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S&S ISA Platforms

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Hi, I am having S&S ISA with Vanguard on VLS founds, to reduce the risk of a platform, should I apply to another platform such as AJ Bell on HSBC global strategy, then invest in turn yearly? Many thanks!

Comments

  • How much are you going to be investing?
  • masonic
    masonic Posts: 27,158 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    edited 1 December 2019 at 8:44AM
    Probably not. If Vanguard were to become insolvent (which is not going to happen), you'd potentially lose the ability to access your investments for 6-12 months while Vanguard UK is in Special Administration. But you have FSCS protection up to £85k should there be any loss of your assets as a result.

    Since you'll be investing for the long term I presume, this will be no more than a temporary inconvenience.

    Eventually your investments may reach the value where you have to start worrying about whether £85k of FSCS protection is enough to cover your potential losses in that situation. For example, recently failed investment providers have seen administration costs of up to 10% (though it's been capped below the FSCS limit in at least one case). Triple that to give a good safety margin and you'd maybe want to split your investments between two providers when they approach £250k.

    The other risk to consider is the risk that the asset allocation in VLS isn't optimal, and you might want to opt for a single platform like AJ Bell where you could hold both VLS and HSBC Global Strategy to hedge your bets.
  • Yanling
    Yanling Posts: 124 Forumite
    100 Posts Third Anniversary
    the isa allowance. thanks
  • Yanling
    Yanling Posts: 124 Forumite
    100 Posts Third Anniversary
    Hi, I am investing isa with Vanguard monthly, VLS 60 for £366, VLS 80 for £1000, VLS 100 for £300, and I am going to work for another 10 years. also I am having pension with HL monthly, Blackrock consensus 85 for £250 , L&G international index £500, L&G UK index £50.
    I am not sure if it is a right choices. Please give me some advise. Many thanks indeed!
  • masonic
    masonic Posts: 27,158 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    Why buy 3 VLS funds when what you will end up holding overall will be more or less equivalent to VLS 80?
  • Yanling
    Yanling Posts: 124 Forumite
    100 Posts Third Anniversary
    masonic wrote: »
    Why buy 3 VLS funds when what you will end up holding overall will be more or less equivalent to VLS 80?
    Hi, Does one fund pay less platform fee and other fees than having 3 funds? What is major reason to have just VLS 80? Thanks
  • SonOf
    SonOf Posts: 2,631 Forumite
    1,000 Posts Fourth Anniversary
    Yanling wrote: »
    Hi, Does one fund pay less platform fee and other fees than having 3 funds? What is major reason to have just VLS 80? Thanks

    There is no cost difference holding one fund, three funds or hundred funds.

    The VLS funds are a fund of funds. i.e. they hold multiple funds within them to allow you to match your risk profile. They are designed to held as a single fund. There is little or no point holding multiple VLS funds. Your spread of three effectively gives you the same as VLS80 does by itself and is completely pointless.
  • Yanling
    Yanling Posts: 124 Forumite
    100 Posts Third Anniversary
    edited 2 December 2019 at 5:07PM
    Hi, compare Blackrock 85 and HSBC global strategy balanced or dynamic , which one is better? Blackrock is less charge than HSBC ones with HL.
  • Yanling
    Yanling Posts: 124 Forumite
    100 Posts Third Anniversary
    masonic wrote: »
    Probably not. If Vanguard were to become insolvent (which is not going to happen), you'd potentially lose the ability to access your investments for 6-12 months while Vanguard UK is in Special Administration. But you have FSCS protection up to £85k should there be any loss of your assets as a result.

    Since you'll be investing for the long term I presume, this will be no more than a temporary inconvenience.

    Eventually your investments may reach the value where you have to start worrying about whether £85k of FSCS protection is enough to cover your potential losses in that situation. For example, recently failed investment providers have seen administration costs of up to 10% (though it's been capped below the FSCS limit in at least one case). Triple that to give a good safety margin and you'd maybe want to split your investments between two providers when they approach £250k.

    The other risk to consider is the risk that the asset allocation in VLS isn't optimal, and you might want to opt for a single platform like AJ Bell where you could hold both VLS and HSBC Global Strategy to hedge your bets.
    Hi, Thanks all for the great advice. I am going to gradually reduce the investment payment with Vanguard, but add a bit more money with HL in my pension for HSBC global strategy found. How does that sound? Thanks
  • Yanling
    Yanling Posts: 124 Forumite
    100 Posts Third Anniversary
    Hi, I am going to just invest VLS80. thanks
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