Changing digs and coming out of my cave... for a wee while atleast :)

elantan

Thanks Kc we will get there, it's been a very steep learning curve for us but I'm sure it will stand us in good stead in the future

It's been exciting over on your diary

edinburgher

El, I've noticed you've mentioned The Accumulator's escape plan from Monevator.

Have you also read the sections on passove investing? If so, your SIPP charges of over 1% seem pretty high.

Would it be an option to direct future SIPP contributions into a SIPP with CSD and use something like Vanguard index funds? This would cut your costs to something like 0.54%.

All the best

elantan

Hi Edinburgher my neighbour and fellow Myers Briggs INFJ

It's very funny you mention this as it's something that has been bugging me since the post RDR statement of H&L ... Sadly no longer do my vanguards get just a £2 a month charge, now the get a .45% AMC charge and my TER charge as well

I joined with CSD last week for the coming ISA year, and have been waiting for my IFA to get back to me with his deal before deciding on the SIPP etc, he got back to me and lo and behold as I am a wee small fishy in the big ocean of pensions it isn't going to be worth my while dealing with him, he tried to get me to think it was but when I reminded him that his charge is a 3% fee added to the 1% loss and the higher maintenance charges than my option 32 pension then it was in fact going to cost more, also the platform he wanted me to move to had AMC charges that were higher than H&L and then my 3% fee payable to him for doing the work would make it not worth my while either ... I think he gave up lol

Now that I know he can't do anything for me at this stage I will be opening up a new SIPP with CSD and stopping my H&L payments, however, I won't be moving my H&L over for a good few years atleast not until it starts making some money

I'm thinking of sticking with the vanguard LS 80% acc

Do you think that wise ? Or could u maybe suggest other fund etc I can look at? I am in no way looking for advice and would never hold anyone accountable but me for my choices, just sometimes it's good to have a look at other funds to get a wee idea

And seeing as how I am currently talking about pensions etc I have also decided to stop payments into my ISA just now for the reasons mentioned earlier, I am going to instead fill up my pension until the mortgage is paid atleast, I will however go back to iSA's once I feel more secure

Mr El had a bit of a melt down today so we spent a few hours trying to sort his head out ... Hopefully he will settle down again and understand that we will get there ... It's just going to take time

elantan

Oh P.S sorry about the obvious bad words and spelling am on the phone ... It rarely goes well for me but it's my working week again

elantan

Seeing as how I'm currently thinking pensions /investing again ( honest I am working on the mortgage) and thanks to Kc for highlighting it and Edinburgher for finding the gem

Dark tax ... Now this intrigued me and got my wee head thinking again, it is a very interesting concept and something I think I would like to aim for once we are mortgage free, I think we could manage it and I think we would enjoy it as well tbh, of I wasn't to include our mortgage ISA and credit card payments I would be nearly there just now tbh, so I deff think this is a not too impossible plan for us

I am also into passive investing as mentioned by Edinburgher as I have slowly learned more about the investing side and I don't find that when I have invested in managed funds previously they have fared any better than passive investments

Karmacat

Hi El! Its huge, isn't it, and when you're learning it in adult life, there's so much to take on board. Plus the rules keep changing we'll get there tho, I'm sure. And when I feel a bit more settled with current income, I'm definitely going to look at dark tax.

edinburgher

Hi Edinburgher my neighbour and fellow Myers Briggs INFJ

This might sound silly, but it is actually really exciting to know/of another INFJ :j

I'm sorry to hear that Mr El is having a tough time, I really hope he enters a sunny patch soon. I've really struggled with depression over the last few years (exacerbated by the wonders of being an INFJ). It's a funny old thing having a wonderful clarity about how the world might work, but lacking the confidence and influencing skills of an Exxx with which to make it happen

however, I won't be moving my H&L over for a good few years atleast not until it starts making some money

Is it not shooting yourself in the foot to accept paying more on funds until they are growing quickly? Surely the effect of the extra 0.2%/year will hamper this? How many funds do you have with HL? Have you looked at the costs of transferring out (and if it's £/fund, could you do an internal transfer with HL into Vanguard LS and *then* transfer?)

Also, I think IFAs are great for cash rich/time poor individuals (I'm related to one), but I can't see the value they can add to smaller pensions (vs their costs). Also, from the interactions I've had with IFAs, they all advocate active management and I'm not convinced by that.

Or could u maybe suggest other fund etc I can look at?

For what it's worth, I think the LS funds are a very well structured product, with good asset allocation, global spread and very low costs. Considering that UK equities have returned c. 5% after inflation historically, costs are very important. LS costs have actually gone *down* since inception - how many funds have done that?

As for the 80% flavour, the questions to consider are probably does it match your risk tolerance and timeline? 80% is a big slug of equities. I'm looking to retire at 55 (a boy can dream), giving me 24 years (and 5 days) before I need my pension. I'd happily invest in 80% equities, as my investing timeframe is 20+ years.

If I was retiring in 10 years, I'd probably not be quite so ambitious re. growth and would 'lifestyle' two LS funds to reach a more conservative amount of equities (for example, 50% in LS60 and 50% in LS80 = 'LS70').

Assuming you're paying a platform charge (i.e. x% as opposed to x£), lifestyling like this won't cost you any more in fees.

On 'tax dark', I think it's in all our interests to try and reduce interactions with the tax man. Everyone on MFW is accidentally doing this (as OPs effectively save you your gross mortgage rate, whereas you might be taxed if you kept the cash). Beyond that, pensions and ISAs are all good. I am looking forward to the new tax year with glee, will soon be time to plough my MB profits into an ISA.

beanielou

Sorry Mr El is not feeling his usual cheery self.
Cant comment on rest as am lost :eek:

Habibiboo

beanielou wrote: »

Sorry Mr El is not feeling his usual cheery self.
Cant comment on rest as am lost :eek:

:wave:

Ditto twice over there, glad it's not just me Beanie!

Elantan I can't believe you had a visit from the TV bods - we've not had one in our TV free 8 years ... or maybe we were just out when they called!

Fingers crossed floors are finished soon!

elantan

Hi everyone

Will try and respond to the messages but bear with me as I'm still on the phone