What you do if you were in my shoes?
I would avoid FTSE based indexes like the plague for a start.
What a bizarre comment. FTSE Russell is a highly respected index provider.I would avoid FTSE based indexes like the plague for a start.
Only a handful of people in history have managed to pick winners successfully. It does not matter how much study you do, you will not be able to beat the market. It's quite possible that luck alone would help you beat the market for a few years, but it would not be due to skill.
If you have a mortgage or any other debt, you should probably pay that off first. If you don't own a home, then that should be your priority. If you are a top rate tax payer, you should probably be maxing your pension.
Having done all that, then you should either buy a diversified portfolio of about 10 shares nationally and internationally.
Investing all your portfolio in UK shares directly or through a fund would not be advisable. You would be too exposed to currency risk as the performance would be strongly linked to the UK economy and sterling - even though most or all of these companies have foreign earnings.
What a bizarre comment. FTSE Russell is a highly respected index provider.
Well Vanguard disagrees with you - they switched from MSCI to FTSE as their index provider for a large number of their passive funds years ago.Having spent almost thirty years working in the area of performance and attrition, I’m well aware of the players. FTSE indexes are a very poor yardstick.
So all you can compare is an alternative option.
Discretionary managed portfolio of US ETFs
0.22% TER
0.55% Discretionary manager fee inc Vat
0.11% independent custodian fee
0.50% typical adviser fee
Total 1.38% and you are paying what????
1.25% plus vat
Plus dealing charges
Plus fx costs can be up to 4%
Plus rebates
Plus commissions on bank deposits
Plus fees on own brand funds
Plus dealing costs on securities within own brand funds plus FX fees on dealing on securities within own brand funds etc etc etc
Woody Allen said;” a stockbroker is someone who invests your money until its all gone”
Well there’s your answer
If it’s Irish Vat that’s a total cost of 1.476%pa if it’s UK vat a total of 1.44% vs 1.38%
If you think your current portfolio of just x stocks will beat a global portfolio of 10,000 stocks in both developed and emerging markets and including REITs and taking account of volatility drag and monitored daily and trigger rebalanced for approximately the same cost will do the same return then that’s your answer.
Although just for reference, pretty much every academic study for the last 50 years would expect you to lose.
Why anybody would pay 1.38% for a bunch of index funds is beyond me.Discretionary managed portfolio of US ETFs
0.22% TER
0.55% Discretionary manager fee inc Vat
0.11% independent custodian fee
0.50% typical adviser fee
Total 1.38% and you are paying what????
Your costs, as set out above, would add 1.16% to the cost of investing in the underlying ETF.If your portfolio is falling behind that by 1 or 2%pa then it’s time to shift.
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