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What % To Invest Myself Rather Than Use IFA? - Page 2

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What % To Invest Myself Rather Than Use IFA?

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  • atushatush Forumite
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    You running a significant portfolio in parallel destroys the balance you have paid the IFA to provide.

    Not if the IFA has details of all your cash savings and investments.

    If you want to play around, by all means set your won bond ladder of cash, and open a S&S isa/Sipp to make some of your own investments and let the IFA handle the rest. Just make sure all planning is based on all your assets.
  • bostonerimusbostonerimus Forumite
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    I'd usually say that you should DIY all of the inheritance, and everything else too, because I don't think IFA's are generally worth their fees. But you saying you would like to "take a punt on some shares" gives me pause. You need a plan with specific goals and a strategy to get there that minimises any gambling aspects. A good IFA should give you that; I have no idea of the quality of your IFA.
    Misanthrope in search of similar for mutual loathing
  • edited 11 September 2019 at 4:48PM
    SonOfSonOf Forumite
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    edited 11 September 2019 at 4:48PM
    I'd usually say that you should DIY all of the inheritance, and everything else too, because I don't think IFA's are generally worth their fees.

    We recently took over the portfolio of a DIY investor (as we have many times before) and the charges were nearly half what he was paying previously. DIY does not automatically mean cheaper.


    edit: word "not" missing. Thanks Bowlhead.
  • bowlhead99bowlhead99 Forumite
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    SonOf wrote: »
    We recently took over the portfolio of a DIY investor (as we have many times before) and the charges were nearly half what he was paying previously. DIY does automatically mean cheaper.

    I think you mean *doesn't* in the last sentence :)
  • SonOfSonOf Forumite
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    bowlhead99 wrote: »
    I think you mean *doesn't* in the last sentence :)

    slight difference in meaning!!!! :D
  • edited 11 September 2019 at 5:54PM
    bostonerimusbostonerimus Forumite
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    edited 11 September 2019 at 5:54PM
    SonOf wrote: »
    We recently took over the portfolio of a DIY investor (as we have many times before) and the charges were nearly half what he was paying previously. DIY does not automatically mean cheaper.


    edit: word "not" missing. Thanks Bowlhead.

    Sure, but employing an IFA definitely means paying their fee and if the DIY investor has a bit of common sense they should be able to run their portfolio at less cost than having an IFA do it for them. I weep when I compare my total cost in the USA to DIY of 0.07% to the costs of around 1% or more that many people pay in the UK...and also many people in the US who are still beguiled by financial industry advertising. I imagine the lowest cost you could get in the UK would be around 0.5% for fund and platform fees.
    Misanthrope in search of similar for mutual loathing
  • edited 11 September 2019 at 6:56PM
    AnotherJoeAnotherJoe Forumite
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    edited 11 September 2019 at 6:56PM
    Sure, but employing an IFA definitely means paying their fee and if the DIY investor has a bit of common sense they should be able to run their portfolio at less cost than having an IFA do it for them. I weep when I compare my total cost in the USA to DIY of 0.07% to the costs of around 1% or more that many people pay in the UK...and also many people in the US who are still beguiled by financial industry advertising. I imagine the lowest cost you could get in the UK would be around 0.5% for fund and platform fees.

    I'm getting about 0.4% on my SL SIPP and would be 0.26% if I didn't have one fairly expensive fund out of the three in it.
    Too difficult to work out my HL fees because it's got a mix of funds, ITs ETFs and shares and whilst there's a max amount you pay on everything except funds, the rest have their own internal costs. Maybe one cold winter afternoon I'll have a stab at it.

    P.s. when you say 0.07% I presume you are excluding fund fees because vanguard aren't that cheap are they?
  • bostonerimusbostonerimus Forumite
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    AnotherJoe wrote: »
    I'm getting about 0.4% on my SL SIPP and would be 0.26% if I didn't have one fairly expensive fund out of the three in it.
    Too difficult to work out my HL fees because it's got a mix of funds, ITs ETFs and shares and whilst there's a max amount you pay on everything except funds, the rest have their own internal costs. Maybe one cold winter afternoon I'll have a stab at it.

    P.s. when you say 0.07% I presume you are excluding fund fees because vanguard aren't that cheap are they?

    I own Vanguard funds on the US Vanguard platform and that means the platform costs are zero' it cost me nothing to buy and sell those funds. Th 0.07% is the weighted average of my fund fees, the lowest is 0.04% and the highest 0.16% for the actively managed Wellesley fund.
    Misanthrope in search of similar for mutual loathing
  • AnotherJoeAnotherJoe Forumite
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    Wow. As you probably know they are about 3x that cost in the U.K.
  • SonOfSonOf Forumite
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    AnotherJoe wrote: »
    Wow. As you probably know they are about 3x that cost in the U.K.

    Economies of scale and higher costs of regulation.
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