Vanguard LifeStrategy
Discussion
I'm looking to do something with circa £200k cash I have sat in a SIPP. I don't want it just sat there and feel like it's losing money in real terms. I already have a commerical property in there.
Vanguard LifeStrategy has come up in all my reading and is what my IFA has suggested. They've suggested 40% or 60% options as being safe / riskier. It seems like lots of people go 80% though from forum reading.
The IFA wants £4k to put the £200k into where it's supposed to go (2%) and then 0.5% to manage it ongoing. I understand they take liability here but I'm otherwise confused as to what the £4k and 0.5% really covers. It seems to be "advice" but that is mainly a thing that Vanguard seem to have generated and me picking one of high, medium and low based on my appetite for risk.
I'm really not trying to undervalue the IFA here but feel I must be missing something. I've already paid some kind of fee to get it into SIPP in 1st place (I think £600 one off). That seemed to at least cover working out allowances etc. It seemed ok for a bit of professional advice.
If my 40% fund nosedives do I really have any comeback against the IFA?
Could I open a Vanguard account myself and transfer money in?
Vanguard LifeStrategy has come up in all my reading and is what my IFA has suggested. They've suggested 40% or 60% options as being safe / riskier. It seems like lots of people go 80% though from forum reading.
The IFA wants £4k to put the £200k into where it's supposed to go (2%) and then 0.5% to manage it ongoing. I understand they take liability here but I'm otherwise confused as to what the £4k and 0.5% really covers. It seems to be "advice" but that is mainly a thing that Vanguard seem to have generated and me picking one of high, medium and low based on my appetite for risk.
I'm really not trying to undervalue the IFA here but feel I must be missing something. I've already paid some kind of fee to get it into SIPP in 1st place (I think £600 one off). That seemed to at least cover working out allowances etc. It seemed ok for a bit of professional advice.
If my 40% fund nosedives do I really have any comeback against the IFA?
Could I open a Vanguard account myself and transfer money in?
I think it's reports and annually meeting to "review" our "portfolio". I don't understand and at first assumed maybe just normal and I need to pay something. Feels a bit like it could be £1k a year so I can be sold more things!
Over 5 years it will have cost £9k just to have it in there - and how it performs doesn't really seem to be down to the IFA or some cleverness there.
From what I've seen I can have an app that gives me as much reporting as I needed from Vanguard.
It's more the DIY setup I guess - is that "normal" and can I even do that myself?
Sorry, a bit out my depth on terminology.
Over 5 years it will have cost £9k just to have it in there - and how it performs doesn't really seem to be down to the IFA or some cleverness there.
From what I've seen I can have an app that gives me as much reporting as I needed from Vanguard.
It's more the DIY setup I guess - is that "normal" and can I even do that myself?
Sorry, a bit out my depth on terminology.
Thanks all. From looking at Vanguard site it looks like I can just open an account there direct.
If cash was in my bank vs SIPP I think I could just pay it there direct - assuming I stick within my annual allowances which my accountant knows.
It feels like I could be paying £4k to have someone tell my SIPP provider to move the money to Vanguard, then £1k a year "management fee" for nothing really. I don't believe I'd have any comeback against IFA.
I'm also not putting everything I have into this and have a mix of assets and cash etc. - it just seemed like a fairly safe place to stick it vs it just sat doing nothing at all in the SIPP.
If cash was in my bank vs SIPP I think I could just pay it there direct - assuming I stick within my annual allowances which my accountant knows.
It feels like I could be paying £4k to have someone tell my SIPP provider to move the money to Vanguard, then £1k a year "management fee" for nothing really. I don't believe I'd have any comeback against IFA.
I'm also not putting everything I have into this and have a mix of assets and cash etc. - it just seemed like a fairly safe place to stick it vs it just sat doing nothing at all in the SIPP.
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