Investing in Global Trackers and other similar investments

DoneWorking

GeoffTF said:

bostonerimus said:

DoneWorking said: What is the anticipated return after costs

Open ended questions like that are impossible to answer. There is plenty of historical data for you to look at and you need to chose a few funds and research them yourself. This is why multi-asset funds like Vanguard Life Strategy range are good for the beginner because the give you a diversified portfolio in a single fund. Take a look at the returns and component parts for VLS100, VLS80, VLS69 VLS40 and VLS20.

The Vanguard economists' estimates are of interest here.

"In sterling terms, we think UK shares over the next ten years are likely to return between 4.6% and 6.6% on an annualised basis. For unhedged, non-UK shares the projected range is between 2.8% and 4.8%."

"We see UK bonds offering returns of between 0.8% and 1.8% on average over the next ten years, while international (non-UK) bonds will offer returns of between 0.7% and 1.7%, which is slightly up on our expectations from last year."

https://www.vanguardinvestor.co.uk/articles/latest-thoughts/markets-economy/misstep-by-policymakers-key-risk-to-markets-2022

Lets say 3.8% for equities and 1.2% for bonds. 50 : 50 would give a return of about 2.5%. With the IFA costs that OP has been quoted, that would be less than 1%. He would be better of in a savings account. SustainableLife would probably return a little below inflation. In reality, nobody knows the future. The actual returns could be much more, or much less. Nonetheless, with the economic outlook, and the high prices of both equities and bonds, the next ten years does not look rosy.

Your analysis set out above is what is driving me crazy

Under IFA option I am worried that after costs I would not get a decent return to safeguard against inflation

And of course there is the possibility of volatility resulting in a reduction 

Under DIY the return could be better but still not enough to safeguard against inflation

And again I need to think about volatility and my current lack of knowledge and experience

I could of course just use all of my funds in savings accounts and try to get an average of 2% return

This will not keep up with inflation but my money remains

Albeit with less spending power

To compensate for this I could pay for all of the things I need to do and am able to right now 

Such as re roofing painting replacement car etc

My remaining cash would have less spending power as time goes on but as there is a significant amount of it it should last provided I am careful and not extravagent

To be honest this issue is driving me mad

GeoffTF

DoneWorking said:

GeoffTF said:

bostonerimus said:

DoneWorking said: What is the anticipated return after costs

Open ended questions like that are impossible to answer. There is plenty of historical data for you to look at and you need to chose a few funds and research them yourself. This is why multi-asset funds like Vanguard Life Strategy range are good for the beginner because the give you a diversified portfolio in a single fund. Take a look at the returns and component parts for VLS100, VLS80, VLS69 VLS40 and VLS20.

The Vanguard economists' estimates are of interest here.

"In sterling terms, we think UK shares over the next ten years are likely to return between 4.6% and 6.6% on an annualised basis. For unhedged, non-UK shares the projected range is between 2.8% and 4.8%."

"We see UK bonds offering returns of between 0.8% and 1.8% on average over the next ten years, while international (non-UK) bonds will offer returns of between 0.7% and 1.7%, which is slightly up on our expectations from last year."

https://www.vanguardinvestor.co.uk/articles/latest-thoughts/markets-economy/misstep-by-policymakers-key-risk-to-markets-2022

Lets say 3.8% for equities and 1.2% for bonds. 50 : 50 would give a return of about 2.5%. With the IFA costs that OP has been quoted, that would be less than 1%. He would be better of in a savings account. SustainableLife would probably return a little below inflation. In reality, nobody knows the future. The actual returns could be much more, or much less. Nonetheless, with the economic outlook, and the high prices of both equities and bonds, the next ten years does not look rosy.

Your analysis set out above is what is driving me crazy

Under IFA option I am worried that after costs I would not get a decent return to safeguard against inflation

And of course there is the possibility of volatility resulting in a reduction 

Under DIY the return could be better but still not enough to safeguard against inflation

And again I need to think about volatility and my current lack of knowledge and experience

I could of course just use all of my funds in savings accounts and try to get an average of 2% return

This will not keep up with inflation but my money remains

Albeit with less spending power

To compensate for this I could pay for all of the things I need to do and am able to right now 

Such as re roofing painting replacement car etc

My remaining cash would have less spending power as time goes on but as there is a significant amount of it it should last provided I am careful and not extravagent

To be honest this issue is driving me mad

You are looking for a good option, but there is none. You have to pick the least bad option. I think that 50% in savings account and 50% in V3AM would be a reasonable option, gradually funnelling as much of the V3AM into and ISA as you can. (Pensions are another issue. See what the IFA says in his sales pitch.) That option requires you to maintain several savings accounts, and you have to be up that. I do something similar, but on a much larger scale.

DoneWorking

GeoffTF said:

DoneWorking said:

GeoffTF said:

bostonerimus said:

DoneWorking said: What is the anticipated return after costs

Open ended questions like that are impossible to answer. There is plenty of historical data for you to look at and you need to chose a few funds and research them yourself. This is why multi-asset funds like Vanguard Life Strategy range are good for the beginner because the give you a diversified portfolio in a single fund. Take a look at the returns and component parts for VLS100, VLS80, VLS69 VLS40 and VLS20.

The Vanguard economists' estimates are of interest here.

"In sterling terms, we think UK shares over the next ten years are likely to return between 4.6% and 6.6% on an annualised basis. For unhedged, non-UK shares the projected range is between 2.8% and 4.8%."

"We see UK bonds offering returns of between 0.8% and 1.8% on average over the next ten years, while international (non-UK) bonds will offer returns of between 0.7% and 1.7%, which is slightly up on our expectations from last year."

https://www.vanguardinvestor.co.uk/articles/latest-thoughts/markets-economy/misstep-by-policymakers-key-risk-to-markets-2022

Lets say 3.8% for equities and 1.2% for bonds. 50 : 50 would give a return of about 2.5%. With the IFA costs that OP has been quoted, that would be less than 1%. He would be better of in a savings account. SustainableLife would probably return a little below inflation. In reality, nobody knows the future. The actual returns could be much more, or much less. Nonetheless, with the economic outlook, and the high prices of both equities and bonds, the next ten years does not look rosy.

Your analysis set out above is what is driving me crazy

Under IFA option I am worried that after costs I would not get a decent return to safeguard against inflation

And of course there is the possibility of volatility resulting in a reduction 

Under DIY the return could be better but still not enough to safeguard against inflation

And again I need to think about volatility and my current lack of knowledge and experience

I could of course just use all of my funds in savings accounts and try to get an average of 2% return

This will not keep up with inflation but my money remains

Albeit with less spending power

To compensate for this I could pay for all of the things I need to do and am able to right now 

Such as re roofing painting replacement car etc

My remaining cash would have less spending power as time goes on but as there is a significant amount of it it should last provided I am careful and not extravagent

To be honest this issue is driving me mad

You are looking for a good option, but there is none. You have to pick the least bad option. I think that 50% in savings account and 50% in V3AM would be a reasonable option, gradually funnelling as much of the V3AM into and ISA as you can. (Pensions are another issue. See what the IFA says in his sales pitch.) That option requires you to maintain several savings accounts, and you have to be up that. I do something similar, but on a much larger scale.

I am 70
I have ready sorted my pension and do not currently have any funds in a pension 

CheekyMikey

Having read the numerous suggestions and read your reaction to them, my conclusion would be that what GeoffTF suggests suits you best. Your appetite for risk seems middling at the very best, so the 50% in equities and 50% in cash deposits seems your best option. With your cash, my suggestion would be keep 50% easily accessible and put 50% in fixed term, so you have the funds ready as and when you want to do your various projects. You have to accept this may not keep you up with inflation for a year or two, but over 10 years it gives you a good chance of doing so. And remember, you can change what you’re invested in at any time if it’s not going as you want it to…apart from anything you put into fixed term interest, you retain flexibility as to what you do with your money.

Bobziz

Apologies if already suggested, but wouldn't CGT meet the OP's needs ? Low volatility, a focus on protecting against inflation, a better ESG score than the category average and has provided positive returns in 39 out of the last 40 years.

DoneWorking

Bobziz said:

Apologies if already suggested, but wouldn't CGT meet the OP's needs ? Low volatility, a focus on protecting against inflation, a better ESG score than the category average and has provided positive returns in 39 out of the last 40 years.

What are CGT ?

ColdIron

Capital Gearing Trust, a wealth preservation investment trust

Alistair31

I’m surprised it took so long. CGT and done.  

(+ keeping in cash what is needed in the short term for car, roof etc)

CheekyMikey

Alistair31 said:

I’m surprised it took so long. CGT and done.  

(+ keeping in cash what is needed in the short term for car, roof etc)

It didn’t take so long…it’s been suggested to the OP a few times already, twice by me at least. As you can see, the OP doesn’t appear to be one to want to research suggestions. Seem to have gone full circle now, which I guess is what happens eventually when the same question keeps being asked…I put my final tuppence worth in earlier and as they say in DD, I’m out

DoneWorking

CheekyMikey said:

Alistair31 said:

I’m surprised it took so long. CGT and done.  

(+ keeping in cash what is needed in the short term for car, roof etc)

It didn’t take so long…it’s been suggested to the OP a few times already, twice by me at least. As you can see, the OP doesn’t appear to be one to want to research suggestions. Seem to have gone full circle now, which I guess is what happens eventually when the same question keeps being asked…I put my final tuppence worth in earlier and as they say in DD, I’m out

That's unfair on me

I am sincerely trying to take all comments on board but as I'm sure you will recall it's initially at least quite a lot to take on board

And of course the risks in getting it wrong could be catastrophic

While I try to catch up can you at least outline why you think CGT is a better option than the Vanguard option

Thanks