Help please understanding the cost of moving a cash ISA to S&S

Aminatidi

When I moved my last ISA from HL to Vanguard I spent about 5 minutes completing an online form on the Vanguard website and a couple of weeks later the transfer had gone through.

I'm sure there are situations where an IFA could add value but assuming this is literally moving the cash into the same funds in the same ratios as existing money it feels like you're paying for "advice" but question whether you need it and to me that's where you have the constant push/pull that you clearly have a reason for using an IFA but don't see much value add when you're just topping up your investments.

anonmoose

No I just meant in future once they have decided on which funds they are investing in they need to be happy managing the inevitable ups and downs without the guidance of a IFA.

zagfles

anonmoose said:

I have recently transferred a few pensions into vanguard and a cash isa into fidelity. Really easy to do and a couple needed to print paperwork and one just did it filling online instruction. Nothing complicated.

I would say as others have said the biggest thing about going DIY is making sure you don't make any silly mistakes. So be sure of the risk level you are happy with and don't sell in a panic when things drop. If you can do that DIY is easy especially with the likes of vanguard and fidelity.

A bit of initial reading is worthwhile if you don't have a grasp on risk levels and market cycles.  Knowing what you are getting into is important.  

I have loved going DIY as I now feel I have control of my money and better understanding of investing. This board is great for help and sense checks if you are unsure.

Indeed - I think this is biggest reason people don't "DIY" - even the term itself is misleading, it's hardly "DIY" to use a multi-asset fund which chooses the underlying equities/bonds etc and which automatically rebalances. To me DIY would be investing directly in shares, bonds etc.

People who use a workplace pension aren't usually referred to as a DIY'er so why would someone who eg buys a Vanguard Target Retirement fund which works in a similar way? Personally I think the term adds to the FUD spread by those with a vested interest in taking a chunk of your pot, in a similar way they'll usually seek to undermine popular packaged options like workplace pension defaults or Vanguard TR funds eg using hindsight to suggest another option would have been better (which you can do with virtually every investment option).

OTOH I know a real DIY'er who thought he was an investment genius because he made a few good calls in his first few years of investing. He was invested in all sorts of high risk stuff and was adamant he'd be retired by his 40th birthday. But now, probably around his 50th, I've heard he's still working for the cowboy builder firm run by his brother which he was working at 20 years ago...so I guess his investments didn't do as well as he thought they would!

Albermarle

zagfles said:

anonmoose said:

I have recently transferred a few pensions into vanguard and a cash isa into fidelity. Really easy to do and a couple needed to print paperwork and one just did it filling online instruction. Nothing complicated.

I would say as others have said the biggest thing about going DIY is making sure you don't make any silly mistakes. So be sure of the risk level you are happy with and don't sell in a panic when things drop. If you can do that DIY is easy especially with the likes of vanguard and fidelity.

A bit of initial reading is worthwhile if you don't have a grasp on risk levels and market cycles.  Knowing what you are getting into is important.  

I have loved going DIY as I now feel I have control of my money and better understanding of investing. This board is great for help and sense checks if you are unsure.

Indeed - I think this is biggest reason people don't "DIY" - even the term itself is misleading, it's hardly "DIY" to use a multi-asset fund which chooses the underlying equities/bonds etc and which automatically rebalances. To me DIY would be investing directly in shares, bonds etc.

People who use a workplace pension aren't usually referred to as a DIY'er so why would someone who eg buys a Vanguard Target Retirement fund which works in a similar way? Personally I think the term adds to the FUD spread by those with a vested interest in taking a chunk of your pot, in a similar way they'll usually seek to undermine popular packaged options like workplace pension defaults or Vanguard TR funds eg using hindsight to suggest another option would have been better (which you can do with virtually every investment option).

OTOH I know a real DIY'er who thought he was an investment genius because he made a few good calls in his first few years of investing. He was invested in all sorts of high risk stuff and was adamant he'd be retired by his 40th birthday. But now, probably around his 50th, I've heard he's still working for the cowboy builder firm run by his brother which he was working at 20 years ago...so I guess his investments didn't do as well as he thought they would!

It is a good point, but I think we have to remember if you said ' multi asset fund' or Target Retirement Fund ' to large parts of the public, all you would get would be either a blank look, or a panicked look. 

anonmoose

Albermarle said:

zagfles said:

anonmoose said:

I have recently transferred a few pensions into vanguard and a cash isa into fidelity. Really easy to do and a couple needed to print paperwork and one just did it filling online instruction. Nothing complicated.

I would say as others have said the biggest thing about going DIY is making sure you don't make any silly mistakes. So be sure of the risk level you are happy with and don't sell in a panic when things drop. If you can do that DIY is easy especially with the likes of vanguard and fidelity.

A bit of initial reading is worthwhile if you don't have a grasp on risk levels and market cycles.  Knowing what you are getting into is important.  

I have loved going DIY as I now feel I have control of my money and better understanding of investing. This board is great for help and sense checks if you are unsure.

Indeed - I think this is biggest reason people don't "DIY" - even the term itself is misleading, it's hardly "DIY" to use a multi-asset fund which chooses the underlying equities/bonds etc and which automatically rebalances. To me DIY would be investing directly in shares, bonds etc.

People who use a workplace pension aren't usually referred to as a DIY'er so why would someone who eg buys a Vanguard Target Retirement fund which works in a similar way? Personally I think the term adds to the FUD spread by those with a vested interest in taking a chunk of your pot, in a similar way they'll usually seek to undermine popular packaged options like workplace pension defaults or Vanguard TR funds eg using hindsight to suggest another option would have been better (which you can do with virtually every investment option).

OTOH I know a real DIY'er who thought he was an investment genius because he made a few good calls in his first few years of investing. He was invested in all sorts of high risk stuff and was adamant he'd be retired by his 40th birthday. But now, probably around his 50th, I've heard he's still working for the cowboy builder firm run by his brother which he was working at 20 years ago...so I guess his investments didn't do as well as he thought they would!

It is a good point, but I think we have to remember if you said ' multi asset fund' or Target Retirement Fund ' to large parts of the public, all you would get would be either a blank look, or a panicked look. 

Yes that's true but it's not rocket science, it just takes a bit of time to read and do a bit of research.  I would have given you a blank look 6 months ago but now feel I really understand what I am doing with my investments.

Millyonare

Fwiw, I had an IFA quote a 3% fee for consolidating 2 pensions into 1. A half-dozen phonecalls to both pension providers, and filling in a couple of their forms, I was able to complete it for free (0%). Saved a fortune. As others have said, research, re-research, and accuracy are key.

Prudent

Thank you so much for the wealth of information. I really appreciate the time people have taken to reply. 

I have emailed my advisor and explained that the charge was a bit higher than I was expecting and asked if it included any new advice, although his previous email would suggest it does not.

I am still considering Vanguard lifestyle options as I had previously read up on them. I will make a decision when I hear back from the IFA and then update the post. Thank you again.