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    • JMCS
    • By JMCS 9th Mar 18, 3:39 PM
    • 1Posts
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    JMCS
    New to S&S Isas
    • #1
    • 9th Mar 18, 3:39 PM
    New to S&S Isas 9th Mar 18 at 3:39 PM
    Due to an endowment maturing, I am looking to invest the full annual allowance in one go into a S&S ISA before the end of the tax year. I have done quite a bit of reading on this, but as an investment newbie, the amount of info available is daunting.
    Vanguard Lifestrategy 60 seems to me OK? as I am considering a balanced portfolio, which needs little direct intervention, has low fees and can run for at least 10 years until I am closer to retirement. Iíve also looked at Vanguards Target retirement funds (% OCF slightly more). However Iíve seen that the VLS Fund can be purchased through other platforms (not just Vanguard directly) and this is confusing me. What is the benefit of another platform?

    After investing the lump sum, I would like to set up a regular monthly investment for next tax year into a S&S ISA.....
Page 1
    • BLB53
    • By BLB53 9th Mar 18, 3:52 PM
    • 1,265 Posts
    • 1,047 Thanks
    BLB53
    • #2
    • 9th Mar 18, 3:52 PM
    • #2
    • 9th Mar 18, 3:52 PM
    VLS 60 is a good choice and the question is where to hold it - Vanguard Direct charge an annual fee of 0.15% but depending on the amount, it could be cheaper with a flat fee broker such as Halifax Share Deal (£12.50 per year). However there are transaction costs for the regular DD - £2 per go with Halifax but no charge with Vanguard.

    For more education on basic investing I would recommend 'DIY Simple Investing' by Edwards.

    You can only hold Vanguard funds/ETFs with Vanguard Direct but with other brokers you have a much wider range of funds etc.
    If you choose index funds you can never outperform the market.
    If you choose managed funds there's a high probability you will underperform index funds.
    • dunstonh
    • By dunstonh 9th Mar 18, 4:12 PM
    • 92,580 Posts
    • 59,889 Thanks
    dunstonh
    • #3
    • 9th Mar 18, 4:12 PM
    • #3
    • 9th Mar 18, 4:12 PM
    What is the benefit of another platform?
    The fact you are not tied to Vanguard. For example, HSBC is showing better than VLS60 at the moment. On a whole of market plaform, you can access from the market place. On Vanguards platform, you can only pick Vanguard funds.

    Vanguard also do not have the best trackers in every sector. Only in some. So, its a compromise of cost vs functionality.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • ValiantSon
    • By ValiantSon 9th Mar 18, 9:58 PM
    • 1,844 Posts
    • 1,703 Thanks
    ValiantSon
    • #4
    • 9th Mar 18, 9:58 PM
    • #4
    • 9th Mar 18, 9:58 PM
    If you want to invest £20,000 in VLS60 and then set up a regular investment for the next tax year then Vanguard Direct is the cheapest way to do it. The 0.15% platform fee cannot be beaten and there are no trading charges. You will not have a great enough investment value for a flat fee platform to be cheaper at this stage. You can review that option when your investment gets to c.£50,000 - £55,000 in value. Before that point even a low cost fixed fee platform like iWeb will cost you more per annum with a regular monthly investment (and their one-off account opening fee).

    Dunstonh is quite right that using Vanguard Direct allows you only to access Vanguard funds, but as that is what you want then there is no point choosing a more expensive platform. Should you wish to change the fund you are investing in at a later date, or mix it with a non-Vanguard fund, then you can transfer your ISA to a different platform that provides access to those other funds. Vanguard Investor do not charge any exit fees so you really don't have anything to lose by using them.
    • rathernot
    • By rathernot 10th Mar 18, 8:54 AM
    • 255 Posts
    • 72 Thanks
    rathernot
    • #5
    • 10th Mar 18, 8:54 AM
    • #5
    • 10th Mar 18, 8:54 AM
    Remember that you can put the cash in before the deadline but don't need to invest it all in one go.

    Also don't get absolutely fixated on fees.

    Being with Vanguard might be the cheapest option but it won't help you if you want to put £2k into something from another fund provider as something a bit more adventurous.

    Focus on the funds you want and think you might want and that will help lead you to the provider that makes the most sense for your situation.

    I only mention it as with all respect, there does seem something of a fixation on fees on here. I get why in many situations, but it's also not the be-all and end-all.
    • ValiantSon
    • By ValiantSon 10th Mar 18, 9:21 PM
    • 1,844 Posts
    • 1,703 Thanks
    ValiantSon
    • #6
    • 10th Mar 18, 9:21 PM
    • #6
    • 10th Mar 18, 9:21 PM
    Remember that you can put the cash in before the deadline but don't need to invest it all in one go.

    Also don't get absolutely fixated on fees.

    Being with Vanguard might be the cheapest option but it won't help you if you want to put £2k into something from another fund provider as something a bit more adventurous.

    Focus on the funds you want and think you might want and that will help lead you to the provider that makes the most sense for your situation.

    I only mention it as with all respect, there does seem something of a fixation on fees on here. I get why in many situations, but it's also not the be-all and end-all.
    Originally posted by rathernot
    Except that, as I have already pointed out, Vanguard don't charge any exit fees to transfer an ISA and you can do an in specie transfer so there is no real issues if the OP should wish to invest in non-Vanguard funds at a later date.

    There is no point paying more than you have to. The reason why many of us pay close attention to fees is that every pound spent on fees is a pound not invested and earning a return.
    • thenewcomer
    • By thenewcomer 10th Mar 18, 9:23 PM
    • 93 Posts
    • 20 Thanks
    thenewcomer
    • #7
    • 10th Mar 18, 9:23 PM
    • #7
    • 10th Mar 18, 9:23 PM
    i dont know a lot, but with the market still correcting... is this the time for one lump sum investment?
    • ValiantSon
    • By ValiantSon 10th Mar 18, 9:43 PM
    • 1,844 Posts
    • 1,703 Thanks
    ValiantSon
    • #8
    • 10th Mar 18, 9:43 PM
    • #8
    • 10th Mar 18, 9:43 PM
    i dont know a lot, but with the market still correcting... is this the time for one lump sum investment?
    Originally posted by thenewcomer
    That's the $64,000 question!

    Nobody knows what will happen with the markets, and anyone who tells you that they do is either a fool or a liar; either way you don't want to listen to them!

    Generally speaking, time in the market is the most important thing, so the longer that your money is invested the greater the returns you can expect to make. Some people favour drip-feeding money in to benefit from pound cost averaging, but there is little evidence to support this as a valid strategy (and a fair bit to suggest that it isn't).

    If I had a lump sum of money that I wanted to invest then I would invest it as a lump sum. There is the potential for the value to fall, but the time in the market (as long as it is a suitably long time) should see the value recover and grow even more.
    Last edited by ValiantSon; 10-03-2018 at 10:22 PM. Reason: Typo
    • Alexland
    • By Alexland 10th Mar 18, 9:52 PM
    • 2,388 Posts
    • 1,789 Thanks
    Alexland
    • #9
    • 10th Mar 18, 9:52 PM
    • #9
    • 10th Mar 18, 9:52 PM
    i dont know a lot, but with the market still correcting... is this the time for one lump sum investment?
    Originally posted by thenewcomer
    I think it also depends on what you are investing in. If you feel that stock prices are high in terms of Shiller CAPE and don't trust the Forward P/E estimates (for many reasons) then you could take a more cautious approach (but beware going to heavily into bonds) and then increase your exposure if you see clearer buy opportunities developing. Whatever you do to get the benefits of the market you need to be invested and it is impossible to time it too precisely.
    • sam_scott
    • By sam_scott 21st Mar 18, 8:01 PM
    • 30 Posts
    • 4 Thanks
    sam_scott
    Vanguard are very good, low cost providers. I would certainly say investing in Vanguard as a basic start would be good, then perhaps looking at others to diversify your portfolio...
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