Are your savings safe? article discussion

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  • sjp1966
    sjp1966 Posts: 83
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    Ahh interesting to know, thanks for the heads up on that.
  • bigadaj
    bigadaj Posts: 11,531
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    george4064 wrote: »
    I do not have any personal experience with them, but what I do know is that they're expensive for what they are (simply passive 'robo-advice' ETF portfolios).

    You will be paying (relatively) an arm and a leg for that 'advice', whereas you could just construct your own passive ETF portfolio and pay about 0.07% total charges, nutmeg will be more like 1% total charges.

    Lifestrategy, consensus or multi index would be a lot simpler for someone inexperienced, even if they are a little more expensive.
  • sjp1966
    sjp1966 Posts: 83
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    bigadaj wrote: »
    Lifestrategy, consensus or multi index would be a lot simpler for someone inexperienced, even if they are a little more expensive.

    bigadaj I am inexperienced in the world of investments for sure. if the fees are 1% compared to 0.7% then, with the amounts I have, the 0.3% wouldn't amount to masses.

    I am trying to find out what the company is like in general, their website seems appealing as it is written in a way that appeals to a layman and I am very much a layman on these things.

    However even with the small amount I have I don't want to drop all the money in there and then find they are not that good or my money just dwindles and disappears (I Know there is an element of risk in investments)
  • dunstonh
    dunstonh Posts: 115,716
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    sjp1966 wrote: »
    Ahh interesting to know, thanks for the heads up on that.

    do a forum search for nutmeg focusing on the investment and ISA section. You will see several threads with useful information.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • Eco_Miser
    Eco_Miser Posts: 4,707
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    sjp1966 wrote: »
    bigadaj I am inexperienced in the world of investments for sure. if the fees are 1% compared to 0.7% then, with the amounts I have, the 0.3% wouldn't amount to masses.
    Putting it another way, since 1% is 142% of 0.7%, you would be paying an additional 42% of the fee payable at 0.7% - but george4064 quoted 0.07% so that's an increase in fee of around 1320%.

    The actual £ amounts may not be much different to begin with, but compounded over a lifetime, that's a lot of money you won't be getting.
    Eco Miser
    Saving money for well over half a century
  • sjp1966
    sjp1966 Posts: 83
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    Eco_Miser wrote: »
    Putting it another way, since 1% is 142% of 0.7%, you would be paying an additional 42% of the fee payable at 0.7% - but george4064 quoted 0.07% so that's an increase in fee of around 1320%.

    The actual £ amounts may not be much different to begin with, but compounded over a lifetime, that's a lot of money you won't be getting.

    Good point, at nearly 50 there is not masses of lifetime left but I get the point, I've decided not to go with them. My Cousin is an IFA so ill get some free advise from him.
  • bigadaj
    bigadaj Posts: 11,531
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    sjp1966 wrote: »
    bigadaj I am inexperienced in the world of investments for sure. if the fees are 1% compared to 0.7% then, with the amounts I have, the 0.3% wouldn't amount to masses.

    I am trying to find out what the company is like in general, their website seems appealing as it is written in a way that appeals to a layman and I am very much a layman on these things.

    However even with the small amount I have I don't want to drop all the money in there and then find they are not that good or my money just dwindles and disappears (I Know there is an element of risk in investments)

    As pointed out by others the etc costs could be 0.07%, but to compare like with like I believe you can hold nutmeg directly with them rather than using another platform. The platform would probably add 0,25% to the costs so the etfs total costs would be around 0.32%, though it would mean that you could hold a range of varied assets rather than just one offering.

    Using one of the fettered fund of funds I suggested would give a cost of around 0.25% basic, so total cost of 0.5% but they auto rebalance for you, meaning that you don't have to go back every year and buy and sell bits to get the benefits of selling high and buying low, much easier for many.
  • Don't know if this thread is still active but I can't find any definition of how this protection works if my 2 kids (under 16) have separate savings accounts, and as these have to be under an adults supervision, but the accounts do still have the kids own names on the account. Do they get their own £75k protection each , or is it all considered as part of the parents protection allowance?.
    thanks
  • colsten
    colsten Posts: 17,597
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    I would say the full £75K protection applies to each of your kids, independent of yourself, as the protection applies to persons, and you'd hope children are considered persons: https://www.handbook.fca.org.uk/handbook/COMP/4/2.html#D10

    Don't take my word for it though - best you get it confirmed in writing by the FSCS.
  • Yes, they are separately entitled to their own £75k's worth of protection. It's confirmed by MSE here: http://www.moneysavingexpert.com/savings/safe-savings


    'This is an independent fund set up by government and regulated by the FCA, which promises that, in the event of a bank collapsing, you get some of your money back, though it's likely you'll lose access to the cash while compensation is being dished out. This applies to everyone, no matter their age (including children), or where they live.' [My bold].



    As an aside, if your children have a high level of savings, it's worth checking out the tax rules on savings for under 18's.
    Worker in, and passionate advocate of, the credit union movement. I don't speak for the sector or for any individual CU. My opinions & experiences are my own.

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