Funds Insider - Opening the door to funds

Welcome to the Citywire Funds Insider Forums, where members share investment ideas and discuss everything to do with their money.

You'll need to log in or set up an account to start new discussions or reply to existing ones. See you inside!

Notification

Icon
Error
Starting From Scratch
+ Reply to discussion
Options
what me worry?
Posted: 21 February 2023 14:04:42(UTC)
#9

Joined: 20/11/2007(UTC)
Posts: 663

Thanks: 3312 times
Was thanked: 1134 time(s) in 434 post(s)
xxd09;258431 wrote:
Well done for starting so early
I am a long way down the line (76) with 3 kids and 8 grand kids
So- I would fill both you and your wives ISA and Pensions first plus an emergency fund before putting any savings in a child’s name
Kids are expensive and they don’t need money as such -they need you and your time-time can cost money-wife’s time off work?
Personally I think money for children should be spent by you in educating them as well as possible -music lessons and tutoring can be expensive!- so they can be independent in due course and earn their own living
You might have to pay for them till they are 22-ie finished a uni course!
Keep all your money under your control
A global equity index tracker is just the ticket initially-Vanguard has some good funds
Simple low cost and easy to understand
Monevator.com has a comparison chart for investment platforms
xxd09



Tried to click"thankyou" but computer said no! Completely agree with 99.5% of what you suggest.
I don't wish to be controversial but may I just say that university is not a universal panacea for all.
I have no problem with uni per se, its a bloody good life experience, but out of three children two went to uni and one did not. The one that didn't still got a good job in the city and is happy. One of those that did go had a great time but his degree course was a million miles from where he is now, doing incredibly well but 3 years behind where he could have been workwise. The third one has a good job but he would have got that without uni. (sorry didn't mean to go off piste )
Back to top Quote
 |  Edit by user
9 users thanked what me worry? for this post.
Sara G on 21/02/2023(UTC), Guest on 21/02/2023(UTC), john brace on 21/02/2023(UTC), Neil Windsor on 21/02/2023(UTC), DHardisty on 24/02/2023(UTC), Wilco on 25/02/2023(UTC), Guest on 25/02/2023(UTC), SoBo65 on 27/02/2023(UTC), Chans on 26/05/2023(UTC)
Blunt Instrument
Posted: 21 February 2023 14:11:01(UTC)
#12

Joined: 21/03/2020(UTC)
Posts: 354

Thanks: 424 times
Was thanked: 1781 time(s) in 326 post(s)
Sara G;258436 wrote:
Also, if you aren't planning on tinkering too much (which you shouldn't, at least not in the early years), then the fact that the HL app and site are so user-friendly, may actually be a disadvantage, as you will be tempted to check your portfolios more often.


Yes.

Furthermore, we never cease to read about how sticky many platform customers prove to be - "I don't want the (perceived) hassle of moving" they bleat - so do yourself a favour and avoid this pitfall from the outset by avoiding this type of provider from ever getting their claws into you.

Focus on doing simple, very sensible things from the outset. Forget about any cleverness and the challenge of picking this fancy fund or that alluring fund. Just get some solid processes in place that get you started out on the right foot and begin building your "investing muscle"* in a methodical, long-term-focused manner.


* self-control, discipline and avoiding behavioural pitfalls
Back to top Quote
7 users thanked Blunt Instrument for this post.
Sara G on 21/02/2023(UTC), Mostly Retired on 21/02/2023(UTC), Guest on 21/02/2023(UTC), Neil Windsor on 21/02/2023(UTC), Jesse M on 22/02/2023(UTC), Tim D on 24/02/2023(UTC), Zach F on 24/02/2023(UTC)
Mostly Retired
Posted: 21 February 2023 14:47:01(UTC)
#13

Joined: 24/04/2012(UTC)
Posts: 343

Thanks: 1544 times
Was thanked: 1284 time(s) in 301 post(s)
If I started again, I would not start where I did! I spent many hours pouring over individual equities, bonds and similar. In the end, I made some howlers - albeit very educational - and not at huge cost.

Looking back now, I also have made the mistake of having too many different investment types, and lo and behold, built myself what looks like a tracker more than a distinct style. I did not adequately set my goals at first, and that led to a frequently illogical allocation. (and I am not 100% sure I am not in that same boat still!)

A 10 yr backward test of my current book looks like this when compared to a global tracker (VWRL):


So, keep costs low, use the time not fretting about individual stock or performance to learn and test. I would tell my younger self to go for a low cost global tracker to form the foundation of the future. Then, as I learnt more, add themes such as sectors or geographies, etc, based on hard-nosed research and self awareness of risk tolerance.

Then again, it is entirely down to your risk views, and degree of time available , etc etc. Never giving advice, just my personal experiences!!

Best of luck!
Back to top Quote
 |  Edit by user
10 users thanked Mostly Retired for this post.
Sara G on 21/02/2023(UTC), Guest on 21/02/2023(UTC), Neil Windsor on 21/02/2023(UTC), Jesse M on 22/02/2023(UTC), dab on 24/02/2023(UTC), smg8 on 24/02/2023(UTC), Tim D on 24/02/2023(UTC), Dexi on 25/02/2023(UTC), Kaufman on 05/03/2023(UTC), RW5 on 18/06/2023(UTC)
dab
Posted: 24 February 2023 07:28:29(UTC)
#14

Joined: 01/05/2012(UTC)
Posts: 82

Thanks: 155 times
Was thanked: 162 time(s) in 65 post(s)
Mostly Retired;258444 wrote:
If I started again, I would not start where I did! I spent many hours pouring over individual equities, bonds and similar. In the end, I made some howlers - albeit very educational - and not at huge cost.

Looking back now, I also have made the mistake of having too many different investment types, and lo and behold, built myself what looks like a tracker more than a distinct style. I did not adequately set my goals at first, and that led to a frequently illogical allocation. (and I am not 100% sure I am not in that same boat still!)

A 10 yr backward test of my current book looks like this when compared to a global tracker (VWRL):


So, keep costs low, use the time not fretting about individual stock or performance to learn and test. I would tell my younger self to go for a low cost global tracker to form the foundation of the future. Then, as I learnt more, add themes such as sectors or geographies, etc, based on hard-nosed research and self awareness of risk tolerance.

Then again, it is entirely down to your risk views, and degree of time available , etc etc. Never giving advice, just my personal experiences!!

Best of luck!


Thanks Mostly. What comparison tool did you use for the chart please? I think I need to face the truth and do the same!
Back to top Quote
1 user thanked dab for this post.
kim shillinglaw on 16/03/2023(UTC)
Mostly Retired
Posted: 24 February 2023 08:16:29(UTC)
#15

Joined: 24/04/2012(UTC)
Posts: 343

Thanks: 1544 times
Was thanked: 1284 time(s) in 301 post(s)
The comparison "tool" i used was Morningstar. A bit of a curates egg as it is a) £150 p.a and b) often breaks :) I like some of its functions though, such as portfolio XRay. However, It is feasible to use other tools - Trustnet, AIC, Sharesight, FT etc.
Back to top Quote
 |  Edit by user
1 user thanked Mostly Retired for this post.
Wilco on 25/02/2023(UTC)
Col Sca
Posted: 24 February 2023 11:00:23(UTC)
#16

Joined: 06/02/2019(UTC)
Posts: 5

Thanks: 19 times
Was thanked: 12 time(s) in 3 post(s)
It appears that many experienced investors on here have similar advice!
After 30+ years investing and some horror stories, usually following HL marketing, I’ve arrived at Vanguard LS80 as my 50% pension core (with peripheral Fundsmith, 3IN, APAX, SSON, LTGlobal etc). All my grandkids have JISA’s with Vanguard FTSE Global All Cap, which covers just about everything and is definitely the buy-and-leave fund for the18 years+.
Back to top Quote
3 users thanked Col Sca for this post.
Tim D on 24/02/2023(UTC), Dexi on 25/02/2023(UTC), kim shillinglaw on 16/03/2023(UTC)
Thrugelmir
Posted: 24 February 2023 16:59:16(UTC)
#17

Joined: 01/06/2012(UTC)
Posts: 5,317

Thanks: 3255 times
Was thanked: 7876 time(s) in 3263 post(s)
Wonder if the OP will return this time. One sided conversations aren't particularly useful.
Back to top Quote
1 user thanked Thrugelmir for this post.
DHardisty on 24/02/2023(UTC)
Mr TIPS
Posted: 24 February 2023 19:18:05(UTC)
#18

Joined: 12/12/2020(UTC)
Posts: 123

Thanks: 361 times
Was thanked: 451 time(s) in 93 post(s)
Hi,

I would choose a cheap platform with a low ad valorem fee and invest all 3 ISA accounts with
HSBC FTSE All-World Index Fund C (GB00BMJJJF91) TCO 0.13%
I suspect you will not find a cheaper or more diversified fund.

Just keep drip feeding in regularly and ignore the market.

Once the individual fund sizes grow to about 80k revaluate which platform makes sense given your objectives. A fixed price fee may start to be cheaper.

In the meantime read a few books. I would start with:-
1. The Psychology of Money by Morgan Housel
2. Winning The Loser's Game by Charles D. Ellis
3. Investing Demystified by Lars Kroijer

Good luck.
Back to top Quote
4 users thanked Mr TIPS for this post.
Zach F on 24/02/2023(UTC), Tim D on 25/02/2023(UTC), Templeton10 on 26/02/2023(UTC), Kaufman on 05/03/2023(UTC)
Zach F
Posted: 24 February 2023 19:40:51(UTC)
#19

Joined: 28/12/2020(UTC)
Posts: 192
Well done for starting so early, definitely ahead of the game.

Firstly I'd move off HL and onto AJ Bells Dodle platform and I'd invest everything into HSBC FTSE All world, on Dodl it's called "On top of the world".

The fees are 1/3 of HL + no dealing fee and although I've not used HL, I'm sure the apps aren't that dissimilar in terms of ease of use. Starting early + low fees = you'll do better than most, set and forget. As the portfolios grow I'd recommend diversifying into different asset classes but for now I wouldn't worry.

Back to top Quote
Andrew59
Posted: 25 February 2023 21:01:52(UTC)
#20

Joined: 20/10/2020(UTC)
Posts: 532
Zach F;258800 wrote:
Well done for starting so early, definitely ahead of the game.

Firstly I'd move off HL and onto AJ Bells Dodle platform and I'd invest everything into HSBC FTSE All world, on Dodl it's called "On top of the world".

The fees are 1/3 of HL + no dealing fee and although I've not used HL, I'm sure the apps aren't that dissimilar in terms of ease of use. Starting early + low fees = you'll do better than most, set and forget. As the portfolios grow I'd recommend diversifying into different asset classes but for now I wouldn't worry.



This is spot on as far as I'd be concerned in your situation. In fact this is what my daughter has, although she ''can't be bothered'' (give me strength!) to move from AJB to Dodl.

There's nothing wrong with the Vanguard funds mentioned, or the Fidelity World Index and whilst there are scope differences (eg Fidelity use MSCI, whilst the other 2 use FTSE) they are all trying to do the same thing.
Recently Fidelity has performed slightly better but iirc it doesn't have any small caps and it's definition of 'World' is not 'All World like HSBC for instance.

I hold the Vanguard fund (from a historical point of view) but the 0.22% fund fee niggles me a bit (zero platform fee with IWeb).
Dodl's only world tracker is the HSBC one (0.13% fund fee but with 0.15% platform fee).

Vanguard is always mentioned by the FIRE community and many others - almost like a religion at times - and it's ok, but not necessarily always the best. You're unlikely to go far wrong with it though.
Back to top Quote
3 PagesPrevious page123Next page
+ Reply to discussion

Markets

Other markets