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Stocks & Shares ISA
db09striker
Posted: 05 March 2017 21:42:39(UTC)
#25

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Raj K;44175 wrote:
I would suggest that as you are under 40 you also contribute to the new LISA each year which is set to go live in April. As i understand you will be able to put £4000 into the LISA wrapper and the government will top it up by a further 25%. That can be invested in any stocks and shares of your choice. There are some rules in that it can only be used to purchase your first house or when you reach over 60/65 as a pension. Withdrawal before or for any other reason means you forfeit the government contributions. I suggest you look on money saving expert website for the exact rules.

Also i believe you can invest the further £16000 (£20000 - £4000 in the LISA) of the allowance in a normal stocks and shares ISA wrapper.

Someone please correct me if i am wrong!

I would say invest in some good quality core funds and then branch out as you know more!






Interesting. I was always planning on getting the Lifetime ISA, although I disregarded it about a month ago as I had assumed any money transferred into it would then limit what I could put into a Stocks and Shares ISA.

But now you have informed me that the money invested in a Lifetime ISA can also be used to invest in stocks....that's where I am heading. Cheers.

I was thinking the other day that I want the whole £20,000 allowance to invest in stocks, but I've got a help to buy ISA - so I was thinking I'm going to have to scrap that if I want the whole £20,000. And that's what I was going to do - I was going to scrap the help to buy ISA. Now I know to convert the Help To Buy ISA to a LISA and invest that £4000 LISA money and have £16,000 in a stocks and shares ISA too.

Sweet!
Tony Peterson
Posted: 05 March 2017 21:42:53(UTC)
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Your risky non-blue chip companies are perhaps a little less idiotic than lottery tickets (the best definition of a lottery I have come across is that it is "a swingeing tax on those who are bad at mathematics").

I wince every time I hear the word 'property' linked to the word 'ladder'. Sure, ownership is the key to security in a capitalist or mixed economy. but at the moment I would say that blue-chip stocks, especially the high yieldling ones are rather safer than houses on the so called "property ladder". Our blue chips have more than trebled since the credit crunch, our home has gone down in value.

Wait for the budget. And the Fed's decision on interest rates. Things change. Sometimes dramatically. Wait for changes and seize the moment. But don't gamble your hard earned savings away because you think that house prices are going to go up forever. House prices have been distorted by easy money for wannabe landlords. It wouldn't be surprising if the overblown housing market crashed. I think it would be very surprising if the blue chip equity market crashed. In the current climate, that is.
1 user thanked Tony Peterson for this post.
Sara G on 05/03/2017(UTC)
Chris Dean
Posted: 05 March 2017 22:14:58(UTC)
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Striker

Before you dash off to open a Lifetime Isa, please have a listen to the most recent FT Money Show podcast about ISAs, LISAS, Help to buy etc. The most recent 'This is Money' Podcast also touches on LISAS and I think the Investors Chronicle covered this too. Not all platforms will be providing LISAS and it seems there is a chance they might not even get off the ground!

Good luck!
3 users thanked Chris Dean for this post.
Raj K on 05/03/2017(UTC), MAK on 05/03/2017(UTC), Tony Peterson on 07/03/2017(UTC)
Alan Selwood
Posted: 05 March 2017 23:58:24(UTC)
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Sara G;44173 wrote:
Yes that's correct - this explains it pretty well:

https://www.moneyadvices.../stocks-and-shares-isas

I think the confusion arises because you can pay into more than one ISA (say a Cash ISA and a S&S ISA) but only one S&S ISA.

I wish they would relax the rules - it would be much easier to manage.


The subscription rules for ISAs are:
"You can only pay into ONE Stocks and shares ISA in each tax year, but you can open a new ISA with a different provider each year if you want to. You don’t have to use the same provider for your Cash ISA, if you have one."

So by starting one Stocks & Shares ISA, putting in some money, then cashing it in and then investing in a different Stocks & Shares ISA, you broke the ISA rules.
In this situation, the second ISA should be voided, and you could only re-subscribe to the first Stocks & Shares ISA (for the total ISA allowance amount less the subscription to it before you cashed it in).

It is HMRC that tells ISA providers if an investor has broken the rules, and instructs them what to do.
2 users thanked Alan Selwood for this post.
Micawber on 06/03/2017(UTC), Tony Peterson on 07/03/2017(UTC)
markus
Posted: 06 March 2017 07:42:36(UTC)
#23

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Alan Selwood;44184 wrote:


The subscription rules for ISAs are:
"You can only pay into ONE Stocks and shares ISA in each tax year, but you can open a new ISA with a different provider each year if you want to. You don’t have to use the same provider for your Cash ISA, if you have one."

So by starting one Stocks & Shares ISA, putting in some money, then cashing it in and then investing in a different Stocks & Shares ISA, you broke the ISA rules.
In this situation, the second ISA should be voided, and you could only re-subscribe to the first Stocks & Shares ISA (for the total ISA allowance amount less the subscription to it before you cashed it in).

It is HMRC that tells ISA providers if an investor has broken the rules, and instructs them what to do.


Since April '16 you've been allowed (within a tax year) to withdraw & refund from the ISA if it is flexible[1]:
https://www.gov.uk/indiv.../withdrawing-your-money


[1] assuming the provider supports this feature...e.g Barclays:
https://wealth.barclays....about-flexible-isas.html
db09striker
Posted: 06 March 2017 21:01:33(UTC)
#22

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Alan Selwood;44184 wrote:
Sara G;44173 wrote:
Yes that's correct - this explains it pretty well:

https://www.moneyadvices.../stocks-and-shares-isas

I think the confusion arises because you can pay into more than one ISA (say a Cash ISA and a S&S ISA) but only one S&S ISA.

I wish they would relax the rules - it would be much easier to manage.


The subscription rules for ISAs are:
"You can only pay into ONE Stocks and shares ISA in each tax year, but you can open a new ISA with a different provider each year if you want to. You don’t have to use the same provider for your Cash ISA, if you have one."

So by starting one Stocks & Shares ISA, putting in some money, then cashing it in and then investing in a different Stocks & Shares ISA, you broke the ISA rules.
In this situation, the second ISA should be voided, and you could only re-subscribe to the first Stocks & Shares ISA (for the total ISA allowance amount less the subscription to it before you cashed it in).

It is HMRC that tells ISA providers if an investor has broken the rules, and instructs them what to do.



Not sure what you mean by 'cashing in'. If you mean benefiting by investing and making money, then no - I made no money. I didn't even invest that money I put into the first ISA. It just sat in my account for a week.

If the 2nd ISA is voided it shouldn't make a difference as I have not made any profit from my current investments and won't be cashing anything in until the next tax year.

From what I've read - as long as you don't have 2 open at the same time they aren't bothered, they will ask you to close one if you have 2 open. If you have put more than the limit into both then I'm sure they would then have to take some sort of action.
db09striker
Posted: 06 March 2017 21:14:33(UTC)
#28

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Tony Peterson;44180 wrote:
Your risky non-blue chip companies are perhaps a little less idiotic than lottery tickets (the best definition of a lottery I have come across is that it is "a swingeing tax on those who are bad at mathematics").



I don't really get why so many people believe the 'riskier' end of the stock market is so risky, like a lottery, somewhere where people shouldn't go.

As I said in an earlier post, I think people are extremely scared of losing money, even just losing £10 worries people, so looking into 'risky' stocks just doesn't happen.

It's far from a lottery.

-First of all you only lose money when a company goes bankrupt or when you sell at a loss.

-Secondly there are plenty of good sources out there who regularly pick out stocks that go up multiple times.

It's definitely not gambling when these people can select 5 stocks that they believe will go up multiple times and a year later those stocks during the year ALL went up between 200% and 2000%.

It's not to do with just luck, these people have such in depth knowledge of their industries and pick out stocks through research and logic.

My aim is to first turn £2000 into £10,000

£10,000 into £50,000

£50,000 into £250,000

The key part it to get that first good investment and make around £10,000, then from there I won't be fussed about losing any profits, I will invest all profits again and again.
srg751
Posted: 06 March 2017 22:49:44(UTC)
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Striker, i suspect that the multi bagger tips that you've been given are oil drillers. Please only gamble on them with what you are prepared to lose. Because that's what 99% of people who gamble on them do.
It's your money at the end of the day, but it'd be a shame to lose it .

GL
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Tony Peterson on 07/03/2017(UTC)
Jon Snow
Posted: 06 March 2017 23:07:34(UTC)
#32

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Lightspeed Venture Partners seeded $8.1m in Snapchat (???), following last weeks listing that stake is now worth $2.3bn. From Sunday Times.

I just can't get my head around that.

Snapchat is an app that lets you send stuff to someone else that self deletes after a few seconds.

I am informed that the app is free to download.

Snapchat is valued at $31.3bn.

This madness must stop at some point surely.
andy
Posted: 06 March 2017 23:23:24(UTC)
#33

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Jon Snow;44221 wrote:
Lightspeed Venture Partners seeded $8.1m in Snapchat (???), following last weeks listing that stake is now worth $2.3bn. From Sunday Times.

I just can't get my head around that.

Snapchat is an app that lets you send stuff to someone else that self deletes after a few seconds.

I am informed that the app is free to download.

Snapchat is valued at $31.3bn.

This madness must stop at some point surely.



Yes - I dont understand it - greater fool premise feels to apply.
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Jon Snow on 06/03/2017(UTC)
Jon Snow
Posted: 06 March 2017 23:39:37(UTC)
#34

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andy;44222 wrote:
Jon Snow;44221 wrote:
Lightspeed Venture Partners seeded $8.1m in Snapchat (???), following last weeks listing that stake is now worth $2.3bn. From Sunday Times.

I just can't get my head around that.

Snapchat is an app that lets you send stuff to someone else that self deletes after a few seconds.

I am informed that the app is free to download.

Snapchat is valued at $31.3bn.

This madness must stop at some point surely.



Yes - I dont understand it - greater fool premise feels to apply.


There must be a lot of fools out there, or are we the fools?
andy mac
Posted: 07 March 2017 07:25:48(UTC)
#35

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best of luck striker
As I said early comeback and tell us when you make your 1st million

Just one more question are you related to Zod
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Tony Peterson on 07/03/2017(UTC)
archie scott
Posted: 07 March 2017 08:48:56(UTC)
#36

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AS has been mentioned earlier. If you don't take advantage of any years ISA allowance during the tax year it is lost, gone forever. If you have the funds therefore and have not yet opened an isa this year - then you need to get your skates on and open one before the 6th of April i.e. the start of the new tax year.
AT the risk of stating what many might consider the bleeding obvious
Please remember, if not sure what to invest in you can always take your time and decide later - you just have to have the ISA opened and the cash put into it by the end of the current tax year. What you ultimately decide to invest into doesn't have to be done by the end of this tax year.
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Tony Peterson on 07/03/2017(UTC)
Raj K
Posted: 07 March 2017 12:14:46(UTC)
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Striker unless you are doing proper analysis of these riskier investments, understanding the businesses and accounts how can they be anything but risky? Is this what you are doing or simply following tips from some magazine?
2 users thanked Raj K for this post.
Tony Peterson on 07/03/2017(UTC), applemint on 11/04/2017(UTC)
Tony Peterson
Posted: 07 March 2017 12:45:46(UTC)
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As far as fools and Snapchat go, I think the lesser fools were those that took up the IPO (not fools at all if they sold off immediately) and the greater fools were those that piled into the market to create an illusory behemoth afterwards.

A gee whizz company that has made nothing but losses! This reeks of the darkest dotcom days.



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Mickey on 07/03/2017(UTC)
Tony Peterson
Posted: 07 March 2017 14:21:57(UTC)
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Echoing Butch and Sundance, I have to ask striker "who are these people?" (and perhaps more pertinently who told you about them)?

By the way did you know that you have won the Ghanaian lottery, are owed zillions in PPI by the banks, that your computer needs an urgent fix by sending your bank details to India?

Tell us striker - we all want to know ... who are "these people"????
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jeffrey clark on 07/03/2017(UTC)
Tony Peterson
Posted: 07 March 2017 15:55:37(UTC)
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I do apologise for three comments in a row.

However, in view of the fact that most scams get reported on these forums after they have happened, it seems clear to me that the original poster has revealed in post 26 above, that we have a scam in progress here.

I do invite my friends here (including those who I regularly irritate) to read that post carefully, and try to dissuade striker from the course of action "these people" are suggesting - looking, I suspect, to cash in on a desperate bid to get on that bloody "property ladder".

I don't really think this thread was ever about striker's ISA mistake. C'mon folk.

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dyfed on 07/03/2017(UTC)
dyfed
Posted: 07 March 2017 16:07:13(UTC)
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db09striker;44219 wrote:
[there are plenty of good sources out there who regularly pick out stocks that go up multiple times.

It's definitely not gambling when these people can select 5 stocks that they believe will go up multiple times and a year later those stocks during the year ALL went up between 200% and 2000%.

It's not to do with just luck, these people have such in depth knowledge of their industries and pick out stocks through research and logic.



Striker, is Tony right? Is someone trying to con you? I don't think many people on this site think what you have described can be achieved.

Can you tell us more?
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Tony Peterson on 07/03/2017(UTC), TJL on 07/03/2017(UTC), Bruce J. on 07/03/2017(UTC)
Bruce J.
Posted: 07 March 2017 17:08:07(UTC)
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db09Striker:

I don't claim to be an expert but may I offer a little bit of advice to anyone who has seen claims that they can easily earn a lot of money by following a particular investment method.

There have recently been multiple articles on yahoo and other popular pages promising huge benefits from "binary" investments etc. Put simply, it's like tossing a coin. You could win, or you could lose EVERYTHING and there's no going back.

One which I saw in December described how individuals in my local area had been able to give up their jobs through their amazing success with the scheme and claimed to be backed by Oprah Winfrey, Mark Zuckerburg and other well known individuals, but I suspected it was far from genuine as it referred to "Oprah Winfrey" as "he" ! Having little else to do I decided to investigate and quickly found the the families featured in the article were in fact stock photos from advertising agencies.

I then found that more than seven whole pages of bogus testemonials for the scheme had been planted on Google, hundreds of weblinks all just drawing punters into the schemes (after seven pages I just stopped searching) Clearly this was a scam and I attempted to report it to Yahoo but they were not interested.

Shortly afterwards an article by Ruth Lythe appeared in "This is Money" / Daily Mail exposing these binary scams which were tricking huge numbers of vulnerable targets into losing large sums of money.

So, my advice to Striker, and to anyone with a taste for investment is simply this: Anything which seems easy and infallible is almost certainly "too good to be true".

If you are a novice investor limit yourself to just your monthly pocket money, just the money you can afford to lose, and keep the rest out of the game till you know what you are doing - I would say a year or more. During that time read as widely as possible - Bloomberg, Financial Times, Telegraph, This is Money, What Investment etc.

Then - when you have developed an awareness, put your money into solid, sensible shares and funds which you would be happy to hold for a long time.

DON'T invest on the basis of tips or plans from unknown individuals on line - no matter how plausible. Learn what a stock screener is and make one for yourself, then use it to check the fundamentals of investments before you buy in.

Many people on these forums are much wiser than me but this is my honest advice.
9 users thanked Bruce J. for this post.
Tony Peterson on 07/03/2017(UTC), Mickey on 07/03/2017(UTC), neville dwards on 07/03/2017(UTC), Sara G on 07/03/2017(UTC), Freddy4Skin on 07/03/2017(UTC), andy mac on 07/03/2017(UTC), Raj K on 07/03/2017(UTC), Micawber on 07/03/2017(UTC), Dan Mall on 08/03/2017(UTC)
Sara G
Posted: 07 March 2017 19:21:25(UTC)
#42

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I've been holding back on this one because to a large extent, people have to make their own choices, but for what it's worth...

I think it's possible that Striker is not the victim of a scam as such. There are countless paid-for services / publications out there that promise rapid large gains from investing in stocks - often very early stage tech companies in the latest hot sector, and it's easy to get drawn in.

I have an interest in this type of company myself and subscribe to Frontier Tech Investor (a Money Week spin-off), but so far I have not invested a penny in any of their stock tips because I'm still very much in the learning phase. So for now I'm happy to leave it to the managers of EWI (up very nicely), and Mr Woodford (not doing so well, so clearly it isn't that easy), and not forgetting the robot managing my Robotics ETF who is doing OK...!

My key piece of advice would be that this stuff is for fun, not make or break bets that mean the difference between owning a house and moving into your parents' garage. My second piece of advice would be to avoid shorting anything, as you will most likely lose more that your original stake.

As it happens I started out with a similar sized investment pot to Striker's and have achieved roughly what he has set out to do - although it has taken 10 years of frugal living, a financial crisis (or massive buying opportunity as I like to call it), and a sterling collapse - not to mention a great deal of patience. I daresay there are others out there who have done it quicker and done well out of a few brilliant calls, but they are exceptions - just like lottery winners.

The good news is that investing is definitely worthwhile and is a fascinating and usually profitable hobby, but it's worth doing properly - and treating the markets with respect.
9 users thanked Sara G for this post.
dyfed on 07/03/2017(UTC), Keith Hilton on 07/03/2017(UTC), Jon Snow on 07/03/2017(UTC), Raj K on 07/03/2017(UTC), Vince. on 07/03/2017(UTC), Micawber on 07/03/2017(UTC), srg751 on 08/03/2017(UTC), Dan Mall on 08/03/2017(UTC), Mike L on 09/03/2017(UTC)
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