Transferring to new provider

Alexland

TOMM546 said:

Appreciate a DIY platform is more beneficial but I really have no knowledge of the markets and where to invest or which fund to select etc hence why I was looking at a Robo account. Somewhere that is managed for me and I can and drip feed into for the next 5-10yrs 

It's worth having a look at some of the simple 'all in one, oven ready portfolio' multi asset fund series that are available on DIY platforms such as:

HSBC Global Strategy

https://www.hsbc.co.uk/investments/isas/hsbc-global-strategy-portfolios/

(note the HSBC fund 'total cost' examples include their own 0.25% platform fee however you wouldn't have to pay this if you were with another platform who had their own fee structure)

Vanguard LifeStrategy

https://www.vanguardinvestor.co.uk/investing-explained/what-are-lifestrategy-funds?intcmpgn=lifestrategyfunds_learnmore_link

Vanguard LifeStrategy 60 is similar to Nutmeg Fixed Allocation 3/5 (Balanced)
Vanguard LifeStrategy 80 is similar to Nutmeg Fixed Allocation 4/5 (Growth)

TOMM546

I’ll do some more research. Vanguard LifeStratery certainly came up many times in the research I’ve already done. 

Appreciate there’s no right or wrong answer but in a nutshell someone with no market knowledge looking to invest £10-20k over the next 5-15yrs would more sensible to chose to a ‘Ready to go’ portfolio from a DIY platform as apposed to a new basic Robo platform? 

Alexland

TOMM546 said:

Appreciate there’s no right or wrong answer but in a nutshell someone with no market knowledge looking to invest £10-20k over the next 5-15yrs would more sensible to chose to a ‘Ready to go’ portfolio from a DIY platform as apposed to a new basic Robo platform? 

I would suggest investing the time and saving a bit of money - they are both investing in the same markets with similar asset allocations. If you are going to continue to contribute monthly then fixed price DIY platforms offer a big advantage as the account gets bigger.

As a comparison on £20k with monthly contributions:

• Nutmeg Fixed 3/5 (Balanced) would cost 0.45% Nutmeg plus 0.17% ETF managers = £124 pa
• LifeStrategy 60 on Vanguard Investor would cost 0.15% platform plus 0.22% fund manager = £74 pa
• LifeStrategy 60 on Halifax SD would cost £36.50 platform plus 0.22% fund manager = £80.5 pa

However once the account gets to £40k with monthly contributions:

• Nutmeg Fixed 3/5 (Balanced) would cost 0.45% Nutmeg plus 0.17% ETF managers = £248 pa
• LifeStrategy 60 on Vanguard Investor would cost 0.15% platform plus 0.22% fund manager = £148 pa
• LifeStrategy 60 on Halifax SD would cost £36.50 platform plus 0.22% fund manager = £124.50 pa

Then when the account gets to £60k with monthly contributions:

• Nutmeg Fixed 3/5 (Balanced) would cost 0.45% Nutmeg plus 0.17% ETF managers = £372 pa

• LifeStrategy 60 on Vanguard Investor would cost 0.15% platform plus 0.22% fund manager = £222 pa

• LifeStrategy 60 on Halifax SD would cost £36.50 platform plus 0.22% fund manager = £168.50 pa

Note: on Halifax SD there would be an initial £12.50 adhoc trade to avoid delaying the reinvestment of the transferred money. Then the example assumes paying the regular £2 scheduled trade fee.

TOMM546

So after spending the last 2 days researching and learning the basics I’ve decided to do the following - 

- Balance transfer from existing S&S ISA Scottish Widows to Vanguard Life Stratergy 60. No contributions made/will be made so won’t count towards allowance for this year 

- Open a new account with Nutmeg and will start monthly payments of £500 with 7/10 risk and use this to learn and gain some experience

TOMM546

One point I don’t fully understand- if the point of S&S ISA is to leave alone to grow during highs and lows, when transferring from one provider to another that isn’t an in speccie transfer, ie the investments are sold transferred as cash and reinvested by new provider, isn’t this just as bad as cashing in your ISA?