passive investing

dunstonh

buyhighselllow wrote: »

I would expect a financial adviser to say that , having been sold one or two dog funds 25 years ago :rotfl:

Why does being a financial adviser have anything to do with it? I don't get the correlation.

buyhighselllow

Risk rating of VG 80 is 4, VEVE 5, VFEM 6. The OP can dilute the proportion down below 10% if he wishes, but I don't really see the value of the VG80 as it is more expensive than VEVE, more expensive to give you access to bonds and other boring things you can get the same level of boringness from for free.. I don't see the point in it.

buyhighselllow

dunstonh wrote: »

Why does being a financial adviser have anything to do with it? I don't get the correlation.

Because promoting the idea they can beat the market/ sell managed products accounts for a proportion of many FA's income ?

dunstonh

buyhighselllow wrote: »

Because promoting the idea they can beat the market/ sell managed products accounts for a proportion of many FA's income ?

FA income is not dependent on managed or passive types of investing. Advisers earn the same whether they use managed or passive.

Risk rating of VG 80 is 4, VEVE 5, VFEM 6. The OP can dilute the proportion down below 10% if he wishes, but I don't really see the value of the VG80 as it is more expensive than VEVE, more expensive to give you access to bonds and other boring things you can get the same level of boringness from for free.. I don't see the point in it.

Why are you not considering the capacity for loss, behaviour risk and risk tolerance?

buyhighselllow

dunstonh wrote: »

Why are you not considering the capacity for loss, behaviour risk and risk tolerance?

I think the OP will do that based on the information the thread has provided.
Based on 10-15 yr + timeframe these funds, blended to taste, and held as part of a portfolio of cash based products ( rather than bonds ) offer something suitable IMHO. Very low cost ( very important ),simple and have sound data to support the approach.

bradqwer

buyhighselllow wrote: »

I think the OP will do that based on the information the thread has provided.
Based on 10-15 yr + timeframe these funds, blended to taste, and held as part of a portfolio of cash based products ( rather than bonds ) offer something suitable IMHO. Very low cost ( very important ),simple and have sound data to support the approach.

Hope you dont mind I have sent u a p,m

buyhighselllow

bradqwer wrote: »

Hope you dont mind I have sent u a p,m

Sorted :beer:

bradqwer

Gotta lot of thinking to do which at times is the worst as if u think then u over think and dont invest

fred246

Sadly this thread follows a common theme.
A member of the public asks a simple question on investing.
He gets some good answers and we get to the stage of a reasonable low fee investment strategy ie Vanguard Investor with VLS60.
OP looks like ready to start to invest.
IFA comes along. Oh my god somebody has been advised to invest without an IFA being used. IFAs aren't going to get any fees. Lets make this look really complicated.
OP is confused. OP doesn't invest.
When I first invested in the 1990s I used an IFA. My dad was the same. You had no internet. You had no idea what the IFA was doing. However shares do generate profit so you got some and the IFA got a lot and everyone is sort of happy. When the internet came along it became clearer that the IFAs investment strategy was hilarious. My dads was 100% in a UK income fund. My pension had all sorts of unsuitable stuff. So the IFAs upped their game a bit and now they have a sort of standard strategy that looks complicated enough to impress the client into thinking they could never do it themselves.

Prism

fred246 wrote: »

SWhen I first invested in the 1990s I used an IFA. My dad was the same. You had no internet. You had no idea what the IFA was doing. However shares do generate profit so you got some and the IFA got a lot and everyone is sort of happy. When the internet came along it became clearer that the IFAs investment strategy was hilarious. My dads was 100% in a UK income fund. My pension had all sorts of unsuitable stuff. So the IFAs upped their game a bit and now they have a sort of standard strategy that looks complicated enough to impress the client into thinking they could never do it themselves.

So you got a bad IFA I guess then. I also started investing in the 90's, had a bank employeed FA (not even an IFA) who did my risk assessment nd based on that put me into a multi asset fund which I kept for the next 15 years. I knew nothing about investing and they did exactly what they were supposed to do by giving me advice.

Investing is not that simple - peope make all sorts of bad decisions. There are plenty of posts on this forum from people who have invested way above their comfort levels by doing it themself