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  • gadgetmind
    gadgetmind Posts: 11,130 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    I prefer Old Mutual Global Strategic bond as it can invest outside the UK and can also hold sovereign debt. Historically, it has lagged during bubbles but has made up for this by not suffering large drawdowns.

    I hold my corporate bonds via ETFs (SLXX and ISXF) so should be able to exit quickly if necessary.
    I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.

    Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.
  • Forever
    Forever Posts: 295 Forumite
    edited 4 August 2012 at 12:47PM
    gadgetmind wrote: »
    I prefer Old Mutual Global Strategic bond as it can invest outside the UK and can also hold sovereign debt. Historically, it has lagged during bubbles but has made up for this by not suffering large drawdowns.

    I hold my corporate bonds via ETFs (SLXX and ISXF) so should be able to exit quickly if necessary.

    That looks much better and a really good idea to be able to exit corporate bonds quickly.

    As I am new to investing in the stock market, I have decided to use the Nationwide as my platform. This means I am paying more and they only hold a very limited number of funds on their books but on the other hand, everything is simplified.

    I hope next year to research the many different platforms available to hold stocks and shares and then have a wider choice of funds to select from.

    But for now, I just want to keep everything simple :)

    Btw, thank you everyone who has listed platforms and funds in this thread as I am hoping to research these for next year :)
  • Forever
    Forever Posts: 295 Forumite
    edited 4 August 2012 at 12:25PM
    I have now spoken to a financial planner and am now looking at the following:

    18% of my savings to cover the following:

    More money on these:
    Jupiter Merlin Income Portfolio - low risk: invests in all assets classes in the UK & overseas
    Newton Balanced Fund - medium risk: invests in equities, fixed interest and cash in the UK and overseas

    A lot less money on these:
    M&G Recovery A Fund - medium risk: invests in a diverse range of equities in the UK only
    First State Global Emerging Markets - high risk: invests in equities in emerging markets
    First State Global Resources Fund - high risk: invests in the natural resource and energy sectors worldwide
  • jem16
    jem16 Posts: 19,731 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Forever wrote: »
    @atush, with regards to the pension, I have never worked in the state system so unfortunately, I don't have much of a pension.

    You don't need to work in a state school to have access to the Teachers' Pension Scheme. Are you currently teaching?
    Forever wrote: »
    I have now spoken to a financial planner and am now looking at the following:

    Is this through Nationwide or somewhere else?
  • Forever
    Forever Posts: 295 Forumite
    jem16 wrote: »
    You don't need to work in a state school to have access to the Teachers' Pension Scheme. Are you currently teaching?

    Is this through Nationwide or somewhere else?

    No, I am not teaching at the moment but thank you ever so much for the tip that I could have a teachers' pension scheme even if I am not working in the state system. That's definitely something worth knowing!

    As for the financial planner, yes he is with the Nationwide. As I have never done anything like this before, I just want to keep everything simple and stick to the Nationwide as my stocks and shares platform using the investments funds available through Legal & General for now.

    Obviously, he can only advise me wholly on the products available to Nationwide but overall, he has actually been incredibly helpful. For example, we discussed how different types of investments will perform in different market conditions and so on. And even better, it has been free!

    He has also advised me that he is not employed on a commission basis to prevent product bias although I strongly suspect that they will be under pressure to meet 'targets' as part of their job.
  • jem16
    jem16 Posts: 19,731 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Forever wrote: »
    And even better, it has been free!

    It just appears to be free, just the same as an IFA working on commission appears to be free. You are paying via the product.

    For example the funds that you mention have initial commission of between 3.13% and 3.84% with ongoing commission of 0.5%/0.55%. This is on top of annual management fees for each fund. The ongoing commission usually pays for servicing via an IFA. What will Nationwide be doing on a yearly basis as a review - very little if anything I suspect.

    http://www.nationwide.co.uk/pdf/investments/LG_Commission_Disclosure.pdf

    The point is don't be fooled into thinking it's free as it's not.
    He has also advised me that he is not employed on a commission basis to prevent product bias

    He may specifically not be receiving commission but Nationwide certainly is and he works for Nationwide. I'm also not quite sure how he can say there is no product bias as it's L&G that he must receommend.

    How much are you putting with Nationwide?
  • Forever
    Forever Posts: 295 Forumite
    edited 4 August 2012 at 4:28PM
    jem16 wrote: »
    It just appears to be free, just the same as an IFA working on commission appears to be free. You are paying via the product.

    For example the funds that you mention have initial commission of between 3.13% and 3.84% with ongoing commission of 0.5%/0.55%. This is on top of annual management fees for each fund. The ongoing commission usually pays for servicing via an IFA. What will Nationwide be doing on a yearly basis as a review - very little if anything I suspect.

    http://www.nationwide.co.uk/pdf/investments/LG_Commission_Disclosure.pdf

    The point is don't be fooled into thinking it's free as it's not.



    He may specifically not be receiving commission but Nationwide certainly is and he works for Nationwide. I'm also not quite sure how he can say there is no product bias as it's L&G that he must receommend.

    How much are you putting with Nationwide?

    Well of course Nationwide is getting commission from Legal & General. If they didn't, the Nationwide wouldn't be selling their products!

    And the total yearly fee for each fund is between 1-1.5%.

    I realise some people will see the costs prohibitive as I am paying more than if I went to one of the platforms listed in this thread and buy funds via a broker. But I don't want to spend my whole life researching different platforms, checking what standards they meet, checking pricing structures, finding a reputable broker and then sifting through the many investment trusts. It's just a lot of work.

    So quite simply, I am paying more for simplicity that the Nationwide brings with them.

    I am also giving myself until next year to research all the above and then maybe I will invest a little bit more.

    Overall, I am wanting to invest 7k, drip fed, into these funds.

    Are you suggesting that it is going to work out **a lot** cheaper to do all my research first and then investment via one of the other platforms and a broker?
  • jem16
    jem16 Posts: 19,731 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Forever wrote: »
    But I don't want to spend my whole life researching different platforms, checking what standards they meet, checking pricing structures, finding a reputable broker and then sifting through the many investment trusts. It's just a lot of work.

    Even if you simply chose Hargreaves Lansdown with the funds you mentioned, you would save that 3.5% average commission you are paying Nationwide. That's £245.
    So quite simply, I am paying more for simplicity that the Nationwide brings with them.

    Fair enough if that's what you want to do.
  • Forever
    Forever Posts: 295 Forumite
    edited 4 August 2012 at 4:40PM
    Hmmm.... now that I can see perhaps a day's work or so comparing all the different platforms and brokers etc will save me 245 pounds, perhaps it is better I research all of this first and then buy.

    Thanks for the tip jem16 as I didn't realise there was going to be such a difference :)

    If anyone knows anything about Hargreaves Lansdown, I am sure I read somewhere that HL are about to change their pricing structure. If this is true, is this something I need to concern myself about?
  • jem16
    jem16 Posts: 19,731 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Forever wrote: »
    If anyone knows anything about Hargreaves Lansdown, I am sure I read somewhere that HL are about to change their pricing structure. If this is true, is this something I need to concern myself about?

    All of the platforms are currently reviewing their charges due to RDR and the Platform Review. HL at the moment have not changed so yes it will change.
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