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00:05Hello, are you invest curious? A shares is a tax-free way to invest and far more
00:12people should have one than do, even on volatile days like this. Yet for many,
00:17investing feels complex, scary, risky, something for other people not you, but
00:23maybe we'll change that today. And all that means, as a nation, we under invest,
00:28with many only exposed to the market via their pension, often without realising it.
00:32But avoiding risk has risk too. Inflation can eat away at your savings and you can
00:39miss the chance to build wealth. Today it's all about whether a shares is right
00:45for you and how you start investing. And I'm joined by a specialist panel over
00:49there, welcome everybody, to help you pick the right places. Plus, in my news you
00:54can use. 15 to 23 year olds may have hidden thousands of pounds in child
00:58trust funds. They've got cheap beauty deals and we've got a scoop for you, 18p gelato on
01:04Saturday. Let's do it.
01:16Oh, that's nicely tonight. They are. This is good. This is really good. Of course, we want to hear from
01:21you to get your questions in on tonight's subject all the usual ways on the screen right now. But we
01:27can kick off tonight's show with an investments question. Yanru, in our studio audience, you've got a question for Martin.
01:32I like, I like your award. Oh, hello. Hello. Hello. Hello. Yes, please look for questions. Yeah, yes. So for
01:41someone like me who knows nothing about investing, so where should they realistically start?
01:47Well, I think the first thing, do sit please. I think the first thing is that you need to start
01:52by understanding investing. I mean, before we even get into, as we'll talk to the panel later, where do you
01:57put your money and who the best providers are and all that type of thing.
02:01Investing is something, conceptually, you need to understand to see if it's right for you. And that's what I'm going
02:05to go through in this first part of the show.
02:07So I'm going to go straight into my big briefing. I'll come back and talk to you a bit more
02:10later. Big briefing time.
02:14OK. So investing is when you put your money somewhere in the hopes that it's going to grow far more
02:21quickly than saving, but the risk that it might go in the other direction.
02:25That's the reward and that's the cost. And it is all about volatility. And this is what people think of
02:33when they think of investing. This is what scares people.
02:35Here we go. I've got three of the big indices here. World index, a FTSE 100 UK index, S&P
02:41500 US index. And this is their year by year performance.
02:44So look, some years, great. Up massively. Some years, down. Money is dropping. And that's the thing that puts people
02:53off.
02:54But the first rule that this teaches us is investing when you're a beginner is not about the short term.
03:01This is the golden rule. Here we go.
03:04Only invest what you won't need for at least five years. My view. James, you're three, aren't you? James is
03:10three. Three, five.
03:11A long period. Whichever you want. A long period. Make sure you've cleared any expensive debt first.
03:17And you should always have a cash emergency fund, a savings emergency fund, three to six months worth of bills
03:22built up.
03:23After that is when investing becomes a ripe spot for you to put your money.
03:28Now, I said this is how people think of investing. But that's the wrong way to think of investing.
03:35Because investing is over the long term. This is the right way. Here we go.
03:40So this is going to be a chart. If you had £1,000 ten years ago, what it would do.
03:43All the data is historical performance. And past performance is no predictor of future performance.
03:47So there's no guarantees. But I think this is important.
03:50First thing to say is we need to look at inflation. This is the rate at which prices rise.
03:54So for you just to be standing still after ten years, your money has to be at the level of
04:01inflation.
04:02For it to grow, it has to be above. So let's first look at the top savings.
04:07These are my top savings. The Martin Lewis top pick of the market over the last ten years.
04:11If you'd always had your money in those, this would be your return.
04:17Below inflation. So in real terms, your money would not have been saving. It would have been losing.
04:23It's got better in recent years, but it was all of those super low inflation years that really meant your
04:29money was hurting compared to inflation.
04:33But what really matters is what I'm going to show you now.
04:36I did this in December. The audience then were surprised. I suspect you will be too if you missed that
04:40show.
04:41This is investing in three big indices.
04:47You see the difference. So massively above inflation. This is UK. This is the world index. So very heavily loaded
04:57to the United States shares.
04:59And this is the S&P US shares indices. Now, look, it goes up and down.
05:04That volatility is still there day by day. But over a ten year period, you would generally expect these big
05:09indices.
05:10So they're tracking lots of different shares. It's not about one share.
05:13Lots of different shares are going to go up over time. And if you do not invest, if you've got
05:18the money, you are missing out on that level of growth.
05:21And it's fascinating because we did the last show in December. We were here. And then some people say, oh,
05:25you did it just before a dip.
05:26We did do it before a dip, but the dip was before a rise and things go up and down.
05:30And you have to embrace that if you're going to do this.
05:33Yeah. And we've got some questions here, actually, because timing is clearly important. Two questions here. The first has come
05:38from Angela.
05:39She's asking if current market volatility continues, how does it affect stocks and shares? Is it better to wait or
05:46go for it in the hope that shares rise at some point?
05:48And then we've got this coming in from Colin. I keep hearing that we're in a massive stock price bubble
05:54that's likely to eventually burst.
05:56If this is the case, then shouldn't we be saving cash instead?
05:59Well, we do, of course, have the Middle East situation going on. That's huge volatility.
06:05And with President Trump, obviously, it's a volatile politician there. Things change all the time.
06:09And equally, we've got volatility in the UK today. We don't know what's going in our political situation and uncertainty
06:15brings volatility.
06:15Plus, I mean, let's play the negatives. The deputy governor of the Bank of England said there's a lot of
06:20risk out there.
06:21And yet asset prices are at all time highs. We expect there to be an adjustment, a drop at some
06:27point.
06:28James, how'd you time the market?
06:30Well, I think the Bank of England comments are really just reflecting the uncertainty they see in the global economy
06:35right now.
06:35I think we see that uncertainty, too. But we say that the underlying outlook is actually much more resilient than
06:40that.
06:41As you said, volatility is par for the course when you invest. Markets move around short term on news flow
06:46and on politics.
06:47But where they go in the long term is what really matters.
06:50If you look at the US stock market over the past five years, we've seen 180 new all time highs,
06:56the most recent of which was actually last week.
06:59So for all of this noise, for all of these scare stories, the reality is markets have delivered, financial markets
07:05have delivered strong returns for investors.
07:06Is there a right and wrong time to buy?
07:08Well, I don't think there's ever a wrong time to get invested. I think there always is reasons not to
07:13invest or to convince yourself not to do it.
07:15But I think what's really important is that long term story, riding out the ups and the downs and making
07:20sure that you're comfortable with that volatility as you go.
07:23Let me just let's just play a hypothetical game. This is not a prediction.
07:27Let's just imagine we had a crash tomorrow and the markets dropped across the world of 50%.
07:32I mean, it'd be massive economic news and big economic disaster.
07:35So that takes us back from where we are there to probably about this point.
07:40It's the same level here.
07:42If you invested here, wow, are you going to feel, oh, my goodness, I've lost so much money, right?
07:48Because you invested yesterday.
07:49If you invested there 10 years ago, you're still not going to be happy.
07:54But in most cases, you should still be up.
07:56And I think that's the important point about I'm not making any predictions.
08:00I'm just saying this is why you've got to think the long term, the worst thing you can do as
08:04a beginner investor.
08:05Is follow every day. The price is going up and down.
08:07It'll just make you feel sick and it's not what it's about.
08:09So this is about putting money in for the long term and thinking that way.
08:13OK, I'm going to move on to. Oh, yeah.
08:16Yeah. So which brings me to this point.
08:18When investing, there are only four things that matter.
08:21The price you bought it for, any income it provided like dividends and the price you sold it for and
08:27inflation.
08:27So in the mid-time, might be the most sensible thing for a beginner investor. Indeed. OK.
08:35We've got a quick question here from Paula.
08:37Paula's asking, what would you say about investing in individual shares?
08:43Buying an individual share is very or an individual asset or an individual commodity is very high risk.
08:49If it goes well, you could double travel ten times your money.
08:52If it goes badly, a company can go bust and you can lose all your money.
08:56And that's not what this is about.
08:59What we're talking about today is where do you begin to get some access to overall average market growth.
09:04And that means the standard starting place for a beginner.
09:09Get rid of that one.
09:11Is a fund, which is a basket of investments that you buyers want.
09:16Now, I've got shares and bonds here.
09:17A share, I mean, it's very simple.
09:19You might own your own business.
09:20If you buy a share, you own a teeny tiny part of maybe a big business, an international conglomerate.
09:26Which means if its price goes up because it's more valuable, your share price goes up.
09:30If it's making profits and they've got cash, they might give you dividends of payment each year that you make
09:35money from.
09:35A bond, corporate bond, not like a savings bond, is an IOU from a company.
09:41It promises to pay you a fixed amount of interest.
09:43But the important things to understand there is its price can go up and down, too, relative to other things.
09:48So it doesn't mean that the amount you put in, you're always going to go back.
09:51Now, when you buy a fund, you have a big spread.
09:54Now, most funds might be all shares.
09:56You might say US technology fund shares, and there'll be lots of different ones.
10:01But the key is you've got lots and lots of them.
10:03It might be shares and bonds like this multi-asset fund.
10:06And then some go up and some go down.
10:09And your returns depend on the collective.
10:14So this is all about mitigating risk.
10:18Funds can be made up of shares, bonds, a mix.
10:21You could have commercial property in a fund, even within an ISA, commodities, gold, cocoa.
10:25You could invest in chocolate.
10:28You have them spread in different ways.
10:31FTSE 100 UK, Chaka, US tech, emerging markets, ethical, high yield corporate bonds.
10:35There is lots of choice.
10:36But with all of them, you've not just got your eggs in one basket, you've got it spread across.
10:40And it is that diversification that mitigates the risk.
10:44That means you're not going to get absolute spikes and drops.
10:48It's going to be more about this type of curve going up and down.
10:52If you go ultra-specialised fund or complex fund, then, again, you're probably upping the risk.
10:56Now, the big point here with funds, there are active funds, where a fund manager is paid to pick stocks
11:03for you.
11:04And they want to outperform the market.
11:07Or a passive fund, which is like a tracker, where it tracks an index like the FTSE 100 index of
11:13the UK's biggest companies.
11:15And it's just an algorithm that tries to predict it.
11:18This might outperform the market, but we'll have higher charges because someone has to be paid.
11:22This will be cheaper.
11:23Ed, our financial advisor here.
11:25Active or passive for a beginner, where would you go?
11:27Great place to start is passive.
11:29Particularly thinking about the MSCI World Index that we saw in your chart.
11:32That's a global tracker.
11:34How many shares does that invest in?
11:35You've got around 2,500 shares around the world.
11:38And you can buy funds with up to 11,000 to 13,000 shares around the world.
11:41Just buying the world by market capitalisation.
11:44Yeah, so you're just spreading your risk across all those big companies.
11:46And that's where you'd suggest a beginner starts, would you?
11:48That's a great place to start.
11:49Active or passive?
11:50I'd go passive for a beginner.
11:51I've got the MSCI World Index Fund and Exchange Traded Fund.
11:55It's cheap.
11:56It's simple.
11:56It's easy.
11:58Passive as well?
11:59Absolutely.
11:59Well, we've got a clean sweep on our panel.
12:01I think that answers the question.
12:02That's fine.
12:03Charlene's tweeted this in for you.
12:05I've always had cash icers, but I'm unsure about shares icers.
12:08I'm concerned my money will be at risk if the shares go down.
12:11Are there any guarantees to protect my money?
12:13No.
12:14No.
12:15That's a fundamental difference.
12:17Money in a cash icer.
12:19Your capital is protected.
12:20You get a defined amount of interest as a compensation scheme.
12:22When you put money in shares or funds, it's about the underlying performance of those assets.
12:28Now, yes, you might say, what happens if the platform goes bust?
12:31Well, actually, you own the shares and they're normally ring-fest and then there's underlying protection.
12:35But generally, we're talking about the performance of the stocks and shares.
12:37If you're buying an individual share, you could lose all your money.
12:40If you're buying a fund, that's unlikely.
12:42It may go down.
12:43But over time, on a big wide spread, hopefully on the balance of probability, it will go better.
12:48And it will do better than savings.
12:50No guarantees, but it should.
12:52But that's not what a shares icer is about.
12:54A shares icer is a tax-free way to save.
12:57A shares icer is a tax-free way to invest.
12:59So we should talk about the three taxes there are in investing.
13:03Most important one, capital gains tax.
13:05It's on profits when you sell something that's increased in value.
13:07You're allowed to make £3,000 of capital gains a year without paying tax.
13:11The rates above that are right there for you.
13:13What I really want you to understand, though, is there is no inflation offset here.
13:17So if I bought something 30 years ago for £1,000, and it's worth £100,000, and I sell it
13:24today,
13:25that £99,000 gain is all crystallised in this tax year, so I'm going to pay tax on £96,000
13:33of it.
13:34Do you understand?
13:35If I bought it last year for £1,000, and it's worth £100,000 today,
13:39I'd probably leave the show and just tell you what to invest in.
13:41But then in that case, I'd still just pay tax on the £99,000.
13:46The length of time you've held it doesn't matter, which is why it's really got to just stick that in
13:52your head for a moment,
13:53because we'll come back to it.
13:55Dividends tax is on income you make from dividends.
13:57You've got a £500 per person allowance. Those are the rates there.
14:00Above that, you would be taxed.
14:02And there's income tax on savings, like the interest from bonds and gilts.
14:05I've discussed that on the show so many times before.
14:07Hopefully you know all the different savings allowance, like the starting rate of savings for people who have lots of
14:12interest,
14:12but the earnings and the £1,000 a year you can make tax-free.
14:16Those are the taxes on investing.
14:19And all a shares ISA is, is a wrapper.
14:23You're allowed to put £20,000 per tax year in an ISA, whether it's a cash ISA or a shares
14:29ISA,
14:29or you could have in both as long as you're not putting more than £20,000 in.
14:33Once in, it stays tax-free year after year, as long as you don't take the money out.
14:37Everything in there is tax-free.
14:38The only difference is HMRC cannot come along and bite it.
14:43So on that capital gains, £1,000 30 years ago, £100,000 now.
14:48If it were in your ISA, did they have ISAs 30 years ago? Ignore that.
14:52It's all tax-free. And all the gains are tax-free.
14:55So on this topic, I've got a question that's coming from Ian.
14:57And Ian's asking, I have 60K in a cash ISA.
15:01What would be the benefits of switching to an investment ISA?
15:05Well, that could mean two things.
15:07I mean, it could just be a simple saying, should I invest?
15:09In which that's the whole thing that we're talking about in the show.
15:12But if you were specifically saying, I've got savings and investments,
15:17which is best to use my ISA allowance for?
15:20Because you only get £20,000 a year.
15:22Well, let me just unwrap this for a second, if I can.
15:25It worked. Yeah, I like that.
15:28Remember this one, the 10 years ago.
15:30So the point is, we're talking about, as a beginner,
15:33buying assets for the long term,
15:36holding them in the hope they're going to grow a lot.
15:39Then when you sell them, you're selling them in one year.
15:42So the gain could be huge and it's all happening in a year.
15:44In savings, the interest is paid annually.
15:46So it doesn't accumulate in the same way.
15:49Because of that, if I had both savings and investments,
15:54I would probably be looking to protect my investments from the tax
15:57ahead of protecting my savings from the tax.
15:59Panel agree?
16:01Correct.
16:01Yeah. Okay.
16:02They agree. That's good.
16:03Yeah. Okay.
16:04Well, coming up next, a part dedicated to putting your investment questions
16:08to our panellist specialists.
16:09We'll see you after the break.
16:22Hello, welcome back to our Shares ISA programme.
16:25We've already talked about the fact that over a long period of time
16:28with money you can lock away,
16:30investing will smack the pants off saving on a balance of probability.
16:34But the way to do it as a beginner is to diversify your risk
16:37in an investment type fund.
16:39Jeanette, what's happening out there?
16:40We've got so many questions coming in on this.
16:42So let's get straight into it.
16:43We've actually got this question coming in from Joe.
16:45And Joe is asking, can you transfer old cash ISAs into stocks ISAs?
16:51Absolutely, yes.
16:53But when you do it, you have to be careful.
16:55You have to go to the new Shares ISA provider.
16:57It will have a transfer form and let it move the money out of your
17:00cash ISA into your Shares ISA for you.
17:02If you do that, moving the cash into shares doesn't use up that
17:06£20,000 a year allowance.
17:07If you took it out, it would.
17:09And therefore, you could put a whole new £20,000 into an ISA.
17:12So you've got to transfer it.
17:13You can also currently transfer shares ISAs into cash ISAs,
17:16but it's very likely from next April,
17:18you will no longer be able to do that.
17:19Just the cash to shares, not the shares to cash.
17:22OK, perfect. You can talk to your specialist.
17:24Actually, just, Yanru, can I ask you?
17:26Mm-hm.
17:26So did you start to get the fundamentals of where we are?
17:29Yes, thank you.
17:31Good.
17:31But I think what we need to do now is,
17:33let's get a little bit nitty-gritty with the panel.
17:35Ed, we'll probably start with you.
17:37Where would you suggest...
17:39You're an independent financial advisor.
17:40Yanru starts investing.
17:42What should she do as the beginner step
17:44to actually putting your money somewhere?
17:45OK, a great place to get started
17:47is to find yourself an investment platform,
17:49somewhere that you can get that stocks and shares ISA open
17:52nice and easily.
17:53And then you want to go for those diversified investment funds
17:56where you're buying the global markets
17:57and just start putting some money in.
18:00No matter how small, start paying in monthly
18:02and watch your money grow over time.
18:04But you don't even need to make that much decision, do you, Holly?
18:07You can... You know, there are robo-advisors out there, aren't there?
18:09Yeah, I mean, the good news is for lots of people,
18:11investing gives them brain fry.
18:13If that's you, there are places called robo-advisors.
18:16You'll do an online quiz, maybe five or six questions.
18:19It's not a test. It's your attitudes. Don't worry.
18:21Yeah, simple questions, but it'll give you a ready-made option.
18:25So Monzo, Moneybox, Vanguard, JP Morgan, some good names out there.
18:30Yeah, so if you're having indecision paralysis
18:33and that's what's putting you off,
18:34something like a robo-investor can just make the decisions for you,
18:36which will take the pressure off you.
18:38And hopefully, you know, a nice broad spread of diversified assets.
18:40Let's get into questions we've had in for you guys.
18:43Hayley, I have a cash ISA that runs out in May with a bank.
18:46I was thinking of transferring it across to a Stocks and Shares ISA.
18:49Am I better to invest it all straight away on stocks and shares
18:52or drip-feed the money monthly?
18:54So drip-feeding is when, let's say you've got £10,000,
18:57you put £1,000 in each month for ten months.
19:00Which would you go for?
19:01Well, markets spend more time going up than going down,
19:04so perhaps you're better off just investing and getting started.
19:06But a lot of platforms will let you hold that money as cash
19:10and drip-feed it across that pound-cost averaging,
19:13which means you're buying shares at different prices every month,
19:15but ultimately it helps to take a bit of risk.
19:17I suppose, James, if we're talking about that correction,
19:20if a correction did come, if you were drip-feeding,
19:23well, you might buy high, but then the next month you might buy low
19:25and it would all even itself out.
19:27So it is a sort of risk mitigation strategy, isn't it?
19:29Yeah, exactly.
19:29And I think if you have a particularly large sum of money to get invested
19:33and you're worried about whether now is exactly the right time to invest,
19:36just take the time and drip it into the market over a period of time.
19:40So long as you don't take years to do that, you're not going to miss out on a lot.
19:43And most shares ISAs will let you hold money in cash while you do that
19:45and you can set it up to do automatically in a pick of funds.
19:48Louise, I've opened a stocks and shares ISA with my bank,
19:51but don't understand how to invest.
19:53Often not with your bank, I have to say.
19:55The bank obviously has to remain impartial, so can't help.
19:57I just wanted to invest a little money into the ISA
19:59to see if I can get a better return on my investment
20:01and understand there's a risk.
20:03Where can I go for advice? It's probably a robo-invest.
20:05What do you think about using the bank?
20:07I think banks have got better, I'd say, out of all the main options out there.
20:11Barclays are best for investments.
20:13Monzo is also decent.
20:15If you're not sure and you want advice, financial advice is expensive.
20:19It's a luxury item typically for people with more than £100,000.
20:24If you're watching a mum and dad have got an advisor...
20:26If you can afford it, go for it, but otherwise...
20:28But if not, maybe mum and dad have an advisor.
20:30They might be happy to help.
20:32If not, robo-advice, go online.
20:35JP Morgan Personal Investing will help.
20:37Monzo Moneybox, options like that.
20:39James will be very pleased that you just gave us a lot of plug there.
20:42OK, so let's move on to the next one.
20:44Claire, are there any good apps that can invest your money for you
20:47when you can select low, medium, high risk?
20:50Absolutely.
20:50The apps out there have got better.
20:52I'd say Trading 212, a fantastic app, very popular.
20:56Monzo Moneybox, there's lots of decent apps out there today.
20:59Let's just talk about fees and charges investing.
21:02I mean, this is what you specialise in on your site,
21:04is going through all that.
21:06There are a lot of fees and charges and hidden fees and charges.
21:08How do people navigate their way through?
21:09I mean, when you buy a fund, there might be an upfront charge,
21:11especially if you buy it direct.
21:13Weirdly, buying direct tends to be the worst decision on buying a fund.
21:16Always buy through a platform.
21:17There can be annual management charges, there can be share trading charges.
21:21Where would you go to keep those charges low
21:23so you get more of the investment growth yourself?
21:25Yeah, we've got a fee calculator on our site that looks at this.
21:28If you don't want to pay fees, trading 212, light year, free trade,
21:32they don't charge you fees to trade within an ISA.
21:36There's plenty of sort of lower cost options out there.
21:39Look at, I mean, the average trading price in the UK to buy a share is £5 today.
21:44Yeah, but if you bang a small amount, that will be expensive.
21:46And funds, do they have a cost as well?
21:47It depends, again, on the different platforms, so you need to look at it.
21:51Most platforms will let you charge funds without paying a fee.
21:55Some charge you fees, so you have to do your homework.
21:57So the best platforms for funds?
21:59So the best platforms for funds, if you've got smaller amounts of money,
22:02actually Hargreaves lands down a big platform,
22:05but they work out quite cost-effective for people with smaller sums of money.
22:08Thank you. And platforms are just, you know, who are you going to buy it through?
22:12If you think of it like a supermarket, the platform's a supermarket
22:15and they've got different funds in there.
22:16That's what we're saying when we're talking about platforms.
22:18Neil, I own a lot of shares from a company I used to work at.
22:22Can I move these shares into a shares ISA, Ed?
22:25Yes, you can. If you've got them through a Save As You Earn scheme,
22:27that means that perhaps within 90 days of those shares being able to be taken,
22:30you can transfer them from your Save As You Earn scheme over into an ISA.
22:34It will use your ISA allowance for that year,
22:36based upon the amount of the shares that you've bought across,
22:38but do it within 90 days tax-free.
22:40And if you haven't done it in 90 days and you've still got them?
22:42You're going to need to sell those shares down
22:44and then repurchase them back if that's what you want to do.
22:47And when you sell, that crystallises that capital gains tax, doesn't it?
22:50So you have to be aware of that.
22:51Yes. Yes.
22:52Although within a Save As You Earn scheme, you could be tax-free.
22:55OK.
22:58Divyani, is gold a valuable commodity to invest in right now?
23:02James, I mean, gold's gone up a huge amount.
23:05It has.
23:06You know, gold is interesting to investors
23:08because it's often seen as a safe haven asset.
23:10That's particularly appealing when inflation is on the rise
23:13and also when there are geopolitics at play.
23:15I think it's worth saying that it's not guaranteed though, right?
23:18As the Gulf crisis started, the price of gold actually fell.
23:23Gold is still an under-diversified asset.
23:26It still doesn't generate an income and so for us.
23:28It's a small portion of a portfolio, a nice diversifier,
23:31but it needs to only be a small portion.
23:33So don't buy all your eggs as gold.
23:35That's correct.
23:35But you can put it in a share's ISA, can't you?
23:37Because you'd buy a gold exchange-traded fund or something like that
23:40and then you can effectively get the growth of gold inside the tax-free ISA.
23:43Where are you on gold, Ed?
23:44Yeah, it's part of a diversified portfolio
23:47but it's had an extraordinary run lately.
23:49It really has.
23:50A lot of investors nervous about markets, concerned about inflation rates.
23:54Central banks have been buying a lot of gold.
23:56So, yeah, just be mindful of them.
23:57So it could be at the top as well as it could still have room to grow.
24:00Now, it's someone who likes gold but mainly in her ears, Jeanette.
24:02OK.
24:05Martin.
24:05Although it's silver, I can't see from here.
24:07No.
24:07They are gold.
24:08Coming up in our final part,
24:10should you be opening a share's ISA for your children?
24:12And for those aged 15 to 23,
24:14are you missing out on thousands of pounds plus
24:16a £40 Marks & Spencer summer beauty bag?
24:19We'll see you then.
24:33Welcome back.
24:34We have had lots of questions on investment,
24:36including this one that's coming in from Lava.
24:38Lava's asking,
24:39how does it work with transfers?
24:41I have a stocks and shares ISA that was fee free for the first year.
24:45This is now finished and I want to transfer it to another platform that has lower fees.
24:49Is there a certain time I should wait to transfer in terms of markets or does it matter?
24:54OK.
24:55So, you can transfer from one share's ISA to another,
24:57make sure they've got the same investments.
24:59Again, you do the transfer form,
25:01you don't withdraw the money
25:02because that would count as both selling your shares and being outside of an ISA.
25:06Normally, it works very smoothly.
25:08There is a small chance with some providers
25:11they may have to sell your ISAs in your,
25:14sell your shares in your old ISA and move it across.
25:17There'd be no tax because it's still within an ISA,
25:19but maybe if they sold it two days ago and then,
25:21you know, the price changed,
25:22you might lose out because they're buying at a different level.
25:24So, you just want to check that first.
25:26OK.
25:26Got some more questions for our panellists?
25:27Yeah, absolutely.
25:31Let's go into this one.
25:33And this is also from our Yamru over there,
25:35but I have it on my card now.
25:37It's the one you guys always hate.
25:39Have we reached the point where ignoring Bitcoin
25:42is now riskier than owning a small amount?
25:45Ed, where are you on Bitcoin?
25:46Oh, Bitcoin.
25:47Well, it's a fascinating bit of technology that sits behind Bitcoin
25:50being the blockchain, but there's nothing influencing the price of Bitcoin
25:53other than supply and demand.
25:55There's no economy.
25:57There's no GDP.
25:58There's no central bank.
25:59So, I would say avoid.
26:02James.
26:03It's a highly speculative asset.
26:05It's not where I would start if I was a beginner investor.
26:08The price moves pretty materially.
26:11And I'll give you an example.
26:12The lowest price in the last 12 months was $64,000.
26:15The highest price is $125,000.
26:17And it's currently at $80,000.
26:20So, you really need to be able to stomach that type of volatility
26:23to invest in cryptocurrency.
26:25Some people believe in Bitcoin as a political thing.
26:27Other people think it's a good investment
26:29and it's going to take over as non-governmental currency.
26:31Some people buy Bitcoin because they believe in the greater fool theory.
26:34That's where you buy it in the hopes that a greater fool than you
26:37will be willing to pay a higher price in the future.
26:39That isn't necessarily wrong.
26:41And people have made a lot of money from Bitcoin.
26:43But I think the general statement is it's fine to have a little bit of Bitcoin.
26:46And you could even put it not in an ISA or in an innovative ISA.
26:50You can even now buy exchange-traded funds.
26:52Would you go for that if you were buying Bitcoin over Bitcoin itself?
26:54That's correct.
26:55You can hold it in an innovative ISA up to 20K as an ETF.
27:00You do have to qualify, so you have to answer some questions
27:03and make sure that you understand the risk that you're taking.
27:06Straightforward cryptocurrencies, not ISA eligible.
27:08So, yeah, the ETF route is a much safer way to go.
27:11If you're doing it, it's not for all of your assets.
27:13It might be for some, but it's not for all of your assets.
27:15Aaron got in touch.
27:17Just one quick, Holly, one thing I think we haven't done.
27:20Basic, you just want to go and start somewhere that you're going to trade.
27:23What is the cheapest platform? Is it Trading212?
27:26Trading212, free trade, light year.
27:28They don't charge you to trade or to set up an ISA.
27:31And those are the ones where you can choose
27:32what you're going to put inside it like an exchange-traded fund.
27:35So, you talked about global trackers earlier.
27:38Mm-hm.
27:39Where would you go to buy his global tracker
27:41and what would the funds be that you'd put in it?
27:43If you don't want to pay any fees,
27:45I mentioned Trading212, light year, free trade platforms like that,
27:49you can buy trackers.
27:51Big brands are BlackRock, Vanguard.
27:54You could buy, very jargony sounding, the MSCI World Tracker.
27:58You'll get that big basket.
27:59And all of those are global trackers.
28:01That's where we started as a beginner's place to dip your toe in the water.
28:04Final question from me to the panel.
28:05Janet got in touch.
28:06I am 66.
28:08Is it worth investing in a stocks and shares ISA?
28:11Holly?
28:13Absolutely.
28:13I'd say stocks and shares ISA, Martin, is a bit like falling in love.
28:17It's an amazing thing and you're never too old.
28:20What a good way to say.
28:23Jeanette.
28:24That is very lovely.
28:25We've got Dave on our virtual wall, actually,
28:27and Dave's got a question for you.
28:28He's got two grandchildren, aged 10 and 12,
28:31and he wants to invest in their future.
28:33What are the benefits of a cash compared to a stocks and shares ISA,
28:36or is there a more tax beneficial scheme elsewhere?
28:38Oh, fascinating question.
28:39I'm actually going somewhere towards that in my news you can use,
28:41so let's do that now.
28:44OK, first thing I want to talk to you about is child trust funds.
28:47There are some who are missing out on thousands of pounds.
28:51HMRCA is currently writing to 21-year-olds, only 21-year-olds,
28:54about 750,000 of them, about unclaimed child trust funds.
28:57These were the predecessor to junior ISAs,
28:59and the state put money in for you.
29:02You could add on top, people could add on top,
29:04but so everyone who has one has some money in it
29:06if they haven't taken it out.
29:08The letter will tell you where your child trust fund is,
29:11so then you can go and contact that provider.
29:14Just be careful of scams.
29:16Don't use details on there.
29:17Go and find the provider's details yourself,
29:19and be careful of emails, calls and texts.
29:21This is a letter.
29:22The average amount, two grand.
29:25But it varies vastly depending on
29:28if the money was added by parents
29:30and whether you saved or invested,
29:32because invested over a long period outperformed savings.
29:34It's the whole point of this show.
29:36But if you were born between the 1st of September 2002,
29:38so you're 15 to the 2nd of January 2011,
29:41and you haven't accessed your child trust fund,
29:42you do not need to wait.
29:43You can find yours now.
29:44Go onto gov.uk.
29:45It's find a child trust fund tool.
29:48If you're under 16, your parent has to do it.
29:50If you're over 18 or older, you have to do it.
29:52If you're 16 to 18, either your parent
29:54or you can go and use the tool and find it.
29:57Well, worse so.
29:58But just on the back of Dave's question,
30:01what's really worth you thinking about here
30:03is when I said the amount varies vastly
30:08between savings and investing,
30:09it's a wake-up call to those with junior ISAs,
30:12the successor to child trust funds.
30:13Because I'm always...
30:15Everybody always says,
30:16what's the top cash junior ISA?
30:17Side note, Leap Building Society 3.85%.
30:19And then NS&I Online is probably the best pick there
30:22at 3.55% if you want online access.
30:24But remember, junior ISA money
30:27is money you are locking away
30:29and cannot access until the child is 18.
30:34So it fits our definition of when it's right to invest.
30:36Money that you won't be using
30:38and money that you won't be touching for a long time.
30:40It's absolutely in the investment sweet spot.
30:43And yet, parents put their kids' money in savings.
30:46It's about time to look at being a bit more adventurous
30:49if you want to give them that starting.
30:51I'm not saying you have to put all of it
30:53into a junior ISA shares.
30:55If your child has a cash junior ISA,
30:57consider some, or all if you wanted to,
30:59in a shares junior ISA 2 on the same principles
31:01we've talked about.
31:02They're all nodding, look at that.
31:03Same principles we've talked about there.
31:05The kids, you can actually have both a cash junior ISA
31:07and a shares junior ISA,
31:08you just can't put more than nine grand in per tax year.
31:11Worth a thought.
31:12I hope that answers your question, Dave.
31:13I need to rush on because the time is ticking.
31:16I've got a couple of quickies for you.
31:17From Thursday, there's £190 worth of beauty products
31:19for £40 with the M&S Summer Beauty Bag.
31:21Online and in-store.
31:23Estelle order Clinique, you've got it over there.
31:25I've got it right here.
31:26Just modelling it over there.
31:28M&S say it's worth over £230,
31:30but we calculated the beauty contents to be £190 if you've bought it separately.
31:35Still, a lot of beauty products, £40.
31:37I think what you said to me earlier is there's a couple of things in there you like
31:40and the rest are sort of things to test and try,
31:42but the things that you like were worth over £40 anyway.
31:45So, you know, it can be a good buy if you're going to use it.
31:46I know me makeup.
31:49And until, on Saturday, until 5pm,
31:52you can get 18p ice cream at 90 cream cafes, dessert parlours,
31:56normally three quid, for its 18th birthday.
31:59No code or voucher. Turn up. Expect queues.
32:01Maximum five discounted scoops of gelato or sorbi,
32:03but you have to pay for the cone.
32:0450p for a normal cone.
32:05£1 for a chocolate dip cone.
32:07And that is a wonderful place to finish.
32:08It's our last show of this summer run next week.
32:10We're going to be talking energy with the price cap coming up,
32:12predicted to be rising by 13%.
32:14Got any questions about energy bills or direct debits,
32:17do get in touch to the numbers below here.
32:19I want to say thank you so much to our brilliant panel,
32:21our brilliant audience, the brilliant Jeanette,
32:23and the brilliant you for watching.
32:25See you next week. Bye-bye.
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