£400k Portfolio DIY vs. Professional Help

OpalMiner11

Hi all,
I have around £400,000 in a portfolio held with iWeb and whilst I have done a fair amount of research it feels like abit of a mishmash now. I also worry that there is too much in Vanguard due to the FSCS protection limit.

Do you think a professional could structure the portfolio better and is it worth it since I pay so little at the moment with iWeb and am happy to do research myself?

£257k Vanguard Lifestrategy 80 Acc (VVLSRE)
£17k HSBC Global Stategy Dynamic (MDYNAM)

£6k Aberdeen New Dawn Trust (ABD)
£11k Brunner Investment Trust (BUT)
£15k Murray International Trust (MYI)
£12k Henderson European Focus Trust (HEFT)
£5k F&C Commercial Property Trust (FCPT)
£7k Fidelity Special Values Trust (FSV)
£12k Polar Capital Technology Trust (PCT)
£8k RIT Capital Partners Trust (RCP)
£23k Scottish Mortgage Trust (SMT)
£14k Securities Trust Scotland (STS)
£10k Standard Life UK Small Companies Trust (SLS)
£10k Worldwide Healthcare Trust (WWH)

I am 28 and have a good appetite for risk. I read many Financial Independence blogs and would like to be free from the constraints of working in the next 5-10 years but that is flexible depending on the markets.

I am currently living in Australia so only 35k of this is in an ISA. The remainder is Unwrapped. Thanks

Linton

I would expect a professional to structure it a lot better. In a £400K portfolio what good is that large number of comparatively small holdings in assorted ITs?

You should gain far more from an IFA than a simple restructuring of your investments. In particular an IFA should be able review your plan to become free of work, make recommendations and provide broad guidance on how best to meet your objectives. Also there may be opportunities to minimise tax - I guess your £400K isnt all in ISAs/SIPPs.


The FSCS limit should not be a worry in your decisions on Vanguard. After all you do have £400K with Iweb. That should not be a worry either, but if it was it would be geater cause for concern than £257K with Vanguard.


PS Sorry, I missed trhe Australia bit, I do not know whether IFAs or rather their equivalent in Australia operate under the ssame sort of regulation as in the UK. You would need to ensure that your chosen professional is not really a salesman.

ExremelyCautiousSocialist

OpalMiner11 wrote: »

I am 28 and have a good appetite for risk.

Put a small % in bitcoin over 2019, dollar cost average in if needed, withdraw from exchange after purchase, dont hold anything on exchanges. Lots of people on here are against bitcoin but small % is fine and one of the better places to make a speculation i think.

ColdIron

ExremelyCautiousSocialist wrote: »

Put a small % in bitcoin

A bonkers suggestion which no IFA would endorse

dunstonh

Do you think a professional could structure the portfolio better and is it worth it since I pay so little at the moment with iWeb and am happy to do research myself?

Is there actually any structure and process in place at the moment? I cannot spot any obvious one.

I am currently living in Australia so only 35k of this is in an ISA. The remainder is Unwrapped.

Does Australia recognise the ISA as being tax free?
What are the Australian tax rules on capital gains and dividends?
Does Australia tax overseas holdings differently to Aus domiciled investments?
How are you treating currency fluctuations in your risk assessment?
If it was UK, then having so much unwrapped in one high risk fund would be an issue with CGT. It doesnt give you many options when trying to use CGT allowances.

OpalMiner11

dunstonh wrote: »

Is there actually any structure and process in place at the moment? I cannot spot any obvious one.


Does Australia recognise the ISA as being tax free?
What are the Australian tax rules on capital gains and dividends?
Does Australia tax overseas holdings differently to Aus domiciled investments?
How are you treating currency fluctuations in your risk assessment?
If it was UK, then having so much unwrapped in one high risk fund would be an issue with CGT. It doesnt give you many options when trying to use CGT allowances.

Thanks very much for your answer. The Trusts were set up as one by a stockbrokers and then I added the Vanguard/HSBC until the current level.

Do you have any recommendations for a better structured portfolio? Or where I can learn more about that? I like Lifestrategy and wouldn't be against putting it all into that, but everyone seems to warn against that?

Regarding Australia:
1. Not sure on the ISA being tax free, I will need to investigate.
2. Australia views CGT as income so it is taxed as part of that.
3. They are taxed in the same way as domiciled investments.
4. Have not considered currency fluctuations as I earn AU$ here and try to keep the money seperate.
5. True and this has led me in part to write this post. I am considering going travelling for 7 months one year so that I can sell the UK shares and not pay the CGT in AUS/UK. I need to investigate further as that may be a farfetched idea.

Prism

I used these two papers for ideas


https://www.msci.com/documents/10199/1637462/The_New_Classic_Equity_Allocation%2528Oct_2010%2529.pdf/0e089d7a-ce1d-4170-8223-3a8a67e0d6a5?version=1.0

https://www.msci.com/research-paper/download?doc=/documents/10199/ef6077e0-0ff5-4ac6-b7ed-a74233d5be99&file=Some_Like_It_Hot_Jan_2011.pdf&article=Some+Like+It+Hot

TBC15

ExremelyCautiousSocialist wrote: »

Put a small % in bitcoin over 2019, dollar cost average in if needed, withdraw from exchange after purchase, dont hold anything on exchanges. Lots of people on here are against bitcoin but small % is fine and one of the better places to make a speculation i think.

Or you could give it all to me to invest, if you fancy a punt into the apocalypse.

TBC15

First 2 investments sound half decent ( no I didn’t look into them)
The rest sound like a scatter gun approach to I know not what.

If you are 28 with £40000 your obviously not thick. This would seem to be a chance to take up a new hobby. Investing is not that difficult if you spend a little time doing it.

If you are thinking in INVESTING in Bitcoine have another drink and lie down until the urge passes.

Strange you are so savvy to use IWeb but clueless about the content of your investments.

BLB53

Looks like you are doing a pretty good job so far. Stick with 75% in low cost index funds and have a diversified punt with the rest.

There will no doubt be IFAs who could structure things a bit better but I always think it's tricky finding ones you can trust and work with. Then there's their fees which may work out more than the added value they bring.

Have a plan, stick with it through the market volatility and just back yourself for the next 10 years. Oh, and whilst you are in Oz, keep cool.

ExremelyCautiousSocialist

ColdIron wrote: »

no IFA would endorse

Of course not. You consult the IFA on the large % you want in traditional investments not small % you want in a unregulated high risk speculation.