Pension pot or Bond for my £40,000 ?

dunstonh

Why don't you come clean and tell him how much that would cost?

It is not my place to tell him what 20,000 odd IFAs charging models may be. I don't have the deta.

Why is that rude and not necessary? IFAs cost money. Why are you so offended when that is pointed out?

Take a read of what you said again.

If someone is thinking about topping up their ISA with the S&S only element of just over £5,000 then it scarcely makes sense for them to pay to see an IFA.

£5000 probably not. However, the cost of getting it wrong could be a lot higher. Plus, IFAs will frequently do jobs at below cost for people who are looking to build a longer term relationship or have family connections (i.e. the IFA deals with the whole family).

Or perhaps you want to con the OP into doing something that is clearly uneconomic for him to do?

Again, your tone suggests an agenda.

I think you need to calm down and think before you post your bile.

Take some of your own medicine.

jamesd

cslogg wrote: »

I have never been a fan of S&S isas and am not going to change now.

You can do things like using bonds issued by Nationwide and the Co-Op as well as others that pay 5-7% interest, tax free if held inside a S&S ISA. If you need income, such things are likely to do considerably better than savings accounts. Not even any management fees for those if you just buy the bonds.

Putting the money into a pension pot but not being willing to use a S&S ISA doesn't make a lot of sense. The pension money is invested in the same sort of things that can be used inside a S&S ISA, so why would you be willing to have those investments in the pension but not in the S&S ISA?

If you wanted more diversification to go with some direct bond investments, and want extra income to use, you could use a fund like Invesco Perpetual Distribution which pays out at about 5-6% a year, with regular monthly payments. It's the sort of thing you might use if you did have a need for extra income.

If you don't need the income you might consider using funds like Invesco Perpetual Income, one of the most popular funds in the UK, along with its similar partner Invesco Perpetual High Income.

atush

Cygnus_Alpha wrote: »

Why is that rude and not necessary? IFAs cost money. Why are you so offended when that is pointed out? If someone is thinking about topping up their ISA with the S&S only element of just over £5,000 then it scarcely makes sense for them to pay to see an IFA. Or perhaps you want to con the OP into doing something that is clearly uneconomic for him to do?

And what is this "they owe you no price quote" business. I was replying to a poster who replied to my post. It's a forum.

I think you need to calm down and think before you post your bile.

yes, IFAs cost money. They don't work for free. But the usual thing is for the OP or anyone to go to one, get a quote then bring it back here. They we or they say if it sounds too much or not.

You asking an IFA to give a quote when they haven't spoken in detail to the client is like asking a surgeon what an operation will cost before the examination/tests to see what exactly is wrong with them.

Quite frankly, you are bonkers. And this is bile free, just logic.

atush

Originally Posted by cslogg
Anyone have any views on the option I mentioned in post 13 with Bestinvest

cslogg

LikeJem, I agree this will do the job for you. But as pointed out, it not the cheapest way to achieve this same goal. I am sure I mentioned Vanguard previously and gave you a link?

But if you are happy with it, then that is fine.

Cygnus_Alpha

atush wrote: »

yes, IFAs cost money. They don't work for free. But the usual thing is for the OP or anyone to go to one, get a quote then bring it back here. They we or they say if it sounds too much or not.

You asking an IFA to give a quote when they haven't spoken in detail to the client is like asking a surgeon what an operation will cost before the examination/tests to see what exactly is wrong with them.

Quite frankly, you are bonkers. And this is bile free, just logic.

Logic? Where is the logic in seeing an IFA for a quote when he is investing £5,000? You are right IFAs don't work for free. So why not come clean about that instead of trying to hush me up?

I haven't asked an IFA to give a quote you clown. I told him to come clean about the fees an IFA would charge. Please learn to read before diving in with both feet and making a complete and utter fool of yourself.

Cygnus_Alpha

dunstonh wrote: »

It is not my place to tell him what 20,000 odd IFAs charging models may be. I don't have the deta.

I didn't ask you to give him 20,000 odd IFA charging models did I? You made that bit up. I said to come clean about the charges. Admit it you did not mention that there would be fees when you told him to go and see an IFA.

Just want to make sure the OP is not being misled, that's all.

So I don't see why your lapdog atush felt he had to pounce.

Cygnus_Alpha

cslogg wrote: »

Anyone have any views on the option I mentioned in post 13 with Bestinvest

cslogg

As others have mentioned the problem with fund of funds is that you are paying a double layer of charges.

I agree with what atush said in post 7 which was...

Stick with collective investments such as funds/investment trusts and look to keep charges low using trackers or lifestyling funds.

kidmugsy

One cheap way to run an S&S ISA is to open a zero-charge one with an investment trust. I don't know how many there are but Manchester and London offers one, as does Personal Assets Trust. The latter demands the full £5760x2 to open it, so it wouldn't suit you this year. (My memory isn't perfect so do check this assertion.) Perhaps other commenters can suggest other zero-charge ISAs?

On the other hand PAT also offers a zero-charge savings scheme, which will be pretty much as good for you. PAT is run with the principal aim of conserving capital; growing it takes second place, so it might suit you. But then again you might reasonably prefer to hang onto your cash until it's clear that you've found a new job.

Here's a link to the PAT schemes.
http://www.patplc.co.uk/secure/documents/plans/2013%20Key%20Features.pdf

We haven't yet invested with them because we currently want a higher income than they pay out, but I am an admirer.

Here's a link to t'other
http://www.manchesterandlondon.co.uk/isaoffer.php

I'm going to keep my eyes on them for a while; I think I could become an admirer.

jamesd

cslogg wrote: »

Just been looking on th Bestinvest site and they have something called Multi Asset Portfolios which they will manage,is one of these an option or am i way off the mark.As a complete novice it seems I can pick the portfolio and they will manage it for me.

Those are a reasonable starting point but to use them you pay at higher cost than buying the underlying funds directly. If you want to use that approach I suggest that you investigate using the Jupiter Merlin range of funds instead, they have been around longer and do a good job for such funds.

Vanguard is best known for offering cheap funds, with nobody picking which shares to hold, rather just followng markets up and down, with the amount of each company held in the fund decided just on the basis of how big the company is.

gadgetmind

cslogg wrote: »

Anyone have any views on the option I mentioned in post 13 with Bestinvest

I use BestInvest but put together my own portfolios based on my goals.

What is your goal for this £40k? What is the role of your cash ISAs?

Personally, I see the role of money I invest as being to generate future income. I know roughly when I'm going to need this income, how much I need before state pension age, and how much afterwards. I also know that to achieve my goals, that I'm going to have to endure volatility (the notional value of my investments if I was forced to sell varies over time) but also how to control this volatility without causing too much reduction in long term returns.

Until you know your goals, and your attitude to volatility (something called "risk" but that's a loaded word) then it's going to be difficult for you to decide how to invest.

I fear I might have made this sound complicated, but it doesn't have to be. There are also some good (and very readable) books on the subject.