Okay to split large investment between two multi asset funds?
Options
Comments
-
Thanks, I understand what you're saying. I agree not practical to invest with more than about 3 platforms, and weigh the small risks against the cost savings and admin.I've recently put my SIPP into drawdown and I have no qualms, I have other pots with much more than the protection limit and haven't worried about them either. There comes a point when the cost of mitigating against small risks becomes disproportionately high in terms of both expense and administration. I doubt I can convince you and you must be comfortable with what you do with your money so while it is practical it may be the right thing for you to do now0 -
Thanks bowlhead. That's a good point about being safer than by post. In view of what you and ColdIron are saying I think by using big well-known platforms (well-known on this forum anyway) I should be safe with over £50k invested. If there was any sort of real risk, surely sensible people like you guys wouldn't put £100k, never mind £400k, in the one platform or one fund house?bowlhead99 wrote: »I wouldn't have qualms over £400k with one SIPP provider. Maybe if I had £800k to a million I might split it in two. If I have a million of pension assets I don't want to administer it over twenty different customer service departments and logins, nor incur disproportionately large operating costs and platform fees over and above what should be achievable with the level of economies of scale that should be possible with a large pot.
I wouldn't get too worried about "it's all online". I'm sure there are some people who think computers and the internet are all witchcraft and if you use a PC to conduct any kind of purchase or business transaction you might as well be strolling the Wild West with your life savings held out in front of you waiting for some ruffian to relieve you of them...
In reality, all financial businesses whether operating online or offline have systems risks and spend loads of money to mitigate them. But interacting with them online through encrypted data is safer than writing a letter containing your instructions and signing off a paper cheque which displays your bank account details with your usual signature and sticking it in an envelope, hoping it will get all the way to its destination without being lost or pillaged, and that your personal confidential account info sent back to you in paper form won't get intercepted and read by someone who then steals your identity.
0 -
I agree that as your assets grow it is impractical to keep within the £50k limit but I don't think it's impractical to administer around 10 investment accounts across a married couple. Yes it costs more but it controls the exposure to a low probability high impact event and the accounts are still individually good value.
As I grow towards the LTA then I wouldn't want more than around £250k in each provider so I am expecting to end up with Halifax (VLS), II (L&G), Fidelity (Blackrock) and another to be determined platform and fund manager.
My wife is also likely to end up with a couple of £200k pensions with Aviva and another provider (currently Fidelity but it would be too much risk across both of us).
The market is constantly changing so these choices may need refining.
In addition to these 6 pensions then we each have LISAs but these might not grow above £100k to £150k so they could both be with HL invested in ITs/ETFs for capped platform charges.
And then a S&S ISA each for leftovers = 10 accounts.
Alex0 -
Alex, are all your investments in VLS, L&G and Blackrock or do you have any active funds or ITs?I agree that as your assets grow it is impractical to keep within the £50k limit but I don't think it's impractical to administer around 10 investment accounts across a married couple. Yes it costs more but it controls the exposure to a low probability high impact event and the accounts are still individually good value.
As I grow towards the LTA then I wouldn't want more than around £250k in each provider so I am expecting to end up with Halifax (VLS), II (L&G), Fidelity (Blackrock) and another to be determined platform and fund manager.
My wife is also likely to end up with a couple of £200k pensions with Aviva and another provider (currently Fidelity but it would be too much risk across both of us).
The market is constantly changing so these choices may need refining.
In addition to these 6 pensions then we each have LISAs but these might not grow above £100k to £150k so they could both be with HL invested in ITs/ETFs for capped platform charges.
And then a S&S ISA each for leftovers = 10 accounts.
Alex0 -
I am with Bowlhead99 in the (mostly) passive club. Our LISAs are with Nutmeg robo ETF allocation until they get big enough in a few years to move into HL (avoiding AJ Bell due to link with Halifax SD) to benefit from capped charges for ITs or ETFs.
I am not against active in principle but I don't currently see any funds in which the performance/risk ratio is likely to justify the fees. I would like to have IT(s) in the LISAs but I expect to end up with ETF(s).
My son's JISA is with Orbis and they seem to have a high performance relative to the risk however with an entirely performance based fee structure they can be expensive but he is in fee-free units until he is 18 so that's ok.
Alex0 -
Interesting, as I didn't think bowlhead was in the mostly passive club.I am with Bowlhead99 in the (mostly) passive club.
I hope and think that connection is only if you have SIPPs in both, as I understand AJ Bell do the back end stuff for HSD for SIPPs only.(avoiding AJ Bell due to link with Halifax SD)0 -
Interesting, as I didn't think bowlhead was in the mostly passive club.
That's certainly the strong impression I have seen from his extensive posts. I say mostly because nothing is ever purely passive as some allocation and risk decisions need to be made.I hope and think that connection is only if you have SIPPs in both, as I understand AJ Bell do the back end stuff for HSD for SIPPs only.
I have a SIPP with Halifax SD so I am avoiding any account with AJ Bell which is a shame as their LISA is particularly well priced for when the balance grows to above £15k in year 3.
I still like to use the YouInvest research tools even though I don't intend on being their customer again.
Alex0 -
Fair enough, although I have ISAs with both these platforms and am pretty sure they each have £50k FSCS protection.I have a SIPP with Halifax SD so I am avoiding any account with AJ Bell which is a shame as their LISA is particularly well priced for when the balance grows to above £15k in year 3.
Alex0 -
That's certainly the strong impression I have seen from his extensive posts. I say mostly because nothing is ever purely passive as some allocation and risk decisions need to be made.
I don't think he's particularly passive but he'll no doubt elucidate, possibly at some length.
My impression is that passive instruments are used but in an active manner and not exclusively. He's also investing for others who have different risk and age profiles so the approach will vary dependent on the actual circumstances, timeframe for investment and risk tolerance of the individual, or at least that which they are aware of for the final point.0
This discussion has been closed.
Categories
- All Categories
- 343.5K Banking & Borrowing
- 250.2K Reduce Debt & Boost Income
- 449.9K Spending & Discounts
- 235.6K Work, Benefits & Business
- 608.6K Mortgages, Homes & Bills
- 173.2K Life & Family
- 248.2K Travel & Transport
- 1.5M Hobbies & Leisure
- 15.9K Discuss & Feedback
- 15.1K Coronavirus Support Boards