How good should this be?

Archergirl

If you had 59K invested in an IPS how much interest would you expect to get in a year?
I know its a variable question but just a rough number would give me an idea.

Reaper

At the risk of sounding dumb - what's an IPS?

TCA

I'll risk sounding dumb and have a bash. Innovations Partnership Scheme?

Even if I'm right I don't know the answer. So dumb anyway I guess! Better get back to my beer.

Archergirl

Sorry, it's an Investor portfolio service. You give them the money and they invest it for you.

jimjames

If its investing then you wouldn't get interest.

I'd do some more research on risks etc before handing over money. You'll also lose a lot to costs compared to diy.

ChesterDog

As stated, you won't get 'interest'.

Depending on the nature of the investments within it, you will get income plus capital growth (or loss).

The likely annual return depends on market conditions and the nature of the investments within it. Returns could be so variable as to make stating a 'typical' figure impossible. For example, one year it could be +20%, the next -15% and the next +1%. So how would you pick a typical figure from that?

I had an IPS with Lloyds for a while. It was expensive. It performed very poorly. After a little research I realised I could do a better job myself for free. I did so, much to the discomfort of my Personal Investment Advisor or whatever her title was.

These things charge you whether they do a good job or a rubbish one.

Read some books. Do it yourself.

Archergirl

Thank you ChesterDog.
The 59k turned into 62K from May 13 to May 14. Must admit to being a little dissapointed as I thought things were looking better. I think I would be too worried to DIY but wondered if I just put it into an interest type account t6he money would have faired any better.

YorkshireBoy

Archergirl wrote: »

Thank you ChesterDog.
The 59k turned into 62K from May 13 to May 14. Must admit to being a little dissapointed as I thought things were looking better. I think I would be too worried to DIY but wondered if I just put it into an interest type account t6he money would have faired any better.

That's around 5%, so you wouldn't have been able to beat it in a savings account paying interest over that period.


From a quick google on IPS it appears many of these are sold through intermediaries/introducers such as banks and building societies who also take a cut (whether you make money or not!). Is that how you bought yours?

Archergirl

Yes it is, through Nationwide.
I know I pay for them to do it, but it's not something I would feel able to do myself.
I was well explained and I know the risks involved (It can go down)
It's so hard now that interest rates are so low to know how to make a few bob, or even just keep up with inflation.

ChesterDog

Archergirl, you don't need to Do it Yourself in the day-to-day decisions sense.

You could, for example, put your money into a Vanguard Life Stategy Fund on a platform for very low cost. Vanguard will rebalance the whole thing regularly for you.

Depending on your circumstances, you can pick an appropriate version of the fund with respect to the ratio of equities to bonds. Then sit back and let it do its thing.

This is just one way. If you have a read of the Monevator website you will find many others. These are called Passive investments, which means you need do very little to them once you have them. In fact, many would say (with some justification) that, given enough time, they will meet or beat the performance of those of us who just cannot keep their hands off. Or paws...

jimjames

As above, it can be really easy and not time consuming to DIY.

Remember an extra 1% a year in fees is coming straight off your return, if you get 4% dividend yield then that's a 25% increase just by cutting out the middleman.