How to Invest from the Grave!

le_loup

I recently started a thread about Muli-Manager Funds and the help that I received there has aided my review of my intended future strategy. Could people comment upon my conclusion?

I currently enjoy looking after three portfolios with under £100K in each but when I die I leave the problem of dealing with them to a wife who has no ability or more importantly, no interest in investments … other than spending the income from them.

So, what do I do about it bearing in mind that I have lived well beyond my family’s average, and I prefer not to use IFAs because of the cost?

My first thought was to use Hargreaves Lansdown’s multi-manager funds.
Problem: can’t transfer to another platform should I decide to leave H-L.

Second thought is easy, use another MM provider.
Problem: can’t monitor manager’s performance.

Third thought is MMs can be very expensive so use trackers.
Problem: can’t rebalance if necessary.

Forth thought is Vanguard Life Strategy.
Advantages:
Can use the cheapest platform as little service needed.
Don’t need to monitor manager.
Don’t need to rebalance.
Very cheap.

Where is my though process going wrong?

Linton

All sounds reasonable to me. Though suggest you keep up your interest in investing by keeping some "play" money back!

ColdIron

Regarding fourth thought; one obvious observation is that you were looking at H-L Income and Growth MM fund and the VLS isn't really an income fund

grey_gym_sock

i'm pretty sure you can enable admin from beyond the grave somewhere on HL's website ... they may be expensive, but sometimes you get what you pay for

someone

le_loup wrote: »

So, what do I do about it bearing in mind that I have lived well beyond my family’s average, and I prefer not to use IFAs because of the cost?

Would it not be sensible to identify an IFA (and/or suitable criteria for picking an IFA) so it your wife wants advice later she can seek it later if she deems it wise? Is there a clued up relative you might also want her to discuss her finances with or run past any changes?

le_loup

Linton wrote: »

All sounds reasonable to me. Though suggest you keep up your interest in investing by keeping some "play" money back!

Yes, I had intended to keep some of my own portfolio - that's all in an ISA so I would leave instruction for it all to be sold and taken out as cash after the grieving ... that's assuming there would be some! (grieving that is, not cash.)

le_loup

ColdIron wrote: »

Regarding fourth thought; one obvious observation is that you were looking at H-L Income and Growth MM fund and the VLS isn't really an income fund

Yep. That is a problem. I guess it would need to be a case of sell some when you want some cash. With H-L that would be so simple with a phone call, letter or even the web site. Could even be every month if she wished, although she shouldn't need to do it more than twice a year, say. (I she gets herself a new piece of arm candy - that might prove expensive!) With other platforms I have no experience - except for Alliance trust some years ago; that was far from simple.

le_loup

someone wrote: »

Would it not be sensible to identify an IFA (and/or suitable criteria for picking an IFA) so it your wife wants advice later she can seek it later if she deems it wise? Is there a clued up relative you might also want her to discuss her finances with or run past any changes?

That's a thought.
No clued up family, I'm afraid. (And too late to start one!)

gterr

In our house (I do all the financial stuff, husband not interested/able) we have the famous "pink file". This is a small metal box file, the size of a briefcase and a lurid shade of pink. It lives in a special place well known to both of us, ready to be scooped up by either of us in the event of a house fire, or ready to be taken by husband to accountant/solicitor/IFA should I fall under a bus.


In said pink file live all the most important documents (birth, marriage certs, passports, house deeds, insurance etc.) plus, details of all our financial doings: bank accounts, investments etc. Right at the front is a section entitled "What to do if I fall under a bus", with a summary of everything financial, such that a third party would be able to disentangle things relatively easily.


I/we have also recently opened a (third) Santander 123 account in husband's name. This has £5000 in it, has internet banking plus a debit card and cheque book. Bank details, cheque book and debit card are also in the pink file, and husband has been familiarised with them. I did this because it occurred to me that, should I fall under a bus, there may be a period during which he would have difficulty accessing our other accounts.


I volunteer at CAB, and I've seen instances of partners left bereaved, bewildered and temporarily broke following an unexpected death. I wanted to avoid this happening to my bloke should the worst happen. It's the least I can do, given that he trusts me to make all the important financial decisions on behalf of us both.

kidmugsy

@gterr, we used to keep The Essentials in a safety deposit. Unfortunately the local banks have all stopped offering the service.

For a fairly rapid source of cash for Herself, I have held back from crystallising two small pensions, so that the Expressions of Wishes forms should ensure that she receives two lumps of cash long before probate is complete.

Archi_Bald

I must have missed something - who died?