Robo Investing - too good to be true?
Comments
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I may be being incredibly naïve here, but 0.6% annual charge on £10k equates to £60 / year... right?!
As I'm well under that mark, it's not something I'll need to worry about for a while - might be worthwhile stopping my monthly payments as I draw near, then blasting through the £10k limit when I have a decent amount saved up... or indeed pulling my investment and finding another advisor, but if they're returning 20%, what's 0.6% between friends?!
They're not returning 20%, they're taking 0.6% (above £10K) of whatever return those selected investments deliver. That return is not dependent on where they're held.
So you or anyone else can hold that same basket of investments for a lot less elsewhere.
You can be sure of one thing, as sure as anyone can be of anything, their headline ~20% returns number that's enticed you in will almost certainly be heading a lot lower over the course of your investment time frame, if that's years.'We don't need to be smarter than the rest; we need to be more disciplined than the rest.' - WB0 -
20% returns in foreign or larger UK company based investments was easy to achieve in the past year simply because of the BREXIT fall in the value of the £. Such returns arent normal.0
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They're not returning 20%, they're taking 0.6% (above £10K) of whatever return those selected investments deliver. That return is not dependent on where they're held.
So you or anyone else can hold that same basket of investments for a lot less elsewhere.
You can be sure of one thing, as sure as anyone can be of anything, their headline ~20% returns number that's enticed you in will almost certainly be heading a lot lower over the course of your investment time frame, if that's years.
I'm not sure I'm following...
So, for argument's sake, if I was to invest £50,000 and my investment returns 5%, Moneyfarm will take 0.6% of the returns of £40,000... i.e.:
5% return on £40,000 (£50,000-£1000) = £2,000
0.6% of £2,000 = £12 annual fee
Surely not? That seems cheap to me!
Take the point re.: probable returns. From what I understand, over a long-term (i.e.: decades), I'd be doing well to achieve regular 6% YOY ROI. But, reviews on Moneyfarm (e.g.: ThisisMoney) do support the 20%, so I can dream, right?!0 -
I'm not sure I'm following...
So, for argument's sake, if I was to invest £50,000 and my investment returns 5%, Moneyfarm will take 0.6% of the returns of £40,000... i.e.:
5% return on £40,000 (£50,000-£1000) = £2,000
0.6% of £2,000 = £12 annual fee
Surely not? That seems cheap to me!
......
I am afraid not. It's clear on the website. The 0.6% is on the total invested-£10K, not on the gains. So your £50K investment would cost £40K X 0.6%=£240. See here0 -
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There are several current accounts paying up to 5%, and a number of regular savers also paying up to 5%.
But only for very small amounts of money surely?
My wife and I each have a Santander 123 account and a joint but these are only paying 1.5% on £20K
Is there anywhere paying a safe 2% on £40K?
TIA
VigmanAny information given in my posts or replies is intended to be of interest and/or help to members of the forum. I cannot guarantee that this is accurate or up to date.0 -
But only for very small amounts of money surely?
My wife and I each have a Santander 123 account and a joint but these are only paying 1.5% on £20K
Is there anywhere paying a safe 2% on £40K?
TIA
Vigman
If you have maxed out all of current accounts paying 2%+ then you will need to supplement it with drip feeding to Regular saver accounts.
The discussion about this is available here.
http://forums.moneysavingexpert.com/showthread.php?t=966321&highli
Besides higher interest current accounts, I have more than 20 regular savers paying 2%+, most notably 10x£250 Regular saving Account with virgin money @2.25%pa. I have been draining money to RSA at a rate of about £8000 pm paying at least 2% and I could keep running this iteration continuously while it last.
For more flexibility of managing it, you will also need a temporary container, e.g instant access saving paying about 1% such as Ford Money Flexible Saver or Tesco Internet Saver where you could put a large sum of money. Your money might stay they for a short time while waiting allocation to a higher interest in the RSA.0 -
wealthify keeps losing money these daysAnother night of thankfulness.0
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