stevio
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Post by stevio on Feb 6, 2018 21:09:01 GMT
I have had a H&L S&S ISA and SIPP and have dabbled with some funds with my gains cancelling out my losses and breaking even
I would like something that is quite passive and doesn't take much maintenance for a reasonable gain (capital preferred, but income would be ok)
Where do I start?
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registerme
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Post by registerme on Feb 6, 2018 21:11:31 GMT
~August 1932 ideally.
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Post by dan1 on Feb 6, 2018 22:09:31 GMT
stevio - in the absence of time travel you could check out Monevator and their various articles on passive investing to get you started. If you're after income then it's worth researching Investment Trusts in addition to passive funds / ETFs. If you decide to go passive then after you've decided on your asset allocation (asset class, geography, size, etc) concentrate on fees. HL charge 0.45% platform fees on funds, so if your real (i.e. inflation adjusted) return is 5% your giving up almost 10% of your return in fees - always calculate the fee as a percentage of your return and not the value of your assets.
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moogman
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Post by moogman on Feb 7, 2018 9:18:22 GMT
Take a peek at one of the Vanguard LifeStrategy fund range. It's as passive as it gets, pretty cheap as funds go, and cheaper if you buy it on the Vanguard platform.
HL is a bit expensive, at ~0.45% platform fee, and with many of the funds your total yearly cost can be 1-1.5%. That compounds quite badly over the years, so it pays to look at reducing fees too.
FWIW, I've consolidated my various funds into a single LifeStrategy100 on HL. After April, I plan to look at cheaper platforms, and buy a few Vanguard ETFs again (slightly cheaper than the LifeStrategy fund again).
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moogman
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Post by moogman on Feb 7, 2018 9:20:29 GMT
If you're after income then it's worth researching Investment Trusts in addition to passive funds / ETFs Good call. Any suggestions on which Investment Trusts to research?
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SteveT
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Post by SteveT on Feb 7, 2018 9:28:41 GMT
If you're after income then it's worth researching Investment Trusts in addition to passive funds / ETFs Good call. Any suggestions on which Investment Trusts to research? Whilst there are racier ITs to invest in, the long-term (!) income track record of the likes of Foreign & Colonial IT and Witan IT are hard to argue with. Currently trading at 7% and 4% discount to NAV respectively.
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Post by dan1 on Feb 7, 2018 9:45:22 GMT
If you're after income then it's worth researching Investment Trusts in addition to passive funds / ETFs Good call. Any suggestions on which Investment Trusts to research? I know very little about ITs but there is a contributor on Monevator, Grey Beard, who has written a series of articles on the subject, for example here. I prefer to take the purist approach of maximising total return and supplement the natural yield with capital sales.
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Post by dan1 on Feb 7, 2018 9:49:20 GMT
Take a peek at one of the Vanguard LifeStrategy fund range. It's as passive as it gets, pretty cheap as funds go, and cheaper if you buy it on the Vanguard platform. HL is a bit expensive, at ~0.45% platform fee, and with many of the funds your total yearly cost can be 1-1.5%. That compounds quite badly over the years, so it pays to look at reducing fees too. FWIW, I've consolidated my various funds into a single LifeStrategy100 on HL. After April, I plan to look at cheaper platforms, and buy a few Vanguard ETFs again (slightly cheaper than the LifeStrategy fund again). Vanguard LifeStrategy funds are highly recommended. One thing to note is that they have a home bias of 25% IIRC. Compare that to the Vanguard All World ETF, VWRL, which is a true cap weighting where the UK will represent 7-8%. It makes a big difference when you compare returns. Worth noting that home bias is suited to those who are unable to stomach large fluctuations in currency, such as retirees.
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r00lish67
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Post by r00lish67 on Feb 7, 2018 9:57:51 GMT
Re: share platforms, I'm happy to recommend Halifax Sharedealing as an alternative to H+L.
Rather than the 0.45% fee at H+L, Halifax charge nothing at all for a normal sharedealing account, and £12.50 per year for an ISA as a flat rate. It's a very boring, clunky, platform - but who cares if it's that cheap and you can do your research elsewhere. It may be less suitable if you want to do lots of wheeling and dealing as you pay £12.50 odd for each trade. But if you're a passive buy-and-holder, then I think it's ideal.
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macq
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Post by macq on Feb 7, 2018 10:29:28 GMT
if looking at the VLS range also similar & cheap are the HSBC global strategy range,the L&G multi asset index & Blackrock consensus
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macq
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Post by macq on Feb 7, 2018 10:35:11 GMT
Good call. Any suggestions on which Investment Trusts to research? Whilst there are racier ITs to invest in, the long-term (!) income track record of the likes of Foreign & Colonial IT and Witan IT are hard to argue with. Currently trading at 7% and 4% discount to NAV respectively. i would also look at all of the Baillie Gifford range Monks,Scottish Mortgage,Saints or Japan etc which apart from Saints & Monks maybe a notch up in risk on your suggestions.
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hazellend
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Post by hazellend on Feb 7, 2018 11:31:54 GMT
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macq
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Post by macq on Feb 7, 2018 11:36:54 GMT
Just off to look up a "pyad" (when i google - it better not comeback as an STD )but would agree about City of London as for its fee its like buying a tracker and coming back in 20 years.
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Post by beeje13 on Feb 7, 2018 17:08:10 GMT
Start now, regularly to even out volatility fluctuations.
Unless you plan to retire soon, go for equities. Legal & General International Index Trust for example has thousands of global stocks and a very low charge if you want something easy and passive.
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