Guidance on investment plan

oldbill1969

Looking for some advice on investment management fees for an inheritance of £300,000. I have no experience in this area and I have been quoted the following -  £1,500 for a full initial investment report, 1% placement fee for monies invested with an annual ongoing charge of 1% which covers all administration, ongoing advice and meetings throughout the year.
Just need a little assurance that the above is okay and I am getting value. Thanks for any advice

bargainhunter888

kinger101 said:

If you're a basic rate taxpayer, and can't access a salary sacrifice, what cloud_dog said for any pension savings.
The LISA gives you a 25% "uplift" compared to the 6.25% you'd get in a SIPP.  It's also less prone to future (some might say inevitable) increases in income tax rates or reduction in the tax advantages on pension withdrawal.

just thinking that the LISA you can only contribute to 50? but you have to wait until 60 before you draw it?
i'm 34 now, so only have 16 more years to contribute

Alistair31

bargainhunter888 said:

kinger101 said:

If you're a basic rate taxpayer, and can't access a salary sacrifice, what cloud_dog said for any pension savings.
The LISA gives you a 25% "uplift" compared to the 6.25% you'd get in a SIPP.  It's also less prone to future (some might say inevitable) increases in income tax rates or reduction in the tax advantages on pension withdrawal.

just thinking that the LISA you can only contribute to 50? but you have to wait until 60 before you draw it?
i'm 34 now, so only have 16 more years to contribute

That’s £80k before growth, of which you would have only contributed £64k, why the sad face ? 

Albermarle

oldbill1969 said:

Looking for some advice on investment management fees for an inheritance of £300,000. I have no experience in this area and I have been quoted the following -  £1,500 for a full initial investment report, 1% placement fee for monies invested with an annual ongoing charge of 1% which covers all administration, ongoing advice and meetings throughout the year.
Just need a little assurance that the above is okay and I am getting value. Thanks for any advice

You should start a new thread with your question, rather than jump in on an existing one .

oldbill1969

Alistair31 said:

bargainhunter888 said:

kinger101 said:

If you're a basic rate taxpayer, and can't access a salary sacrifice, what cloud_dog said for any pension savings.
The LISA gives you a 25% "uplift" compared to the 6.25% you'd get in a SIPP.  It's also less prone to future (some might say inevitable) increases in income tax rates or reduction in the tax advantages on pension withdrawal.

just thinking that the LISA you can only contribute to 50? but you have to wait until 60 before you draw it?
i'm 34 now, so only have 16 more years to contribute

That’s £80k before growth, of which you would have only contributed £64k, why the sad face ? 

Real apologies, I thought I had done so, my mistake sorry :-:smile:

bargainhunter888

oldbill1969 said:

Alistair31 said:

bargainhunter888 said:

kinger101 said:

If you're a basic rate taxpayer, and can't access a salary sacrifice, what cloud_dog said for any pension savings.
The LISA gives you a 25% "uplift" compared to the 6.25% you'd get in a SIPP.  It's also less prone to future (some might say inevitable) increases in income tax rates or reduction in the tax advantages on pension withdrawal.

just thinking that the LISA you can only contribute to 50? but you have to wait until 60 before you draw it?
i'm 34 now, so only have 16 more years to contribute

That’s £80k before growth, of which you would have only contributed £64k, why the sad face ? 

Real apologies, I thought I had done so, my mistake sorry :-:smile:

because it doesn't allow you to contribute until retirement, so will the 10 years inflation eat into the savings.
not sure whether it's good or not lol 

Alexland

bargainhunter888 said:

because it doesn't allow you to contribute until retirement, so will the 10 years inflation eat into the savings.

Yes if you were using a Cash LISA for age 60 that would be inappropriate as the interest rates are likely to be below inflation. Cash LISAs are only intended for people buying property soon.

That's why there are S&S LISAs so you can invest the money in a sensible asset allocation for which over the long term it has a very good chance of beating inflation and generating a real return. Have a look at Hargreaves Lansdown and AJ Bell YouInvest who both do good S&S LISAs depending on your likely contribution pattern and values.

bargainhunter888

Alexland said:

bargainhunter888 said:

because it doesn't allow you to contribute until retirement, so will the 10 years inflation eat into the savings.

Yes if you were using a Cash LISA for age 60 that would be inappropriate as the interest rates are likely to be below inflation. Cash LISAs are only intended for people buying property soon.

That's why there are S&S LISAs so you can invest the money in a sensible asset allocation for which over the long term it has a very good chance of beating inflation and generating a real return. Have a look at Hargreaves Lansdown and AJ Bell YouInvest who both do good S&S LISAs depending on your likely contribution pattern and values.

Hmm so would I just put £4K in and at end of the year get £1k and say I put it in a vanguard life strategy 100 etc ?
i opened a Hargreaves and landsdown stocks and shares isa 2 weeks ago In the previous tax year 

Alistair31

bargainhunter888 said:

Alexland said:

bargainhunter888 said:

because it doesn't allow you to contribute until retirement, so will the 10 years inflation eat into the savings.

Yes if you were using a Cash LISA for age 60 that would be inappropriate as the interest rates are likely to be below inflation. Cash LISAs are only intended for people buying property soon.

That's why there are S&S LISAs so you can invest the money in a sensible asset allocation for which over the long term it has a very good chance of beating inflation and generating a real return. Have a look at Hargreaves Lansdown and AJ Bell YouInvest who both do good S&S LISAs depending on your likely contribution pattern and values.

Hmm so would I just put £4K in and at end of the year get £1k and say I put it in a vanguard life strategy 100 etc ?
i opened a Hargreaves and landsdown stocks and shares isa 2 weeks ago In the previous tax year 

Have a read here if you’re struggling to understand what we have told you so far;
https://www.moneysavingexpert.com/savings/lifetime-isas/

Alexland

If you have a £4k lump sum to invest your cheapest S&S LISA option is probably AJ Bell as they charge 0.25% and then £1.50 to buy a fund with the contribution and another £1.50 to invest the bonus which is added a month or two later.

You could go with VLS100 but if going 100% equities a tracker fund like HSBC FTSE All World would be slightly cheaper and not have the unfortunate UK bias.