@@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
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.😂
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...
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.
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.
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
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💪🏼
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….
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.
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 🙃
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!
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!
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.
@@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.
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.
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,.
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.
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?
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 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
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.
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.
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.
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.
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.
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.
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.
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.
You’ve encouraged me to take the plunge and open a stocks and shares ISA and a cash ISA. I have some redundancy money burning a hole in my pocket so I’m putting it to use. (hopefully) Couldn’t have picked a worse time though as everything I bought last week has fallen out the arse 😂 Oh well, I hear it’s time in the market not timing the market.
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 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 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
A break down on Junior SIPPS would be great. There's seems to be a very limited number of providers offering these and those that do seem to be expensive. For someone looking to put £20 a month away for their child it seems like an expensive product.
Some of those were beyond tips, it was like CSI:Finance because some of them are obviously being consciously hidden by the providers !! "Wait Ben, why didn't you tell me about this" ?
I told HMRC that I had overpaid on an ISA and they took some three years to sort...I was never informed it was sorted, only found out when I called( yet again). The annoying thing is that for a couple of years I let one ISA languish as I wasn't sure what would happen if I had to close it. Really annoying they took so long, it was such small amount too...
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?
I put my kids junior isa in stocks and shares and it went down 10% in 18 months and wiped out 6 years of growth. Your advice should come with a huge pinch of salt
10% (and more) falls are a normal part of investing and why the time horizon for investing needs to be much longer than 18 months. Here it was set in the the context of investing for 18 years for a child but usually in the investing documentation for an equity index fund it will say a minimum 5 years. In my main equity index fund which has grown 22% this past year, it was possible to panic sell during the 12 months on a dip and actually lose money. So often it's investor behaviour which leads to negative outcomes rather than being in the markets, which continues to be a very sensible vehicle for seeking long term growth.
Hey Damien, I'm still confused about the flexible ISA rules. Why does the money have to be paid back to the same account despite remaining allowance increasing the moment you withdraw the money? Can't I instead just put it into another flexible ISA that offers better interest rate and still be within annual allowance limit, because the reporting at the end of the year will show I took money out but never replaced it. I find it confusing. Thanks! Fantastic content and I'm happy I've found your channel 😊
Hi Damien, I pay into a help to buy ISA every month, the maximum is £200 a month. Can I open up a LISA and pay into this also? If so is there any you would specifically recommend? Great video also, really helpful as hoping to buy my first home next year. Thanks, Matt
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.
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.
I am planning to move some money from my cash ISA to my Vanguard S&S ISA based on another video of yours, Damian. However, my current Vanguard fund is LifeStrategy® 100% Equity Fund but I have been told to revert to Vanguards FTSE Global All Cap, what's the difference and what is the better option? PS thanks for all of your help.
Unless using an IFA, the only Lifestrategy products available to us in the UK are highly biased to the UK. While the UK market is about 3.5% in the global all cap product, it's about 7 times that in the LS product. Unless you want such UK bias, the all cap is more reflective of world equities therefore. Other than that, be aware that 100% equities is accepting high volatility for gains over the long term. The profile is to be somone in the fund for at least 5 (many would say 10) years, and able to cope by not panicking on large drops when they come, which they will.
@@adrianl5899 I opted for 100% equities as I just began investing two years ago so I am rather late to the game. Does Vanguard allow me to switch my profile to cap?
@@Rob-qv6seYes, if you want to switch funds you can do that usung the switch option. You'll be out of the market from the period of LS100 sale to All Cap purchase.
IMHO Flexible ISAs were one of the worst things to happen to them. Go back ten years and Instant Access ISAs typically had the highest interest rate of any building society account because they knew very few people would withdraw from them. Contrast that with today when they typically pay 4/5ths of a comparable non ISA account.
it's kinda crazy how nobody is talking about the book whispers of manifestation on borlest
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?
One of the few FA youtubers that I think is actually giving out some quality advice. Bravo sir
Thank you so much
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.
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...
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
Oh wow. Great to find someone who explains things so easily. Thank you for your help.
You are so welcome!
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!
I had no idea that my t212 isa was flexible. This just made my week!
Probably the best explainer video on ISA’s I’ve seen, cheers Damo
Thank you!
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
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💪🏼
I like the idea of teaching investment to your son, that's very smart
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
Damien mate, Your explanations are top tier! Cheers for everything !
You legend thank you for this! Glad you find them useful
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!
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….
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, .
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 🙃
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.
I have started depositing into my ISAs by seeing another RUclipsrs video. But your video is well explained... You gained a new subscriber :)
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!
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!
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 another quality video. I hope you enjoyed boomtown 🤞
So good!
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!
Loved thissss!! Thank you. I'm currently a young person who wants to have an ISA.
Thanks for covering my question Damo.
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
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.
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.
The pension age change has made me reduce contributions, adding to my s&s ISA instead. Thanks for the great video.
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,.
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
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
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 love your videos and channel, it is so impressive how much you know and I love being able to learn from you.
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 🤣
Boomtown looks epic, I drive past there on my way to work, i'll have try it next year.
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 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
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.
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
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.
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
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.
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.
Hope you had am amazing time at Boomtown! Well deserved 👏
Thanks for the video. Knowledge is power when it comes to not having inflation destroy your effort
212 just announced 5 % as of September.. amazing still🎉
You make me wealthy just being an active listener. TY
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
Absolutely brilliant concise isa video....thanks
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.
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.
very informative, thank you.
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
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.
I also use the "Big massive" analysis.
🤣🤣🤣
cheers for the update dude. on another note, I see that Manuel stuff is working, quite bushy today :)
Another top video, Damien!
Brilliant round up of useful tips Damo 👏
Glad you enjoyed it
This is such a great video as im trying ti understand ISAs
You’ve encouraged me to take the plunge and open a stocks and shares ISA and a cash ISA. I have some redundancy money burning a hole in my pocket so I’m putting it to use. (hopefully) Couldn’t have picked a worse time though as everything I bought last week has fallen out the arse 😂 Oh well, I hear it’s time in the market not timing the market.
Teaching me new stuff everyone I watch cheers mate
Genuinely good advice here
Great video mate. Keep the insights coming 👍🏻
Legend thank you
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
Great video Damien
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 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
Excellent educational stuff! Thank you!
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
Such a helpful video mate. Cheers Damo!
Glad it was helpful!
Very informative, thank you. Is an ISA worthwhile if the plan is to move to the European Union within 5 years?
A break down on Junior SIPPS would be great. There's seems to be a very limited number of providers offering these and those that do seem to be expensive. For someone looking to put £20 a month away for their child it seems like an expensive product.
Great video hope you’re well
Some of those were beyond tips, it was like CSI:Finance because some of them are obviously being consciously hidden by the providers !! "Wait Ben, why didn't you tell me about this" ?
It is odd that it is often not explained clearly to people. I know some brokers do ask you to sign as standard but most people have no idea why.
The limit on "Help to Buy" ISAs is worse; it's capped at £250k for properties outside of London.
Awsome vid, straight to the point with great examples. Let's hope it falls on deaf ears.
I told HMRC that I had overpaid on an ISA and they took some three years to sort...I was never informed it was sorted, only found out when I called( yet again). The annoying thing is that for a couple of years I let one ISA languish as I wasn't sure what would happen if I had to close it. Really annoying they took so long, it was such small amount too...
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?
I put my kids junior isa in stocks and shares and it went down 10% in 18 months and wiped out 6 years of growth. Your advice should come with a huge pinch of salt
10% (and more) falls are a normal part of investing and why the time horizon for investing needs to be much longer than 18 months. Here it was set in the the context of investing for 18 years for a child but usually in the investing documentation for an equity index fund it will say a minimum 5 years.
In my main equity index fund which has grown 22% this past year, it was possible to panic sell during the 12 months on a dip and actually lose money. So often it's investor behaviour which leads to negative outcomes rather than being in the markets, which continues to be a very sensible vehicle for seeking long term growth.
Hey Damien, I'm still confused about the flexible ISA rules. Why does the money have to be paid back to the same account despite remaining allowance increasing the moment you withdraw the money? Can't I instead just put it into another flexible ISA that offers better interest rate and still be within annual allowance limit, because the reporting at the end of the year will show I took money out but never replaced it. I find it confusing. Thanks! Fantastic content and I'm happy I've found your channel 😊
Brilliant advice❤
Hi Damien, I pay into a help to buy ISA every month, the maximum is £200 a month. Can I open up a LISA and pay into this also? If so is there any you would specifically recommend? Great video also, really helpful as hoping to buy my first home next year. Thanks, Matt
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
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.
Wish my parents had set up a junior ISA for me or whatever the equivalent was in the 90s.
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.
I am planning to move some money from my cash ISA to my Vanguard S&S ISA based on another video of yours, Damian. However, my current Vanguard fund is LifeStrategy® 100% Equity Fund but I have been told to revert to Vanguards FTSE Global All Cap, what's the difference and what is the better option? PS thanks for all of your help.
Unless using an IFA, the only Lifestrategy products available to us in the UK are highly biased to the UK. While the UK market is about 3.5% in the global all cap product, it's about 7 times that in the LS product. Unless you want such UK bias, the all cap is more reflective of world equities therefore.
Other than that, be aware that 100% equities is accepting high volatility for gains over the long term. The profile is to be somone in the fund for at least 5 (many would say 10) years, and able to cope by not panicking on large drops when they come, which they will.
@@adrianl5899 I opted for 100% equities as I just began investing two years ago so I am rather late to the game. Does Vanguard allow me to switch my profile to cap?
@@Rob-qv6seYes, if you want to switch funds you can do that usung the switch option. You'll be out of the market from the period of LS100 sale to All Cap purchase.
Amazing as usual
IMHO Flexible ISAs were one of the worst things to happen to them. Go back ten years and Instant Access ISAs typically had the highest interest rate of any building society account because they knew very few people would withdraw from them. Contrast that with today when they typically pay 4/5ths of a comparable non ISA account.
Great video! If I invest money with an ISA with a US S&P500, am I then beholden to the 30% divided tax?
Good Content Damien, thanks