Wise choices?

oofazi

MarkCarnage wrote: »

Yes it's a weighted average OCF. Simple example:

£100 split 50/50 in two funds charging 10bps and 20bps. Weighted cost is:

0.5 x 10bps = 5bps, plus 0.5 x20 bps = 10bps. Total weighted cost = 15bps (0.15%) plus your platform costs.

If you want a predominantly equity portfolio, low cost and diversified, and are happy with passive, that's not a bad start.

Others rightly comment that directing it to pensions vehicle may be more tax efficient and that is a different debate.

Understood re: weighting.


I am not confident (yet) to be engaged with active and prefer passive activity - more the fire and forget approach, which will have many cringing, no doubt...but when it isn't your day job....etc etc...


Thank you.

Clive_Woody

oofazi wrote: »

Understood re: weighting.


I am not confident (yet) to be engaged with active and prefer passive activity - more the fire and forget approach, which will have many cringing, no doubt...but when it isn't your day job....etc etc...

Apologies if you are familiar with the Monevator site already, but the website linked below contains a wealth of information (with a focus on passive).

https://monevator.com/category/investing/passive-investing-investing/

Albermarle

I am not familiar with the Military pension scheme but should normally be no problem to open a separate pension /SIPP in addition to an occupational/workplace scheme .
There are some restrictions on the annual amount you can contribute to any pension(s)of £40K.

If possible it is always a good idea as a 40% taxpayer to pay enough contributions to reduce the amount of 40% tax you pay to as little as possible .. This assumes though that you will not be a 40% taxpayer in retirement.( not many people are )

danm

have you considered a single/simple multi-asset fund?

oofazi

Clive_Woody wrote: »

Apologies if you are familiar with the Monevator site already, but the website linked below contains a wealth of information (with a focus on passive).

https://monevator.com/category/investing/passive-investing-investing/

Yes, I am on that site every now and again (it's fantastic), there are a deluge of useful pages, however the website subject/ page structure could be easier to glean what you need.... and if I cannot find what I am after, I google the most intuitive title.....ie 'Q3 19 lazy passive portfolio' for instance lol....

oofazi

danm wrote: »

have you considered a single/simple multi-asset fund?

I haven't, isn't that what Vanguard's LifeStrategy funds are supposed to provide, or am I barking up the wrong tree?



Who might be some good suppliers/ platforms of those funds?

oofazi

Albermarle wrote: »

I am not familiar with the Military pension scheme but should normally be no problem to open a separate pension /SIPP in addition to an occupational/workplace scheme .
There are some restrictions on the annual amount you can contribute to any pension(s)of £40K.

If possible it is always a good idea as a 40% taxpayer to pay enough contributions to reduce the amount of 40% tax you pay to as little as possible .. This assumes though that you will not be a 40% taxpayer in retirement.( not many people are )

OK, is it easy to determine how much needs to be deposited to counteract the tax charge versus the benefits, ie tax relief? Or, is it easiest just to deposit as much as possible, I need to be mindful, my salary is suffering......dreaded tax...

danm

oofazi wrote: »

I haven't, isn't that what Vanguard's LifeStrategy funds are supposed to provide, or am I barking up the wrong tree?



Who might be some good suppliers/ platforms of those funds?

Vanguard LS would be one example, HSBC Global Strategy are another favourite and L&G have a range also.

I had around 10 index funds/ETFs and in the end just sold them and put everything into the HBSC product with the risk profile that suited me the best.

I see you have LS80....why do anything different....

Just something to consider

oofazi

danm wrote: »

Vanguard LS would be one example, HSBC Global Strategy are another favourite and L&G have a range also.

I had around 10 index funds/ETFs and in the end just sold them and put everything into the HBSC product with the risk profile that suited me the best.

I see you have LS80....why do anything different....

Just something to consider

True, I shall get researching further this weekend, with both dedicated funds to a SIPP (as others have wisely suggested due to my tax situation), shared between the HSBC Global Strategy as you suggest, (or as you mention, continue with VLS 80).

enthusiasticsaver

I would stick with the approach you have already started. VLS80 or some other multi asset fund and invest within a SIPP or even explore additional payments into your works pension to maximise tax advantages on the way in.