Jack Bogle (Vanguard): The man who pioneered index investing
Discussion
If like me you still don't know whether you're doing right by paying a financial advisor to invest your money, or unsure exactly how fees can impact your investments - take 30 mins out of your life to listen to this interview - https://www.bbc.co.uk/sounds/play/b081qyxh . It might just save you thousands of pounds.
Jack Bogle (Vanguard): The man who pioneered index investing. https://www.bbc.co.uk/news/business-46906246
With only a 5% chance of an active fund beating an index fund, the above interview has seriously got me thinking of going passive in 2019/20 with my £20k ISA allowance. Reason - I'm fed up of not understanding exactly what fees I am paying, and more importantly - the impact that low vs high fees have on compounding / growth. The only negative I have is that my FA is genuinely a really nice chap. I've known him for 15 years and I can't bring myself to say.. "I'm seeing someone else"
But seriously.. why do we use a FA? And who can honestly say their FA has added value over an index fund? And if your FA is one of the 5% that can beat index funds.. please pm me their contact details
Jack Bogle (Vanguard): The man who pioneered index investing. https://www.bbc.co.uk/news/business-46906246
With only a 5% chance of an active fund beating an index fund, the above interview has seriously got me thinking of going passive in 2019/20 with my £20k ISA allowance. Reason - I'm fed up of not understanding exactly what fees I am paying, and more importantly - the impact that low vs high fees have on compounding / growth. The only negative I have is that my FA is genuinely a really nice chap. I've known him for 15 years and I can't bring myself to say.. "I'm seeing someone else"
But seriously.. why do we use a FA? And who can honestly say their FA has added value over an index fund? And if your FA is one of the 5% that can beat index funds.. please pm me their contact details
Yeah, good points above. I only use my FA for my ISA (I do also have a pension with them but it is very small and I stopped paying into this in preference of my ISA years ago). So for me - I'm probably not getting value by paying an annual % charge to my FA.. just for my ISA. I have no complicated tax situations, but even then I'm not sure *my* FA would be the man for the job. No disrespect to him (or any other FA) but I think most FA's are just order takers / salesman taking a piece of the pie.
Also very good point above re taking advice on *which* index fund/s to pick. I guess that's why the Lifestrategy funds are so popular - just choose which 'risk' camp you are in and how long you invest for?
eta Derek - you should do that ebook
Also very good point above re taking advice on *which* index fund/s to pick. I guess that's why the Lifestrategy funds are so popular - just choose which 'risk' camp you are in and how long you invest for?
eta Derek - you should do that ebook
JulianPH said:
Hi mate, I trust all is good with you and yours.
A good financial adviser (such as Derek above) can add value by looking at the big picture, providing solutions for you needs (particularly ones you were previously unaware of) and managing your financial plans to achieve your goals as tax efficiently as possible.
There is little in the way they can add value in the running of your investments as they don't actually manage this money for you, they simply recommend a firm (or firms) that will do this for you.
You then have the product floggers who are simply trying to sell you something so they can add their fees on top and dressing it up as advice, but then never actually do anything raised in my first point. These are adding no value whatsoever for their fees.
So have a look at what your financial adviser does for you to see which camp you sit in, this may make the decision easier.
Like many on here I prefer a well run passive approach over an active one, but as has been said, you can achieve both of these either with advice or without it.
Pop over for a beer and a chat over this if you like. You know Where I live!
Cheers
Hi Julian, all is good here thanks A good financial adviser (such as Derek above) can add value by looking at the big picture, providing solutions for you needs (particularly ones you were previously unaware of) and managing your financial plans to achieve your goals as tax efficiently as possible.
There is little in the way they can add value in the running of your investments as they don't actually manage this money for you, they simply recommend a firm (or firms) that will do this for you.
You then have the product floggers who are simply trying to sell you something so they can add their fees on top and dressing it up as advice, but then never actually do anything raised in my first point. These are adding no value whatsoever for their fees.
So have a look at what your financial adviser does for you to see which camp you sit in, this may make the decision easier.
Like many on here I prefer a well run passive approach over an active one, but as has been said, you can achieve both of these either with advice or without it.
Pop over for a beer and a chat over this if you like. You know Where I live!
Cheers
Hope same with you too mate!Appreciate the offer.. although doing dry Jan (actually hoping to do dry Feb & March too
) so I might be a bit boring 
I think I'm finally starting to get my head around the fees etc, and as Derek mentioned above - I think a bit of 'one-off' advice would be valuable for most.
Out of interest.. what would you choose in the Vanguard shop for the long term (10+ years) and a high risk (high - not reckless!) approach?
JulianPH said:
Well you can bugger off then until you come to your senses!
haha, I know I know! I'm buckling already JulianPH said:
I would go for their LifeStrategy 80% Equity Fund to keep some bond exposure as a hedge, or either their LifeStrategy 100% Equity or FTSE Global All Cap Index Fund if bond exposure didn't bother you.
Cheers matey!
Ta mate. Any point in splitting my money between the 3 funds ^^^ you mention or would that be a bit daft Cheers matey!
Cheers
Gassing Station | Finance | Top of Page | What's New | My Stuff