IFA advice...good, bad or indifferent

HarryFlatters

Apologies all who were kind to reply and point out the error of my ways, I endeavoured to assemble a portfolio for discussion in a quick 10 minute break just before disappearing on holiday when I should have been patient.
Error No1 don't rush and preview what you post !
Error No2 don't accept passive investment then try to be active with your choices
I've had a quick look at Vanguard Lifestrategy 60% equity which seems all encompassing though struggling to find the document which shows how much is invested where ?
Initially this seems a reasonable route to take, I can invest over the 100k to go direct and sort out ISAs and convert pension to SIPP when I feel a little more confident, maybe if Vanguard extend their services next year this could help. I appreciate its all about lowering costs and by going direct am I right there is no platform charge on top, just the 0.24% OCF. Are there any drawbacks to going direct ?
Finally, and I do appreciate I am testing patience, what are the different implications of buying an OIEC or ETF ? Specifically ongoing tax, just trying to maintain the minimum cost theme

eskbanker

HarryFlatters wrote: »

I've had a quick look at Vanguard Lifestrategy 60% equity which seems all encompassing though struggling to find the document which shows how much is invested where ?

See page 2 of https://www.vanguard.co.uk/adviser/adv/loadPDF?docId=2041

dunstonh

Initially this seems a reasonable route to take, I can invest over the 100k to go direct and sort out ISAs and convert pension to SIPP when I feel a little more confident, maybe if Vanguard extend their services next year this could help. I appreciate its all about lowering costs and by going direct am I right there is no platform charge on top, just the 0.24% OCF. Are there any drawbacks to going direct ?

That is unlikely to be a good move. You are putting the whole amount subject to CGT which could be far more expensive than a platform cost.

Finally, and I do appreciate I am testing patience, what are the different implications of buying an OIEC or ETF ? Specifically ongoing tax, just trying to maintain the minimum cost theme

No difference on tax. Difference is on dealing costs and no FSCS protection on ETFs. Plus, additional risk issues to be aware of that dont apply to OEIC/UTs.

HarryFlatters

Initially this seems a reasonable route to take, I can invest over the 100k to go direct and sort out ISAs and convert pension to SIPP when I feel a little more confident, maybe if Vanguard extend their services next year this could help. I appreciate its all about lowering costs and by going direct am I right there is no platform charge on top, just the 0.24% OCF. Are there any drawbacks to going direct ?
”That is unlikely to be a good move. You are putting the whole amount subject to CGT which could be far more expensive than a platform cost./QUOTE)
Sorry can't even fathom how to Quote ??

Thanks for the reply, apologies but can you explain why, To my simple mind I am just bypassing the platform ? How does using a platform alter CGT ?

dunstonh

Thanks for the reply, apologies but can you explain why, To my simple mind I am just bypassing the platform ? How does using a platform alter CGT ?

If you use a platform, you will have the SIPP and ISA tax wrappers available. So, straight away you can use these tax wrappers on a chunk of the money. You can then bed & ISA each year (and possibly bed & pension depending on your needs) which will avoid CGT as the amounts and phasing will be too low to realistically suffer CGT.

If you put the lot (over £100k) in unwrapped and use a single multi-asset fund with the volatility level of VLS then the gain in is going to quickly exceed the annual CGT allowance. So, when you do start eventually using tax wrappers, you may then be subject to CGT on withdrawals.

You appear to be too focused on costs. Cost is always secondary. It is important but it should not be your primary concern. The investments should be both suitable and tax efficient.

HarryFlatters

OK I understand, I didn't give the full picture without referring back to the first post, which is rather past its sell by date now. I will have 200k (100 each for me and Mrs F) to invest outside of ISA/SIPP. ISAs are already up to limit and will also invest max allowable into a SIPP separately in addition to moving existing pensions across.
I've checked with Vanguard and whilst they don't have a launch date yet it will be early next year and they will include ISAs and I would be able to feed this investment into an ISA wrapper to limit any tax.
My thought process was that whilst I have a lot to learn the money is just sitting there earning minimal interest, I could at least make a start then have the ability to diversify/add to the mix, though I appreciate this does limit me to Vanguard products.

HarryFlatters

eskbanker wrote: »

See page 2 of https://www.vanguard.co.uk/adviser/adv/loadPDF?docId=2041

Thank you, I had found this but only looked at the first page..Doh
The mix certainly has a UK bias

And I've worked out how to quote :T

Eco_Miser

HarryFlatters wrote: »

Sorry can't even fathom how to Quote ??

Hit the "quote" button on the post you want to quote, then DO NOT DELETE the square brackets ([]) or solidus (/)round the word "QUOTE" marking the beginning and end of the quote.

bowlhead99

If you want to quote different bits of a message or article or you accidentally deleted the bbcode tags, you can just stick them in again, whereever you like as long as you have a start quote tag and an end quote tag.

So basically you'd end up with it looking like this in your editor:

[quote] This is what the person said [/quote]

and it will show up as

This is what the person said

or to be more complicated:

[quote=HarryFlatters] This is what Harry said [/quote]

and it will show up as

HarryFlatters wrote:

This is what Harry said

:beer: