Stocks and Shares ISA or not??

Alexland

jimjames said:

If you buy through HL this fund for example will cost you 0.53% pa in fees - the 0.08% fund plus 0.45% HL fee. A Vanguard fund would need to cost under 0.38% pa to make it cheaper to hold on their platform (where the fees are 0.15%) and the majority are lower than this.

By happy chance Vanguard do have a Dev World ex-UK fund (not that I am suggesting it for the OP) at 0.14% so 0.29% total. Even better according to YouInvest data the 10 year annualised return for the Vanguard fund is 15.26% compared to the Legal and General fund at 14.63% (maybe add 0.05% for the HL discounted class) so higher returns and lower platform fees.

Ciprico

....you say the gift is as an "early inheritance", one point to consider is if your mother is unfortunate enough to pass away in the next seven years, depending on the value of the rest of her estate, you may still be liable to pay inheritance tax on the 15k....

There are ways to mitigate this if this is a concern...

Alexland

Ciprico said:

you may still be liable to pay inheritance tax on the 15k....

Even if there was Inheritance Tax due on this gift it would usually paid by the estate.

Cathyandtwins

Hi all,

Thank you to everyone who responded, you have all given me a lot to think about and research and I certainly won't be committing myself to anything suggested by the previous Financial Adviser any time soon.

Thanks again,

Cathy :-)

london21

jimjames said:

london21 said:

Alexland said:

london21 said:

My recommendation would be low-cost tracker funds.
I use Hargreaves Lansdown Stocks and shares ISA

For low-cost tracker funds why would the OP pay HL 0.45% when Vanguard Investor platform fee only 0.15%? Even if they wanted a wider choice then Fidelity are 0.35% or AJ Bell are 0.25% (but have £1.50 trade charges).

london21 said:

Like others have recommended, worth reading the HL guide to investing in funds and other usful resources.

Do HL have any guides that don't end up with the suggestion that you consider a mostly expensive fund from their wealth list or an extremely expensive fund from HL themselves?

Rather than going entirely passive equities (and suffer occasional circa 50% stock market crashes) the OP might prefer lower volatility and consider a multi asset fund series such as Vanguard LifeStrategy, HSBC Global Strategy, etc as tebbins suggested above. Either way fund fees should not need to be more than around 0.2%

Once they have built an understanding with passive or multi asset funds they will be in a better position to determine if they want to try and select any actively managed investments which may do better or worse.

LEGAL & GENERAL INTERNATIONAL INDEX TRUST CLASS C - ACCUMULATION (GBP) Wealth Shortlist fund

Net ongoing charge: 0.08%

If you buy through HL this fund for example will cost you 0.53% pa in fees - the 0.08% fund plus 0.45% HL fee. A Vanguard fund would need to cost under 0.38% pa to make it cheaper to hold on their platform (where the fees are 0.15%) and the majority are lower than this.

I have just called HL did not realise they charged 0.45% annual management fees.
I like having all my holdings with 1 company but looks like later could possibly move to a cheaper company. 

jozbo

Charges are one consideration with an investment platform —and an important one , of course - but not the only thing to bear in mind.
I like HL personally because of the sheer diversity of funds they offer and their customer service is excellent. Had a terrible experience with another platform that I won’t name (not vanguard) and having been with HL for about 10 years and bought and sold with them I can’t fault them.

Alexland

jozbo said:

I like HL personally because of the sheer diversity of funds they offer and their customer service is excellent.

Individual experiences will vary but I was pretty disappointed with HL in the year or two we had accounts and didn't feel they were any more special than the many other platforms we have used. In respect of our transfers in and out they were exceptionally poor and that was pre-covid.
As a final kick in the teeth HL incorrectly told HMRC that my LISA had been closed when I transferred to AJ Bell which only became evident when making contributions in the next tax year and the bonus claims were getting rejected. HMRC required AJ Bell to chase HL for months to confirm their mistake.
Still the HL app is good and I still use it's watchlist for tracking our investments on lower cost platforms.

DireEmblem

What are your long term goals. That's the number 1.

Do you have a property?  You could get an extra 25% each year you add 4k until you buy a property in a LISA.

If you already have a property, what is your current LTV.  You generally get the best interest rates when your LTV is under 60%.  It might be worth while getting to this mark first(compare your interest savings going forward).

Otherwise I would DIY, go through like one of the platforms possibly like Nutmeg, Wealthify or InvestEngine.  They're probably all you need.  They ask a series of questions to determine your risk appetite, give examples of potential returns over X years, be much cheaper than an IFA, and probably give you a small signup bonus to cover their fees for the first while when you signup(google to see what deals there are).

All the best!

In terms of your questions:

1. Probably not as the fees will eat into your profit and as above there are much cheaper part DIY platforms that will manage your funds once you answer a series of simple questions for much lower costs.

2.  As above.

3.  This all depends on your risk appetite and how long you are willing to leave the funds 'invested' for.  If you need the funds in the next year, then probably Premium bonds.  If anything over 5 years, then invest.

eskbanker

SeniorSam said:

Vanguard would be best. Lowest charges, a wide range of funds and if you look at You Tube and input vanguard funds, there is a great deal of information that you will find easy to absorb and it will help you for the future.

[...]

I'm a retired IFA...

Prior to your retirement, were you prone to making such sweeping generalisations based on minimal information?

Albermarle

drenatan said:

Short-term traders expect to make a profit in the next minute or hour. We have a lot of smart girls here, does anyone buy stocks, stocks, index funds? I just recently discovered this type of investment for myself, but it's very hard to figure out. My friend advised me to buy Canadian bank stocks if I want stable growth, not super big, 7-10%. I prefer https://www.checkman.com, can anyone advise anything?

You have added to a thread that is 9 months since the last post, with a pretty irrelevant post.
Suggest you start a new thread.