£500 a month to save & invest - best way to split
Discussion
CLK-GTR said:
But is it better to shove your money with an IFA or an active manager charging 2% pa to put your money in a FTSE index tracker? I don't think so.
If you can get into a family office or private bank with bespoke advice then great, for everybody else I think a robo adviser is going to give you a better service. The mid tier of wealth services are taking a real hammering and rightly so. They offer little additional value for their chunky fees.
2% per annum would be a slightly mad spend although I'm aware people pay even more. If you can get into a family office or private bank with bespoke advice then great, for everybody else I think a robo adviser is going to give you a better service. The mid tier of wealth services are taking a real hammering and rightly so. They offer little additional value for their chunky fees.
The key lies in the client outflow differentials. When you look at robo money it rarely lasts long, as he outflows are very large which is part of what makes digital wealth management unprofitable as a stand along enterprise. Conversely, IFA managed money tends to be far stickier and the core advantage of an OFA type set up is not the advice at all but the tempering of the client's natural desire to spend the money.
. Robo investing requires much more discipline than IFA investment because there is next to no friction to removing the money and worse, the robo manager is often actively working on the client to remove the money and to spend it with their profitable arm, often a gambling business. DonkeyApple said:
2% per annum would be a slightly mad spend although I'm aware people pay even more.
The key lies in the client outflow differentials. When you look at robo money it rarely lasts long, as he outflows are very large which is part of what makes digital wealth management unprofitable as a stand along enterprise. Conversely, IFA managed money tends to be far stickier and the core advantage of an OFA type set up is not the advice at all but the tempering of the client's natural desire to spend the money.. Robo investing requires much more discipline than IFA investment because there is next to no friction to removing the money and worse, the robo manager is often actively working on the client to remove the money and to spend it with their profitable arm, often a gambling business.
Any 'good' IFA will do you for 2% when theyve tacked on a few additional charges. Much more in some cases. For me IFAs are an obsolete prospect. Unless you've got serious money you stuck with firms that will give you high fees and low performance.The key lies in the client outflow differentials. When you look at robo money it rarely lasts long, as he outflows are very large which is part of what makes digital wealth management unprofitable as a stand along enterprise. Conversely, IFA managed money tends to be far stickier and the core advantage of an OFA type set up is not the advice at all but the tempering of the client's natural desire to spend the money.
. Robo investing requires much more discipline than IFA investment because there is next to no friction to removing the money and worse, the robo manager is often actively working on the client to remove the money and to spend it with their profitable arm, often a gambling business. Digital platforms are riskier for the ill disciplined but that to me seems an easier fix than a business model that's plain out of date.
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