Investing in Global Trackers and other similar investments

Kansuwan

Until you can accept/understand and tolerate risk/volatility/gains and losses then personally I would put everything in savings, I do feel at this moment in time that any investments made via platforms, IFA's and such, you would bale out after your first downturn.
Understand and accept that losses (and gains) will happen.
Sorry to be brutal, but losses and volatility do seem to be somewhat a prime topic of conversation for you. 

DoneWorking

Kansuwan said:

Until you can accept/understand and tolerate risk/volatility/gains and losses then personally I would put everything in savings, I do feel at this moment in time that any investments made via platforms, IFA's and such, you would bale out after your first downturn.
Understand and accept that losses (and gains) will happen.
Sorry to be brutal, but losses and volatility do seem to be somewhat a prime topic of conversation for you. 

You are probably right about my concerns over loss and volatility

However I am thinking that for me at this moment in time I would be less anxious with an IFA

My only real concern is that I may be entering into investments at a time when there are so many current and pending issues which could have a major affect on returns

Not the least of which are war in Ukraine and elsewhere , the Pandemic ,Energy issue , Climate Emergency.

Kansuwan

Put it all into savings until the world's troubles subdue whilst bearing in mind that some other "disaster" will raise it's head.

DoublePolaroid

As alluded to above, the biggest risk to one’s money is one’s own behaviour and in the case of investing, as alluded to above, the cardinal sin is selling when the market drops due to negative emotions like fear.

One of the biggest benefits of an IFA (and I say this as somebody who doesn’t instruct one) is that he/she will provide an effective bulwark and potentially save you from yourself. 

That benefit can’t be quantified as a fee percentage.

Thrugelmir

DoneWorking said:

Kansuwan said:

Until you can accept/understand and tolerate risk/volatility/gains and losses then personally I would put everything in savings, I do feel at this moment in time that any investments made via platforms, IFA's and such, you would bale out after your first downturn.
Understand and accept that losses (and gains) will happen.
Sorry to be brutal, but losses and volatility do seem to be somewhat a prime topic of conversation for you. 

My only real concern is that I may be entering into investments at a time when there are so many current and pending issues which could have a major affect on returns

Not the least of which are war in Ukraine and elsewhere , the Pandemic ,Energy issue , Climate Emergency.

When investing there's never a time not to have concerns. Every investment hasn't negative aspects.  Appreciating what they are is key. A better use of time than seeking confirmation bias to reinforce a held view. 

GeoffTF

DoneWorking said:

Updated Projections based on latest research

Option 1
DIY Savings Options

Return approx 2%
No Volatility

Capital Erosion

Option 2
DIY Savings / Vanguard or Similar
Return Approx 3% +
(No recent figures for VG ESG Performance)
Volatility

Capital Erosion

 Option 3
IFA Option

1% Upfront for Report

1.2% pa ongoing cost

Overall Return 5.2%
Return After Costs 4%
50/50 Cash and ESG Funds
Volatility

Capital Erosion

Pluses

Investments are managed and updated by IFA

Annual transfer from GIA to ISA

Regular Review

I now need to decide on which option

 
Option 1
Simple

But definite capital Erosion

Option 2
Probably better than 1
But not without risk 
Need for rapid acquisition of knowledge
 
Option 3
Not without risk

But long term could give best outcome

I'd appreciate any comments to help me decide

Thanks for all comments to date

One thing you can be sure of is that Option 3 will give a substantially lower return after costs than Option 2, unless you take a lot more risk with Option 3 and are lucky. Unless, of course, you manage to bodge up Option 2.

DoneWorking

GeoffTF said:

DoneWorking said:

Updated Projections based on latest research

Option 1
DIY Savings Options

Return approx 2%
No Volatility

Capital Erosion

Option 2
DIY Savings / Vanguard or Similar
Return Approx 3% +
(No recent figures for VG ESG Performance)
Volatility

Capital Erosion

 Option 3
IFA Option

1% Upfront for Report

1.2% pa ongoing cost

Overall Return 5.2%
Return After Costs 4%
50/50 Cash and ESG Funds
Volatility

Capital Erosion

Pluses

Investments are managed and updated by IFA

Annual transfer from GIA to ISA

Regular Review

I now need to decide on which option

 
Option 1
Simple

But definite capital Erosion

Option 2
Probably better than 1
But not without risk 
Need for rapid acquisition of knowledge
 
Option 3
Not without risk

But long term could give best outcome

I'd appreciate any comments to help me decide

Thanks for all comments to date

One thing you can be sure of is that Option 3 will give a substantially lower return after costs than Option 2, unless you take a lot more risk with Option 3 and are lucky. Unless, of course, you manage to bodge up Option 2.

This has been such a roller coaster 
To be frank I will be glad when it's all over and the decision is made 
Come what may

My big concern about the two ESG Vanguard Funds is that they are relatively new and have no past history

Maybe I need to look for a similar alternative

GeoffTF

The ESG Developed World All Cap Equity Index Fund has been around for over ten years:

https://www.vanguardinvestor.co.uk/investments/vanguard-esg-developed-world-all-cap-equity-index-fund-gbp-acc/overview

It is developed world only, but that does not matter much. Nobody knows whether or not the emerging markets will do better than the developed markets. Adding the emerging markets spreads your risk a little further, but whether it reduces your overall risk is not clear. You will find other alternatives if you search in Google. Nonetheless, Vanguard is a sound choice.

DoneWorking

GeoffTF said:

The ESG Developed World All Cap Equity Index Fund has been around for over ten years:

https://www.vanguardinvestor.co.uk/investments/vanguard-esg-developed-world-all-cap-equity-index-fund-gbp-acc/overview

It is developed world only, but that does not matter much. Nobody knows whether or not the emerging markets will do better than the developed markets. Adding the emerging markets spreads your risk a little further, but whether it reduces your overall risk is not clear. You will find other alternatives if you search in Google. Nonetheless, Vanguard is a sound choice.

Thanks

Would this be best as a stand alone investment using 50% of my funds

Or would it be better as part of several separate funds

If so for an investment sum of say £150k how many separate VG style funds

Malthusian

DoneWorking said:

You are probably right about my concerns over loss and volatility

However I am thinking that for me at this moment in time I would be less anxious with an IFA

Apologies for another possibly brutal post, but as I recall you've been speaking to IFAs since at least 2017. If you were going to "put your trust" in one, which would allow them  limit your anxiety during loss periods, you would already have been receiving ongoing advice for years.

You can't choose to trust someone, any more than you can choose to be happy. You can choose to do what they say but that's not the same thing, and if you force yourself into taking a recommendation you haven't bought into it's a recipe for disaster. The likely outcome is that you'll regret it when the markets are down and you have paper losses of tens of thousands of pounds.

If you don't believe people now when they say that there is nothing to fear from investment volatility, and a diversified investment will beat cash and come out on top through all the crises and bad news stories if you hold it for the long term (however long that turns out to be), you definitely won't believe an IFA when they are saying the exact same thing when the markets have fallen.

It's much harder to believe rational long-term views when everyone is panicking and all the experts in the news are saying that the sky is falling in and you should sell everything before it gets worse.

My only real concern is that I may be entering into investments at a time when there are so many current and pending issues which could have a major affect on returns

Not the least of which are war in Ukraine and elsewhere , the Pandemic ,Energy issue , Climate Emergency.

I agree with Kansuwan. If you only want to invest when there are no issues in the news, your best option is to remain permanently in cash. Inflation is not a demon that everyone has to avoid, it is merely a charge you pay for not having to worry about the number going down.