Choosing funds

chucknorris

justme111 wrote: »

Well since then the rates have gone up and the age from which one can access it has gone up; I don't think it is so good value anymore

I think that it is still excellent value, I have to wait until august 2020 before I can buy additional pension in the newer scheme (I have already bought the max allowed in the older scheme). But if I could buy it right now, it would cost me £14,800 to buy every extra £1,000 of annual pension. I only would have to wait 5 years to draw that pension (at my normal pension age). I intend to buy as much as I can before I reach my normal pension age, unfortunately I only work part time now, so my relevant income won't be enough to buy the max allowed.

It is even better value to me because i have substantial equity investments, so not only is it great value, it also provides very good portfolio diversity.

george4064

TK87 wrote: »

Can I ask (for my learning) why you may choose say the HSBC fund over the Vanguard fund?
Also, why would you choose the Vanguard 80 or 100 over say the 60? I assume this is due to risk vs reward and longer term improvements but with larger volatility?
I'm trying to understand better about different funds / assets etc.
Thanks for the help so far, it's all really helpful.

Vanguard LifeStrategy 100% is 100% in global equities, 80% version is 80% global equities and 20% global bonds and so on..


Generally speaking, the higher allocation to equities the higher risk you are taking but the higher potential returns. This is the essence of risk vs reward.

Aminatidi

TK87 wrote: »

I'd looked at the Vanguard LS funds previously as they're often mentioned on here, so I had an idea that they may be a good option. I'd also read about Cavendish Online and the amount that I was investing is small so they seemed the best choice financially. I also saw they had access to Vanguard and a decent number of funds, so it made sense. So there was some thought that went in to the choice of platform.

It's easy to overthink things but I'd suggest that with "only" (sorry for how that may sound) £1000 and adding £100/month it's going to take some time to build up a decent sized pot.

I'd say the main thing is to get your risk levels worked out and then just do something.

Alexland

Aminatidi wrote: »

It's easy to overthink things but I'd suggest that with "only" (sorry for how that may sound) £1000 and adding £100/month it's going to take some time to build up a decent sized pot.

As Lungboy commented the OP might be better with a S&S LISA from someone like HL investing in a discounted mixed asset fund (which makes up for some of the platform fee difference) such as Blackrock Consensus 85 or 100 to get the 25% government bonus.

Alex

TK87

I really appreciate all the help and feedback. I will look at the S&S Lisa's that are around. With such a small sum (I'm not offended) is it best to invest purely in one fund rather than multiple?

Thanks again

MarkBargain

I think I might invest in the Vanguard LifeStrategy 40% Equity A Acc through my existing Charles Stanley Direct platform (which I believe charges 0.35%). I did consider cheaper platforms, looked at iWeb but website looks a bit cheap and they didn't reply to a question on Twitter which isn't a good sign.

Alexland

MarkBargain wrote: »

looked at iWeb but website looks a bit cheap and they didn't reply to a question on Twitter which isn't a good sign.

iWeb is operated by Halifax Share Dealing who are competent providing low cost investment services.

Maybe they are not so competent at other stuff like social media but I wouldn't want to pay platform fees for someone to play on Twitter all day.

Alex

MarkBargain

Alexland wrote: »

iWeb is operated by Halifax Share Dealing who are competent providing low cost investment services.

Maybe they are not so competent at other stuff like social media but I wouldn't want to pay platform fees for someone to play on Twitter all day.

Alex

I might do a 2019/20 ISA with Vanguard direct, as it seems their account fee is 0.15% plus the fund fee (LifeStrategy® 40% Equity Fund) of 0.22% so pretty low.

TK87

So would you suggest I setup an S&S LISA instead?

dunstonh

TK87 wrote: »

So would you suggest I setup an S&S LISA instead?

If it meets your objectives then yes. If it doesnt then no.