Stocks & Shares ISAs
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Does anyone have any views on the fairly recently introduced Investec Click and Invest platform for s&s ISA?
"You prefer a safer outcome
Your friends know you are the cautious type. You’re the one in the group trusted with booking the holiday flights, because you don’t like leaving things to chance. If you feel like this about risk in general, it’s likely your attitude is probably going to be the same if you chose to make a financial investment."
:rotfl:
In any proper risk tolerance questionnaire I score a 9/10 or 10/10. But because I don't like dancing in the mosh pit at a concert and would rather have a mouthful of wine than a mouthful of river water, apparently I can't possibly tolerate the gyrations of the stockmarket.
Plus, as above, it's a bit of a rip-off.0 -
Thanks for the comments - I thought as much really but wanted to float it with those who know more than me just in case anyone thought the higher fees might be outweighed by a potential overall better offering with the investment but useful to hear. Thanks!0
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Please excuse my naivety on this subject. In one of the above posts Alexland says " On a 60% shares and 40% bonds mix you should expect average annual returns around 3.5%". Is this the same as saying you would be getting a 3.5% interest rate?0
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Trinity1011 wrote: »Please excuse my naivety on this subject. In one of the above posts Alexland says " On a 60% shares and 40% bonds mix you should expect average annual returns around 3.5%". Is this the same as saying you would be getting a 3.5% interest rate?
No. I suspect that is a real return of 3.5% (i.e. on top of inflation). Cash savings typically do not keep or just about keep up with inflation if you shop around.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.0 -
My expectation for 60/40 given market valuations was a medium term 3.5% nominal return (around inflation) rather than real return. This roughly matches the Vanguard forecast below. I have low expectations and if they are exceeded that would be great. Maybe following the recent circa 10% equities price correction you could add another 0.6% pa as 60/40 in 2018 has been a waste of time so far and assets compound better at lower valuations.
https://www.vanguardinvestor.co.uk/articles/latest-thoughts/markets-economy/why-investors-prepare-for-lower-returns
It's hard to be too precise as it depends on how your contribution pattern plays into the volatility and the reasonableness of valuations at withdrawal.
Alex0 -
Trinity1011 wrote: »Please excuse my naivety on this subject. In one of the above posts Alexland says " On a 60% shares and 40% bonds mix you should expect average annual returns around 3.5%". Is this the same as saying you would be getting a 3.5% interest rate?0
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Thank you everybody for your replies. To clarify, to my simple mind, would i be correct to think then that if i invested a lump sum of £10000 and i achieved the 3.5% return then after one year i would have £10350?0
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Trinity1011 wrote: »Thank you everybody for your replies. To clarify, to my simple mind, would i be correct to think then that if i invested a lump sum of £10000 and i achieved the 3.5% return then after one year i would have £10350?
If the return in that year was 3.5% then yes. Personally, I would consider 3.5% low for that asset mix. However, for forward planning, it is sensible to under project and over achieve.
And because returns will never be 3.5% annually, it is probably better to work to a lower rate in the early years.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.0 -
I have an old PEP, now stocks and shares ISA, which I have had since 2004 and to be honest I have never really looked into its performance or tried to compare it to other products, until now that is as I have a ~£6k cash ISA maturing.
Looking at the annual growth from 2005 of the ISA shows an average increase 8.4% and the fund has doubled in value.
So a few questions - this to me looks like good performance – is it?
Would it be naïve to simply put more money into this without looking around?
Finally I don’t seem to be paying any charges for this ISA whereas I notice management and platform fees seem to be a large area of discussion.0 -
Trinity1011 wrote: »I have an old PEP, now stocks and shares ISA, which I have had since 2004 and to be honest I have never really looked into its performance or tried to compare it to other products, until now that is as I have a ~£6k cash ISA maturing.
Looking at the annual growth from 2005 of the ISA shows an average increase 8.4% and the fund has doubled in value.
So a few questions - this to me looks like good performance – is it?
Would it be naïve to simply put more money into this without looking around?
Finally I don’t seem to be paying any charges for this ISA whereas I notice management and platform fees seem to be a large area of discussion.0
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