Today is the first day of the 2020/21 tax year. I’m able to fund my ISA and LISA again as last year I managed to max out both of them.
So, this morning I topped up my LISA with £4,000 and invested it. I expect to receive the £1,000 LISA bonus payment around the end of May and will invest that once received.
Going forward, I will make regular monthly contributions into my ISA (remaining allowance of £16,000 as I just funded my LISA) and at some point when the markets are less volatile will use my GIA to fund the ISA as well.
I asked my ISA provider if it was possible to fund my ISA from the GIA with an in-specie transfer i.e. transferring the assets in the GIA into the ISA without having to sell them to cash beforehand. This would have avoided any potential issues with being out of the market, but unfortunately it’s not possible with my provider (not sure if any other provider would allow this). It was worth a shot anyway. Therefore, I’ll wait for things to calm down a bit.
I realize my remaining cash (or emergency fund) is now around £5,000, which means it covers about 3 months’ worth of my expenditure. I think I will prioritize adding money to my portfolio rather than increasing the cash level in the coming months as I believe markets present a good risk-reward ratio right now. So buy buy buy!
You might remember that I was planning on buying a flat with my girlfriend but the pandemic is making this more complicated. We have already agreed to buy a flat but there’s some kind of issue with the transfer of the leasehold, which has taken up at least 6 months already. Our mortgage offer will expire next month and I have a feeling banks will make it much harder to get a mortgage as they are likely to increase their deposit requirements. So, we might not be able to get another mortgage offer for quite some time. It’s not looking good and we’ve been thinking that property prices could come down as well… So we might be better off buying a bit later.
Enjoy the sunshine!