Advice please - savings and small investment

Spiggle

Thank you so much eskbanker, :beer:

That's precisely what I understood from your earlier post, thank you so so much. Runs off to local building society ....

Btw, I have moved my questions on specifically the state pension to the New State Pension thread on the Pensions board for neatness.

All the best,
Spigs

Spiggle

Spiggle wrote: »

... Initially my lump sum depositing incomplete plan is to deposit:
£10k minimum in Gatehouse Bank 1yr fixed estimated profit @ 2.1% no fee
£20k in Marcus (from one Sant123 account) @ 1.5% no fee
£20k (average) Sant123 as a feeder account @ 1.45% after fee ...

Just a quick update folks,

Spent some time today sorting out the NI conts for State Pension following advice/guidance as per the New Sate Pension thread on the Pensions Board.

Also did some cash cycling to ensure best position until all is set up.

Opened the Marcus Account and have made small deposit and will tx more once I can see the first amount.

Spiggle wrote: »

... Then:
£10k in Vanguard Life Strategy ISA - probably the 40 but could be persuaded by cogent arguments to go to VLS60. This sum would effectively be my bequest to be split equally between my two GDs upon my death. ...

Tomorrow the plan is to look at HL for the SIPP (cash) and possibly VLS40/60 ISA.

Please would you give any opinion (not advice) you have on how big an increase in risk it is to consider the VLS60 instead of the VLS40 please? I can read the numbers, performance, standard terminology stratifying risk but I was looking for some human opinion from those who know so much more than me about these things. So please if you have any thoughts, opinions and experience of the differing risk levels I would hugely appreciate it, thanks.

TIA and see you tomorrow, keep warm tonight all,
Spigs

badger09

Spiggle wrote: »

Just a quick update folks,

Spent some time today sorting out the NI conts for State Pension following advice/guidance as per the New Sate Pension thread on the Pensions Board.

Also did some cash cycling to ensure best position until all is set up.

Opened the Marcus Account and have made small deposit and will tx more once I can see the first amount.



Tomorrow the plan is to look at HL for the SIPP (cash) and possibly VLS40/60 ISA.

Please would you give any opinion (not advice) you have on how big an increase in risk it is to consider the VLS60 instead of the VLS40 please? I can read the numbers, performance, standard terminology stratifying risk but I was looking for some human opinion from those who know so much more than me about these things. So please if you have any thoughts, opinions and experience of the differing risk levels I would hugely appreciate it, thanks.

TIA and see you tomorrow, keep warm tonight all,
Spigs

I'll let those more experienced than I am to comment on the different risks between the 40% and 60%. (I'm in 100% but in a very different situation to you:cool:)

One small point: HL is fine for a small SIPP - I have mine there.

However it isn't the cheapest for your S&S ISA, especially for something like VLS. If VLS is your choice, it will be cheaper to hold on the Vanguard platform. On £10k the annual platform charge will be £15, rather than £45. Be aware though, you will be restricted to holding Vanguard funds if you choose their platform.

https://www.vanguardinvestor.co.uk/investing-explained/stocks-shares-isa

(If you decide to invest more in future years, you could choose a different platform if you want to diversify.)

webjaved

badger09 wrote: »

Be aware though, you will be restricted to holding Vanguard funds if you choose their platform.

What kind of restrictions would you be looking at?

AlanP_2

webjaved wrote: »

What kind of restrictions would you be looking at?

Only being able to buy Vanguard products on the Vanguard platform.

If you want Vanguard only in an ISA their platform can be cost-effective but you won't be able to buy any of the thousands of products offered by other investment companies.

webjaved

AlanP wrote: »

Only being able to buy Vanguard products on the Vanguard platform.

If you want Vanguard only in an ISA their platform can be cost-effective but you won't be able to buy any of the thousands of products offered by other investment companies.

So would the next best platform be HL?

cloud_dog

webjaved wrote: »

So would the next best platform be HL?

Download and have a look at SnowMans excellent platform comparison spreadsheet.

Spiggle

badger09 wrote: »

I'll let those more experienced than I am to comment on the different risks between the 40% and 60%. (I'm in 100% but in a very different situation to you:cool:)

One small point: HL is fine for a small SIPP - I have mine there.

However it isn't the cheapest for your S&S ISA, especially for something like VLS. If VLS is your choice, it will be cheaper to hold on the Vanguard platform. On £10k the annual platform charge will be £15, rather than £45. Be aware though, you will be restricted to holding Vanguard funds if you choose their platform.

Thanks badger09,

You are absolutely right, I had got that one worked out so apologise for my slipped typing, This is likely to be the only S&SISA I open this TY and I'm fine with VLS (its about the only thing I understand!) on the Vanguard platform.

After posting my request for opinions I did the sensible thing that I was too tired to do night before last, I read and re-read the myriad threads there are on the MSE forum about the VLS and I've come to a decision. Fanfare please ... I'm going to put the £10k into VLS60 on the Vanguard platform.

In case you're interested, probably not, but having thoroughly considered:
Why I'm doing it - Bequest for 2GDs following my death;
How long it could be in there for - I'm being positive and hopefully it should be invested over 10yrs;
Likelihood of need to access/liquidate it - Highly unlikely, I have tried to picture any reason I would need to and I can't see any reason at all e.g. I have very large emergency fund, large cash float earning something if not huge rates, etc.;
Risk 40 or 60 - my own conclusion having read the VLS threads and the information on the Vanguard site e.g. if looking at risk/7 both 40 and 60 come out at 4/7 but as this is likely to be long term and I have more than adequate liquid/cash assets, so I'm willing to risk it for a biscuit;
Other advantages - I hope to be able to use the VLS to aid in my learning about how S&S ISAs work.

Oh, and Gatehouse Bank has now been opened and funded, my how helpful their telephone service is. Marcus also now has the funds discussed in my OP but is likely to get topped up again over the next few days.

So, next for me is the VLS60. Then onto HL for the cash SIPP in this TY then cycle through for 2019-20 come April 6th.

Thank you all so much for your opinions and guidance. Please feel free to comment, criticise or clap as you see fit. I will be back soon.

All the best,
Spigs

Voyager2002

I shall just mention that I understand (from this site) that M and S bank also offers a regular saver paying an inflation-beating five per cent.


On ethical investment, you might consider clean (renewable) energy. I made a loan to my community's solar energy enterprise, and receive interest on it at five per cent, but obviously this involves some risk. And there are some Investment Trusts that invest in this sector and pay dividends equivalent to five per cent of your investment: again with a degree of risk.

Alexland

Voyager2002 wrote: »

I shall just mention that I understand (from this site) that M and S bank also offers a regular saver paying an inflation-beating five per cent.

Yes but only if you have completed a current account switch to them and have two active DDs.

https://bank.marksandspencer.com/save-invest/monthly-saver/

Alex