Investment & Investing

Have seen so much negativity around the Vanguard fee change in FI groups. Really stupid. They won't make much money on accounts below 32k anyway and it will deter younger/newer people (potential high earners of the future) going and growing with them.

Assuming less than £32k in an ISA account and pay by DD, will it just auto change to £4?

I was also wondering about moving stuff out. do you have to sell everything and be out the market for a few days - potentially bad - and rebuy with new provider?

If it was me, I would find a cheaper platform that has Vanguard funds, if they are the ones you hold, transfer in specie and there is no time out the market. If you hold a fund the new platform doesn't provide, switch on vanguard (for free I think) to a more common one they do provide (with a similar profile) and transfer in specie.

Am I foolish to believe this to be true? Or just propaganda to scare people from investing now that interest rates have fallen without any signs of stopping... With cash sitting in the bank with their willingness to lend, what would be the risk of taking on cheap debt to put into government bonds. The yields should start to rise now that the banks cannot afford to put it on the balance sheet... Or can the possibility of the US government defaulting on their debts be a viable threat.
https://youtu.be/kDDXCFST8Tg?si=b5szZ1G2sE6ywCNW

I’ve got under 10 grand in a Vanguard SIPP as I use it to bung in any extra cash year end to bring me under higher rate tax (my workplace pension doesn’t allow contributions like this). The new fee structure is a bit of a kick in the teeth…haven’t found anything else yet to transfer to which is similar for my needs.

I've converted mine into a managed account for now. It's slightly more expensive than the previous version but much cheaper than an unmanaged one at the new cost. Still hoping someone identifies the magic S&S ISA bullet for me to move money into and forget about!

• Trading212 and InvestEngine offer free S&S ISAs and SIPPs. No fee at all, but they are small companies so there's a little bit more risk and things like transferring out might be more complicated.
  
• Dodl offers S&S ISAs and SIPPs and has a minimum fee of £1/mo, but above £8k it's the same fees as Vanguard used to have - 0.15%. It is own by AJ Bell so isn't likely to go bust.
  
  

I'm probably going to move to Dodl I think.

Edit: that's for people with "small" amounts like me. If you have more than £100k you probably want to look at the providers who charge a flat fee.

It is difficult to make sense of it but here's a table:
https://monevator.com/compare-uk-cheapest-online-brokers/

or an article
https://monevator.com/vanguard-price-rise/

Freetrade offer a SIPP as well. Ive not looked into it but I use them for a stocks and shares ISA and a general investing account, and they do provide a great, user friendly service and app. Might be worth a look.

Is there anything people with T212 accounts do for record keeping?
They are FSCS protected I thought but that’s only the cash if you have shares what are people doing? Are the emails they send enough should they go kaput

I'd never thought about it, but clearly it is a risk. I think the issue is access while it is being sorted out, and potential for a haircut, rather than record-keeping.

Interesting article on when it happened before:
https://www.ft.com/content/6cc31c32-0c37-43d1-8a5a-9386a5c57137

I don't have subscription but was able to get it by searching for the content: "I use an online stock broker to purchase shares in quoted companies. I receive share certificates in return. If my broker were to go bust, what would happen?"

A years free subs to ii if anyone is looking to move to them with more than £5000. Full disclosure, I would get some cash for it.

SIPP

212 meant to be bringing one out in q1, but it's been 'on the way' for a couple of years now so may slip.

The only thing stopping me from moving from Vanguard is I’m currently invested in the target retirement fund which a lot of places don’t carry because it’s not an ETF. Anyone done a similar DIY solution?

How do you find it?

I've DM'd you a link.