IFA and my mums investments

Aminatidi

newatc wrote: »

If you mother wants to be able to access her funds/savings then it might be worth paying the extra for the HL platform as their site and customer service is good.

I'm genuinely torn on that one.

I would like her to access them as it's her money though I suspect if she does it'll take her some getting used to seeing things go up and down even with cautious investments.

The platform thing is bugging me.

As I mentioned I use HL but mostly for ITs so the fees are actually peanuts whilst I'd be paying a fortune if it was funds.

Something doesn't feel right paying 0.45% to hold something costing 0.22% if we settle on something like LifeStrategy 40 as a single investment bucket.

But I read stories about Vanguard taking days for fund buys and sells to go through and bank transfers taking days where with HL I've mostly known buys and sells to go through same day if the order is placed early enough and if you transfer cleared cash out it seems to happen same day if you do it early enough.

Is that really worth paying an extra 0.2% for though?

Maybe I need to look at it another way which is that even with HL she should be much better off which was the original reason for looking at this with her.

Hmm..

lpgm

Aminatidi wrote: »

As I mentioned I use HL but mostly for ITs so the fees are actually peanuts whilst I'd be paying a fortune if it was funds.

Something doesn't feel right paying 0.45% to hold something costing 0.22% if we settle on something like LifeStrategy 40 as a single investment bucket.

Why don't you see if there's another platform that might be more suitable for your mum? If you're thinking about a one-off/once a year purchase of an OEIC like LifeStrategy, how about going with IWeb? Or, if you do need/want a percentage-fee platform, there are cheaper ones than HL.

Aminatidi

lpgm wrote: »

Why don't you see if there's another platform that might be more suitable for your mum? If you're thinking about a one-off/once a year purchase of an OEIC like LifeStrategy, how about going with IWeb? Or, if you do need/want a percentage-fee platform, there are cheaper ones than HL.

Yes I'm looking at platforms and I think some of it will come down to whether she does end up adding little chunks of leftover money ad-hoc but if she does I think free fund dealing would be a bonus though of course it's a balancing act between "free" dealing v paid dealing and platform fees.

I'm also cautious that it isn't my money so I don't want to take chances with a platform just because it's cheap - I'm confident in the stability and reputation of HL and Vanguard.

SonOf

Something doesn't feel right paying 0.45% to hold something costing 0.22% if we settle on something like LifeStrategy 40 as a single investment bucket.

Rmemember the fact charges were unbundled in 2013 is the reason the fund costs 0.22%. It would be higher than 0.22% if it was still bundled.

But I read stories about Vanguard taking days for fund buys and sells to go through and bank transfers taking days where with HL

VLS will buy/sell at the next dealing point after the instruction is given. Just like every other UT/OEIC. From memory, I think Vanguard have a 3 day settlement period. However, if the platform pre-funds, that is largely irrelevant.

I've mostly known buys and sells to go through same day if the order is placed early enough and if you transfer cleared cash out it seems to happen same day if you do it early enough.

If you buy direct assets then trading is live.

bigadaj

Aminatidi wrote: »

Yes I'm looking at platforms and I think some of it will come down to whether she does end up adding little chunks of leftover money ad-hoc but if she does I think free fund dealing would be a bonus though of course it's a balancing act between "free" dealing v paid dealing and platform fees.

I'm also cautious that it isn't my money so I don't want to take chances with a platform just because it's cheap - I'm confident in the stability and reputation of HL and Vanguard.

There's little real benefit in adding small amounts regularly, better to save a reasonable sum and add periodically. The sums could be out into a regular saver for example, and then added to the fund when that kicks out at the end of the year.

lpgm

Aminatidi wrote: »

I'm also cautious that it isn't my money so I don't want to take chances with a platform just because it's cheap - I'm confident in the stability and reputation of HL and Vanguard.

I understand. There are cheaper, but stable, platforms out there - for example, AJ Bell is a quoted company, and IWeb is part of Lloyds. I thought HL's reputation was in tatters anyway because of the Woodford saga

Aminatidi

lpgm wrote: »

I understand. There are cheaper, but stable, platforms out there - for example, AJ Bell is a quoted company, and IWeb is part of Lloyds. I thought HL's reputation was in tatters anyway because of the Woodford saga

Fair point

As of right now I'm struggling to see past Vanguard and LS40 for the lot.

I've also been doing a bit of homework on how much people keep in their cash/emergency reserves and I may see how she'd feel about trying to slowly build up the investment pot from either "leftover" income or the cash pot.

I can understand wanting to feel comfortable that there's enough cash there but £50K seems a lot given it's losing money in real terms.

TARDIS

What about putting the bulk of her investments in iWeb, then use HL or vanguard for the ad hoc amounts +/- cash savings if use HL?
When/if the amount in the %fee platform mounts up you can transfer it into the iWeb account.

May well be cheaper and less temptation to fiddle with the bulk of the investments if you only view the iWeb account occasionally.

Aminatidi

TARDIS wrote: »

What about putting the bulk of her investments in iWeb, then use HL or vanguard for the ad hoc amounts +/- cash savings if use HL?
When/if the amount in the %fee platform mounts up you can transfer it into the iWeb account.

May well be cheaper and less temptation to fiddle with the bulk of the investments if you only view the iWeb account occasionally.

I think it's complicating things for her.

Thinking about it Vanguard direct really seems the right option.

Low platform fee and good reputation so what's not to like really.

Malthusian

Aminatidi wrote: »

There is about £5.5K in an "Investec FTSE 100 Enhanced Income Plan 33" which is, I believe, fixed and cannot be touched until 2023.

You can cash it in and Investec's website currently indicates that she'd get around 5% more than her initial capital than doing so. On another day she might get less depending on how the FTSE 100 and Investec are doing.

She would lose all her money if Investec went bust (or rather she'd be an unsecured creditor, which is as good as), and would also lose money if the FTSE 100 fell by around 55% or more from where it is now, so you could consider selling it. On the other hand it is only £5,500.

Does she have Lasting Powers of Attorney in place?