Invesment Question

FIREmenow

Alistair31 said:

MoneyMan01 said:

Thanks for all of the responses so far. 

Given the information, I’ve looked at the FTSE HSBC Global All World Inc, via the HSBC GIC platform. 

Has a 0.25% platform fee, at which point I could look at annually transferring it over to iWeb.

Does it matter what part of the year I transfer it? Before or after the tax year? Before December? Is there a set time they take the fee? Or does it not matter? Just doing it once a year?
roughly, to avoid them getting the hump? 

I think you could find cheaper platform fees than HSBCs own.

Dodl minimum platform fee is £1 a month so works out the same or more expensive than HSBC if you have £4,800 or less in the account in that year.

Dodl works out at the advertised 0.15% when there is £8k+ in there.

OP, depends how much you want to put in a month, you can use the broker comparison table to work this out on Monevator: https://monevator.com/compare-uk-cheapest-online-brokers/

MoneyMan01

Given I'll be doing monthly purchases, it all depends how much of course, but given that, I have 4 options I believe:

1) HSBC FTSE All World (Income) via HSBC platform. 0.14% for the fund + 0.25% for having an account, total 0.39%.

2) Vanguard FTSE Global All Cap (Income) via Vanguard platform. 0.23% charge for fund + 0.15% for having an account, total 0.38%

3) HSBC FTSE All World (Income) via iWeb. 0% charge for having an account, but does come with a £5 per purchase, doing that monthly totals £60, so it would be £60 + 0.13% to figure out the true cost. Which is where it becomes important to focus on how much is being invested throughout the year.

4) HSBC FTSE All World (Income) via Dodl AJ Bell. 0.13% for the fund, plus 0.15% + £12 per year for the account. Total amount would depend on how much is being invested.

Is all of what I've said correct?

masonic

You have other options, but you've summarised the first four correctly.

MoneyMan01

Thanks

So for the HSBC fund, on the basis of say £1,000 a month, option 4 with Dodl/AJ Bell would be the cheapest, coming in at a cost of £45.60 per year.

Option 1 is second for HSBC, costing £46.80 p/a.

Option 3 would come in at £75.60 p/a.

The Vanguard option would cost £45.60 p/a.

I'd probably look at moving most of it each April, into an ISA. 

Anything remaining outside the allowance, I'd move to iWeb in April (to a GIA).

If I'm moving from a GIA on say HSBC's platform, to iWeb, can you do that as a transfer and does that still cost the £5 purchase fee? Or, would I have to sell, and repurchase via iWeb, thus including the £5 purchase fee?

Also, I understand platforms charge a yearly %, in this case, HSBC charge 0.25%, I can see it says that charge happens every quarter, but my plan would be to move it from their platform, to iWeb, after 12 months. Are the platform charges every quarter from when you open the account, or are there set dates? I ask because I am trying to grasp when the best time to move the money across would be?

mattywallace121

Charges will be pro rated for the number of days you held the investment on the platform, you cannot avoid fees by moving it one day before a magical cut off point.

You mention 'anything remaining outside the allowance'. Transfers do not count as contributions towards the current 20k allowance per tax year.

MoneyMan01

But I've already used my allowance this year. It's my understanding that I wouldn't be able to transfer anything in until next year, right?

Also, I was just about to proceed with the HSBC fund on HSBC's platform, and noticed in the fees there is a Annual management fee (maximum) of 0.10% - Is this on top of the 0.25% platform fee and the 0.13% OCF?

Has anyone used them before and can confirm?

Aidanmc

@MoneyMan01Have you considered ETF's at all?

You could have something like HSBC MSCI world on Trading 212 ocf 0.15%

MoneyMan01

Aidanmc said:

@MoneyMan01Have you considered ETF's at all?

You could have something like HSBC MSCI world on Trading 212 ocf 0.15%

I have that in an ISA with InvestEngine. Used up my yearly ISA allowance, hence why I’m using a GIA, and a GB domiciled “Income” fund. Saves some headache with regards to ERI, and dividend tax, until I fully understand all of that side of things. 

kempiejon

MoneyMan01 said:

Aidanmc said:

@MoneyMan01Have you considered ETF's at all?

You could have something like HSBC MSCI world on Trading 212 ocf 0.15%

I have that in an ISA with InvestEngine. Used up my yearly ISA allowance, hence why I’m using a GIA, and a GB domiciled “Income” fund. Saves some headache with regards to ERI, and dividend tax, until I fully understand all of that side of things. 

Perhaps I have misunderstood but how does your HBCS save a headache of dividend tax? I do not use that fund but understood that would pay a dividend.
And, didn't we, a few posts back, have the money earmarked for a house possible move or is that changed during research?

MoneyMan01

I meant opting for the Income option, rather than Acc option meaning not as big a headache regarding dividend tax. 

Two separate things regarding house. Treating these monthly investments as separate to the house purchase.