New ISA -Wealthify / Nutmeg? Or something else?

Apricota

Hello, 

I'm looking to spread out my investments a bit more. Thinking a second ISA would do it.

I have one ISA plus an IFISA with Crowd Property at the moment. I also invest B2B/P2P with Proplend and Crowd Property, but it’s been hard to stay invested, particularly recently.

Hence the consideration of a 2nd ISA, this would need to be run by others on low fee. The existing one is via an IFA at 1% so not bad but thought a separate one might be better.

Would there be any thoughts on the above or indeed Wealthify or Nutmeg, as these two are auto and lower fees.

thanks

Thrugelmir

1% is potentially a large cut of potential returns over the long term. Find something cheaper ASAP. 

Alexland

Apricota said:

Would there be any thoughts on the above or indeed Wealthify or Nutmeg, as these two are auto and lower fees.

They might be lower but still not attractive fees. Have you considered Vanguard, one of the world's largest asset managers, where their platform fee is 0.15% and their funds/etfs are around 0.20% depending on which you select so overall around 0.35% pa.

https://www.vanguardinvestor.co.uk/

MX5huggy

With those 2 it feels like you are paying for some slick marketing and a flashy website to make investing cool. 

Vanguard charge 0.15% platform fee (Nutmeg 0.75%, Weathlify similar). You have a limited choice of funds but then if you want unlimited go with HL (0.45%), Fidelity or one of the other whole market platforms. 

Apricota

Thank you, am going to look at Vanguard now. 

Apricota

Thank you, am going to look at Vanguard now. 

Thrugelmir said:

1% is potentially a large cut of potential returns over the long term. Find something cheaper ASAP. 

Ok, think I’ve over simplified things. It’s 0.3% platform, 0.3% fund charge, 0.34% portfolio manager fee and 1% ongoing advisor charge. This is for my SIPP and ISA…..it’s worse than I thought. 

Would very much appreciate feedback.

Alexland

Apricota said:

Would very much appreciate feedback.

With those charges I would be crying myself to sleep each night.

MX5huggy

That 1% fee is a real drag on returns but it depends on what it does for you. If it stopped you selling all your stocks in March last year and waiting till March this year to reinvest then it’s a bargain. 

Apricota

i thought I was doing so well. And then really saw the fees, hadn’t noticed as they come out of pot and not tangible money. It’s a wake up.

Apricota

MX5huggy said:

That 1% fee is a real drag on returns but it depends on what it does for you. If it stopped you selling all your stocks in March last year and waiting till March this year to reinvest then it’s a bargain. 

It hasn’t stopped me doing anything as I’ve remained invested but now think how much!

Albermarle

 It’s 0.3% platform, 0.3% fund charge, 0.34% portfolio manager fee and 1% ongoing advisor charge. This is for my SIPP and ISA…..it’s worse than I thought. 

If you want to use an IFA , then charges will almost always be higher , and the reward difficult to quantify .
The problem you have with the current charges is that 1% for the advisor is high , especially as they have delegated a lot of the work to a Portfolio manager . So you are paying double . Even 1 % itself is on the high side unless your portfolio is not that large .
If you said platform fee 0.3% - fund fee 0.3% - IFA 0.75 % and no portfolio manager it looks better .
Probably will not help to say that some DIY investors on this forum are probably paying 0.2% all in , although that would not be typical .