Inoperational Bumblebee Posted October 17, 2016 Share Posted October 17, 2016 3 hours ago, Wudolf said: Monevator has a comparison tool which is quite useful. This ignores dealing costs which maybe £10 or so if you are buying an ETF. Open ended funds are usually commission free. Monevator page here. Might as well read the rest of the site. I think it's superb. Quite a few brokers have a regular investment option where it purchases once a month, but only costs about £1.50 - much cheaper if you're intending to buy and hold. Quote Link to comment Share on other sites More sharing options...
RickyD Posted November 8, 2016 Share Posted November 8, 2016 On 16 October 2016 at 6:25 PM, Wudolf said: Lar's Kroijer's recipe is simpler and more intuitive - x1 equity ETF and x 1 gilt etf in percentages to suit your risk preference. Just aim for something like 60/40 equity/bonds, reinvest dividends and forget. I have read Investing Demystified, by Lar's Kroijer. Do you think it's worth reading through Tim Hale's book as well? Will I get anything new out of reading both books? Quote Link to comment Share on other sites More sharing options...
Wudolf Posted November 8, 2016 Share Posted November 8, 2016 28 minutes ago, RickyD said: I have read Investing Demystified, by Lar's Kroijer. Do you think it's worth reading through Tim Hale's book as well? Will I get anything new out of reading both books? No. Hale makes it more complicated than it needs to be. Quote Link to comment Share on other sites More sharing options...
RickyD Posted November 10, 2016 Share Posted November 10, 2016 On 16/10/2016 at 1:57 PM, Wudolf said: Read Lars Kroijer's 'Investing Demystified' and you'll be fine building a DIY portfolio. Alternatively, simply buy one of the Vanguard Life Strategy range What would you see pro's/con/s of building a DIY portfolio using Kroijer's strategy vs. simply buying into Vanguard Life Strategy? From a quick look, the main difference I can see is that Kroijer recommends investing in AAA Bonds of your home currency, whereas the Life Strategy Fund invests in international Bonds. I can also see that Life Strategy contains property, which Kroijer does not recommend. Quote Link to comment Share on other sites More sharing options...
Wudolf Posted November 10, 2016 Share Posted November 10, 2016 5 hours ago, RickyD said: What would you see pro's/con/s of building a DIY portfolio using Kroijer's strategy vs. simply buying into Vanguard Life Strategy? From a quick look, the main difference I can see is that Kroijer recommends investing in AAA Bonds of your home currency, whereas the Life Strategy Fund invests in international Bonds. I can also see that Life Strategy contains property, which Kroijer does not recommend. Buy either and hold for 10 years or more and I don't suppose the difference would be that great. I think Bernstein says avoid international bonds since what you are mostly doing is adding risk (currency risk that is) and neglible return. And if it's hedged back to sterling why not just hold sterling? There is significant home bias with the Life Strategy product and I think 25% of the equity exposure is to the UK market (All Share I think). That is way over the UK's market weight in world stock market terms of ~ 7% so it is less logical than a world index fund such as VWRL which is weighted by market. A couple of smaller points - with the DIY portfolio you have to rebalance yourself which sounds easy enough but you have to have the nuts to buy into the asset which has fallen and sell the the one which has risen. Some people, for reasons which are obvious, might find it had to rebalance by buying a stock market which has fallen 25%. Life Strategy does it all for you. If you create a DIY world index fund by buying separate funds which cover US, Europe, Japan and so on you make that particular problem even more difficult. That's why I just have VWRL which does the balancing for you although you pay a bit more in annual fee. Know thyself I guess. ETF's are cheaper to hold on pretty well every broking platform. Being open ended Life Strategy has accumulation units so they really are set and forget. Quote Link to comment Share on other sites More sharing options...
RickyD Posted November 14, 2016 Share Posted November 14, 2016 On 10/11/2016 at 8:32 PM, Wudolf said: Buy either and hold for 10 years or more and I don't suppose the difference would be that great. Kroijer mentions that investing a lump sum into a rational portfolio works out better 2 times out of 3, compared to drip feeding money in. I just can't bring myself to doing that at the moment with all the uncertainty in the air with Brexit and Trump. I am more inclined to put half in, and then drip feed money in every quarter. On the other hand, Bonds just got a hammering and the pound bounced back in the last few weeks. Any thoughts on when to jump in? There appears to be no dealing charge with the Lifestrategy funds, so I wouldn't be paying extra in fees with the drip feeding approach. Quote Link to comment Share on other sites More sharing options...
Wudolf Posted November 14, 2016 Share Posted November 14, 2016 5 hours ago, RickyD said: I just can't bring myself to doing that at the moment with all the uncertainty in the air with Brexit and Trump. I am more inclined to put half in, and then drip feed money in every quarter. . That's what I do. Make a plan and stick to it though. 5 hours ago, RickyD said: Any thoughts on when to jump in? None. Invest for the long term and ignore the noise. Quote Link to comment Share on other sites More sharing options...
RickyD Posted August 1, 2017 Share Posted August 1, 2017 Having had a nutmeg account for 11 months, and my own very simple DIY portfolio now for 9 months, I can report that nutmeg is up 7.03% (after all fees) and my DIY is up 7.02%. This is a very unscientific test, as the nutmeg account had 2 extra months on the DIY, and the allocations are different too, as you can see here: My DIY portfolio consists only of: 77% world tracker ETF 17% index linked bond fund. 6% global property fund My nutmeg portfolio consists of: 66% Developed Market Equities 16% Developed Markets Government bonds 10% Emerging Market Equities 6% Money Market 1% other. Personally I think that nutmeg is a perfectly sound choice for those of us who want to keep it simple and have the reassurance that somebody, who knows what they are doing, is re-balancing the portfolio for you behind the scenes. On the other hand, it does appear that under the right conditions, there are more profits to be had if you are willing to Do It Yourself. Quote Link to comment Share on other sites More sharing options...
Wudolf Posted August 6, 2017 Share Posted August 6, 2017 the principal is fine but the fees are not - 0.75% on 1st £100k and 0.35% thereafter. That's on top of the fees charged by the etf's themselves. expected return on a 60/40 equity/bond portfolio is probably no more than 4% nominal so you're giving a big percentage of that away and over the long term that will make a huge difference to overall returns. read Lars Kroijer's book instead and diy. Quote Link to comment Share on other sites More sharing options...
longgone Posted August 13, 2017 Author Share Posted August 13, 2017 On 8/6/2017 at 8:13 PM, Wudolf said: the principal is fine but the fees are not - 0.75% on 1st £100k and 0.35% thereafter. That's on top of the fees charged by the etf's themselves. expected return on a 60/40 equity/bond portfolio is probably no more than 4% nominal so you're giving a big percentage of that away and over the long term that will make a huge difference to overall returns. read Lars Kroijer's book instead and diy. 4% is that all , hardly worth risking anything. Quote Link to comment Share on other sites More sharing options...
RickyD Posted August 14, 2017 Share Posted August 14, 2017 On 8/6/2017 at 8:13 PM, Wudolf said: the principal is fine but the fees are not - 0.75% on 1st £100k and 0.35% thereafter. That's on top of the fees charged by the etf's themselves. Yes I tend to agree, although I do think for some people nutmeg is a viable option. I'm thinking of the likes of my Mother, or some of the people at my workplace who have no interest whatsoever in building their own DIY portfolio, and currently just leave their cash in a savings account. On the other hand, they might be better just getting vanguards lifestrategy, as this would incur lower fees. P.S. In case you were wondering, I am closing my nutmeg account and moving it over to my DIY portfolio. Quote Link to comment Share on other sites More sharing options...
Wudolf Posted August 14, 2017 Share Posted August 14, 2017 3 hours ago, RickyD said: P.S. In case you were wondering, I am closing my nutmeg account and moving it over to my DIY portfolio. Excellent. Quote Link to comment Share on other sites More sharing options...
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