Is a Vanguard Lifestrategy investment all you need

k6chris

Looking at the idea of such a fund to be part of my retirment SIPP and ISA portfolio. I notice that HL charge 0.45% pa for holding funds on top of the 0.22% fund OCF. Do all SIPP and ISA providers charge similar amounts? Is a total of 0.67% reasonable -for example £670 on a £100,000 fund holding?

Thanks

Fatbritabroad

Some charge a fixed fee so I think OT depends on the size of your portfolio. Feel free to correct me anyone else!

bowlhead99

k6chris wrote: »

Looking at the idea of such a fund to be part of my retirment SIPP and ISA portfolio. I notice that HL charge 0.45% pa for holding funds on top of the 0.22% fund OCF. Do all SIPP and ISA providers charge similar amounts? Is a total of 0.67% reasonable -for example £670 on a £100,000 fund holding?

Plenty of people might pay 0.67% a year all-in for a fund holding, but it's an unreasonably high level of fees if the investment management and fund running cost is only 0.22% and the platform fee is two thirds of your overall costs.

If you pick a different provider like Charles Stanley Direct or Youinvest, you'd be paying platform fees of 0.25% instead of 0.45% and saving hundreds of pounds a year.

Or you could go to somewhere like Halifax Sharedealing or IWeb Sharedealing and pay some nominal flat fee to set up the account and then only pay a few pounds a year in fixed fees - with a charge each time you buy or sell, but never going to add up to the £450 a year that HL would want as their platform fee, if you are only holding one fund.

jdw2000

k6chris wrote: »

Looking at the idea of such a fund to be part of my retirment SIPP and ISA portfolio. I notice that HL charge 0.45% pa for holding funds on top of the 0.22% fund OCF. Do all SIPP and ISA providers charge similar amounts? Is a total of 0.67% reasonable -for example £670 on a £100,000 fund holding?

Thanks

Start with this: http://monevator.com/compare-uk-cheapest-online-brokers/


It's a real pain going through the process of deciding which broker is cheapest/best for you. But it's really worth spending time on it and getting it right. Moving broker is a pain, so get it right.

Generally speaking, if your portfolio (ISA / SIPP / unsheltered account) are small (say, below about £25k) then a percentage broker will give you the cheapest annual charges.

Above a certain amount, the percentage fee starts to translate into a lot of money. Therefore it's best to look at the brokers who charge a flat fee instead of charging you a percentage of your portfolio.

You need to go through this process thoroughly yourself. Don't just go with the ones you see mentioned. Your needs will be different to mine.

Personally, I only hold tracker funds and do not trade. And with the amounts I have I have poured over the maths and Halifax are the cheapest. For a newbie like myself with very limited knowledge, it was an agonising process. But it's one I'm glad I put time into because I find it so traumatic changing broker that I really do not want to go through this again for a long time.


(One example of the things to look out for: "X broker is the cheapest... but in a year my portfolio will outgrow them and I will switch to Y broker... and that will incur £? exit fees... so when factoring in those exit fees would I be better off going to Y broker now?" etc etc etc).

MonroeM

jdw2000 wrote: »

Start with this: http://monevator.com/compare-uk-cheapest-online-brokers/


It's a real pain going through the process of deciding which broker is cheapest/best for you. But it's really worth spending time on it and getting it right. Moving broker is a pain, so get it right.

Generally speaking, if your portfolio (ISA / SIPP / unsheltered account) are small (say, below about £25k) then a percentage broker will give you the cheapest annual charges.

Above a certain amount, the percentage fee starts to translate into a lot of money. Therefore it's best to look at the brokers who charge a flat fee instead of charging you a percentage of your portfolio.

You need to go through this process thoroughly yourself. Don't just go with the ones you see mentioned. Your needs will be different to mine.

Personally, I only hold tracker funds and do not trade. And with the amounts I have I have poured over the maths and Halifax are the cheapest. For a newbie like myself with very limited knowledge, it was an agonising process. But it's one I'm glad I put time into because I find it so traumatic changing broker that I really do not want to go through this again for a long time.


(One example of the things to look out for: "X broker is the cheapest... but in a year my portfolio will outgrow them and I will switch to Y broker... and that will incur £? exit fees... so when factoring in those exit fees would I be better off going to Y broker now?" etc etc etc).

My £40K S&S ISA account is with Fidelity at a charge of 0.35% however, I have been informed that if I change/switch to Cavendish it offers the same service and the same platform for 0.25%.

Does anybody know if this is right or has anybody done this switch/transfer from Fidelity to Cavendish?

chockydavid1983

I started out with Cavendish so have not done the switch but I myself use Cavendish Online and I even log onto the Fidelity site so I assume the service is identical but for a lower fee.
I've just gone on the Compare Fund Platforms though and am considering switching to iWeb. I have £34k currently and if I do a few lump sums per year instead of a monthly amount, it works out cheaper.
http://www.comparefundplatforms.com

jdw2000

MonroeM wrote: »

My £40K S&S ISA account is with Fidelity at a charge of 0.35% however, I have been informed that if I change/switch to Cavendish it offers the same service and the same platform for 0.25%.

Does anybody know if this is right or has anybody done this switch/transfer from Fidelity to Cavendish?

I wouldn't bother switching until you have done all the maths for yourself. Otherwise you could end up paying more in entry/exit fees.

Have you used the link I provided?

BananaRepublic

bowlhead99 wrote: »

Plenty of people might pay 0.67% a year all-in for a fund holding, but it's an unreasonably high level of fees if the investment management and fund running cost is only 0.22% and the platform fee is two thirds of your overall costs.

If you pick a different provider like Charles Stanley Direct or Youinvest, you'd be paying platform fees of 0.25% instead of 0.45% and saving hundreds of pounds a year.

Or you could go to somewhere like Halifax Sharedealing or IWeb Sharedealing and pay some nominal flat fee to set up the account and then only pay a few pounds a year in fixed fees - with a charge each time you buy or sell, but never going to add up to the £450 a year that HL would want as their platform fee, if you are only holding one fund.

Quite correct of course, but it is also worth looking at the level of service. When I last looked, iii was one of the cheapest, if not the cheapest, platforms, significantly cheaper than You Invest, but there were an awful lot of disgruntled customers posting in this forum which put me off. I went with You Invest, not the cheapest, but the service is good. However, since I signed up they have increased their charges. It may well be that other providers will do the same, so it is worth noting any transfer fees.

Yet another comparison article:

http://www.thisismoney.co.uk/money/diyinvesting/article-1718291/Pick-best-cheapest-investment-Isa-platform.html

Eco_Miser

For those wishing to compare platforms, SnowMan has created a spreadsheet with preloaded data for the costs, into which you can add your own data for amounts and split between ISA/SIPP/unwrapped, funds/ETFs/shares etc.

ColdIron

You might want to check that link, it's spam

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