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Best Option for Cash Lump Sum

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  • P933alilli
    P933alilli Posts: 406 Forumite
    Ninth Anniversary 100 Posts
    Thanks for the replies! Maybe i'm trying to overcomplicate things with my limited knowledge. Been watching Lars videos and him recommending just a global index tracker and forgetting that VLS60 is actually global albeit overweight in the UK.
      Also picking up other little tricks of the trade such as a) vanguard doesnt do fractional shares for ETF's, not that it matters for me yet!
    b) 'If' i transfer within vanguard or to another platform it may take a while!
    c) When i come to sell do i actually receive the price when i press the button or the following days price?
  • dunstonh
    dunstonh Posts: 119,781 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Been watching Lars videos and him recommending just a global index tracker and forgetting that VLS60 is actually global albeit overweight in the UK.
    You are jumping all over the risk scale.   How about not watching videos that suggest you go to highest risk and go with what is right for you?

     Also picking up other little tricks of the trade such as a) vanguard doesnt do fractional shares for ETF's, not that it matters for me yet!
    Maybe stick to UT/OEICs then?    In many cases, the UT/OEIC is cheaper or outperforms its comparable ETF.   Since unbundling, the returns are little different in most cases (some exceptions apply).

    And maybe go with a whole of market platform instead so you dont limit yourself to one fund house.  Vanguard do not have the best funds in every area.    

    c) When i come to sell do i actually receive the price when i press the button or the following days price?
    ETFs are real time.   UT/OEICs are next day.



    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • GeoffTF
    GeoffTF Posts: 2,059 Forumite
    1,000 Posts Third Anniversary Photogenic Name Dropper
    dunstonh said:
    Been watching Lars videos and him recommending just a global index tracker and forgetting that VLS60 is actually global albeit overweight in the UK.
    You are jumping all over the risk scale.   How about not watching videos that suggest you go to highest risk and go with what is right for you?
    Lars Kroijer recommends a global tracker for the equity part of the portfolio. He also recommends holding the safest bond in your currency to reduce risk. He does not recommend high risk or low risk. He recommends choosing a level of risk that is appropriate to your risk tolerance and ability to absorb risk.
  • P933alilli
    P933alilli Posts: 406 Forumite
    Ninth Anniversary 100 Posts
    Thanks, i appreciate all the help youve given and, yes, looking back on the thread i realise ive been up and down the risk possibilities like a rollercoaster:) 60:40 it is for now!
  • P933alilli
    P933alilli Posts: 406 Forumite
    Ninth Anniversary 100 Posts
    Just one last queary! (before the next last one!)
       I notice that the prices fell for each VLS fund yesterday but they fell more for the higher the ratio of bonds than equity which is the reverse for what normally happens when ive checked before!
  • Linton
    Linton Posts: 18,185 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Hung up my suit!
    Just one last queary! (before the next last one!)
       I notice that the prices fell for each VLS fund yesterday but they fell more for the higher the ratio of bonds than equity which is the reverse for what normally happens when ive checked before!
    Yes.  Ever since the Great Crash safe bonds such as UK Gilts have been expensive and rising with interest rates low and falling - the two are inversely correlated.   We may be now into a period where interest rates generally rise, particularly in the UK.

    However you should not be looking at day to day figures except for amusement.  Year to year should be sufficient.
  • badger09
    badger09 Posts: 11,615 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Linton said:
    Just one last queary! (before the next last one!)
       I notice that the prices fell for each VLS fund yesterday but they fell more for the higher the ratio of bonds than equity which is the reverse for what normally happens when ive checked before!
    Yes.  Ever since the Great Crash safe bonds such as UK Gilts have been expensive and rising with interest rates low and falling - the two are inversely correlated.   We may be now into a period where interest rates generally rise, particularly in the UK.

    However you should not be looking at day to day figures except for amusement.  Year to year should be sufficient.
    Or masochism?
  • I am looking for the best option for what to do with a lump sum of around £400k as from January
    I have a fair pension and very little outgoings and do not need to secure any income from this money
    However I do want to protect it from inflation so I can bequeath it to my wife after I pass on which will be probably in ten years time

    I do not want to risk the sum being eroded by inflation
    Nor eroded by poor investments

    What is my best option
    My only ever investment was a small pension sum

    A friend has a similar sum invested and says his return has been 8 % total over three years

    This is not going to beat inflation but he is risk adverse and stuck on a cautious investment plan

    Are there any bonds or saving schemes which could net me 3 to 4 % after costs gross

    Or is investment my only option

    I have seen two IFAs but not been impressed by the costs and the proposed plans

    I am keen on ESG focused investments 
    I have had a new quote from an IFAs
    Based on cautious risk ESG investment portfolio based on my wife and I 
    Based on a Unit Trust

    Based on £325 k
    1% Initial Report
    0.5% ongoing IFA fee pa
    Platform/Fund 0.75 pa

    They feel they can protect my funds from inflation over the long term and there will be volatility in the short to medium term period

    Do these charges look ok

    This is a smallish company
    What may happen if the owner retires or sells the business

    Does the claim to match inflation seem ok based on a cautious fund


     





  • GeoffTF
    GeoffTF Posts: 2,059 Forumite
    1,000 Posts Third Anniversary Photogenic Name Dropper
    DoneWorking said:
    Does the claim to match inflation seem ok based on a cautious fund
    Given current valuations and with the cost of using an adviser, I would say that it is optimistic. You are going to have to take a lot of risk to have a realistic chance of beating inflation, and that risk could go against you.
  • GeoffTF said:
    DoneWorking said:
    Does the claim to match inflation seem ok based on a cautious fund
    Given current valuations and with the cost of using an adviser, I would say that it is optimistic. You are going to have to take a lot of risk to have a realistic chance of beating inflation, and that risk could go against you.
    This is really making my head spin
    I'm too anxious to take a higher risk
    Hence return after fees is not going to beat or even match inflation
    Particularly on an ESG Portfolio

    The savings options are likely to give me less than 2% return

    I'm too hold and infirm to start a business

    I have no appetite for property

    Do I have any other options
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