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    • funkey_monkey
    • By funkey_monkey 29th Jul 18, 9:33 PM
    • 359Posts
    • 25Thanks
    Self Investment into Passive Fund of Funds
    • #1
    • 29th Jul 18, 9:33 PM
    Self Investment into Passive Fund of Funds 29th Jul 18 at 9:33 PM

    I've got the majority of my savings invested with an IFA and I'm happy enough with the preformance of the investment.

    I'd like to self invest some money in order to move some money out of a badly performing savings account with Sainsburys, but avoid going through my IFA, as I want to take some control myself.

    I'm not looking to invest directly in companies etc, but was considering using the Vanguard LS 80 and/or alternatives. I've read up a bit on passive investments and it seems to be where I want to be - although I'm uncertain about dropping money in now prior to Brexit happening (considering the state of the negotiations I can't help but feel that a dip is on the horizon).

    I'm already on the Hargreaves Lansdown platform for a LISA I opened with a nominal amount so that I would have it opened before my age ruled me out.

    I've taken a look at some funds and was considering the following:

    Baillie Gifford Managed B Acc (0.35% TER)
    Baillie Gifford Managed B Acc

    Royal London Sustainable World Trust C Acc (0.77% TER)
    Royal London Sustainable World Trust C Acc

    Vanguard LifeStrategy 80% (0.22% TER)
    Vanguard LS 80%

    Blackrock Consensus 85 (0.09% TER)
    Blackrock Consensus 85

    I know there are cross over between these, but I was considering using a mixture of these. The only things I really note at present are the TER associated with the Royal London and Blackrock offerings.

    However, Royal London (alongside Baillie Gifford) are a consistent first quartile performer and there is not much more than you can ask than that.

    I'm hoping to initiate with approx 5,000 and make some additional drops throughout the term.

    Any suggestions as to what I should do here considering that my savings account is providing terrible returns?
    I am considering purchasing a property, but I hope not to need all of my investment money for this.
Page 2
    • funkey_monkey
    • By funkey_monkey 9th Aug 18, 8:44 AM
    • 359 Posts
    • 25 Thanks
    I'm a basic tax rate payer - just not very materialistic so save most of my income.
    • funkey_monkey
    • By funkey_monkey 10th Aug 18, 10:28 AM
    • 359 Posts
    • 25 Thanks
    So, if you aren't able to use LISA for a house purchase and will be using it to fund retirement or later life: iinvesting with higher rate tax relief in a pension usually beats investing with LISA. Whereas if you only pay basic rate tax at the moment, pension doesn't beat LISA because 100 of pension investment costs 80 and is potentially taxable in retirement. while 100 of LISA investments costs 80 is not taxable in retirement even if you were to draw out the entire balance on one day (as long as you're age 60).
    I should also state that although I'm a basic rate tax payer, I work as a contractor, so I'm paid through my company and I pay my pension contributions from my company. Any additional monies I pay are my basic salary and dividends.

    I presume this means that LISA is not a viable option? However, if I'm still looking to invest approx 4k - 5k it would still be good to go for the LISA option.
    Last edited by funkey_monkey; 10-08-2018 at 10:33 AM.
    • funkey_monkey
    • By funkey_monkey 13th Aug 18, 1:41 PM
    • 359 Posts
    • 25 Thanks
    Bumping this...
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