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Large inheritance DIY vs professional

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  • Thanks for that.

    So are you suggesting that if you invested in a multi asset product - you don't need to invest in others, even when you perhaps want to increase your exposure for equities.

    Whilst no doubt there will be duplication, different products have different percentages for class, and different underlying products. Even performance has varied over the years.

    If the intention is to put all the money in multi asset products, is it okay to split between 2. I'd have thought it would be silly to use 3.

    I'm surprised by how little is invested in HSBC, am I missing something ? Are the others superior.

    I'd be interested to see if people noticed by deliberate typo in the comment before to see how closely they read.
  • Albermarle
    Albermarle Posts: 28,891 Forumite
    10,000 Posts Seventh Anniversary Name Dropper
    I also agree it is a little... odd... to buy a fund of funds like VLS, then buy a load of sector funds on top of it.
    He wouldn't be the first or the last .:)
    I think many investors use the multi asset funds as a basis for their portfolio and then like to play around with other options . It's probably not that logical but not really a big issue either . In any case it is more interesting than just going 100% VLS 60 ….
  • johnadams7 wrote: »
    Can anyone else recommend a multi asset fund similar to vanguard, but has different underlying funds - I know there will be some duplication or indeed a lot - for instance companies like microsoft, novartis pornhub etc.


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    Retired 1st July 2021.
    This is not investment advice.
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  • Audaxer
    Audaxer Posts: 3,547 Forumite
    Eighth Anniversary 1,000 Posts Name Dropper
    I think your portfolio is to complex. You could simplify it by just having:
    50% Vanguard Lifestrategy 80%
    50% HSBC global portfolio dynamic
    I think that gives you much less chance of getting it wrong, with two low cost globally diversified multi asset funds. I'd be very surprised if a portfolio consisting of these two multi asset funds did not give you much better returns than an SJP portfolio. You can check the performance of some SJP funds on Trustnet to compare to VLS80 and HSBC GS Dynamic.
  • SonOf
    SonOf Posts: 2,631 Forumite
    1,000 Posts Fourth Anniversary
    I'm considering if I get it managed, to go to St James Place, I know they aren't popular on here. But the fact they are used to managing large sums of money reassures me. I'd prefer to find a local IFA, but concerned about the risk. I might find an excellent guy or a dud.

    How does the risk of using an IFA increase over the use of a single tied salesforce rep?
    Any advice welcome on DIY vs IFA

    But you said you are not considering using an IFA. You are considering an FA.
    Keep in mind many IFAs are, apparently, struggling to offer cost effective advice for clients with < £250K under management.

    That is complete rubbish. (not you but that story going around). Firms tagging themselves as "wealth management" often have high minimum levels but general practitioner IFAs are fine with smaller amounts. Typically £50k plus. Even the occasional £20k.
    If I go to an IFA, they will not recommend the vanguard and they will buy the funds they recommend and like in percentages they want.

    They may recommend vanguard. We have three vanguard funds in our IFA model portfolio.
  • sendu
    sendu Posts: 131 Forumite
    100 Posts First Anniversary
    SonOf wrote: »
    Firms tagging themselves as "wealth management" often have high minimum levels but general practitioner IFAs are fine with smaller amounts. Typically £50k plus. Even the occasional £20k.

    Or you can just go with someone who charges a fixed fee (£/hr worked), and then it makes no difference to them. Of course it may only then be worth it to the consumer if they have £100k+.

    Since %-based fees (especially for ongoing management) will almost certainly never pay for themselves in terms of the quality of the advice, I rather think that any individual or firm that even offers a % fee is fundamentally unethical and shouldn't be trusted.

    Can you really take advice from someone who (should) knows full well that taking their advice will result in their clients under-performing a simple DIY approach, or a fixed fee advice approach?
  • Wildsound
    Wildsound Posts: 365 Forumite
    Fifth Anniversary 100 Posts Photogenic
    johnadams7 wrote: »
    Plus I feel like putting all my money with vanguard is putting all my eggs in one basket.

    Which is exactly what you will be doing if you go with SJP... - putting all your eggs in one basket... as they put you in a random collection of their terrible performing funds (most of which feature regularly in dog fund lists) and then charge you extortionate ongoing fees and levy you with a hefty exit fee if the wool comes away from your eyes and you realise you've made a terrible mistake...

    I do wonder sometimes whether these SJP posts that have shot up in number recently are a big marketing drive.
  • jamei305
    jamei305 Posts: 635 Forumite
    Tenth Anniversary 500 Posts Name Dropper
    johnadams7 wrote: »
    the fact they are used to managing large sums of money reassures me


    It should reassure you about nothing other than the fact they have a very effective sales and marketing strategy.

    It's like saying you are reassured about getting a good, reliable and value for money service from TalkTalk because they are used to supplying lots of customers with internet services.
  • Linton
    Linton Posts: 18,343 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Hung up my suit!
    sendu wrote: »
    Or you can just go with someone who charges a fixed fee (£/hr worked), and then it makes no difference to them. Of course it may only then be worth it to the consumer if they have £100k+.

    Since %-based fees (especially for ongoing management) will almost certainly never pay for themselves in terms of the quality of the advice, I rather think that any individual or firm that even offers a % fee is fundamentally unethical and shouldn't be trusted.

    Can you really take advice from someone who (should) knows full well that taking their advice will result in their clients under-performing a simple DIY approach, or a fixed fee advice approach?


    This is far too simplistic....
    1) The question isnt whether the IFA would underperform a DiY approach but rather whether the IFA would underperform the particular DiY approach which would be adopted by the client who could well have minimal experience of investing.


    2) Out performance is a secondary factor compared with whether the investment approach is appropriate. For example a DiY VLS100 investment would outperform some moderately cautious IFA solution but would probably be completely wrong for an elderly retiree looking for extra income. Someone without experience could easily get this wrong.



    3) The social advantage of % charging is that without it IFA advice could be prohibitively expensive for anybody who is not at least moderately rich. It is a subsidy for the poor paid by the rich. The advantage for the rich is that with time based charging the IFA is incentivised to string out or unnecessarily increase the work. Do lawyers who charge by the hour really offer the best advertisement for this appoach?



    The best compromise would seem to be a % based charging system with a fxed cap and floor.
  • cloud_dog
    cloud_dog Posts: 6,357 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    edited 18 August 2019 at 10:30AM
    johnadams7 wrote: »
    I have been investing since 2012. Duplication isn't always bad, because whilst it may have the same funds, it may also offer additional. Plus I feel like putting all my money with vanguard is putting all my eggs in one basket.

    So is that really what people do. Just buy vanguard life strategy and call that it. Plus i'm choosing the proportions for the remaining 50%. Vanguards experts choose for 25%, HSBC for 25% and I am for 50%.
    But as a DIY investor wouldn't you at at least have the knowledge of how to investigate what multi-asset funds offer, and more importantly how they offer, i.e. do they have artificial sector weightings, are they light in some sectors (smaller companies for example), and does their composition fit with your requirements?
    johnadams7 wrote: »
    If I go to an IFA, they will not recommend the vanguard and they will buy the funds they recommend and like in percentages they want.
    And what do you think is the chance of SJP offering Vanguard?
    Personal Responsibility - Sad but True :D

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