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Q&A » ISAs
investment trust i.s.a
regular saving
£500 a month=£6000 year
costs
dealing
£1.50 a month=£18 year
.50% stamp duty
£2.50 a month =£30 year
admin
0.05% per month (min £2.16; max £8.33 per month) + vat?
does 0.05 per month mean 0.05% for yearly total
£6000
£3 a month=£36
total yearly costs
£84
total expence ratio= 1.4%
its a global smaller companies trust i plan to do over 15 years.
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804I am afraid your admin is too low. It is based on the accumulated value from month to month. Assume £2.16 for 8 months, sliding scale for the next 25 months and £8.33 thereafter. Total =£1,373
Dealing costs are £18 per year = £270
SDRT would be £30 per year = £450
VAT on all but SDRT = £329
I have assumed VAT at 20% because I think it must go up soon.
Grand total =£2,422
TER = 2.7%
That ignores the price spread. If that is 5% then TER = 7.7%.
Mike
Posted on 17 January 2010 |
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410You would do better to move to a broker that has higher dealing costs and lower admin charges. You can then minimise the dealing costs by only buying every other month or even once a quarter.
Or have a look at iii. They used to have a version of cheap monthly purchases within an ISA with no admin charges IIRC
manzanilla
Posted on 17 January 2010 | Love 2 loves
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7manz---you said you saved up then bought shares
were they all in an stock/shares isa
did you hold for longterm or use stop/losses
thx
Posted on 18 January 2010 | Love 0 loves
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804Consider doing a 12 month monthly saver with Principality for 4.5% and then invest the proceeds annually. Their maximum is £500 per month.
Other high rates are Norwich & Peterborough 5% if you have dependent kids, Stroud & Swindon 4.5% max £250 and Chorley 5% max £150.
Mike
Posted on 18 January 2010 | Love 1 love
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7mike
do you buy shares for longterm and divercify
thx
Posted on 18 January 2010 | Love 0 loves
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410were they all in an stock/shares isa
did you hold for longterm or use stop/losses
I use my full ISA allowance each year. I also have shares through a SIPP (that was from the day before I realised that SIPPs were not a great idea!). And I have holdings outside ISAs too.
I am a long term holder for most postions. A large amount of my holdings are ITs/ETFs - those I rarely touch, except to use up my CGT allowance each year. But I have a small part of the portfolio which I actively trade.
I have never (and will never) use broker stop/losses as you tend to get stopped out when you least want it, but I do take losses when I think there is no good reason to continue holding a share.
manzanilla
Posted on 18 January 2010 | Love 0 loves
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