Financial Advisor meeting

EdGasket

Do you buy that lifestrategy 80 direct from Vanguard or buy that fund through a platform like x-o?

dunstonh

he uses a platform called Transact who I had not heard of

They are fine. Not my favourite but platforms are a personal preference. I have some clients on Transact but most of mine are on on others. I don't have a preferred platform but decide which one to use depending on the client and in reality, the major differences are how they deal with administration, their online portal for clients and their charges.

0.5% p.a. is typical of a portfolio of that size.

Also would he propose investing all 250K now in one go or spreading it out over the year to benefit from pound cost averaging? Markets are high right now and often suffer a setback in May so I would not want everything invested right now.

No-one knows future returns. Whilst phasing can reduce the risks of a very short term drop, statistically, it results in lower returns more often than going in on a single date. So, both options have pros and cons and the only way to tell which was best was to look back after the event.

noggin1980

EdGasket wrote: »

Do you buy that lifestrategy 80 direct from Vanguard or buy that fund through a platform like x-o?

direct from vanguard has a minimum investment of 100k per fund, so most people here would be investing through a platform.

berbatov10

Guys the figures I have quoted (6% down to 3.89%) is from transacts own literature and is the effect over a 10 year period.

InvestInPoker

noggin1980 wrote: »

direct from vanguard has a minimum investment of 100k per fund.

And no tax wrapper.


I would advise the OP to read Tim Hales book and then make an informed choice as to if he wishes to do it himself with lower fees or pay the fees for the advisor to deal with it.

noggin1980

InvestInPoker wrote: »

And no tax wrapper.


I would advise the OP to read Tim Hales book and then make an informed choice as to if he wishes to do it himself with lower fees or pay the fees for the advisor to deal with it.

very true.

jem16

berbatov10 wrote: »

Guys the figures I have quoted (6% down to 3.89%) is from transacts own literature and is the effect over a 10 year period.

So presumably it's not a personal illustration as yet but more a generalised illustration of what it could cost?

Until the IFA makes specific fund recommendations, all you know is his annual charge, which at 0.5% for a yearly review is fine. Presumably he will have an initial advice charge?

noggin1980

berbatov10 wrote: »

Guys the figures I have quoted (6% down to 3.89%) is from transacts own literature and is the effect over a 10 year period.

It's important to know what the charges are.

http://www.sensibleinvesting.tv/the-shocking-impact-of-charges-on-investment-returns

250k for 10 years at 5.5% is £433,295.30
250k for 10 years at 3.89% is £368,868.49

Doing it yourself platform charges should be something like 0.25% then fund charges range from 0.07% up to about 1% for actively managed funds.

berbatov10

Hi. No he is going to email me a breakdown of the investment charges etc. I note Transact charge for buying each investment 1.5% which is shown broken down as 1.3% to the IFA and 0.2% to Transact annual management charge 0.75%. The charges soon mount up. I will be interested when I recieve his e mail. I note DunstonH and others are or seem to be IFA's who have commented on this. Thats the whole point of this though to share and find out

berbatov10

Jem our initial meeting was free, it was about 1 3/4 hours. I would epecct to pay for his time and expertise though after that. One thing he mentioned was tranferring ISA's to him to manage and the time that takes, I could easily do that myself.