Financial advisors for index tracker funds

[cqueen]

Hi, I would like to create an index tracker investment portfolio. But as I'm a newb to this I would like a professional to help me get set up. Can someone advise me where to find an advisor? Sure I could just google 'financial advisor', but heck I have no idea if they would be any good or rip me off.

Thanks

[sidicks]

cqueen said:

Hi, I would like to create an index tracker investment portfolio. But as I'm a newb to this I would like a professional to help me get set up. Can someone advise me where to find an advisor? Sure I could just google 'financial advisor', but heck I have no idea if they would be any good or rip me off.

Thanks

Why do you need a financial advisor if you just want index trackers?

[hallion]

sidicks said:

Why do you need a financial advisor if you just want index trackers?

I agree. I use mostly use https://www.trustnet.com for research and then buy trackers and funds through https://www.charles-stanley-direct.co.uk

I am fairly certain that I am getting a better ROI doing it myself than going through an IFA.

[JulianPH]

cqueen said:

Hi, I would like to create an index tracker investment portfolio. But as I'm a newb to this I would like a professional to help me get set up. Can someone advise me where to find an advisor? Sure I could just google 'financial advisor', but heck I have no idea if they would be any good or rip me off.

Thanks

Vanguard. You won't get cheaper or better if that is all you want.

[cqueen]

Ah ok, I thought it would be good to get some advice on what to go for, UK only or USA or? So many options I kinds get lost.
Thanks

[Mezger]

from personal experience I'd recommend reading Millionaire Teacher by Andrew Hallam - its on Amazon.

I'm not advocating this is best for you, but the approach I've taken is the following;

VUKE - tracks FTSE 100 - gives me exposure to UK market (yes I know many of the FTSE 100 generate income outside of UK and we're benefitting from weaker pound when they report earnings)

VWRD - approx largest 3000 companies globally, giving you lots of exposure to different markets - 52% is US.

IGLS - UK Government bonds

I re-balance once per year to my original % allocation, ie I sell what is high and buy what is low to get back to my original allocation.

Simple, cost effective and in theory over the long term 15 years+ should provide me with a decent return.

You're on the right the track to look at indexes, tax and on-going fees are two huge anchors on total performance when you factor in the compounding effect. Indexes help reduce your costs, Pensions/SIPP/ISA can help with tax.

Good luck.

[cqueen]

Thanks, I'm still struggling though. I looked through that trustnet website but I have no clue what I'm looking at. I need someone to explain to me exactly how to research and make a good choice.

[cqueen]

Ok so for example, on vanguard they have the 'FTSE All Share Index'. The last 5 year shows 3 very good years, one flat and one -1%. Averaged out it's about 10% return. I'd be happy with that - so do I just buy? I feel like I haven't done enough digging. P.s. Annual fee of 0.08%.

[CaptainSensib1e]

Take a look at Nutmeg, they offer a low cost 'robo advice' service that will set you up with a portfolio of tracker funds.

[DoubleSix]

cqueen said:

Thanks, I'm still struggling though. I looked through that trustnet website but I have no clue what I'm looking at. I need someone to explain to me exactly how to research and make a good choice.

Where in the country are you and approx what amount are you looking to invest?

[cqueen]

I'm in Norwich, have £15k to start plus small monthly top ups.

[DoubleSix]

Ok, for those sums I would continue to readup and investigate low cost DIY options.

Hargreaves Lansdown and/or some of the above suggestions should serve you well enough at this stage.

Good Luck!

[cqueen]

Ok can you suggest good places to read up on? I've read plenty on 'why', but very little on 'how'.
Thanks

[cqueen]

On vanguard here there is a list of all the index funds. My assumption at this point is that I should split my cash into maybe 5(?) different funds, some low risk, some high? then just hold out for 20+ years

[sidicks]

cqueen said:

On vanguard here there is a list of all the index funds. My assumption at this point is that I should split my cash into maybe 5(?) different funds, some low risk, some high? then just hold out for 20+ years

If you have a 20-year investment horizon, you can afford to take more risk.

[cqueen]

sidicks said:

If you have a 20-year investment horizon, you can afford to take more risk.

So do you mean buy more of the 5/6 risk rated funds? Presumably across the globe. Also why is there only one fund with a fee of 0.08% and the rest are all sorta 0.5%?

[AllyM]

Isn't now a bad time to be getting in ?

[DoubleSix]

AllyM said:

Isn't now a bad time to be getting in ?

Plenty said that twelve months ago.

Unless you have a strong conviction, appropriate strategy and relevant skillset you should concentrate on time in the market, not timing the market.

[EddieSteadyGo]

Mezger said:

from personal experience I'd recommend reading Millionaire Teacher by Andrew Hallam - its on Amazon.

Thanks for the tip - have just purchased a copy of this myself based on your suggestion.

[Mezger]

EddieSteadyGo said:

Thanks for the tip - have just purchased a copy of this myself based on your suggestion.

My pleasure, simple but powerful advice, the antithesis of all the "get rich quick" (despite the title) garbage that gets marketed.