Wealthify Offer

DireEmblem

Have they really thought this through?

I like investing in global funds, and happy to be 'adventurous' and hold long term - but their expected return over 10 years is just 56% on their 'adventurous' portfolio.

Their typical 'adventurous' portfolio contains 20% in cash and bonds, 4% Property.  I'm tempted to join just for the £40 head start as its a really good deal, but really, I cant see that as an 'adventurous' long term option.  You would be better off picking a cheap FTSE All World equity fund.

dunstonh

Their typical 'adventurous' portfolio contains 20% in cash and bonds, 4% Property.

The wording used to describe risk profiles is not consistent but generally speaking you would expect Adventurous to be around the 80-100% equity mark with no cash unless it is for a short term.  I don't know if Wealthify's algorithm on risk takes into account timescale and adjusts the weightings accordingly.  

Projected returns will be low because of long term average weightings and FCA requirements on asset projections.  Synthetic projections are ignored by most people or completely misunderstood.

Alistair31

I went with ‘cautious’. 10% on £400 is a better return than any bank account. I’m not sure they really did think this through  

SFindlay

DireEmblem said:

Have they really thought this through?

Alistair31 said:
 I’m not sure they really did think this through  

Don't think either of you have thought it through otherwise wouldn't be going with Wealthify for long term whereas Wealthify have certainly thought it through and hope to get people like you to join up and stay for 10-15 years.

Stick just enough money in for just long enough to get your £40 bonus then close the account. 

DireEmblem

@SFindlay that is the plan.

Alexland

With investments when someone says 'adventurous' then I would expect to see a roughly 80/20 asset allocation. The customers that invest with them long term are likely to be below average knowledge (otherwise why would they not use a cheaper provider?) so it's sensible that they don't offer anything too high risk.

Alistair31 said:

I went with ‘cautious’. 10% on £400 is a better return than any bank account. I’m not sure they really did think this through  

The problem is their 'cautious' is just stacked with 85% bonds (being so heavy in any asset class has additional risk) so if this is a short term investment just to get the cashback you might get less volatility by going slightly higher up the risk scale. When doing these kind of offers I figure that if I hadn't invested in this one it would have been via one of my main accounts and even if the market drops during the offer period I would then move the money to one of my main accounts for the recovery. So it's a short term account for a long term investment.

Alistair31

Alex, I think I’ll live with the volatility on this, it is basically a free £40, I have absolutely no intention of keeping it there or investing more

ChilliBob

I was thinking of this, only 3,500 accounts will get the cashback though, which makes me wonder if we're too late based on however many X millions the newsletter must go to? - Without the cashback there's no way I'd bother!

triplea35

With the offer also got a refer a friend £25 each, Is this in addition to the £40

DireEmblem

triplea35 said:

With the offer also got a refer a friend £25 each, Is this in addition to the £40

Yeah but your 'friend' is still better with the £40.  If its your missus then that's an extra £50 she can spend on handbags when you refer her.

colsten

DireEmblem said:

triplea35 said:

With the offer also got a refer a friend £25 each, Is this in addition to the £40

Yeah but your 'friend' is still better with the £40.  If its your missus then that's an extra £50 she can spend on handbags when you refer her.

How can you use both offers together? T&Cs also say "This promotion cannot be used in conjunction with any other offer."