Vanguard Lifestrategy fund advice

NanT

Hello I am planning on moving £40k from a cash isa to a S&S isa and investing it in a Vanguard Lifestrategy fund and I intend to add further money to it over the coming years. This will be my first S&S isa. Please correct me if I'm wrong but as I understand it I will pay 0.22% charges whichever platform I use but then there will be additional charges of varying amounts depending on which platform it is.
Which platform would you advise using so that I will pay the least charges overall? 

eskbanker

You won't actually part company with the 0.22% OCF as it's an internal cost paid within the fund (i.e. before results are shown), but you can compare platform costs for your investing profile at comparison sites such as:

http://monevator.com/compare-the-brokers/

http://www.comparefundplatforms.com/

https://forums.moneysavingexpert.com/discussion/5583030rel="nofollow" href="https://www.boringmoney.co.uk/calculator/">https://www.boringmoney.co.uk/calculator/

virenque

VLS held within Vanguard will cost you circa £15 per quarter with that £40k, but there may come a point when holding VLS elsewhere is cheaper.

Albermarle

You should be aware that the small differences in annual platform charges ( 0.2% for example ) will be > 100 times less than how much the actual fund could go up and down.
Just to put platform charges in perspective.

Alexland

Albermarle said:

You should be aware that the small differences in annual platform charges ( 0.2% for example ) will be > 100 times less than how much the actual fund could go up and down.
Just to put platform charges in perspective.

Yes but then over a 50 year investment a 0.20% difference in annual charges could result in around 10% different outcome.

So if you can get the investment you want at a lower price why not?

NanT

eskbanker said:

You won't actually part company with the 0.22% OCF as it's an internal cost paid within the fund (i.e. before results are shown), but you can compare platform costs for your investing profile at comparison sites such as:

http://monevator.com/compare-the-brokers/

http://www.comparefundplatforms.com/

https://forums.moneysavingexpert.com/discussion/5583030rel="nofollow" href="https://www.boringmoney.co.uk/calculator/">https://www.boringmoney.co.uk/calculator/

Thanks for the info re. the 0.22% OCF and links to compare costs, looks like Halifax and iWeb are the two cheapest. Any thoughts on on these two platforms? 

NanT

Alexland said:

Albermarle said:

You should be aware that the small differences in annual platform charges ( 0.2% for example ) will be > 100 times less than how much the actual fund could go up and down.
Just to put platform charges in perspective.

Yes but then over a 50 year investment a 0.20% difference in annual charges could result in around 10% different outcome.

So if you can get the investment you want at a lower price why not?

My thoughts exactly. 

Albermarle

So if you can get the investment you want at a lower price why not?

I do not disagree, but was just making the point that the investment choice/performance is much more important.

Some newbie investors/posters ( not necessarily this one ) seem to forget that sometimes.

eskbanker

NanT said:

eskbanker said:

You won't actually part company with the 0.22% OCF as it's an internal cost paid within the fund (i.e. before results are shown), but you can compare platform costs for your investing profile at comparison sites such as:

http://monevator.com/compare-the-brokers/

http://www.comparefundplatforms.com/

https://www.boringmoney.co.uk/calculator/

Thanks for the info re. the 0.22% OCF and links to compare costs, looks like Halifax and iWeb are the two cheapest. Any thoughts on on these two platforms? 

They're cheap but that doesn't necessarily mean they're the best - what are you looking for?  Other criteria for judging platforms would include range of investments offered, customer service, availability of apps/quality of tech, etc, but they're both mainstream products with a reasonable reputation.

Alexland

Albermarle said:

I do not disagree, but was just making the point that the investment choice/performance is much more important.

I agree but if they have already decided on the VLS investment then at £40k (and hopefully growing) then it would be cheaper in the long run to pay iWeb's £100 setup charge and only pay the occasional £5 trade. We use iWeb and find them to be good enough but as with all platforms individual experiences can vary.

havingaball74

A previous poster on another thread added Lloyds to the platform mix. Does anyone have any experience of them Vs iweb?