Platform choice for the move to DIY investing before retirement

Albermarle

RichardS said:

I like the look of Interactive Investor actually because of the fixed fees. And it looks like if I wanted to choose Vanguard Lifestrategy mixed asset funds rather than choose my own fund mix, it would be cheaper on there than on the Vanguard platform (unless I’m missing something). Something inside me makes me a little bit scared of choosing my own funds so I might well end up with a mix of some LS funds, unless I become braver. 

There are similar alternatives to Vanguard Life Strategy funds, which are slightly cheaper and have performed a little better in recent years, mainly due to the fact they have not the same large(ish) weighting to the UK that the LS funds have. Of course no guarantee they will continue to outperform
HSBC Global strategy funds are the best known.
One strategy, amongst many, is to have a core of simple basic funds and then invest say 10 to 20% in other areas. Like property or gold, or certain countries, market sectors etc

dunstonh

 It's quite hard for advisers to outperform DIY investors as getting 6% on your money is relatively easy, and getting 7% (reliably) is harder.  

Not really.  You would have to assume that the DIY investor is doing the right things and the adviser is not.

For example:


Blue is VLS60, Red is HSBC GS Bal and green is the IFA portfolio.  All net of charges except platform.  All three use passives as the underlying investments.

Using the HSBC GS Bal and being in the same ballpark would be good DIY.   Now put the person who posted on the site earlier today who moved everything to cash after the falls in 2020.  That is bad DIY.

RichardS

Albermarle said:

RichardS said:

I like the look of Interactive Investor actually because of the fixed fees. And it looks like if I wanted to choose Vanguard Lifestrategy mixed asset funds rather than choose my own fund mix, it would be cheaper on there than on the Vanguard platform (unless I’m missing something). Something inside me makes me a little bit scared of choosing my own funds so I might well end up with a mix of some LS funds, unless I become braver. 

There are similar alternatives to Vanguard Life Strategy funds, which are slightly cheaper and have performed a little better in recent years, mainly due to the fact they have not the same large(ish) weighting to the UK that the LS funds have. Of course no guarantee they will continue to outperform
HSBC Global strategy funds are the best known.
One strategy, amongst many, is to have a core of simple basic funds and then invest say 10 to 20% in other areas. Like property or gold, or certain countries, market sectors etc

Thanks.  I notice the HSBC one is not in the Interactive Investor Super 60 list - I wonder why that is?

dunstonh

RichardS said:

Albermarle said:

RichardS said:

I like the look of Interactive Investor actually because of the fixed fees. And it looks like if I wanted to choose Vanguard Lifestrategy mixed asset funds rather than choose my own fund mix, it would be cheaper on there than on the Vanguard platform (unless I’m missing something). Something inside me makes me a little bit scared of choosing my own funds so I might well end up with a mix of some LS funds, unless I become braver. 

There are similar alternatives to Vanguard Life Strategy funds, which are slightly cheaper and have performed a little better in recent years, mainly due to the fact they have not the same large(ish) weighting to the UK that the LS funds have. Of course no guarantee they will continue to outperform
HSBC Global strategy funds are the best known.
One strategy, amongst many, is to have a core of simple basic funds and then invest say 10 to 20% in other areas. Like property or gold, or certain countries, market sectors etc

Thanks.  I notice the HSBC one is not in the Interactive Investor Super 60 list - I wonder why that is?

Maybe HSBC don't pay the platform to market their funds

MK62

dunstonh said:

 It's quite hard for advisers to outperform DIY investors as getting 6% on your money is relatively easy, and getting 7% (reliably) is harder.  

Not really.  You would have to assume that the DIY investor is doing the right things and the adviser is not.

For example:


Blue is VLS60, Red is HSBC GS Bal and green is the IFA portfolio.  All net of charges except platform.  All three use passives as the underlying investments.

Using the HSBC GS Bal and being in the same ballpark would be good DIY.   Now put the person who posted on the site earlier today who moved everything to cash after the falls in 2020.  That is bad DIY.

Tbh, the graph is fairly meaningless unless we know what's in the IFA portfolio, but then I suppose that would be telling...😉

Albermarle

RichardS said:

Albermarle said:

RichardS said:

I like the look of Interactive Investor actually because of the fixed fees. And it looks like if I wanted to choose Vanguard Lifestrategy mixed asset funds rather than choose my own fund mix, it would be cheaper on there than on the Vanguard platform (unless I’m missing something). Something inside me makes me a little bit scared of choosing my own funds so I might well end up with a mix of some LS funds, unless I become braver. 

There are similar alternatives to Vanguard Life Strategy funds, which are slightly cheaper and have performed a little better in recent years, mainly due to the fact they have not the same large(ish) weighting to the UK that the LS funds have. Of course no guarantee they will continue to outperform
HSBC Global strategy funds are the best known.
One strategy, amongst many, is to have a core of simple basic funds and then invest say 10 to 20% in other areas. Like property or gold, or certain countries, market sectors etc

Thanks.  I notice the HSBC one is not in the Interactive Investor Super 60 list - I wonder why that is?

These lists are pretty meaningless. Just marketing spin.

Hoenir

dunstonh said:

 It's quite hard for advisers to outperform DIY investors as getting 6% on your money is relatively easy, and getting 7% (reliably) is harder.  

Not really.  You would have to assume that the DIY investor is doing the right things and the adviser is not.

For example:


Blue is VLS60, Red is HSBC GS Bal and green is the IFA portfolio.  All net of charges except platform.  All three use passives as the underlying investments.

Using the HSBC GS Bal and being in the same ballpark would be good DIY.   Now put the person who posted on the site earlier today who moved everything to cash after the falls in 2020.  That is bad DIY.

Be interesting to see a similar chart over a decade. 

artyboy

RichardS said:

I like the look of Interactive Investor actually because of the fixed fees. And it looks like if I wanted to choose Vanguard Lifestrategy mixed asset funds rather than choose my own fund mix, it would be cheaper on there than on the Vanguard platform (unless I’m missing something). Something inside me makes me a little bit scared of choosing my own funds so I might well end up with a mix of some LS funds, unless I become braver. 

I have been tarting my pension funds around a lot of platforms over the past year, for the extremely generous cashback incentives on offer (I've made well over £5k already with more to come).

It's also given me a great opportunity to compare and contrast relative functionality and service levels between providers. My next comment comes with the caveat that different people have different needs, but for me, II has been the clear winner. They respond quickly to messages, they pick up the phone, and their app is pretty straightforward to use. 

It's not perfect - sometimes you have to revert to the desktop site to do things, but day to day it does exactly what I need it to, and at a reasonable price - my ISA is now with them
as well for the economy it brings. I'm not a frequent trader, but they also recently reduced trading fees to £3.99 (although monthly fees went up a bit)

If you do decide to go with them, I'd suggest either waiting a bit to see if they do another transfer cashback offer (maybe around February time for a guess), or get someone with an existing account to refer you - you'll get a year free of account fees (and they will get £200).

RichardS

Thanks @artyboy what was their cash back offer ?

RichardS

Oh there is a SIPP offer now https://www.ii.co.uk/acq/sipp-offer