Advice on what to do before switching?

[natalli]

I’ve currently got a S&S ISA with Plum and will be looking at moving it over to Vanguard in the new tax year due to lower fees and greater choice of funds. I’m currently not putting a great amount into the ISA as I’ve been out of work due to ill health for the last 18 months but aiming to get back in the next few months.

My current split is between the three funds(Vanguard Life Strategy 80% equity/ S&P 500 Acc/ L&G global health). Obviously I can’t transfer the L&G fund over to vanguard and I’m imagining that a lot of the stocks in the lifestrategy fund are also in the S&P500.

So my question is, should I sell both the lifestrategy and L&G funds and reinvest these in the S&P500 fund on plum before I transfer across to Vanguard?

Cheers

 

[chetzy]

@natalli Do you have large holdings which you're concerned might be impacted by not being invested during the tranfer?

Personally, unless the S&P 500 is actually what Iwant to invest in on Vanguard, I would sell holdings in Plum shortly before transfer day and purchase what I'd actually like once it's transferred across. Obviously there's some level of risk that the market jumps up in that time, but it is limited by the speed at which these transfers can happen.

 

[natalli]

@chetzy Not really, I've only got about 2k invested so far so hardly anything. I'm still deciding on whether to go with the S&P or a global all-cap when I move to Vanguard.

So you'd be tempted to sell everything and then just invest in vanguard without transferring anything across?

 

[chetzy]

@natalli I would sell within Plum, leaving the cash within Plum, and then initiate an ISA transfer which would move that cash directly to Vanguard without leaving the ISA wrapper