Discretionary employer pension contributions & mortgage affordability assessments from First Direct

dunstonh

carl0s said:

dunstonh said:

I understand many have suggested that the S&P 500 is a very good choice if you are to only have one investment. This is off topic though.

The United States accounted for 15.9% of the global GDP in 2019 

Not 24% then ?

You're talking about peoples emotional tendencies as though I must align with them.
"You're from the UK. UK people tend to do this. American people tend to do that."

Peoples tendencies are largely built in the tax rules of the country they are domiciled,  product availability and culture.
Are you a US taxpayer?   - no.  so you are not subject to the taxation of US equities as a US citizen would be.   
Do you live in the US?   - no. So, you are subject to currency fluctuations that a US resident would not be subject to.
So, why are you trying to follow what a US resident may do?  
Be very wary of reading stuff on the internet that is aimed as US investors.  It is a common newbie mistake.  It comes up in the investment section of this board frequently.
Diversification is one of the most important things when it comes to investing.   You seem to think that Asia will not be playing any part of the future world economy.  Nor Europe, Japan or the emerging markets and others.   

carl0s

dunstonh said:

Are you a US taxpayer?   - no.  so you are not subject to the taxation of US equities as a US citizen would be.   
Do you live in the US?   - no. So, you are subject to currency fluctuations that a US resident would not be subject to.

I understand the currency fluctuation, and I'm fine with that.
I just don't get the other bit though. You're saying that in the US, they have a tax advantage to trackers, because of the CGT that has to paid paid on stock sales. Managed funds tend to buy/sell stocks, trackers don't. OK. So that might be why trackers are recommended more often in US editorial material. Is that really a reason why I as a UK person would not want an investment in the S&P 500 or NASDAQ for my SIPP or ISA though? I am trying to keep an eye on management fees as well as other ongoing charges, platform fees, etc. I'm already expecting a possible doubling of fees when Fidelity kill off the Cavendish rate (probably!)

I have some global, managed funds in my ISA: Baillie Gifford Global Alpha, Lindsell Train Global Equity, as well as the UBS S&P 500. My SIPP is just Lindsell Train UK and UBS S&P 500, for now. I am only 1 year in to this though.

[Deleted User]

Pretty sure Precise can add company pension contributions back in to profit.   Rates arent great.

Just thought id add something in the middle of rhe bickering :-) 

K_S

Deleted_User said:

Pretty sure Precise can add company pension contributions back in to profit.   Rates arent great.

Just thought id add something in the middle of rhe bickering :-) 

@Deleted_User Thanks for that JMA, that's really good to know!

dunstonh

OK. So that might be why trackers are recommended more often in US editorial material. Is that really a reason why I as a UK person would not want an investment in the S&P 500 or NASDAQ for my SIPP or ISA though?

There is absolutely nothing wrong with holding either of those for your US allocation in your portfolio.    The issue is that you are only doing 50/50 into UK and US but nowhere else.       

 I am trying to keep an eye on management fees as well as other ongoing charges, platform fees, etc. I'm already expecting a possible doubling of fees when Fidelity kill off the Cavendish rate (probably!)

Historically, Fidelity retain special terms on the percentage rates and don't increase them.    Cavendish were not the only firm to get discounted terms.

carl0s

dunstonh said:

 I am trying to keep an eye on management fees as well as other ongoing charges, platform fees, etc. I'm already expecting a possible doubling of fees when Fidelity kill off the Cavendish rate (probably!)

Historically, Fidelity retain special terms on the percentage rates and don't increase them.    Cavendish were not the only firm to get discounted terms

I'm just reviewing my ongoing fees with a view to moving some of my stuff to another provider.

I can confirm that Fidelity have not retained the special terms (0.25% platform fee made up of 0.20 Fidelity + 0.05 Cavendish)

I received this letter back in December: