21:37(UTC)
#3

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Narendra Dhariwal;16811 wrote:
Try monthly investment through Alliance Trust Savings monthly option in an ISA or SIPP OR investment plan.Costs £1.50(one pound fifty pence).Choose whichever trust you fancy.Cheap enough for me.



Do not use Alliance Trust Savings as they now have an annual charge of £50+VAT so you effectively waste one month's savings. I have argued/appealed with them to waive this charge for junior ISAs they have flatly refused.
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9 users thanked AA for this post.
TeaJay on 12/11/2012(UTC), Phil D on 12/11/2012(UTC), Guest on 12/11/2012(UTC), Guest on 12/11/2012(UTC), stormdog on 12/11/2012(UTC), Andrew McDonald on 12/11/2012(UTC), TJLamb on 13/11/2012(UTC), GCH. on 13/11/2012(UTC), Ken Adams on 13/11/2012(UTC)
TeaJay
Posted: 12 November 2012 12:57:09(UTC)
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I had been considering moving my ISA to Alliance [ATS] as I hold shares in the Alliance Investment Trust, for which there has, until recently, been no 'holding' charge. Sadly, together with other developments over the last few years since the 'old guard' disappeared and charges under the 'new guard' keep increasing without a concomitant increase in performance, this has proved the last straw. I am in the process of re-registering with a different provider while watching what changes the dreaded 'RDR' brings about.

So, yes, not Alliance for a small investor.
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2 users thanked TeaJay for this post.
Guest on 12/11/2012(UTC), stormdog on 12/11/2012(UTC)
Norman
Posted: 12 November 2012 13:25:09(UTC)
#6

Joined: 26/10/2009(UTC)
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Me too!


I used to have a SIPP and an ISA with Alliance Trust for many years. In fact I opened my 1st PEP with them in the 1980s.

Since then they have gone downhill from their solid conservative position.

Initially via the purchase of commercial property at the top of the market and then its sale at the bottom and more recently with seemingly new higher charges introduced each year!

Last year I transferred my SIPP to Sippdeal and I have now taken advantage of Sippdeal's current offer, of rebating up to £500 charges, and transferred my ISA to them too.

Great Pity, bring back Gavin Sugget!

N
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3 users thanked Norman for this post.
Guest on 12/11/2012(UTC), stormdog on 12/11/2012(UTC), TeaJay on 13/11/2012(UTC)
Brian Sinfield
Posted: 12 November 2012 14:08:55(UTC)
#7

Joined: 19/12/2011(UTC)
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Hi,
If you in it for the long term then look at going directly to Fundsmith run by Terry Smith of Tullett Prebon (FNDSM). They use Buffett methodology and invest their own money in it. Minimal commission, no performance bonus, do not churn their investments and invest in the top 25 companies in the world. Invest long only for the long term. Will do ISAs, not sure about Junior ISAs.

regards
Brian
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1 user thanked Brian Sinfield for this post.
TeaJay on 13/11/2012(UTC)
Johnny Boy
Posted: 12 November 2012 17:52:06(UTC)
#8

Joined: 20/10/2010(UTC)
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I sympathise with smaller investors looking at the Alliance Trust Savings ISA or dealing accounts. They certainly used to be superb value, although even in Gavin Sugget's day the performance of the then two Alliance trusts was mediocre although safe. I have complained about the new high charges for chidren's accounts and had to move my grandson's account to Baille Gifford, but nobody listens and the Directors' salaries just keep on rising!
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3 users thanked Johnny Boy for this post.
Guest on 12/11/2012(UTC), stormdog on 12/11/2012(UTC), TeaJay on 13/11/2012(UTC)
New Investor
Posted: 12 November 2012 18:07:08(UTC)
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I have used TD Waterhouse for my ISA and if there is £5,100+ there is no annual fees & a fair £12.50 per trade. Easy to move money around and a really easy platform to use. Not used it for a junior ISA on a monthly investment plan but, I would recommend them.

I also tried to use Alliance Savings Trust which in my opinion was a con, recruited people stating a zero fee. Then 1 month after joining sent me a change of terms and started charging. May just be my poor timing but feel its very under hand to advertise heavily just before you cancel the offer.
Had to jump through quite a few hoops to get my money out and pay £10 for the privilage of getting a cheque sent. *Do not use*

I hope that helps
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1 user thanked New Investor for this post.
TeaJay on 13/11/2012(UTC)
Slickness on
Posted: 12 November 2012 19:52:34(UTC)
#10

Joined: 19/12/2011(UTC)
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Hi, I would suggest sippdeal.co.uk they are a very low cost provider, and you can open a Maxi ISA for your son for no upfront cost. If you set up regular monthly contributions you pay only £1.50 dealing fee on over 500 funds, stocks. Funnily enough I have set this up recently for my own son to do exactly the same as you.
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Saltyrob
Posted: 12 November 2012 20:25:55(UTC)
#11

Joined: 10/11/2012(UTC)
Posts: 5

Hi,

I was given an opinion as to whether it was really neccessary with relatively small amounts to incur the costs of keeping of keeping it in an ISA. The money would be invested for long term growth with any dividends reinvested and no income taken. As any gain in the early years would be well below the threshold for capital gains tax and no income would be recieved, would the costs in keeping the investment in an ISA wrapper be initially worth it. As the investment grow could it be transferred into an ISA when the proportional cost of the ISA wrapper would be less.

Many thanks for your responses

Rob
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Slickness on
Posted: 12 November 2012 21:06:28(UTC)
#12

Joined: 19/12/2011(UTC)
Posts: 4

Was thanked: 1 time(s) in 1 post(s)
Maybe I am misunderstanding this, but any building society or bank account would deduct tax at basic rate unless you complete an IR 85. An ISA earns income tax free so long as it stays within the wrapper. With the Sippdeal ISA there is no initial charge and no recurring charges, only £1.50 per deal, if the dealing is regular. See http://www.sippdeal.co.uk/Isa/ChargesAndRates/

Hope this helps.
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carl barnett
Posted: 12 November 2012 22:41:11(UTC)
#13

Joined: 08/02/2012(UTC)
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You are right there is no need or benefit in investing the money in an ISA. Many managers allow you to invest free of charge in their monthly share plans and have a reasonable range of trusts to pick from. With £50 a month you can probably only invest in one trust at a time.
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Roger Hutton
Posted: 13 November 2012 06:46:09(UTC)
#14

Joined: 01/08/2010(UTC)
Posts: 9

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I agree that Aberdeen is probably one of the best schemes - £50 monthly in one of their Far East trusts may be a good choice - Asian Income or Asian Smaller Companies might be suitable.
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david rogers
Posted: 13 November 2012 10:00:37(UTC)
#15

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Before dismissing ATS completely as an option it is worth looking at the rebates which they obtain from the funds they offer. (not relevant for IT`s of course). I still think they are reasonable value for a large ISA portfolio. Otherwise for a single option I agree with the suggestions of Aberdeen and Fundsmith and would add Baillie Gifford. I suspect but I havnt checked that with Aberdeen and Baillie Gifford there may well be the option to switch trusts with little or no charge?
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Saltyrob
Posted: 13 November 2012 17:51:18(UTC)
#17

Joined: 10/11/2012(UTC)
Posts: 5

Had a quick look at Sippdeals charges which are indeed good if your choose a fund from their fund list, which all seem to be UT's.For an investment trust or shares, etc, not on the list there appears to be a charge of £12.50 per quarter for holding them in an ISA

Rob
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AA
Posted: 13 November 2012 18:23:09(UTC)
#16

Joined: 26/01/2012(UTC)
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david rogers;16851 wrote:
Before dismissing ATS completely as an option it is worth looking at the rebates which they obtain from the funds they offer. (not relevant for IT`s of course). I still think they are reasonable value for a large ISA portfolio. Otherwise for a single option I agree with the suggestions of Aberdeen and Fundsmith and would add Baillie Gifford. I suspect but I havnt checked that with Aberdeen and Baillie Gifford there may well be the option to switch trusts with little or no charge?


Needless to say ATS can not be dismissed as an option for larger portfolios as their charges are still competitive. Rebates are available from most providers. I am not able to compare online dealing facilities where ATS is not very good, usually can not deal for large volumes of some shares, and web site download is extremely slow. I feel stuck with them for the time being.

ATS has become much worse in the past year.
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1 user thanked AA for this post.
TeaJay on 14/11/2012(UTC)
john_r
Posted: 15 November 2012 22:58:12(UTC)
#18

Joined: 18/06/2010(UTC)
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Interesting that you have suggested Investment Trusts rather than funds.
This is a good choice in my opinion.
I also agree with many of the other comments '' Avoid Alliance Trust '' - charges and customer service are in my opinion poor.
On the contrary I have no complaints about Sippdeal.
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mark antrobus
Posted: 17 November 2012 10:21:43(UTC)
#19

Joined: 20/01/2012(UTC)
Posts: 1
If you want to invest in a good all purpose Investment Trust using relatively small monthly contributions then look at Foreign and Colonial Investment Trust, using their own savings scheme that charges just 0.2% broker fee. This is not in an ISA wrapper, but then you have to ask whether the extra charges for an ISA are worth paying for small amounts and for under 18s.
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