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"Bed & ISA" a fund not possible? Help?
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So I'm trying to open a S&S ISA and a General Investment Account (GIA) with the hopes of come April every year selling £20k from my GIA and transferring it to my ISA (Bed & ISA) and continue doing monthly payments into my GIA and repeating the process every year.
After phoning a few brokers though (Lloyds Share Dealing & Halifax Share Dealing) they have both told me that a Bed & ISA is not possible with Funds and only Stocks..
- Is this the same with other brokers? Or are others able to Bed & ISA Funds?
- Is it worth taking the fluctuation risk in price to manually sell from GIA and move to ISA and buyback the same fund?
- Is this plan even a good idea? or is it better to do the monthly regular payments into my ISA and leave the GIA as it is, contributing any extras I may have?
Thanks!
Top Comment:
Not really sure what you're worried about? Just sell it in the GIA, move the money, and buy it in the ISA. You'll lose 3 days returns tops. That could go either way, but in the grand scheme of things it's irrelevant.
While you're at it check you've got the best value fund/ETF for the asset class. Since you have to take the hit of the transaction cost. Which is what £10?
[Bed Bath And Beyond] Receive $100 in My Funds Rewards when you spend $300 online
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Price: 300
Savings: 100
Expiry: December 2, 2019
My Funds Rewards is valid 30 days after your entire order has shipped. A pretty hot deal when you use the 20% coupon was well.
I personally have my eye on the Graco 4ever convertible car seat on for $299.99, add the 20% off coupon making it $240. Add a couple sleep sacks and you'll hit $300 easily. And yes, don't forget Rakuten for another 4% cash back.
FYI, 30 days validity includes Boxing Day. So don't forget to set a reminder to use your rewards before expiry.
Top Comment: Is that literal $100 store credit ?
Selling and rebuying non-ISA Vanguard index funds to avoid capital gains tax
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Say one had a significant holding of a vanguard index fund which wasn't under an ISA banner, I assume over a few years it is possible the "value when sold" - "money invested" may be greater than the £12k capital gains allowance threshold for the given year.
Would it make sense to sell and then rebuy immediately the portfolio in each year it is held, so that the capital gains are applied each year (and thus under the threshold) rather than just on the last year (potentially going over the threshold)?
- According to the 30 day 'bed and breakfast' rule, I understand you cannot do this when buying and selling the same shares. Would this apply to index funds? If so, I assume you can get around this buy buying a similar index fund.
- As far as I understand, Vanguard does not charge for buying/selling shares- only an ongoing charge for platform and funds.
Is there anything major I'm missing, or any reason why you would not do this (apart from market movement risk during the buying/selling process)? Thanks in advance!
Top Comment:
You can get around the 30-day rule by buying similar funds as long as they aren't different units of the same fund.
So selling an Accumulation version of a fund and buying the Income version is a no-go. But selling Vanguard FTSE Global All-Cap and buying VWRL (which tracks a different index, but with somewhat similar goals) or LS100 is absolutely fine.
Your plan in general sounds like a good idea for your circumstances.
"Are Index Funds Over-Diversified?" - Ben Felix
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TL; DR: No.
Every now and then I hear the comment that index funds result in over diversification. The thinking goes that instead of buying all of the companies in an index, you might be able to focus on a smaller subset that you believe will perform better than the market.
It makes sense. Of course you can’t beat the market by holding it. The problem is that decreasing diversification leads to a wider range of possible outcomes, with a disproportionately large probability of a negative outcome, relative to the market.
Top Comment:
The problem with picking a smaller subset "you believe will perform better than the market" is that your belief probably has no real basis.
Market prices reflect all available information. Unless you believe you have special (hidden) Information about a particular industry, you're just gambling.
Aaargh... IWeb bed & ISA
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I want to transfer £20k of a fund holding from IWeb share dealing account to ISA. Directly transferring is not possible. Selling, moving cash proceeds to ISA and re-buying risks adverse price movement.
To avoid that possibility I put £20k cash into the ISA, then submitted a buy order for £20k of the fund in question. Then went to submit a sell order for £20k worth in the share dealing account. The idea being both orders will execute at the same price.
But... it turns out that IWeb only allow you to specify a number of units to sell, not a £ figure! So there's no way to guarantee the same value (or number of units) sold as bought in ISA.
Does anyone know if you can specify a £ value for a sell order with IWeb over the phone? I'll call them first thing tomorrow to check and maybe cancel the orders I placed.
Top Comment:
You're still going to get the adverse price effects if the orders execute at the exact same time due to bid-ask spread.
I'd just sell and rebuy and take the tiny hit.
My Funds Refund
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I placed an order using My Funds and it was cancelled within an hour by BBB. My balance is still zero and it has been 3 days. I called customer service and they created a ticket. Is this going to get refunded?
Top Comment:
Normally refunds take 5-7 business days online.