@@wedgtable well I’m due a DB scheme to start paying me next Feb and the plan was to take the tax free lump sum and invest into ISA either side of the April 5 end of/ start of tax year. Maybe the budget will change plans
I've followed you quietly for ages, but you have educated me so much and your videos have been a huge part in my finance journey. So thank you so much! I'm trying to introduce the topic of money to my 9 year old- and absolutely love the idea of him having his own pie on my T212 account- I'm definitely going to do this with him. Huge thanks Damien- you are a wonderful human!
I couldn't have worded this better. This is the exact situation I find myself in. Damien is such a valuable resource, we're so lucky to have this free education available! My son is 4, so not sure how successful his pie picking will be, but why not give it a chance!
Lovely comments guys thank you. It is honestly the best part of my job hearing I have helped people improve their lives, Emily please let me know how your son gets on! Maybe he can beat my sons performance 🤣
I’m going to do this with my 3 year old granddaughter. I have been hassling her parents to open a Junior SIPP and S&S ISA but they opened a cash one instead 🤦♀️ Thank you so much for the valuable insight @damientalksmoney.
This appears to be as good a place as any for this comment - I have 3 kids - the two older ones qualified for the child trust funds. One has just matured and he's done very nicely, thank you Foresters! The other is performing very well too and has just a couple of years to go. For my third child who is too young to qualify for the CTFs, I chose a different tack. I suppose there are a couple of 'financially risky' people in her life that I'd be concerned could manipulate her if she were to simply gain access to a wad of cash at 18. For that reason, together with the fact she can be a bit naive for her age, I rejected the idea of a JISA or even a LISA and created a pie for her within T212 and am contributing weekly to it. As things stand she's +31% and on track to have a fund of a similar value to the older two although the plan isn't going to be to hand it to her in one fell swoop, but rather dole it out as and when required, at least in the first instance. Whilst I believe the general consensus is to caution against using leveraged stocks etc. her pie is made up of VUSA (GBP), DBPB (2x leverage S&P500 in Euros) and 3LUS (3x leverage S&P500 GBP). I suppose, given the fact that she's not aware of the existence of the pie, I'm generally happy to take the risk with the leverage and dollar cost average in the event of a downturn etc...
I came across your channel through this video-case studies are incredibly valuable, and I'm eager to see more in the future! Building wealth involves establishing routines, like consistently setting aside funds at regular intervals for smart investments.
At 64, how I wish I could go back 20 years and educate myself financially. A pity we did not have you tube etc then to bring some simple illustrations of what to do to help build for a better future. Luckily in my last ten working years I was able to compensate for some mistakes in the past. While it is good to illustrate and show investment options there are many as you will know Damien, for who there is no money left at the end of the month for investments. By the time mortgage/rent, council tax, fuel and other bills are paid the pot is empty.
@@iainmillar1532 I have an ex work colleague who was in a similar position when he joined our company. We were able to explain salary sacrifice etc and his options. Around 40’is almost perfect age to being able to start diverting more than normal into pensions or other investments. You still have 20 plus years of work and good income to provide for yourself, of course we are now all awaiting what the government will do with pensions and other savings / investments.
Who the hell is dumb enough to not go positive when investing in stocks? I'd understand it if you used a bunch of leverage, but regular stocks? Literally a goldfish could pick a random 10 stocks from the s&p 500 and it would make money over time.
Ah but those stock pickers are ALWAYS up, not a single one of them ever make losses. Someone on T212 forum boasted they went all in on Tesla at around 250 and was 100% certain it'll hit 400 by end of the year when robotaxi is announced, they boasted that Tesla will never go below 200 ever again. Funny how quiet they were when Tesla hit 187 last week.😂
Hi Damian, fab video and very educational. I’m 28 years old, and have been investing into my NHS Pension for 10.5 years now. Have worked for NHS since 18. I setup a S&S ISA back in 2021 (when I was 25), through Vanguard. I invest purely into FTSE Global All Cap ACC fund. Therefore I have both my NHS pension and S&S ISA growing over time. Given the NHS pension is very generous, setting up a S&S ISA I preferred to do rather than a SIPP. Vanguard ISAs are flexible💪🏼
One caveat to being able to pay into multiple ISAs now is that not all providers necessary allow this so you need to carefully check the isa declaration as some still say you are restricted to only paying into the one isa. I queried this with the provider and they said they were aware of the rule change but that they were not signing up to it at this stage. Worth checking before you commit
I pay some into my isa, £25 into my ISA and £50 into my LISA. Currently paying off some debts so I'll be increasing both to £100 after the new year if all goes well and then after I am done with the LISA I'll contribute atleast £200 a month into the ISA and increase it every year. I'm 24. I started these ISA's a couple months ago, trying to make sure my future is more secure
great to hear! but most of the time it’s better to pay off debts first since you’ll be losing more money than you save until it’s paid off (unless it’s a low or 0% interest debt)
@sirlukeypookie it's low interest depts and 0%. I have 0% finance that I am paying off and my car is on 4.65%. Still got another 35 months to pay off, currently paying £190.09 a month, I'll be increasing the payments soon on that aswell. I drive 500 miles a week so hopefully get a new job where I travel less so less fuel costs and less maintenance cost.
The LISA threshold of £450k was set in April 2017 and hasn't been changed since. A £450k house in 2017 would now cost £582k in today's money, based on the house price index. Meaning a huge chunk of a FTBs purchasing power has been eroded.
And people think that the government will get around to fixing the problem any time soon, things could get much worse from here. A LISA is a risk and not "free money" as I've seen people say online. Still a good option but be alert
Yeah, low cost global fund is Damien's favorite. If you want more appetite for risk, check with your pension provider, they usually can filter funds based on risk.
VUSA on trading 212 + a high dividend ETF and a small % in emerging ETF 👍 I also hold the top 7 companies, nvidia microsoft apple etc etc.. your good to go
@@XORTION obviously everyone’s goals are different. But I’d avoid a high dividend etf at a young age, in favour of growth. Builds your portfolio much quicker. High dividend ETFs have a place towards the end of your investing journey. Don’t want to miss out on the growth and gains….
Good to see that there is content telling people what mistakes to avoid, the ISA is great but they have definitely become more and more complicated. Thanks for the video!
ISA>SIPP. The freedom of an ISA is a highly underrated advantage over a pension. I have a feeling pensions will almost certainly be violated by government before I hit my retirement age
Thats my concern too. In Poland in 2014, Donal Tusk stole private pension funds from "OFE". And i need to contribute and wait 20+ years to take benefit from it. Tax relief is too big perk to omit it although.
We started an emergency fund this year and investing (we are 29 for context) Thank you for the info on the Trading 1-2-1 ISA being flexible. We put our emergency fund into a cash savings account for easy access if we needed it (our first year living in our own purchased home so wasn't sure if anything expensive was coming our way). But now I know that the ISA is flexible we can combine it all together and still have access to it if we need it 😊 tThis makes me very happy as having £200 a month going into a cash savings account compared to investing was making my eyes twitch after learning so much from your Content!
In the video at 4:00 do you have a video on how to strategically begin to lift your money out your ISAs and Pension in conjunction with each other the most efficient way in detail. I'm dumb 🙃
Another positive on the junior isa for kids is that when they turn 18 and get access, they don’t just see a pot of money, they see something that looks complicated and kind of scary to someone with little experience. It was this that made me initially not really touch my ISA until I’d learnt more about investing - so having a stocks and shares ISA both meant that I didn’t splurge the money my parents had saved, and encouraged me to learn about investing and finance generally.
Thanks for this Damien. In particular the JISA is something I've considered for my daughter. My thinking is HL as that seems to be the best for juniors (not so much for adults), with an index fund - encouraging to see you've got the same setup
One point about Stocks and Shares ISA's. For those that pick their stocks or funds, some funds can end up frozen as in the case of investment into say Russia. Returns are also highly related to the quality of the stocks and shares which make it up. Cash ISA's (fixed) pay a return that is clear for a period you can control. However, as interest rates come down the return is likely to become less and less. Always enjoy your content
I'd go workplace pension, stocks & share's isa then SIPP.. cos gov's messing with the pensions I agree stocks n shares is better for earlier accessibility. And with the stocks and shares isa you don't need to put a full 20k in, do small monthly amounts over say 30 year's and let the compound interest work it's magic, and fingers crossed for a 5+% annual return rate.
@@DamienTalksMoney I found out my bonus rate dropped on the day it happened (I should have noted it in my diary - lesson learned ). I then moved the money out into a current account, with the plan to then transfer the money into a high interest savings account, until I could open a new ISA. I didn't do that as I would have lost my my tax free allowance for 2023/2024. I then put the money back into the original ISA, which is the flexible type. I've now opened a new ISA with a great rate and am in the process of transfer the money in. Hope that makes sense.
Your videos are quality, mate. You're making all of this dead easy for someone like me to understand. Quick q on the off-chance you see this - I get the premise of a junior isa belonging to my son until it matures etc. But what's the 'pro' to that compromise in flexibility? I can't find the answer to this simple question anywhere!? I.e. why would I ever prefer a much less flexible type of isa?
One thing with the LISA vs Pension is that if you need to claim benefits, the LISA counts towards your Capital. Which you would be expected to use, before claiming, so would be penalised for withdrawing. Though I still have this and a work Pension, with the view to use my LISA to bridge the gap to full retirement and state pension,.
Very good point on the liquidity and portability of S&S ISA’s, as a local government manager I overpaid into my DB pension from the age of 24 and now at 32 have gone self employed and plan on using a combination of my (now transferred out) AVC’s - essentially a DC scheme - and S&S’s ISA to bridge the retirement gap between -10 years of my NPA (whatever age that is by the time I get there!) and accessing my DB pension. My only concern is whether the government will compress pension freedoms and reduce the window from 10 years before NPA to 5 years (who knows, but at least I’ll have the S&S ISA to fall back on!)
Great video, lots of interesting stuff to digest. Also loving your finance attitude with your son, I feel it can be tricky getting kids to understand the value of money sometimes and its heart-warming that you've through it through so well. As a side note, you can't invest in a Junior ISA if the child already has a Child Trust Fund which was automatically created for a specific set of birth years (sorry cant remember which ones, but know my nephew was given one which will be available when he turns 18. Lump sum to an 18 year old, quite daunting!)
Some JISA providers, such as Hargreaves Lansdown, will accept a CTF transfer in to their JISA, allowing for a modern, cheap way to invest for the young person.
Great tip on flexible ISAs - I didn’t realise T212 was a flexible ISA so I was holding my emergency fund in cash on their general trading account and was expecting to exceed the tax free interest allowance this year. Will definitely move over now.
They only made them flexible recently when they launched their cash ISA. Really helpful as was one of the few negative points about their offering. One additional point about flexible ISAs that's worth highlighting...I only recently became aware of it from a discussion in T212's forums - it's not only the current year's allowance that is flexible. If you have £100k in your ISA, you can take out all £100k and repay it back in, as long as it's within the same tax year. I was sceptical when I read it, but went off and checked on gov.uk and yeah, seems to be the case.
Love the content as always Damien but wanted to ask about Stocks and Shares ISAs. I've more often used cash ISAs as when I've looked into stocks and shares, the interest rates on those accounts were comparatively lower. What am I missing here? Is that a baseline, worst case scenario rate I'm seeing? I'd also say, make sure to move your help to buy ISA balance into a Life ISA, as the HTB house price cap is ridiculously low now. I've noticed too that you rarely mention traditional bank options, mainly Vanguard and Trading 212... not a fan of traditional solutions? Thanks.
Damien I like your cash flow in retirement in that case will you use regular ufpls, it would great to get a simple explanation ufpls v drawdown and different scenarios ta David
I have a similar cash position to that you mentioned in advance of retirement but it's 4 minimum requirement / 3 good years of living. With that in place I think focusing on SIPPS has to be a consideration due to the tax relief they offer and the current IHT protection too. The 25% tax free rate is so important so as long as the rules remain as they are, at 53, my focus has been more on my SIPP for the past 3 years or from 5 years out before being able to access it.
I have a junior ISA for one of my children and put the government trust fund money into a Nat west trust fund account for my eldest as that was the only choice at the time. I would like to hear more about how best to invest for my kids.
Brilliant video! I've been using a LISA to put toward a deposit for my first home, and I initially thought the 25% withdrawal fee was the inital 25% top-up from the government, not 25% of the total value you wish to withdraw.
Hi Damien, I love your contents. I am new to UK and helped me a lot gaining essential knowledge how money works in the UK. I would like to mention however that you are asking for a change on LISA rules to not have people trapped, but they are getting 20% bonus free money each year and it should come with a drawback to be honest.
@@DamienTalksMoney I’m curious, why do you think more people don’t use synthetic ETFs given my understanding is that by using them you dodge the withholding tax and yes you add counter party risk by using a derivative but that risk is very low eg Ramin is comfortable using synthetic ETFs he’s said in videos before
Can you make a video on how to not get into trouble with money making and how to track everything best way either yourself or through employing someone else. I wanna start building my wealth but it’s intimidating and I’m unsure of all the rules and how to not get into trouble etc. thanks
Had to do a double take. I'm pretty sure dividends from ISA are protected from tax no? Just re-read HMRC's tax on dividends page on their website, and it says "you do not pay tax on dividends from shares in an ISA". Am I misunderstanding your comment?
Hi Damian, massive fan of your channel. Keep up the good work! Quick question, I’ve paid into a help to buy ISA for years, does this impact my £20k allowance? Or is the help to buy isa separate, as they are no longer available
Huge parenting tip to get them involved with you in investing early using small amounts to put in companies they like the look of. Mentally noted for when they are old enough.
Glad to see you have a JISA with HL because it is free. I’ve opened one with them too for my toddler. It’s already up 6% with holdings on # UKW and #TSCO. Will add a global tracking ETF after discovering your channel.
Great video! Does the us securities withholding tax apply to index funds that don’t provide dividends? The idea of paying 15% tax to the US is uncomfortable! from what I’ve read long term capital gains is excluded from this withholding tax.
If a stocks ISA only has protection for £85k… what happens if your pot grows to £200k and then they go under? Do you lose £115k and only get back £85k?
Very helpful video. The only question I have left and you briefly touched on it is, if I can withdraw money from a flexible ISA (My Cash ISA) and pay that money into a S&S ISA with a different provider! Say I've paid £15k into a Flexible Cash ISA and £5k into a S&S ISA. I then decide to take £5k out of the Cash ISA, can I then pay it into the S&S ISA (Different provider) without going over my limit?
Hi mate thanks for the great content I'm just about to start my investment journey having woken up to it I've alot of learning to do I realise but I'm really enjoying it I hit my goals of paying the mortgage and hitting a figure in the bank but was always unsure beyond that not anymore thanks to people like yourself thank you 👏 a question I've got my platform opening my stocks and shares isa and now deciding which fund to choose can you have more than one fund within that isa ?
Any decent platform will have range of investment options and the client can mix and match funds as they wish. That said, unless starting with a considerable sum, one or two funds should be enough to avoid unnecessary complication or duplication of underlying investments.
Stocks and Shares ISA is next on my list April 25, as I've no allowance left. I have four cash ISAs at the moment though - 6.2%, 5.7%, 5.5% and 5.2% guaranteed, plus a fixed rate bond at 6.2% (not tax free). I wouldn't sit on crap ISAs though and all four ISAs, plus the bond, will need "re-upping" starting at the end of this year as their interest rates will drop to almost nil.
I just opened a Trading 212 account and will put in 100 a month in Stocks and Shares ISA asap, more when debts are paid. Plus my Pension Bee account which I do need to top up as changes to job and being unemployed at points made it harder to regularly pay in. Now i have a regular wage i can keep it going
Hi Damien great video. Quick question (anyone can answer) Currently 24 living with my fiancé (24). We purchased our first house at 23 putting down £56k deposit with £321k mortgage at ~5.3% rate. 3 year fixed. Current mortgage monthly payment is £1750 and our yearly household income is around £90-100k give or take a little, and we will probably have a child within 2 years, and maybe 2 after. I have around £15k in cash ISA currently at 5.2% interest (trading212) with cars paid off etc and no debt other then student loans which I'm happy to sit on. Question: Would you in my position drop a single payment into overpaying on the mortgage. Lets say £5K-10k now then overpay £200 a month going forward, or move my spare cash into stocks and shares ISA and invest in that? I hate debt so in my mind I think i should just throw everything at the mortgage so we could be mortgage free by lets say 40 years old. Thanks to any replies with advice etc!
You guys are lightyears ahead of most, well done! I personally wouldn't bother overpaying the mortgage, even with a fairly high rate at 5.3%. Putting that money into a global EFT, MMF or even left in cash at %5.2 gives you so much more of a safety blanket if anything goes wrong. Or even if you decide to start a business, change career, go on a trip round the world. Once you over pay your mortgage it's very hard to get that money back if you do suddenly need it. If you find yourself needed to take out a loan you'll be way worse off.
If you could put aside a set amount per month, I’d just pay your interest on your mortgage per month (as opposed to aggressively smashing it down), you’d be amazed at how this can shorten the term of your mortgage. And as above invest the rest, S&S a little in a cash ISA so you have some liquid cash compounding etc. if there is no way you can do both, forget paying the interest and focus on S&S. just my thoughts as a 50 something!
Sounds like you’re killing it, well done young man. You’ll probably get 10 different answers from 10 different people on this one. Pound for pound you’d be better investing in global index funds and getting around 8-9%. But it’s nice to see that mortgage coming down each year, especially when you calculate the amount of interest you pay each month!!!!! I make annual over payments of about 5k and invest all the rest in my sipp and s&s isa(around 15k). Im a fair bit older than you though and only have just under 40k left on my mortgage.
Depends if you will now be able to start maxing out your employers pension matched contributions and £4000 into S&S LISA next April. You could run down that cash ISA while you get money into those two over the next couple of years.
You’re doing well mate, solid job! For what it’s worth, if it was me I’d not overpay and instead invest it in a S&S ISA. From experience, having children can dramatically change things, whether that be childcare, working part time etc. give yourself that buffer should you need to call upon it and sleep easy.
One of the few FA youtubers that I think is actually giving out some quality advice. Bravo sir
Thank you so much
Exceeding the 20k allowance is a nice problem that I don't think I'll ever experience 🤣🤣
@@wedgtable well I’m due a DB scheme to start paying me next Feb and the plan was to take the tax free lump sum and invest into ISA either side of the April 5 end of/ start of tax year. Maybe the budget will change plans
@@guyr7351i’m hoping the budget didn’t change you plans by much?
I've followed you quietly for ages, but you have educated me so much and your videos have been a huge part in my finance journey. So thank you so much! I'm trying to introduce the topic of money to my 9 year old- and absolutely love the idea of him having his own pie on my T212 account- I'm definitely going to do this with him. Huge thanks Damien- you are a wonderful human!
I couldn't have worded this better. This is the exact situation I find myself in. Damien is such a valuable resource, we're so lucky to have this free education available! My son is 4, so not sure how successful his pie picking will be, but why not give it a chance!
Lovely comments guys thank you. It is honestly the best part of my job hearing I have helped people improve their lives,
Emily please let me know how your son gets on! Maybe he can beat my sons performance 🤣
I’m going to do this with my 3 year old granddaughter. I have been hassling her parents to open a Junior SIPP and S&S ISA but they opened a cash one instead 🤦♀️ Thank you so much for the valuable insight @damientalksmoney.
This appears to be as good a place as any for this comment - I have 3 kids - the two older ones qualified for the child trust funds. One has just matured and he's done very nicely, thank you Foresters! The other is performing very well too and has just a couple of years to go.
For my third child who is too young to qualify for the CTFs, I chose a different tack. I suppose there are a couple of 'financially risky' people in her life that I'd be concerned could manipulate her if she were to simply gain access to a wad of cash at 18. For that reason, together with the fact she can be a bit naive for her age, I rejected the idea of a JISA or even a LISA and created a pie for her within T212 and am contributing weekly to it.
As things stand she's +31% and on track to have a fund of a similar value to the older two although the plan isn't going to be to hand it to her in one fell swoop, but rather dole it out as and when required, at least in the first instance. Whilst I believe the general consensus is to caution against using leveraged stocks etc. her pie is made up of VUSA (GBP), DBPB (2x leverage S&P500 in Euros) and 3LUS (3x leverage S&P500 GBP).
I suppose, given the fact that she's not aware of the existence of the pie, I'm generally happy to take the risk with the leverage and dollar cost average in the event of a downturn etc...
I came across your channel through this video-case studies are incredibly valuable, and I'm eager to see more in the future! Building wealth involves establishing routines, like consistently setting aside funds at regular intervals for smart investments.
Probably the best explainer video on ISA’s I’ve seen, cheers Damo
Thank you!
I had no idea that my t212 isa was flexible. This just made my week!
At 64, how I wish I could go back 20 years and educate myself financially. A pity we did not have you tube etc then to bring some simple illustrations of what to do to help build for a better future.
Luckily in my last ten working years I was able to compensate for some mistakes in the past.
While it is good to illustrate and show investment options there are many as you will know Damien, for who there is no money left at the end of the month for investments. By the time mortgage/rent, council tax, fuel and other bills are paid the pot is empty.
Your post hits home... I'm just finding out about these things, at 44. Feeling grateful now.
@@iainmillar1532 I have an ex work colleague who was in a similar position when he joined our company. We were able to explain salary sacrifice etc and his options.
Around 40’is almost perfect age to being able to start diverting more than normal into pensions or other investments. You still have 20 plus years of work and good income to provide for yourself, of course we are now all awaiting what the government will do with pensions and other savings / investments.
Financial education was not accessible then. Life is better now
Down 6% is a hell of a lot better than a lot of the adults I know who attempt stock picking! Good on him!
He is currently building a course to sell his secret method.
Who the hell is dumb enough to not go positive when investing in stocks? I'd understand it if you used a bunch of leverage, but regular stocks? Literally a goldfish could pick a random 10 stocks from the s&p 500 and it would make money over time.
Critical comment.
Ah but those stock pickers are ALWAYS up, not a single one of them ever make losses.
Someone on T212 forum boasted they went all in on Tesla at around 250 and was 100% certain it'll hit 400 by end of the year when robotaxi is announced, they boasted that Tesla will never go below 200 ever again. Funny how quiet they were when Tesla hit 187 last week.😂
@@bigboldbicycleTiming is off but when Tesla do solve robotaxi, and it's when not if, he'll be laughing and you'll have missed out.
Hi Damian, fab video and very educational.
I’m 28 years old, and have been investing into my NHS Pension for 10.5 years now. Have worked for NHS since 18.
I setup a S&S ISA back in 2021 (when I was 25), through Vanguard. I invest purely into FTSE Global All Cap ACC fund.
Therefore I have both my NHS pension and S&S ISA growing over time.
Given the NHS pension is very generous, setting up a S&S ISA I preferred to do rather than a SIPP.
Vanguard ISAs are flexible💪🏼
These videos with the examples are brilliant even for investors with years of experience. Great work
Absolutely!
Thank you I’m glad you think they are useful
@@DamienTalksMoneyBig time! You are doing some great work to help unpick the rules around UK based investment!
Damien mate, Your explanations are top tier! Cheers for everything !
You legend thank you for this! Glad you find them useful
One caveat to being able to pay into multiple ISAs now is that not all providers necessary allow this so you need to carefully check the isa declaration as some still say you are restricted to only paying into the one isa. I queried this with the provider and they said they were aware of the rule change but that they were not signing up to it at this stage. Worth checking before you commit
I pay some into my isa, £25 into my ISA and £50 into my LISA. Currently paying off some debts so I'll be increasing both to £100 after the new year if all goes well and then after I am done with the LISA I'll contribute atleast £200 a month into the ISA and increase it every year. I'm 24. I started these ISA's a couple months ago, trying to make sure my future is more secure
You are going to be LOADED one day if you do this. I wish I’d had your prudence when I was your age
great to hear! but most of the time it’s better to pay off debts first since you’ll be losing more money than you save until it’s paid off (unless it’s a low or 0% interest debt)
@sirlukeypookie it's low interest depts and 0%. I have 0% finance that I am paying off and my car is on 4.65%. Still got another 35 months to pay off, currently paying £190.09 a month, I'll be increasing the payments soon on that aswell. I drive 500 miles a week so hopefully get a new job where I travel less so less fuel costs and less maintenance cost.
All the best mate 🔥 doing a good job!
I wish I did this at 24!
Thank you for your knowledge, effort, research and time!
Your videos are very engaging, knowledgeable, and every minute is full of valuable gems.
The LISA threshold of £450k was set in April 2017 and hasn't been changed since.
A £450k house in 2017 would now cost £582k in today's money, based on the house price index. Meaning a huge chunk of a FTBs purchasing power has been eroded.
You think that's bad.. feel for those with the original Help To Buy ISA which is capped at £250k outside London, Gov haven't touched it since.
And people think that the government will get around to fixing the problem any time soon, things could get much worse from here. A LISA is a risk and not "free money" as I've seen people say online. Still a good option but be alert
@@Radictor44 outrageous
Are you able to roll the H2B into a Lisa still?
@Radictor44 I transferred my H2B ISA into a Lifetime ISA on Hargreaves Lansdown. See if they still offer that
Another top video, Damien!
Could you do a video on best pension funds for people in mid 30s? Or best funds for 20s 30s 40s?
Good shout, no doubt a low cost global fund
Yeah, low cost global fund is Damien's favorite. If you want more appetite for risk, check with your pension provider, they usually can filter funds based on risk.
VUSA on trading 212 + a high dividend ETF and a small % in emerging ETF 👍 I also hold the top 7 companies, nvidia microsoft apple etc etc.. your good to go
@@XORTIONI prefer to accumulation version, I think it's VUAG or something?
@@XORTION obviously everyone’s goals are different. But I’d avoid a high dividend etf at a young age, in favour of growth. Builds your portfolio much quicker.
High dividend ETFs have a place towards the end of your investing journey. Don’t want to miss out on the growth and gains….
I like the idea of teaching investment to your son, that's very smart
Good to see that there is content telling people what mistakes to avoid, the ISA is great but they have definitely become more and more complicated. Thanks for the video!
it's kinda crazy how nobody is talking about the book whispers of manifestation on borlest
Is that the best book of manifestation?
Again Damo, very important video. Making my wife watch it!
Absolutely brilliant video thank you. Explained in really simple layman’s terms, great stuff.
ISA>SIPP. The freedom of an ISA is a highly underrated advantage over a pension. I have a feeling pensions will almost certainly be violated by government before I hit my retirement age
Thats my concern too. In Poland in 2014, Donal Tusk stole private pension funds from "OFE". And i need to contribute and wait 20+ years to take benefit from it.
Tax relief is too big perk to omit it although.
You’re absolutely right not to trust the government with your pension, .
We started an emergency fund this year and investing (we are 29 for context) Thank you for the info on the Trading 1-2-1 ISA being flexible. We put our emergency fund into a cash savings account for easy access if we needed it (our first year living in our own purchased home so wasn't sure if anything expensive was coming our way). But now I know that the ISA is flexible we can combine it all together and still have access to it if we need it 😊 tThis makes me very happy as having £200 a month going into a cash savings account compared to investing was making my eyes twitch after learning so much from your Content!
I have started depositing into my ISAs by seeing another RUclipsrs video. But your video is well explained... You gained a new subscriber :)
Amazing video, very easy to follow, very informative and I found very useful to hear your personal insight too. Thank you!
In the video at 4:00 do you have a video on how to strategically begin to lift your money out your ISAs and Pension in conjunction with each other the most efficient way in detail. I'm dumb 🙃
Cleared up a lot of my questions. Saved me so much time boshhhh
Glad to hear it!
Great tip on APS did not know about that, cheers 🍻
It should be discussed more!
Great info about ISAs! I am one of the proud 6% S&S ISA holds and its currently up 14%!!! Youll never see that with cash
Great advice as usual Damien, thanks again mate
Oh wow. Great to find someone who explains things so easily. Thank you for your help.
You are so welcome!
Great work, again. Unfortunately, I'm 62 now so haven't got the luxury of investing for the 'future', I need something with shorter term potential.
Another positive on the junior isa for kids is that when they turn 18 and get access, they don’t just see a pot of money, they see something that looks complicated and kind of scary to someone with little experience. It was this that made me initially not really touch my ISA until I’d learnt more about investing - so having a stocks and shares ISA both meant that I didn’t splurge the money my parents had saved, and encouraged me to learn about investing and finance generally.
Thanks for this Damien. In particular the JISA is something I've considered for my daughter. My thinking is HL as that seems to be the best for juniors (not so much for adults), with an index fund - encouraging to see you've got the same setup
I love your videos and channel, it is so impressive how much you know and I love being able to learn from you.
Loved thissss!! Thank you. I'm currently a young person who wants to have an ISA.
One point about Stocks and Shares ISA's. For those that pick their stocks or funds, some funds can end up frozen as in the case of investment into say Russia. Returns are also highly related to the quality of the stocks and shares which make it up. Cash ISA's (fixed) pay a return that is clear for a period you can control. However, as interest rates come down the return is likely to become less and less. Always enjoy your content
I'd go workplace pension, stocks & share's isa then SIPP.. cos gov's messing with the pensions I agree stocks n shares is better for earlier accessibility. And with the stocks and shares isa you don't need to put a full 20k in, do small monthly amounts over say 30 year's and let the compound interest work it's magic, and fingers crossed for a 5+% annual return rate.
I could have done with video last week Damo, as I made a mistake with one of my ISAs 😂. But, thanks for another fantastic video. 👏
oh no! what mistake did you make mate?
@@DamienTalksMoney I found out my bonus rate dropped on the day it happened (I should have noted it in my diary - lesson learned ). I then moved the money out into a current account, with the plan to then transfer the money into a high interest savings account, until I could open a new ISA. I didn't do that as I would have lost my my tax free allowance for 2023/2024. I then put the money back into the original ISA, which is the flexible type. I've now opened a new ISA with a great rate and am in the process of transfer the money in. Hope that makes sense.
Thanks for covering my question Damo.
Thanks for another quality video. I hope you enjoyed boomtown 🤞
So good!
Your videos are quality, mate. You're making all of this dead easy for someone like me to understand. Quick q on the off-chance you see this - I get the premise of a junior isa belonging to my son until it matures etc. But what's the 'pro' to that compromise in flexibility? I can't find the answer to this simple question anywhere!? I.e. why would I ever prefer a much less flexible type of isa?
The benefit of the junior isa is that it means your own isa allowance of 20k is not being used up by savings for your child essentially
@DamienTalksMoney of course, now I feel like a thicko. Thanks a lot for the reply mate! Have a nice weekend
Boomtown looked amazing, hope you had fun in the Matterley Bowl!
We did! But wow that bowl is hard work getting up at the end of the night 🤣
The pension age change has made me reduce contributions, adding to my s&s ISA instead. Thanks for the great video.
Brilliant round up of useful tips Damo 👏
Glad you enjoyed it
One thing with the LISA vs Pension is that if you need to claim benefits, the LISA counts towards your Capital. Which you would be expected to use, before claiming, so would be penalised for withdrawing. Though I still have this and a work Pension, with the view to use my LISA to bridge the gap to full retirement and state pension,.
Excellent video mate
Absolutely brilliant concise isa video....thanks
Thanks for the video. Knowledge is power when it comes to not having inflation destroy your effort
Great video mate. Keep the insights coming 👍🏻
Legend thank you
Very good point on the liquidity and portability of S&S ISA’s, as a local government manager I overpaid into my DB pension from the age of 24 and now at 32 have gone self employed and plan on using a combination of my (now transferred out) AVC’s - essentially a DC scheme - and S&S’s ISA to bridge the retirement gap between -10 years of my NPA (whatever age that is by the time I get there!) and accessing my DB pension. My only concern is whether the government will compress pension freedoms and reduce the window from 10 years before NPA to 5 years (who knows, but at least I’ll have the S&S ISA to fall back on!)
Thanks man, excellent useful tips as always. I hope you enjoyed boomtown, I could hear it from about 10 miles away in my dads garden :D
🤣🤣 I can still hear it ringing in my ears now
Great video, lots of interesting stuff to digest. Also loving your finance attitude with your son, I feel it can be tricky getting kids to understand the value of money sometimes and its heart-warming that you've through it through so well.
As a side note, you can't invest in a Junior ISA if the child already has a Child Trust Fund which was automatically created for a specific set of birth years (sorry cant remember which ones, but know my nephew was given one which will be available when he turns 18. Lump sum to an 18 year old, quite daunting!)
Some JISA providers, such as Hargreaves Lansdown, will accept a CTF transfer in to their JISA, allowing for a modern, cheap way to invest for the young person.
Great tip on flexible ISAs - I didn’t realise T212 was a flexible ISA so I was holding my emergency fund in cash on their general trading account and was expecting to exceed the tax free interest allowance this year. Will definitely move over now.
Yeah amazing for the emergency fund when you combine the flexible isa with their very high interest on cash
They only made them flexible recently when they launched their cash ISA. Really helpful as was one of the few negative points about their offering.
One additional point about flexible ISAs that's worth highlighting...I only recently became aware of it from a discussion in T212's forums - it's not only the current year's allowance that is flexible. If you have £100k in your ISA, you can take out all £100k and repay it back in, as long as it's within the same tax year. I was sceptical when I read it, but went off and checked on gov.uk and yeah, seems to be the case.
You make me wealthy just being an active listener. TY
Love the content as always Damien but wanted to ask about Stocks and Shares ISAs. I've more often used cash ISAs as when I've looked into stocks and shares, the interest rates on those accounts were comparatively lower. What am I missing here? Is that a baseline, worst case scenario rate I'm seeing? I'd also say, make sure to move your help to buy ISA balance into a Life ISA, as the HTB house price cap is ridiculously low now. I've noticed too that you rarely mention traditional bank options, mainly Vanguard and Trading 212... not a fan of traditional solutions? Thanks.
Great video, love what your doing for your son 👍
Trying to get him ahead of the game but still teach him the value of money and working hard. It really is not easy
Damien I like your cash flow in retirement in that case will you use regular ufpls, it would great to get a simple explanation ufpls v drawdown and different scenarios ta David
I have a similar cash position to that you mentioned in advance of retirement but it's 4 minimum requirement / 3 good years of living. With that in place I think focusing on SIPPS has to be a consideration due to the tax relief they offer and the current IHT protection too. The 25% tax free rate is so important so as long as the rules remain as they are, at 53, my focus has been more on my SIPP for the past 3 years or from 5 years out before being able to access it.
Such a helpful video mate. Cheers Damo!
Glad it was helpful!
Teaching me new stuff everyone I watch cheers mate
Could you explain your strategy on how you’re planning on taking cash out at the end. I think you briefly mentioned it at 4 mins in
Excellent educational stuff! Thank you!
I have a junior ISA for one of my children and put the government trust fund money into a Nat west trust fund account for my eldest as that was the only choice at the time. I would like to hear more about how best to invest for my kids.
Brilliant video! I've been using a LISA to put toward a deposit for my first home, and I initially thought the 25% withdrawal fee was the inital 25% top-up from the government, not 25% of the total value you wish to withdraw.
Hi Damien,
I love your contents. I am new to UK and helped me a lot gaining essential knowledge how money works in the UK.
I would like to mention however that you are asking for a change on LISA rules to not have people trapped, but they are getting 20% bonus free money each year and it should come with a drawback to be honest.
Amazing as usual
Enjoy Boomtown, Damo!
You legend thank you so much for this
Boomtown looks epic, I drive past there on my way to work, i'll have try it next year.
@@DamienTalksMoney I’m curious, why do you think more people don’t use synthetic ETFs given my understanding is that by using them you dodge the withholding tax and yes you add counter party risk by using a derivative but that risk is very low eg Ramin is comfortable using synthetic ETFs he’s said in videos before
Genuinely good advice here
very informative, thank you.
Can you make a video on how to not get into trouble with money making and how to track everything best way either yourself or through employing someone else. I wanna start building my wealth but it’s intimidating and I’m unsure of all the rules and how to not get into trouble etc. thanks
Also things like who should know about your money situation and how to do taxes etc
1:50 You say ISAs are free of dividend and corporation tax - did you mean capital gains tax? 👀
Whoops! Slip up clearly and wasn't checked as I am away. Thank you for spotting I will get the error removed
Had to do a double take. I'm pretty sure dividends from ISA are protected from tax no? Just re-read HMRC's tax on dividends page on their website, and it says "you do not pay tax on dividends from shares in an ISA". Am I misunderstanding your comment?
Brilliant advice❤
Hi Damian, massive fan of your channel. Keep up the good work!
Quick question, I’ve paid into a help to buy ISA for years, does this impact my £20k allowance? Or is the help to buy isa separate, as they are no longer available
Huge parenting tip to get them involved with you in investing early using small amounts to put in companies they like the look of. Mentally noted for when they are old enough.
Glad to see you have a JISA with HL because it is free. I’ve opened one with them too for my toddler. It’s already up 6% with holdings on # UKW and #TSCO. Will add a global tracking ETF after discovering your channel.
Great video Damien
Thanks Damien. This is helpful
No problem!
Great video!
Does the us securities withholding tax apply to index funds that don’t provide dividends? The idea of paying 15% tax to the US is uncomfortable! from what I’ve read long term capital gains is excluded from this withholding tax.
Great video as always :)
I'm big fun of Junior ISA for educational purposes.
A very valuable video Damien, perhaps a follow up could be on how to invest money beyond the £20k per year and what a GIA can provide
Great video hope you’re well
If a stocks ISA only has protection for £85k… what happens if your pot grows to £200k and then they go under? Do you lose £115k and only get back £85k?
Potentially, yes.
Who’s ‘they’?
@@jmpersonalfinanceandinvesting obviously the stocks broker. Trading212, vanguard or whoever.
If the stocks and share provider goes down then no not really because that’s not who’s got the money. The companies you’re invested in have the money.
@@albertwarren6917I wouldn’t bet my ISA on it.
Very helpful video.
The only question I have left and you briefly touched on it is, if I can withdraw money from a flexible ISA (My Cash ISA) and pay that money into a S&S ISA with a different provider!
Say I've paid £15k into a Flexible Cash ISA and £5k into a S&S ISA.
I then decide to take £5k out of the Cash ISA, can I then pay it into the S&S ISA (Different provider) without going over my limit?
Top video as always !
Glad you liked it!
Good Content Damien, thanks
Hi mate thanks for the great content I'm just about to start my investment journey having woken up to it I've alot of learning to do I realise but I'm really enjoying it I hit my goals of paying the mortgage and hitting a figure in the bank but was always unsure beyond that not anymore thanks to people like yourself thank you 👏 a question I've got my platform opening my stocks and shares isa and now deciding which fund to choose can you have more than one fund within that isa ?
Any decent platform will have range of investment options and the client can mix and match funds as they wish. That said, unless starting with a considerable sum, one or two funds should be enough to avoid unnecessary complication or duplication of underlying investments.
@adrianl5899 thanks
cheers for the update dude. on another note, I see that Manuel stuff is working, quite bushy today :)
Stocks and Shares ISA is next on my list April 25, as I've no allowance left. I have four cash ISAs at the moment though - 6.2%, 5.7%, 5.5% and 5.2% guaranteed, plus a fixed rate bond at 6.2% (not tax free).
I wouldn't sit on crap ISAs though and all four ISAs, plus the bond, will need "re-upping" starting at the end of this year as their interest rates will drop to almost nil.
Hope you had am amazing time at Boomtown! Well deserved 👏
Off to Boomtown? That'd be the messiest weekend of the year then!
Just to add on the LISA you can also withdraw if you are diagnosed with a terminal illness with less than a year to live.
If I used a LISA for a house, can I open another for retirement?
Yes you can assuming you are the correct age and you can have a stocks and shares LISA
Can you share what global fund do you use in your kid's HL JISA account? I can't see as many options there. Very good video by the way
Very informative, thank you. Is an ISA worthwhile if the plan is to move to the European Union within 5 years?
I just opened a Trading 212
account and will put in 100 a month in Stocks and Shares ISA asap, more when debts are paid.
Plus my Pension Bee account which I do need to top up as changes to job and being unemployed at points made it harder to regularly pay in.
Now i have a regular wage i can keep it going
Damien well done mate.
Hi Damien great video. Quick question (anyone can answer)
Currently 24 living with my fiancé (24). We purchased our first house at 23 putting down £56k deposit with £321k mortgage at ~5.3% rate. 3 year fixed.
Current mortgage monthly payment is £1750 and our yearly household income is around £90-100k give or take a little, and we will probably have a child within 2 years, and maybe 2 after.
I have around £15k in cash ISA currently at 5.2% interest (trading212) with cars paid off etc and no debt other then student loans which I'm happy to sit on.
Question: Would you in my position drop a single payment into overpaying on the mortgage. Lets say £5K-10k now then overpay £200 a month going forward, or move my spare cash into stocks and shares ISA and invest in that?
I hate debt so in my mind I think i should just throw everything at the mortgage so we could be mortgage free by lets say 40 years old.
Thanks to any replies with advice etc!
You guys are lightyears ahead of most, well done!
I personally wouldn't bother overpaying the mortgage, even with a fairly high rate at 5.3%. Putting that money into a global EFT, MMF or even left in cash at %5.2 gives you so much more of a safety blanket if anything goes wrong. Or even if you decide to start a business, change career, go on a trip round the world. Once you over pay your mortgage it's very hard to get that money back if you do suddenly need it. If you find yourself needed to take out a loan you'll be way worse off.
If you could put aside a set amount per month, I’d just pay your interest on your mortgage per month (as opposed to aggressively smashing it down), you’d be amazed at how this can shorten the term of your mortgage. And as above invest the rest, S&S a little in a cash ISA so you have some liquid cash compounding etc.
if there is no way you can do both, forget paying the interest and focus on S&S. just my thoughts as a 50 something!
Sounds like you’re killing it, well done young man. You’ll probably get 10 different answers from 10 different people on this one.
Pound for pound you’d be better investing in global index funds and getting around 8-9%. But it’s nice to see that mortgage coming down each year, especially when you calculate the amount of interest you pay each month!!!!!
I make annual over payments of about 5k and invest all the rest in my sipp and s&s isa(around 15k).
Im a fair bit older than you though and only have just under 40k left on my mortgage.
Depends if you will now be able to start maxing out your employers pension matched contributions and £4000 into S&S LISA next April. You could run down that cash ISA while you get money into those two over the next couple of years.
You’re doing well mate, solid job! For what it’s worth, if it was me I’d not overpay and instead invest it in a S&S ISA. From experience, having children can dramatically change things, whether that be childcare, working part time etc. give yourself that buffer should you need to call upon it and sleep easy.
What is 60 percent tax trap and uplift,Pls? Kindly create fictional examples for the various tax threshold bands.