Vanguard direct to customer offering confirmed

koru

hugo15 wrote: »

I've started the process of transferring from HL to Vanguard. Is it possible to leave the HL account open but dormant to avoid the £25+VAT closure fee?

Yes, but if you hold no stock and your cash balance falls below £50, they close it automatically. So, it would be better to leave a small fund investment worth, say, £5 and accept that this will slowly be eroded, at the rate of 0.45% per year. After many years, it will all have gone (sold to meet the annual fees), so presumably the automatic closure would then be triggered, as you will have no stock. But there would be no cash to pay their £30 closure fee. I doubt they would try to bill you for the closure fee or, if they did, be able to make you pay.

cashbackproblems

I have already moved all my trackers to Vanguard just left a few managed holdings with HL. Vanguard is simple and easy to use as much as HL so no reason to stay with HL.

Vanguard minimum monthly per fund is £100 whereas i used to pay £50 with HL thats the only small disadvantage

dunstonh

hugo15 wrote: »

I've started the process of transferring from HL to Vanguard. Is it possible to leave the HL account open but dormant to avoid the £25+VAT closure fee?

Yes. However, their T&C state they can close accounts below a certain value with no activity. So, you would just be delaying the inevitable.

MarcoM

Hi,

If one has a vanguard fund and another stock fund in an HL Vantage ISA can the vanguard only fund be transferred to Vanguard or do the whole ISA contents get transferred to Vanguard?

many thanks

JohnRo

koru wrote: »

..and accept that this will slowly be eroded, at the rate of 0.45% per year. After many years, it will all have gone (sold to meet the annual fees)

It depends on the fund in question but with no minimum charge it's more likely to have doubled in value, despite the 0.45% fee.

george4064

MarcoM wrote: »

Hi,

If one has a vanguard fund and another stock fund in an HL Vantage ISA can the vanguard only fund be transferred to Vanguard or do the whole ISA contents get transferred to Vanguard?

many thanks

You can you request a partial transfer (and specify which holdings you wish to transfer) or a full transfer, so its up to you

badger09

MarcoM wrote: »

Hi,

If one has a vanguard fund and another stock fund in an HL Vantage ISA can the vanguard only fund be transferred to Vanguard or do the whole ISA contents get transferred to Vanguard?

many thanks

george4064 wrote: »

You can you request a partial transfer (and specify which holdings you wish to transfer) or a full transfer, so its up to you

But you must keep all your current year's ISA subscription together. So, your 'other stock' staying with HL, must be equal to or more than your current year's subscription.

koru

JohnRo wrote: »

It depends on the fund in question but with no minimum charge it's more likely to have doubled in value, despite the 0.45% fee.

Good point! As long as the total return is more than 0.45%, it would probably just sit there growing really slowly. So the trick is to leave an amount of units that is just worth a few pounds, then forget about it.

HL could change their terms at some point, so that a closure is triggered if your stock falls below, say, £50 in value. But if you haven't left enough for them to take their closure fee, this probably doesn't matter.

koru

dunstonh wrote: »

Yes. However, their T&C state they can close accounts below a certain value with no activity. So, you would just be delaying the inevitable.

If you leave less than £30 of stock in the account, then in practice you will have reduced the closure fee to the amount that you left in the account. ...Unless the T&Cs give them the right to charge the rest to your credit/debit card?

aajax42

bostonerimus wrote: »

I hope Vanguard's move will highlight the basic Bogle rule of keeping fees to a minimum. There is still as nasty perception in the UK that you can regularly buy market beating performance by paying extra for an actively managed fund. That will work for some people in some years, but some active funds will lag the market and for the majority of investors a low cost tracker approach is the best way to go. I've been investing with Vanguard in the US for the last 20 years and the fees on my funds range from 0.04% to a max of 0.12%. Those are my only fees. I've usually kept a roughly 60/40 asset allocation........although I'm now letting the equity percentage drift up and I'm close to 70/30. Over my 30 years of investing by sticking to a 60/40 asset allocation in tracker funds I've averaged 8% annual return. So by doing not much other than following a few simple rules, and having a low cost lifestyle, I was able to retire debt free at age 52.

As I am always trying to learn more, do you invest through the US because you live there or do you believe it is a better option. If so how do you invest through the US?