Investment & Investing

I just saw that Wealthify will give £500 for a 20k ISA (new or transfer) so even with their slightly higher fees that works out pretty well.

Well then, you're 2.5% up already.

They don’t seem to provide any details on what fund(s) your money is invested in though. Which would concern me.

Nutmeg seem to suggest here that the typical fund fees (which are in addition to the management fee they're zeroing for the first year) are 0.21%-0.36%

For comparison VUSA (the S&P 500 ETF offered by Vanguard) charges 0.07%, and 0.2% puts you in the vicinity of their LifeTracker managed funds.

I'm not sure what the point is of having Nutmeg doing algorithmic management of managed funds when they could just buy the stocks or ETFs directly.

control to withdraw is with the child when they become 18 right?

There is a simple solution to this. Don't tell them.

I opened a Vanguard general investment account simply to see if it would perform the same / worse / better than Nutmeg (that I have set at 7/7 for risk).

You'll be please to hear there's little difference in the performance that I can see, that I would then used to make decisions. It goes up when Nutmeg goes up, goes down when Nutmeg goes down. Etc.

Nice to see it's actually got a positive return on it now 😹

Basic ISA question - am I right that you can have multiple types of ISA within one tax year but the combined investment is capped at £20K?

Yes, but if you have a Lifetime ISA you can only pay in £4k per tax year.

If u got 4k in LISA you can still put 16K in normal ISA.
And as many account as you like as long as you don't acceed your contribution limit.
Remember you'll get 1k if you put in 4k into LISA.

Yes, thanks, my comment wasn’t as clear as I thought. What I meant was that yes, you can pay £20k in total into multiple ISA accounts, but if you have a Lifetime ISA then that is capped at £4k per annum, i.e. you can’t bung £20k into it.

Thanks, I think I'm too old for a LISA, just for them lucky buggers under 40?

I'd only have the money in it for 12-18m so thinking that even less the fees it still works out well

£500 cashback vs £165 in fees for the year

I could just add it into Vanguard isa but over the short period thought the cashback part made sense as with 2 x 20k Isa's would give a £700 headstart

You get the factsheet withe the Nutmeg isa too though right? so you can more or less see what you are invested in? I just look at some of them and think I like most of it but some of it seems a bit meh and you can't do anything about it. With Vanguard theres a fair bit of flexibility.

7/7 seems like a good risk number - last years isa was 50/50 uranium and semiconductor&AI etfs. wonder what rating that gets :/

Just to complicated thing further recently a British ISA has been announced, which I believe has to invested in british companies only, an additional £5k on top of the £20k.

Dunno who has 25k PA spare every year tbh.

Dunno who has 25k PA spare every year tbh.

Those who have paid off most/all of their mortgage.

"What am I actually invested in" comes pretty low on my list tbh. Which is bad, I know, but it's a semi-managed service, I expect to fire it up and forget about it.

Dunno who has 25k PA spare every year tbh.

Yeah, homeowners, frankly.

I've got S&S ISA at Nutmeg. Went with them because they were easy and you can just set it up and forget about it.

If possible, do it as a salary sacrifice. Then you and your employer save on NI. If they are really nice they might add the NI they saved as an extra contribution.

Not sure of the answer to your actual question though.

Yeah, boomers, frankly.

FTFY

Have most of my savings in a Fidelity S&S ISA (opened it back when it was still Cavendish and the fees were super low) and have finally decided to move it somewhere with lower fees. If I want something to just stick whatever spare cash I happen to have and fire and forget in global ETFs and the like, what's the best place to go? I've heard from a mate that II has low fees, but the plethora of options online has me quite confused at the moment.

Additionally, I've been saving since 2018, started mostly stocks, got spooked and diverted 40% into bonds, and now find myself in the very sad position of being -5% since inception (no idea how this has happened as have diversified across US/China/AsiaPac/UK/EU..). Am still young so am wondering if I should sell off all the bonds holdings (which are rock bottom at the moment because of high interest rates), take the losses, and reinvest into stocks?

Also wondering if anyone knows of well-rated/respectable funds to go into that are designed to have minimal exposure to oil and gas..

For brokers, start here:
https://monevator.com/compare-uk-cheapest-online-brokers/

Depends on how much you trade and how much you have invested. I use iWeb because it's flat fee and I trade very little.

Here is a good guide on asset allocation. It includes rules of thumb based on age and attitude to risk.
https://monevator.com/asset-allocation-construct/

Are Fideity fees really that steep?

Down the rabbithole I go again; thanks for the recommendations!

@thegreatbelow, not terribly, but why throw money away when I could be paying less?

3 PB wins this month. £100 and £25 for me and £50 for MiniGB.