Tidying up my Finances - Advice Welcome

newbieni

Bigwheels1111 said:

Ditch Chip easy access and ISA.

Switch to Trading212, easy access ISA 5.17% as of today

That's what I've done for now.

Plus I have 17 regular savers will be 19 at the end of the month, 10% to 5.5%.

Can I transfer across my pot or do I need to setup a new one?

Bigwheels1111

newbieni said:

Bigwheels1111 said:

Ditch Chip easy access and ISA.

Switch to Trading212, easy access ISA 5.17% as of today

That's what I've done for now.

Plus I have 17 regular savers will be 19 at the end of the month, 10% to 5.5%.

Can I transfer across my pot or do I need to setup a new one?

Not sure on that. I had a chip isa, I just opened the new Trading212 isa and moved the money over.

If you have less than 20k i would just open it up and move money, no isa transfer needed.

You have just over 12k, so I don't see any problems just moving cash to your bank and then to Trading212.

Just make sure you do not go over 20k in both.

newbieni

eskbanker said:

newbieni said:

dunstonh said:

VLS100 is a weak point but its only a small value.  So, not a big deal.    Unless you have a particular reason for preferring a global managed fund with underlying passives instead of a global tracker.

Is there a better option available in Vanguard? I thought this option was good as returns have been around 40%.

Their FTSE Global All Cap is an obvious alternative to VLS100, as a genuine index tracker without the management decisions and the high UK weighting, but we don't know what your rationale was for choosing the LifeStrategy one?

I made this decision based on a recommendation from a finance advisor who visited our workplace at the time, he stated that it was a bad idea to have too much funding tied up in the US market. As of this morning the personal rate of return was 49% so I have been more than happy with this. Could I ask what the difference would be in terms of using the Cap portfolio and can I transfer across my current pot to the Cap?

eskbanker

newbieni said:

eskbanker said:

newbieni said:

dunstonh said:

VLS100 is a weak point but its only a small value.  So, not a big deal.    Unless you have a particular reason for preferring a global managed fund with underlying passives instead of a global tracker.

Is there a better option available in Vanguard? I thought this option was good as returns have been around 40%.

Their FTSE Global All Cap is an obvious alternative to VLS100, as a genuine index tracker without the management decisions and the high UK weighting, but we don't know what your rationale was for choosing the LifeStrategy one?

I made this decision based on a recommendation from a finance advisor who visited our workplace at the time, he stated that it was a bad idea to have too much funding tied up in the US market. As of this morning the personal rate of return was 49% so I have been more than happy with this. Could I ask what the difference would be in terms of using the Cap portfolio and can I transfer across my current pot to the Cap?

Investing is all about opinions and nobody is saying that your advisor was wrong - it's a perfectly credible and justifiable position to go for a lower US weighting in one's portfolio and a higher UK one instead, and if that's the direction you were happy to accept then VLS100 is quite adequate for that purpose.

An unadjusted global tracker, allocated solely on the basis of market capitalisation rather than a more specific management decision, will naturally reflect the 60-70% dominance of the US market(s) and the UK's correspondingly small ~4% - many will prefer that but it doesn't make them right and your advisor wrong.

I have no idea what the relative performance of the two products would have been over the period in question, but that's not the basis for deciding anything.

If you did decide to change tack then make sure you're clear about why you'd be doing it, but the actual mechanics of selling one holding and buying another are straightforward, especially if sticking with the same platform:

https://www.vanguardinvestor.co.uk/need-help/answer/how-do-i-switch-funds

Albermarle

As above.
VLS100 has performed less well than global trackers in recent years, due to the higher UK/lower US weighting.
This may continue in future, or it could reverse- nobody knows. 

newbieni

Albermarle said:

As above.
VLS100 has performed less well than global trackers in recent years, due to the higher UK/lower US weighting.
This may continue in future, or it could reverse- nobody knows. 

I ran the figures through an AI program, based on £1000 invested since Jan 2022. The fund I have would now be worth £1190, while the global Cap fund would be worth £1090. Obviously, the AI program may not be accurate, and I am happy to concede this point if I am incorrect.

newbieni

eskbanker said:

newbieni said:

eskbanker said:

newbieni said:

dunstonh said:

VLS100 is a weak point but its only a small value.  So, not a big deal.    Unless you have a particular reason for preferring a global managed fund with underlying passives instead of a global tracker.

Is there a better option available in Vanguard? I thought this option was good as returns have been around 40%.

Their FTSE Global All Cap is an obvious alternative to VLS100, as a genuine index tracker without the management decisions and the high UK weighting, but we don't know what your rationale was for choosing the LifeStrategy one?

I made this decision based on a recommendation from a finance advisor who visited our workplace at the time, he stated that it was a bad idea to have too much funding tied up in the US market. As of this morning the personal rate of return was 49% so I have been more than happy with this. Could I ask what the difference would be in terms of using the Cap portfolio and can I transfer across my current pot to the Cap?

Investing is all about opinions and nobody is saying that your advisor was wrong - it's a perfectly credible and justifiable position to go for a lower US weighting in one's portfolio and a higher UK one instead, and if that's the direction you were happy to accept then VLS100 is quite adequate for that purpose.

An unadjusted global tracker, allocated solely on the basis of market capitalisation rather than a more specific management decision, will naturally reflect the 60-70% dominance of the US market(s) and the UK's correspondingly small ~4% - many will prefer that but it doesn't make them right and your advisor wrong.

I have no idea what the relative performance of the two products would have been over the period in question, but that's not the basis for deciding anything.

If you did decide to change tack then make sure you're clear about why you'd be doing it, but the actual mechanics of selling one holding and buying another are straightforward, especially if sticking with the same platform:

https://www.vanguardinvestor.co.uk/need-help/answer/how-do-i-switch-funds

I think your point is valid, a global fund makes more sense. However, I did make the following point to another person on this thread:

I ran the figures through an AI program, based on £1000 invested since Jan 2022. The fund I have would now be worth £1190, while the global Cap fund would be worth £1090. Obviously, the AI program may not be accurate, and I am happy to concede this point if I am incorrect.

eskbanker

newbieni said:

eskbanker said:

newbieni said:

eskbanker said:

newbieni said:

dunstonh said:

VLS100 is a weak point but its only a small value.  So, not a big deal.    Unless you have a particular reason for preferring a global managed fund with underlying passives instead of a global tracker.

Is there a better option available in Vanguard? I thought this option was good as returns have been around 40%.

Their FTSE Global All Cap is an obvious alternative to VLS100, as a genuine index tracker without the management decisions and the high UK weighting, but we don't know what your rationale was for choosing the LifeStrategy one?

I made this decision based on a recommendation from a finance advisor who visited our workplace at the time, he stated that it was a bad idea to have too much funding tied up in the US market. As of this morning the personal rate of return was 49% so I have been more than happy with this. Could I ask what the difference would be in terms of using the Cap portfolio and can I transfer across my current pot to the Cap?

Investing is all about opinions and nobody is saying that your advisor was wrong - it's a perfectly credible and justifiable position to go for a lower US weighting in one's portfolio and a higher UK one instead, and if that's the direction you were happy to accept then VLS100 is quite adequate for that purpose.

An unadjusted global tracker, allocated solely on the basis of market capitalisation rather than a more specific management decision, will naturally reflect the 60-70% dominance of the US market(s) and the UK's correspondingly small ~4% - many will prefer that but it doesn't make them right and your advisor wrong.

I have no idea what the relative performance of the two products would have been over the period in question, but that's not the basis for deciding anything.

If you did decide to change tack then make sure you're clear about why you'd be doing it, but the actual mechanics of selling one holding and buying another are straightforward, especially if sticking with the same platform:

https://www.vanguardinvestor.co.uk/need-help/answer/how-do-i-switch-funds

I think your point is valid, a global fund makes more sense. However, I did make the following point to another person on this thread:

I ran the figures through an AI program, based on £1000 invested since Jan 2022. The fund I have would now be worth £1190, while the global Cap fund would be worth £1090. Obviously, the AI program may not be accurate, and I am happy to concede this point if I am incorrect.

They're both global funds!

As above, choosing investments based on historical performance isn't particularly productive, but perhaps worth noting that your (nearly) three year window happens to be the only period out of these in which VLS100 outperformed Global All Cap:

newbieni

eskbanker said:

newbieni said:

eskbanker said:

newbieni said:

eskbanker said:

newbieni said:

dunstonh said:

VLS100 is a weak point but its only a small value.  So, not a big deal.    Unless you have a particular reason for preferring a global managed fund with underlying passives instead of a global tracker.

Is there a better option available in Vanguard? I thought this option was good as returns have been around 40%.

Their FTSE Global All Cap is an obvious alternative to VLS100, as a genuine index tracker without the management decisions and the high UK weighting, but we don't know what your rationale was for choosing the LifeStrategy one?

I made this decision based on a recommendation from a finance advisor who visited our workplace at the time, he stated that it was a bad idea to have too much funding tied up in the US market. As of this morning the personal rate of return was 49% so I have been more than happy with this. Could I ask what the difference would be in terms of using the Cap portfolio and can I transfer across my current pot to the Cap?

Investing is all about opinions and nobody is saying that your advisor was wrong - it's a perfectly credible and justifiable position to go for a lower US weighting in one's portfolio and a higher UK one instead, and if that's the direction you were happy to accept then VLS100 is quite adequate for that purpose.

An unadjusted global tracker, allocated solely on the basis of market capitalisation rather than a more specific management decision, will naturally reflect the 60-70% dominance of the US market(s) and the UK's correspondingly small ~4% - many will prefer that but it doesn't make them right and your advisor wrong.

I have no idea what the relative performance of the two products would have been over the period in question, but that's not the basis for deciding anything.

If you did decide to change tack then make sure you're clear about why you'd be doing it, but the actual mechanics of selling one holding and buying another are straightforward, especially if sticking with the same platform:

https://www.vanguardinvestor.co.uk/need-help/answer/how-do-i-switch-funds

I think your point is valid, a global fund makes more sense. However, I did make the following point to another person on this thread:

I ran the figures through an AI program, based on £1000 invested since Jan 2022. The fund I have would now be worth £1190, while the global Cap fund would be worth £1090. Obviously, the AI program may not be accurate, and I am happy to concede this point if I am incorrect.

They're both global funds!

As above, choosing investments based on historical performance isn't particularly productive, but perhaps worth noting that your (nearly) three year window happens to be the only period out of these in which VLS100 outperformed Global All Cap:

I think that given it opens me up to a wider market then it makes more sense.

eskbanker

newbieni said:

eskbanker said:

newbieni said:

eskbanker said:

newbieni said:

eskbanker said:

newbieni said:

dunstonh said:

VLS100 is a weak point but its only a small value.  So, not a big deal.    Unless you have a particular reason for preferring a global managed fund with underlying passives instead of a global tracker.

Is there a better option available in Vanguard? I thought this option was good as returns have been around 40%.

Their FTSE Global All Cap is an obvious alternative to VLS100, as a genuine index tracker without the management decisions and the high UK weighting, but we don't know what your rationale was for choosing the LifeStrategy one?

I made this decision based on a recommendation from a finance advisor who visited our workplace at the time, he stated that it was a bad idea to have too much funding tied up in the US market. As of this morning the personal rate of return was 49% so I have been more than happy with this. Could I ask what the difference would be in terms of using the Cap portfolio and can I transfer across my current pot to the Cap?

Investing is all about opinions and nobody is saying that your advisor was wrong - it's a perfectly credible and justifiable position to go for a lower US weighting in one's portfolio and a higher UK one instead, and if that's the direction you were happy to accept then VLS100 is quite adequate for that purpose.

An unadjusted global tracker, allocated solely on the basis of market capitalisation rather than a more specific management decision, will naturally reflect the 60-70% dominance of the US market(s) and the UK's correspondingly small ~4% - many will prefer that but it doesn't make them right and your advisor wrong.

I have no idea what the relative performance of the two products would have been over the period in question, but that's not the basis for deciding anything.

If you did decide to change tack then make sure you're clear about why you'd be doing it, but the actual mechanics of selling one holding and buying another are straightforward, especially if sticking with the same platform:

https://www.vanguardinvestor.co.uk/need-help/answer/how-do-i-switch-funds

I think your point is valid, a global fund makes more sense. However, I did make the following point to another person on this thread:

I ran the figures through an AI program, based on £1000 invested since Jan 2022. The fund I have would now be worth £1190, while the global Cap fund would be worth £1090. Obviously, the AI program may not be accurate, and I am happy to concede this point if I am incorrect.

They're both global funds!

As above, choosing investments based on historical performance isn't particularly productive, but perhaps worth noting that your (nearly) three year window happens to be the only period out of these in which VLS100 outperformed Global All Cap:

I think that given it opens me up to a wider market then it makes more sense.

There isn't a significant difference in market 'width' - VLS100 has 7,005 equities and Global All Cap has 7,308.  The main difference is in the mix....