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dwayne_dibbley posted:Sorry, I was stupid, left out two important details. I have a 300k lump sum to invest and so need a standard investor account (no ISA). Ah well yes that does change a few things!  I'm assuming then that you will have already filled your ISA capacity (£20,000) and Pension/SIPP capacity (£40,000) each year before any of this money is utilised, and that you have the 300k available after any kind of income/inheritance tax Vanguard would be £300,000 x 0.15% = £450 > capped at £375 a year for the Annual Management plus 0.1% of £300,000 per year (assuming 4% growth year on year) = £312 for year 1 Assuming you're taking off the fees and taxes from the account (and you'd want to consult with a financial adviser on whether this is better to do or cover the fees with cash year on year depending on performance) Removed inaccurate chart Halifax would be £12.50 to make the initial trade plus 0.5% transaction cost (£1,500) plus 0.1% of £300,000 per year (assuming 4% growth year on year) = £312 for year 1 plus £12.50/yr dividend reinvestment Removed inaccurate chart Again Note that the Tax liable may be more or less depending on the growth of your account and any other tax liable investments I do not know if you'd get stung for a 1.25% foreign currency charge for investing in a US index so haven't included it but that would be another £3,750 off the top However, you know the real answer here - consult an independent, qualified, fiduciary, FCA Approved financial adviser Doccykins fucked around with this message at 13:38 on Jan 10, 2020 |
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Jan 10, 2020 11:28
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Those charts show CGT at 18%. CGT for investment gains is 10% for basic rate taxpayers and 20% for higher and additional rate taxpayers.
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Jan 10, 2020 12:25
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ah poo poo sorry, I almost didn't include it - this is why you should be consulting a professional! In fact, ignore me entirely, you're only paying annual tax on dividends not the whole position unless you sell it. https://blog.freetrade.io/the-totally-not-complicated-investment-tax-post-188c1583d8b4 Doccykins fucked around with this message at 13:37 on Jan 10, 2020 |
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Jan 10, 2020 12:36
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If you buy accumulation units of a fund, you shouldn't be charged trading fees for dividend reinvestment by Halifax either, as the dividend is kept within the fund and reflected in the NAV, rather than paid out and reinvested. Even so and as Doc says, the notional dividend will count against your annual dividend allowance and should be declared on your tax return. Most platforms will provide you with an annual tax report that makes it easy to declare any dividend/interest income on your tax return.
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Jan 10, 2020 15:06
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I'll tell you something for nothing: don't invest it in the loving Funding Circle. But do borrow money from them if you have no intention of paying it back. 
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Jan 10, 2020 15:26
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Shut up Meg posted:I'll tell you something for nothing: don't invest it in the loving Funding Circle. lmao, but on the plus side, your investment has done better than Funding Circle's share price. It was ~£3 this time last year, it's now less than a quid.
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Jan 10, 2020 16:03
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Dwayne Dibbly - That's enough money with enough potential complications to spend the roughly 500-1000 getting some proper independent financial advice. Especially given the questions you're asking. You're highly likely to save what you're spending on advice in tax and fee complications and far less likely to make a dumb mistake that costs you thousands.
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Jan 10, 2020 16:43
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Anybody have any thoughts on LISAs? I’m looking to open my first stocks and shares ISA and figured a LISA would be a good starter account. If yes, why? If not, why not? Provider recommendations would be greatly appreciated also.
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Jan 10, 2020 20:37
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dwayne_dibbley posted:Sorry, I was stupid, left out two important details. I have a 300k lump sum to invest and so need a standard investor account (no ISA). Try iweb, I think they charge a flat fee of £5 per trade and that’s it, no other platform fees to speak of.
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Jan 10, 2020 21:11
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Theophany posted:lmao, but on the plus side, your investment has done better than Funding Circle's share price. It was ~£3 this time last year, it's now less than a quid. Funnily enough, it was looking at some of the poo poo-risk loans that they had lent out that made me decide to not invest in them. In theory, the ISA has given a very nice 6.5% return. In practice, it might as well be bitcoins as I have been liquidating for nearly 5 months and only gotten 10% back. I'm now in 2 minds whether it's better to keep your money in an old sock under the mattress or become a loanshark.
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Jan 10, 2020 21:58
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Shut up Meg posted:Funnily enough, it was looking at some of the poo poo-risk loans that they had lent out that made me decide to not invest in them. Back in my previous line of employment I was intrigued by a company called Plus 500 - that lovely CFD trading platform that promises to give you the chance to become a millionaire. I think they sponsor a Premier League football team now? Back then I had access to people at these companies because I was the guy that these companies had to speak to first before they could get access to the fund manager who would make the million pound decisions as to whether or not they would invest in their company through their mutual funds. The slide deck he had blew my goddamn mind because it basically laid out the algorithms they had to gently caress their own users who did "too well" on their trading. The cumshot slide was a chart comparing client losses to their share price and how blatantly obvious it was that when their algorithm got poo poo hot at loving their clients, their P/E went through the roof. I remember going back to the office, and this must've been like mid to late 2017? When Bitcoin hit $10k or so by the end of the year - it was a speculative one-way bet at the time. So aroung August I put £100 on Bitcoin going up and didn't have to set a time period of the position to be automatically closed out. I made a few quid. I then did it several more times up until November, each time making money and then noticed that they were gradually squeezing me so that I could only make directional bets for like 2 hour windows, rather than the 'close the position when you want to or you run out of margin' windows that I was originally on. Once I showed and explained to the fund manager I worked with what had happened to me he put a fair chunk into Plus 500 and he still holds that position lol. I guess the takeaway is invest in sin companies because they have a captive audience.
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Jan 10, 2020 23:32
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Oh for gently caress's sake.quote:Here are full details of the changes to Santander 123 from 5 May: They already halved their interest rates a few years back, while more than doubling the monthly account fee - time to start shopping around, I suppose.
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Jan 15, 2020 19:09
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so I could say that I finally figured out what this god damned cube is doing. Get well Lowtax.
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Doccykins posted:consult an independent, qualified, fiduciary, FCA Approved financial adviser I know this is a touch out of the blue, but I just wanted to add a couple of things here. In the UK the financial services market for advice is no less muddy than it is in other countries. For example 'fiduciaries' is a term that means somebody who is duty bound to act in your best interests in a lot of markets but in the UK, a fiduciary is typically somebody who advises a trust-based scheme, such as a pension. Also, from the 8th December last year, the FCA register has ceased to have meaning. This is because of something called the Senior Managers and Certification Regime. Whereas you used to be able to search for a person on the FCA register to check that they held the appropriate qualifications and was certified to carry out their functions as an approved person, this is no longer the case until possibly December of this year when the FCA are rolling out their revamped public checking system. I guess my point on this is twofold: approved and legitimate individuals will show up as 'regulatory approval is no longer required,' just the same as people who have been disqualified and don't let this put you off, and secondly, always ask with the company that you are dealing with to make sure. Finally, 'independent' is something that is grossly oversold and terribly misunderstood. Independent Financial Advisers are, by definition, duty bound to search the whole of the market for the optimal solution for their clients. Then you have restricted advisers, who will typically operate with a pre-picked list of products to which they are bound to select. Having worked in this industry for long enough, not just as an adviser, but on the distribution side to advisers, the idea of 'independent' advisers who are trawling a thousand or more products to identify exactly what is the best for your exact circumstances does not exist. In fact, there are no shortage of restricted advisers who cannot legally call themselves 'independent financial advisers' who still have a range of products to suit a variety of budgets, just the same as the so-called independents. It's one of those things where it comes down to the smell test. I know this thread is your baby Doccykins and I'm honestly not trying to take over, but just wanted to add a little extra colour. I'm a chartered financial planner in the UK and I'm absolutely not hawking for business here, but I know in this shrinking market there are a lot of bad actors ripping people off and in the last six months or so we've had a shedload of bad press because of it that can put people off seeking advice. As a side note - and again, I'm not hawking goons for business but if you engage with a financial adviser and want to run it past me, feel free to PM me for a second opinion.
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Jan 24, 2020 00:24
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Thanks @Theophany, yes I am very much a layman who wrote a lot of the thread as a sort of diary of my own personal experience so anyone with real life experience in the financial sector will be far more authoritative on these subjects than me (and the somewhat hyperbolic description of consulting someone who knows what they're doing is to emphasise that!) More than happy to have resident experts discuss and improve upon the OP
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Jan 24, 2020 10:25
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Cheers dude . As far as this profession has come it's still a bit wild west out there in a lot of ways!
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Jan 24, 2020 23:36
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I was doing a CASS switch to hsbc for that sweet sweet free money but then they no poo poo sent me a form to fill in by pen and send back to them. I don’t think I’ve switched from a current account as quickly in my life, but here I go.
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Jan 26, 2020 15:24
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My gf is looking to invest some money in a S&S ISA rather than keep it in a savings account. I use Charles Stanley Direct for my investments, but I think the charges have gone up since I opened. Is Vanguard still a good bet? I think the simplicity will probably help her, and the fees don’t seem too high. She has about £15k to invest.
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Jan 26, 2020 22:19
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Pantsmaster Bill posted:My gf is looking to invest some money in a S&S ISA rather than keep it in a savings account. I use Charles Stanley Direct for my investments, but I think the charges have gone up since I opened. Pretty much. Charles Stanley charge £50p/m (at £15k, that's around 0.33%), which is over twice what Vanguard are charging (0.15%). Factor in one of their cheap LifeStrategy funds at around 0.22% and you're only a slightly above Charles Stanley's account fee all in. Charles Stanley's fee becomes more attractive for balances over £33,333 than Vanguard, but the fund charges would be the decider.
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Jan 26, 2020 23:38
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Pantsmaster Bill posted:My gf is looking to invest some money in a S&S ISA rather than keep it in a savings account. I use Charles Stanley Direct for my investments, but I think the charges have gone up since I opened. iWeb charges £5 per transaction so if she wants a single investment of a single fund it’ll be cheaper than vanguard within a month. If she wants regular investing etc yeah vanguard is better.
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Jan 30, 2020 07:42
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Sloth Life posted:
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Feb 3, 2020 15:01
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Is this a good thread for talking about saving on utilities, eg broadband? It's tangential so I'm not sure. It often comes up in the UKMT but that thread moves so quick.
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Feb 8, 2020 11:46
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Don't see why not, it's s bit of a Brit centric free for all
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Feb 8, 2020 11:51
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Whatever your question, the answer is probably going to be https://www.uswitch.com/
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Feb 8, 2020 13:33
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Shut up Meg posted:Whatever your question, the answer is probably going to be https://www.uswitch.com/ Yeah you're right actually. I was gonna ask if £30/mo for 20mpbs was a rip-off and the answer is a resounding "yes".
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Feb 8, 2020 16:12
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JeremoudCorbynejad posted:Yeah you're right actually. I was gonna ask if £30/mo for 20mpbs was a rip-off and the answer is a resounding "yes". That's what I was paying for 150/20 fibre in London, but I do think there is an element of the infrastructure where you live. Like the max I can get where I live now is 25/5 but as no provider can be faster and they're all on Openreach there's piss all difference in price between providers. I found I got decent deals without the hassle of switching by shopping around and then spending 10 minutes on the phone with my existing provider telling them what I was offered. I ended up negotiating* my Sky bill down from £100 p/m to £60 p/m and whilst I didn't get a discount on my mobile bill, they did magically find an extra 80GB of data per month I could use (BT). * yes, I know that their entire job is to give you a better deal to keep you as a customer.
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Feb 8, 2020 19:05
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Yeah that's what I've been doing with Virgin, but after 7 letters/calls moaning about their price hikes they've become less accommodating. But yeah i think I'll see what else is about and give them an ultimatum
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Feb 8, 2020 19:28
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Theophany posted:That's what I was paying for 150/20 fibre in London, but I do think there is an element of the infrastructure where you live. Like the max I can get where I live now is 25/5 but as no provider can be faster and they're all on Openreach there's piss all difference in price between providers. I phoned up Sky the other month to purchase an additional Sky Q Mini box, and they responded by adding Netflix and Sky Sports to my package and then knocking the monthly price down by £35 from what I was paying. Safe to say that I was confused with the logic of that one.
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Feb 9, 2020 02:52
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ellspurs posted:I phoned up Sky the other month to purchase an additional Sky Q Mini box, and they responded by adding Netflix and Sky Sports to my package and then knocking the monthly price down by £35 from what I was paying. That's quite the result, maybe you got connected to somebody on their last day of a less than enjoyable career with Sky?
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Feb 10, 2020 09:48
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It's finally here  https://www.vanguardinvestor.co.uk/what-we-offer/personal-pension/personal-pension-account There were tell tale signs with the scheduled maintenance last weekend but the Vanguard SIPP is now officially available
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Feb 19, 2020 00:08
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Doccykins posted:It's finally here Interesting. How urgently do you reckon we should be picking this up? My workplace pension (civil service alpha) is really generous on their contribution so my current contributions are going towards that, but I have a high-4 figure SIPP elsewhere on a 0.75% fee which feels like I should move to the Vanguard.
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Feb 19, 2020 10:41
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That's good timing - I'm about to start a new job, meaning I'll soon have three different pensions from old jobs just sitting around. My plan is to transfer them all to Vanguard, max out my employer match at my new job and then contribute extra to either the SIPP or my new job's pension, depending on which is a better deal. ... is that the right approach? I've never been in this sort of situation before. I'm happy to lock the money away for retirement.
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Feb 19, 2020 12:24
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mfcrocker posted:Interesting. How urgently do you reckon we should be picking this up? My workplace pension (civil service alpha) is really generous on their contribution so my current contributions are going towards that, but I have a high-4 figure SIPP elsewhere on a 0.75% fee which feels like I should move to the Vanguard. Accepted wisdom would be to continue contributions to your occupational pension as it's a DB scheme and transfer your existing SIPP to Vanguard to cut any cost drag. SIPPs are typically expensive and unless you're holding property or something esoteric, they're poor value for money for the majority of savers. Staggy posted:That's good timing - I'm about to start a new job, meaning I'll soon have three different pensions from old jobs just sitting around. My plan is to transfer them all to Vanguard, max out my employer match at my new job and then contribute extra to either the SIPP or my new job's pension, depending on which is a better deal. Yep. Whenever I change jobs (or a client does) and they have had a workplace pension, one of the first things I do is transfer it out lest it be forgotten (or worse yet, end up in the lifeboat fund). The Vanguard SIPP operates on a relief-at-source basis, so you'll get basic rate tax relief immediately after you make contributions to it and any relief at a higher rate will need to be claimed on your tax return. Personally, I'd find out who runs your new employer's scheme, what the underlying funds are and projected growth rates and make a decision on which to direct additional contributions to on that basis. There are no shortage of pension schemes that invest in absolute horseshit because the trustees or their appointed advisers have no loving idea what they're doing (see: Kent County Council and Neil Woodford).
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Feb 19, 2020 15:10
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Theophany posted:Personally, I'd find out who runs your new employer's scheme, what the underlying funds are and projected growth rates and make a decision on which to direct additional contributions to on that basis. There are no shortage of pension schemes that invest in absolute horseshit because the trustees or their appointed advisers have no loving idea what they're doing (see: Kent County Council and Neil Woodford). That's the plan. In terms of evaluating the two, does it need to be any more complicated than "given known fees and reasonable growth estimates, here's what £X / month would look like in Y years"?
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Feb 19, 2020 16:34
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Theophany posted:Accepted wisdom would be to continue contributions to your occupational pension as it's a DB scheme and transfer your existing SIPP to Vanguard to cut any cost drag. SIPPs are typically expensive and unless you're holding property or something esoteric, they're poor value for money for the majority of savers. Fair enough, thanks for the accepted wisdom. I'm very unlikely to be a lifer in the CS so it'll be a bit of a pain when I leave to remember to claim that pension in 30-40 years time, but it's probably worth leaving that where it is.
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Feb 19, 2020 16:50
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Staggy posted:That's the plan. In terms of evaluating the two, does it need to be any more complicated than "given known fees and reasonable growth estimates, here's what £X / month would look like in Y years"? Not really as returns won't be guaranteed anyway, it's just to give you an idea. If they do tell you the underlying funds, you can always check them out over on https://www.trustnet.com to see how they have performed and what kind of things they invest in and whether or not they fit with your worldview (e.g. positive or negative ethical investing). mfcrocker posted:Fair enough, thanks for the accepted wisdom. I'm very unlikely to be a lifer in the CS so it'll be a bit of a pain when I leave to remember to claim that pension in 30-40 years time, but it's probably worth leaving that where it is. As it's a government DB scheme I would imagine it's much more likely that they will actively seek you out ahead of you planned retirement age to give you illustrations on your benefits. Just remember to keep them updated with a correspondence address and for the love of everything that is holy, don't transfer it!
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Feb 19, 2020 17:08
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I'll warn strongly against ever focusing on projected returns. Not worth the paper they are written on. Not a good comparison measure. Focus instead first on making sure they are the right type of fund, basically look for accumulation not income and whole market to taste (world, developed world, some mix of specific economies ie America, Europe, UK etc). Same for any bond allocation. Second focus on expense ratios, ie find who charges you the least. Projected returns as a way of comparing funds are utter bullshit unless for some reason they are guaranteed but even then your going to pay for it somehow. If your optimistic assume 7% above inflation per year over a long horizon for stocks and 5% if you want to be more conservative about the future. Bonds take another couple of % off each number. All less your expenses. Use that for your predictions. Wait I just now realise I may have written that screed about a vanguard target retirement fund, in which case ignore it I've gotten the wrong end of the stick. But it's good advice for index fund selection so I'll leave it up anyway. Cast_No_Shadow fucked around with this message at 08:52 on Feb 21, 2020 |
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Feb 21, 2020 08:47
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Cast_No_Shadow posted:I'll warn strongly against ever focusing on projected returns. Not worth the paper they are written on. Not a good comparison measure. Oh sure, I wouldn't rely on projections for working out how your investment will do, but they're helpful indications of the level of risk that you're invested in when your employer has basically said 'yeah, ok, that'll do' and lumped everything into 'Scottish Widows Managed Retirement Fund IV P3' or some other zombie pension mirror. The growth projection is a helpful indicator of just how much risk is being taken by the fund and whether or not you are comfortable with it.
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Feb 21, 2020 18:00
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I'd argue the way the industry thinks about risk. Or at least the way it talks about it to the public is awful too. Public understanding is probably even worse. Confusing volatility and risk doesn't help. Nor does pretending risk of ruin meaningfully exists (For diversified index investing) or that anyone will care about their pension if a well diversified index based portfolio zeros out. (That means it's either full communism now or the total collapse of the world economy) The real risk is panicking when the market goes down and selling and not aligning your investment time horizon with the volatility of the investments your making. Tldr advice stick it all in a target retirement account and let vanguard or similar figure it out for you, assuming it's an option in your pension. Cast_No_Shadow fucked around with this message at 19:11 on Feb 21, 2020 |
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Feb 21, 2020 19:09
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Thanks for the advice everyone. And yeah, I was thinking more along the lines of "make sure it's not a piece of poo poo fund that barely beats inflation" past results do not guarantee future returns than anything else. Anything in the Vanguard SIPP is going straight into either a LifeStrategy or Target Retirement date fund, just like the ISA.
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Feb 21, 2020 21:18
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Cast_No_Shadow posted:I'd argue the way the industry thinks about risk. Or at least the way it talks about it to the public is awful too. Public understanding is probably even worse. Yep. The industry is deliberately deceptive about risk and there's really no beating about the bush on that issue, but given imperfect information from imperfect actors, retail investors have to do what they can. Beta, Sharpe, Information, Alpha - it's all nonsense that is based on the rear view mirror. Hell, I had an enquiry from a prospective client earlier this week who told me that I was proposing to charge them more than Rathbones (I was proposing to charge them literally 50% less at a fixed £ amount rather than a %age of their assets) because "Rathbones' fees comes out of the investment growth so they needn't worry about it" (lol, who the gently caress is paying that £30k p/a then?). There will never be a shortage of bullshit artists when the cancer a fundamental part of the business model, sadly. The problem is a lack of financial education imo. Too much time in school spent on loving poo poo the monarchy did centuries ago and big surprise the majority of the population can't work out how badly they're being shafted on their credit card's APR. Explaining investment risk is a non-starter unless you are a professional. e: lest my head be removed by SA's resident marxists, my fee isn't anywhere near £15k, I was talking the all-in, all TERs, all wrapper charges, platform, tax returns, the whole shebang. My adviser fee is sub-50% of Rathbones though. Theophany fucked around with this message at 23:01 on Feb 21, 2020 |
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Feb 21, 2020 22:55
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