burnt out nurse and investing newbie

ratechaser

Eyeful said:

Had a quick look at the Halifax Rick level 4,   Is active management    On going charge=0.99%
From their website it shows Asset Allocation:  stock=44.77%, bonds= 60.8%, Cash= 12.34%. other=3.51%,unclas=3.2%  Total= 124.62%   
  Anyone with suggestions why the asset allocation does not total 100% ?

 While Vanguard Life Strategy Fund (passive investment) Risk level 4      Ongoing charge 0.22%
Asset Allocation: Stock=40%, Bonds=60%, Total=100%

You are paying a lot higher charge for their active management.

I'm sure someone will be along soon to point out that the Vanguard fund you are referencing sounds like VLS40, rather than 'risk level 4' - however assuming you are trying to come up with a lower cost product with a very roughly equivalent asset allocation then you might be right. That said, have you looked at the actual makeup of the bonds and equities - geo/sector etc? Or the relative performance over time of these funds? Might be a bit more meaningful, especially if the Halifax one is actively managed...

Not that I'm expecting it to be a stellar performer, but happy to be wrong there, on the OPs behalf!

indigoblue11

OP banks are really poor at S&S iSA’s. Their charges are high and any advice you get from them is usually free and very poor. 

I’m also new to S&S ISA, but I have done a little bit of trading on forex and some commodities as a short term gain. I don’t have as much cash as you had in fact I had 3.5% of what you have but I still sought advice from a FA. 

I chose Hargreaves Lansdown for my S&S ISA from a shortlist I compiled looking at charges and the level of support I may require and have 7 funds that I chose for a portfolio that was very diverse and represented some of my personal interests. I also went in high risk. 

I also did some research online, reviewed fund managers and spoke to a family member who is a trader. He also advised that banks are a no go for investment because in his words they mug you off with your savings they’ll mug you off on charges on investments. 

I also realigned my pension investment as high risk last year and it’s grown. And also kept a safety net as an emergency in a savings account with the bank. 

The type of advice you need is from a professional, do your research and don’t go for the cheapest option either. As another poster mentioned earlier you seem to have money all over the shop and this will be hard to keep on top of moving forward and no real direction. A lesson learnt was when a relative of mine passed away they like you had a load of cash in lots of places and it’s taken us over 10 years to track where it all is down and we still haven’t found where it all is yet. 

I hope you manage to get your ducks in a row and good luck! 

stellios84

I must admit I'm feeling pretty nervous tonight about the investments I have already made now pondering if I should seek financial advice ASAP bail out and start again? It seems I have been somewhat  seduced by the simplicity of online platforms.

indigoblue11

Online platforms - there are some good ones out there. Don’t feel nervous, you obviously posted because you weren’t convinced on the decisions. 

Get in touch with a FA. 

Let us know how you get on. 

Eyeful

With such a large sum of money as you are nervous, I suggest finding a Independent Financial Advisor (IFA) in your area. They should be able to see if you have chosen the correct funds for your circumstances, give you financial advice and set your mind at rest. Read through these:

https://www.which.co.uk/money/investing/financial-advice
https://www.moneysavingexpert.com/savings/best-financial-advisers/

Let us know what you decide and how you get on

ratechaser

stellios84 said:

I must admit I'm feeling pretty nervous tonight about the investments I have already made now pondering if I should seek financial advice ASAP bail out and start again? It seems I have been somewhat  seduced by the simplicity of online platforms.

Look at it this way, you've not said anything to suggest you've fallen for any investment scams (of which there are many waiting for the unwary), or put your money anywhere that is so fundamentally risky as to be totally unsuitable (single stocks, crypto, gold - although there are those on here that do use them to a degree).

So although you should find that an IFA gives you some pointers and structure that will help you frame your objectives (retiring at 55 if that's a priority - could be doable...?) and refine your investments, it's not like you're at significant risk of losing your money overnight with what you have now. 

Or if you do, there will be plenty more of us (supposedly more experienced investors) in the same boat!

Mr.Saver

Eyeful said:

Had a quick look at the Halifax Rick level 4,   Is active management    On going charge=0.99%
From their website it shows Asset Allocation:  stock=44.77%, bonds= 60.8%, Cash= 12.34%. other=3.51%,unclas=3.2%  Total= 124.62%   
  Anyone with suggestions why the asset allocation does not total 100% ?

 While Vanguard Life Strategy Fund (passive investment) Risk level 4      Ongoing charge 0.22%
Asset Allocation: Stock=40%, Bonds=60%, Total=100%

You are paying a lot higher charge for their active management.

Rounding errors, short position or leverage. Or, you were looking at the wrong place - as grumiofoundation pointed out that the numbers on https://www.halifax.co.uk/investing/start-investing/ready-made-investments.html do add up to ~100%.

LHW99

Don't panic over the investments IMO. As ratechaser says, they are not dodgy, just maybe very cautious and unlikely to go wildly up (or possibly down) over a short time scale, although one can never be sure.

Look into increasing your payments into your current pension, and read up a bit about investing generally. ISA's can always be transferred to another platform / investment fund(s) in the future if required.

And definately make sure it is an IFA, the I means independent, because FA's are just salesmen and their charges are likely to be higher and their fund choices less appropriate for you.

Eyeful

Mr.Saver said:

Eyeful said:

Had a quick look at the Halifax Rick level 4,   Is active management    On going charge=0.99%
From their website it shows Asset Allocation:  stock=44.77%, bonds= 60.8%, Cash= 12.34%. other=3.51%,unclas=3.2%  Total= 124.62%   
  Anyone with suggestions why the asset allocation does not total 100% ?

 While Vanguard Life Strategy Fund (passive investment) Risk level 4      Ongoing charge 0.22%
Asset Allocation: Stock=40%, Bonds=60%, Total=100%

You are paying a lot higher charge for their active management.

Rounding errors, short position or leverage. Or, you were looking at the wrong place - as grumiofoundation pointed out that the numbers on https://www.halifax.co.uk/investing/start-investing/ready-made-investments.html do add up to ~100%.

Definitely ended up looking at the wrong place!

grumiofoundation

stellios84 said:

I must admit I'm feeling pretty nervous tonight about the investments I have already made now pondering if I should seek financial advice ASAP bail out and start again? It seems I have been somewhat  seduced by the simplicity of online platforms.

As posters above have said your choices of investment aren't 'wrong' - doesn't appear that you have invested anything dramatically particularly unsuitable. 

However overall by mixing and matching you might end up with an assest allocation that doesn't match what you originally set out to do, or that contains significant overlap but for more costs. 

Speaking to an IFA does seem like it might be sensible, if nothing else to help you with your aims for the money.

For example in your fist post you mention that you are 50, considering stopping work at 55 - this implies paying the max. you can into a pension would be sensible for you (more tax efficient than stocks and shares ISA).

Can you buy additional years of NHS pension?
Do you have full state pension entitlement? 

You also mention a 5 year timescale - but if this is investing for retirement likelihood is this will be invested for longer than 5 years? (Very unlikely would be sensible to sell all investments to cash at 55).