DFM/FA Arrangement to DIY

Preacher64

I don’t understand why you would take your FA’s advice and not take the 25% TFLS on the basis that it is better for inheritance planning if your aim is to ultimately leave nothing, with any residue going to charity.
That approach seems to be in contrast to your stated strategy and opens you up to a higher LTA impact.

Thrugelmir

Because_I_Can said:

Option 1

Vanguard Lifestrategy 60% Equity - 35%

HSBC Global Strategy Balanced Portfolio C Acc - 25%

L&G Multi Index 5 Acc - 25%

Vanguard FTSE UK All Share Tracker - 5%

Vanguard UK Inflation Linked Bond ETF - 10%

Option 2

Vanguard Lifestrategy 60% Equity - 38%

Vanguard S&P Tracker - 13%

Vanguard FTSE UK All Share Tracker - 6%

Vanguard UK Inflation Linked Bond ETF - 9%

Vanguard Emerging Markets Index - 6%

Legal & General Pacific Index - 6%

Vanguard FTSE Japan ETF - 6%

WealthSelect Active Managed Portfolio 5 - 13%

Cash - 3%

Any feedback offered gratefully received.

Portfolios need to be constructed with thought not just cobbled together.  Care to share your research and the rational behind the choices and %'s allocated.  Also the geographical analysis,  the % invested in the top 20 holdings (as there's considerable duplication contained within) , the sector/industry split and lastly the equity/bond/cash split. 

Because_I_Can

Thrugelmir said:

Because_I_Can said:

Option 1

Vanguard Lifestrategy 60% Equity - 35%

HSBC Global Strategy Balanced Portfolio C Acc - 25%

L&G Multi Index 5 Acc - 25%

Vanguard FTSE UK All Share Tracker - 5%

Vanguard UK Inflation Linked Bond ETF - 10%

Option 2

Vanguard Lifestrategy 60% Equity - 38%

Vanguard S&P Tracker - 13%

Vanguard FTSE UK All Share Tracker - 6%

Vanguard UK Inflation Linked Bond ETF - 9%

Vanguard Emerging Markets Index - 6%

Legal & General Pacific Index - 6%

Vanguard FTSE Japan ETF - 6%

WealthSelect Active Managed Portfolio 5 - 13%

Cash - 3%

Any feedback offered gratefully received.

Portfolios need to be constructed with thought not just cobbled together.  Care to share your research and the rational behind the choices and %'s allocated.  Also the geographical analysis,  the % invested in the top 20 holdings (as there's considerable duplication contained within) , the sector/industry split and lastly the equity/bond/cash split. 

Far too much ‘noise’ there to be honest which I guess is the reason why most potential DIY investors are put off.  Precisely why I’ll either stick it all into VLS60 as a default or get an IFA to start me off on a simple Ford Escort type portfolio.  I’m looking at a simple low cost tracker / hybrid type portfolio, nothing spectacular. 

Because_I_Can

Preacher64 said:

I don’t understand why you would take your FA’s advice and not take the 25% TFLS on the basis that it is better for inheritance planning if your aim is to ultimately leave nothing, with any residue going to charity.
That approach seems to be in contrast to your stated strategy and opens you up to a higher LTA impact.

Swings and roundabouts per Albermarles earlier comments?  Or am I off the mark. 

dunstonh

Because_I_Can said:

Thrugelmir said:

Because_I_Can said:

Option 1

Vanguard Lifestrategy 60% Equity - 35%

HSBC Global Strategy Balanced Portfolio C Acc - 25%

L&G Multi Index 5 Acc - 25%

Vanguard FTSE UK All Share Tracker - 5%

Vanguard UK Inflation Linked Bond ETF - 10%

Option 2

Vanguard Lifestrategy 60% Equity - 38%

Vanguard S&P Tracker - 13%

Vanguard FTSE UK All Share Tracker - 6%

Vanguard UK Inflation Linked Bond ETF - 9%

Vanguard Emerging Markets Index - 6%

Legal & General Pacific Index - 6%

Vanguard FTSE Japan ETF - 6%

WealthSelect Active Managed Portfolio 5 - 13%

Cash - 3%

Any feedback offered gratefully received.

Portfolios need to be constructed with thought not just cobbled together.  Care to share your research and the rational behind the choices and %'s allocated.  Also the geographical analysis,  the % invested in the top 20 holdings (as there's considerable duplication contained within) , the sector/industry split and lastly the equity/bond/cash split. 

Far too much ‘noise’ there to be honest which I guess is the reason why most potential DIY investors are put off.  Precisely why I’ll either stick it all into VLS60 as a default or get an IFA to start me off on a simple Ford Escort type portfolio.  I’m looking at a simple low cost tracker / hybrid type portfolio, nothing spectacular. 

If you are going to dip into single sector investment funds then you need to follow a strategy.    Some people use fluid weightings.  Others use static weightings.  Some people target a volatility range they are comfortable with.   Others just pick numbers out of a hat and hit and hope.   Whatever you do, you need a strategy.

If you don't have a strategy in place, then stick with multi-asset funds.

Thrugelmir

Because_I_Can said:

Thrugelmir said:

Because_I_Can said:

Option 1

Vanguard Lifestrategy 60% Equity - 35%

HSBC Global Strategy Balanced Portfolio C Acc - 25%

L&G Multi Index 5 Acc - 25%

Vanguard FTSE UK All Share Tracker - 5%

Vanguard UK Inflation Linked Bond ETF - 10%

Option 2

Vanguard Lifestrategy 60% Equity - 38%

Vanguard S&P Tracker - 13%

Vanguard FTSE UK All Share Tracker - 6%

Vanguard UK Inflation Linked Bond ETF - 9%

Vanguard Emerging Markets Index - 6%

Legal & General Pacific Index - 6%

Vanguard FTSE Japan ETF - 6%

WealthSelect Active Managed Portfolio 5 - 13%

Cash - 3%

Any feedback offered gratefully received.

Portfolios need to be constructed with thought not just cobbled together.  Care to share your research and the rational behind the choices and %'s allocated.  Also the geographical analysis,  the % invested in the top 20 holdings (as there's considerable duplication contained within) , the sector/industry split and lastly the equity/bond/cash split. 

Far too much ‘noise’ there to be honest which I guess is the reason why most potential DIY investors are put off.  Precisely why I’ll either stick it all into VLS60 as a default or get an IFA to start me off on a simple Ford Escort type portfolio.  I’m looking at a simple low cost tracker / hybrid type portfolio, nothing spectacular. 

That's why some people happily pay to use advisors. The noise does indeed becomes bewildering.  DIY is effortless in a raging bull market. As the incoming tide lifts all boats. Investors start to question what value advisors add. Once the tide starts to recede then investors have to make conscious decisions for themselves. There'll be a stampede for the exits when the panic sets in. Every investor for themselves.  Very predictable behaviour. Been seen time and time before. 

gm0

It may be helpful to write an investment statement.  If only to help test the selections against why you thought to add them to the whole.

Goals Timescale Target and Essential Income Inheritance.  Ethics: Green energy, Ethical Investment, Islamic etc.

Risk capacity and risk appetite

Investment philosophy (or more than one) - low cost passive, squad of star active FMs, Wealth Preservation etc. Mix

Beliefs about valid design principles - such as the one about diversification within asset class which can lead to say Small Cap equity funds being a desired add on

Extraction/Rebalancing methods - may make separate funds desirable over multi-asset for equities/bonds - or not.

Decisions about role/space for various Alts, Property and Gold

Candidate model portfolio shapes compatible with these ideas - open spots for funds - Simple, Core/Satellite, Golden Butterfly, PP etc.

Candidate Funds for a selected shape - holdings, performance, costs do they fit the jigsaw

Apply any hedging rules you hold dear such as multiple platforms, multiple Fund Managers

% Allocation

Test that aggregate design against a similar risk tier with one and done offerings and IA averages on Trustnet - is anything weird across available history. Does what you built tie back to the very top level. 
How does it behave in corrections vs these alternatives.
Review top 20 holdings and fact sheets for any stock concentration silliness across the choices.

Recheck the above at some rebalancings for drift and keep an eye on news about the platforms and funds used.

Will this top down amateur hour approach work.  No idea.  Seems better than a pin. 

There is a leap of faith or two in there somewhere.

bostonerimus

Thrugelmir said:

Because_I_Can said:

Thrugelmir said:

Because_I_Can said:

Option 1

Vanguard Lifestrategy 60% Equity - 35%

HSBC Global Strategy Balanced Portfolio C Acc - 25%

L&G Multi Index 5 Acc - 25%

Vanguard FTSE UK All Share Tracker - 5%

Vanguard UK Inflation Linked Bond ETF - 10%

Option 2

Vanguard Lifestrategy 60% Equity - 38%

Vanguard S&P Tracker - 13%

Vanguard FTSE UK All Share Tracker - 6%

Vanguard UK Inflation Linked Bond ETF - 9%

Vanguard Emerging Markets Index - 6%

Legal & General Pacific Index - 6%

Vanguard FTSE Japan ETF - 6%

WealthSelect Active Managed Portfolio 5 - 13%

Cash - 3%

Any feedback offered gratefully received.

Portfolios need to be constructed with thought not just cobbled together.  Care to share your research and the rational behind the choices and %'s allocated.  Also the geographical analysis,  the % invested in the top 20 holdings (as there's considerable duplication contained within) , the sector/industry split and lastly the equity/bond/cash split. 

Far too much ‘noise’ there to be honest which I guess is the reason why most potential DIY investors are put off.  Precisely why I’ll either stick it all into VLS60 as a default or get an IFA to start me off on a simple Ford Escort type portfolio.  I’m looking at a simple low cost tracker / hybrid type portfolio, nothing spectacular. 

That's why some people happily pay to use advisors. The noise does indeed becomes bewildering.  DIY is effortless in a raging bull market. As the incoming tide lifts all boats. Investors start to question what value advisors add. Once the tide starts to recede then investors have to make conscious decisions for themselves. There'll be a stampede for the exits when the panic sets in. Every investor for themselves.  Very predictable behaviour. Been seen time and time before. 

The OP has a DB pension so they might be in a better position than most to avoid the panicking herd. With a minimum guaranteed income level from a DB pension it gets a lot easier to implement something like a Guyton Klinger withdrawal strategy from a VLS100 portfolio maybe augmented with whatever flavor of the month you like ie Fundsmith, US equity, Asian Small Cap, Indonesian Pork Bellies (that's a small fund).
With the DB pension acting like your fixed income/bond allocation one very viable strategy with a global equity portfolio is to do nothing.

Because_I_Can

Thrugelmir said:

That's why some people happily pay to use advisors. The noise does indeed becomes bewildering.  DIY is effortless in a raging bull market. As the incoming tide lifts all boats. Investors start to question what value advisors add. Once the tide starts to recede then investors have to make conscious decisions for themselves. There'll be a stampede for the exits when the panic sets in. Every investor for themselves.  Very predictable behaviour. Been seen time and time before. 

That’s such a true statement Thrugelmir.  

Because_I_Can

gm0 said:

It may be helpful to write an investment statement.  If only to help test the selections against why you thought to add them to the whole.

Lots of great feedback and suggestions on this thread - many thanks to all that have taken the time to comment.  Whilst I may have managed the ISA elements of our overall investment portfolio, I’m clearly still in the novice camp when it comes to DIY.  Multi assets and VLS have served me well for the ISAs and I feel they could for the large SIPP element as well.

I have a good idea of expenditure needs over the next few decades and have the comfort of knowing when the DB and SPs kick in. I also have a large (£200k) tax free lump sum coming from the OH’s DB/AVC pension in 5 years time.  I’m not seeking stellar returns, just enough to allow the journey to continue. I’ll have 18 months worth of spends easily accessible should we suffer a prolonged downturn to mitigate SORR and can dial things down if needed knowing I have the DB to essential cover BAU.

A couple of low cost MAs it is then……