Vanguard Life Strategy 60/40 best platform please

havingaball74

dunstonh said:

I would like to invest in VLS 60/40.

What made you select that fund?  (its not generally considered to be the best in class any more - hasn't been for some time)

If you go with a fund house that only offers their own funds, then you have to change the platform again in the future if you want a different fund house.  If you go with a whole of market platform, then you can change funds easily.

Thanks. Vanguard seems to be the one I have heard of most/ seems quite good for my risk level. Is there a better alternative please that is simple and I can just leave alone for the next 10 years?  

ColdIron

havingaball74 said:

ColdIron said:

IWeb are great for infrequent trading in an ISA or GIA but their SIPP can be expensive. £180 pa, £360 in drawdown

Thank you!  As a complete beginner who only wants to invest in Vanguard, is iWeb easy to use/ have good customer service? I am trying to balance out cost with ease of use.

It's easy enough to use (but does have its idiosyncrasies), not as slick as some. Customer service is average. It doesn't hold your hand like some of the others which may be a minus for beginners

It's big advantage is cost. It's great for large, long term buy and hold portfolios where ease of use and customer service don't really matter too much. I have a much larger sum than you and am very happy with them but beyond logging in once a month, because I like to record stats, I ignore it

havingaball74

ColdIron said:

What is 'best' to you? Cheapest? Best customer service? Portfolio analysis and graphs? Regular investing? On site research?

ISA, SIPP or GIA? How often will you trade?

What will be best for one person will not be for another

Good point.
'Best' for me is first and foremost- simplicity and ease of use as a novice investor. That includes being able to talk/chat with good customer service. Then, it is cost. I would like to invest my £60,000 and then continue investing 3 or 4 times a year, topping it up. I really want to stick the money in and leave it and try not to worry too much. Ease/simplicity/cost. I am presuming that a VLS 60 on their website will perform the same as on iWeb, but the fees will be different?
I have a work pension so, at the moment I am just thinking about an ISA.  What is GIA? 

havingaball74

Aidanmc said:

Although Iweb is offering free account opening until 30 June, but a £5 charge per trade. No platform fees

If you were buying the fund in one trade, this would be cheaper overall.

Vanguard has 0.15% platform fee

Thanks. So, you mean, if I just bought a Life Strategy/multi asset fund in one go it is cheaper? 
Vanguard have an Ongoing charge (OCF) of 0.22%. Is that on top of the OCF?

ColdIron

havingaball74 said:

ColdIron said:

What is 'best' to you? Cheapest? Best customer service? Portfolio analysis and graphs? Regular investing? On site research?

ISA, SIPP or GIA? How often will you trade?

What will be best for one person will not be for another

I am presuming that a VLS 60 on their website will perform the same as on iWeb, but the fees will be different?

Yes, identically. The fund fee, that OCF, will also be identical. The platform charges will differ. Looking at a Vanguard fund on the Vanguard platform can blur those differences if you are unfamiliar with them

I have a work pension so, at the moment I am just thinking about an ISA.  What is GIA?

It's a General Investment Account, no tax advantages like an ISA or a SIPP

dunstonh

Vanguard seems to be the one I have heard of most/ seems quite good for my risk level.

Marketing can be very effective.       They also have a devout following that cannot think that any alternative could be better.  So, does SJP.     Some brands attract that sort of following.
Once upon a time, VLS was the multi-asset fund of choice but it hasn't been for about 8 years.   

eskbanker

havingaball74 said:

dunstonh said:

I would like to invest in VLS 60/40.

What made you select that fund?  (its not generally considered to be the best in class any more - hasn't been for some time)

If you go with a fund house that only offers their own funds, then you have to change the platform again in the future if you want a different fund house.  If you go with a whole of market platform, then you can change funds easily.

Thanks. Vanguard seems to be the one I have heard of most/ seems quite good for my risk level. Is there a better alternative please that is simple and I can just leave alone for the next 10 years?  

https://monevator.com/passive-fund-of-funds-the-rivals/ offers a comparison between some of the main players, highlighting some of the differentiating features.

havingaball74

gravel_2 said:

The fund fee is the same on both platforms (of course).
On iWeb you would pay £5 for the trade if you bought 60k at once. This is a negligible % and a one off cost.

If you buy on Vanguard you are signing up to a 0.15% annual platform fee (approx £90 per year, assuming the investment stays at 60k).

Thank you. So, if I bought 60K over a few months , 4 say, it would cost 4 x £5 on iWeb?
So, to clarify:
iWeb has a one-off joining fee (or not at this moment in time) but Vanguard direct has a 0.22% ongoing charge.
On top of that, there is a fund fee which is the same whichever site you buy it on? do you know this fee please?

Aidanmc

havingaball74 said:

Aidanmc said:

Although Iweb is offering free account opening until 30 June, but a £5 charge per trade. No platform fees

If you were buying the fund in one trade, this would be cheaper overall.

Vanguard has 0.15% platform fee

Thanks. So, you mean, if I just bought a Life Strategy/multi asset fund in one go it is cheaper? 
Vanguard have an Ongoing charge (OCF) of 0.22%. Is that on top of the OCF?

Buy on Iweb is £5 per trade, so buying £60,000 worth would cost £5

If you were going to be investing regularly, Iweb may not work out cheaper

edit.oh, i see you intend to invest 3/4 times per year, so on Iweb that would cost £15/£20 per year, still working out cheaper than Vanguard direct.

Yeah, Vanguard platform fee is 0.15% per year. The OCF is 0.22% whichever platform you choose, its within the fund itself.

I see you mention ISA? Is the £60k already in Cash ISA somewhere and were intending to transfer in to S&S ISA. Otherwise £20k per tax year max can be put into ISA

havingaball74

ColdIron said:

havingaball74 said:

On the Vanguard website it mentions an ongoing charge of 0.22% which is £132. Is this annually?
It then mentions minimums:  What does this mean?

That is the fund fee or ongoing charge. It's levied by the fund manager (Vanguard investments not the Vanguard platform) and deducted from the fund. It has nothing to do with the platform and will be the same wherever you go, e.g. IWeb

The minimums are what the Vanguard platform will accept, they will differ between platforms, some as low as £25. Not a problem with £60,000

Got it!  So, Vanguard direct is more expensive as it has the 0.15% platform fee that iWeb doesn't?  Is that an annual fee as opposed to iWeb's usual one-off opening fee?