Accumulation or Income

Samson81

bowlhead99 wrote: »

If the goal per the OP is to invest 80,000 "over the next six months", they just do some now and some on or after 6 April; the practical maximum is 80,000 between two people over those two tax years that they're using.

That's exactly what I was thinking. I've pretty much full ISA for the two of us this year and was going to dump the other £40k in in April.

Alexland

Samson81 wrote: »

I'll have to look up ETFs by the sound of things...

Too much information to take in!

Specifically this is a comment about execution only platforms such as Jarvis X-O who offer ISAs and SIPPs with no platform charge just trade charges for shares, ETFs and investment trusts. Sadly they don't offer fund trading on this basis.

Most platforms do charge a fee for holding ETFs but it is sometimes lower than for funds. But funds usually have lower trade fees and can be more appropriate to people's investment needs. ETFs usually generate income which incurs further trade costs to reinvest. You may need multiple ETFs to build a portfolio which incurs further trade costs - as does rebalancing them.

Still if you can find an ETF that meets your needs there is an opportunity to save platform fees. Works best with large static lump sum investments to keep trade volumes down.

Glen_Clark

Alexland wrote: »

ETFs usually generate income which incurs further trade costs to reinvest..

Not if you use an accumulator ETF.
40% of my portfolio is in SWDA, because I feel safer putting my money where the big boys put theirs

Alexland

But SWDA has over 60% US exposure so you would need others to create some global balance which is where the trade costs can add up. If only there was a decent mixed asset ETF...

trailingspouse

What you do with your portion of the £80,000 is entirely up to you.

But what's best for you is not necessarily best for your wife. She needs to be asking her own questions, and making her own mind up as to what to do with her own money.

Glen_Clark

Alexland wrote: »

But SWDA has over 60% US exposure so you would need others to create some global balance which is where the trade costs can add up. If only there was a decent mixed asset ETF...

Warren Buffet advised his wife to invest in 100 'US exposure' - if you count the S&P 500 as 'US Exposure' But I don't as its worldwide companies like Apple - I don't count FTSE 100 as all UK exposure either since over 70% of its profits are made ex-UK.
You can get wider exposure with VWRL (which I also hold) but it costs a little more, and its not an accumulator.

aberlyfid_2000

go for accumulation, unless you want to be able to make decisions on new allocations with your income. Secondly, some funds charge differently, but the difference is relatively minute!