tag:blogger.com,1999:blog-2875915890415125655.post2099170357192934864..comments2023-05-18T10:37:34.608+01:00Comments on <a href="http://www.retirementinvestingtoday.com">Retirement Investing Today</a>: Can you afford to not DIY investRetirementInvestingTodayhttp://www.blogger.com/profile/03088383743670046657noreply@blogger.comBlogger18125tag:blogger.com,1999:blog-2875915890415125655.post-53597883509681964492016-09-10T14:55:17.281+01:002016-09-10T14:55:17.281+01:00It's not quite as simple as that IMO. I'd ...It's not quite as simple as that IMO. I'd agree with the premise of your title in the wealth building phase. But as you get older, some things change.<br /><br />I pointed my nearly 80 year old mother at an IFA. I could teach her a little bit about the high-level issues, but she is in poor health, I have a risk profile which is definitely not in the widows and orphans category, and the erminehttp://simple-living-in-suffolk.co.uk/noreply@blogger.comtag:blogger.com,1999:blog-2875915890415125655.post-65887793869351641752016-09-09T08:58:01.265+01:002016-09-09T08:58:01.265+01:00Dont forget its not just the dividend allowance, a...Dont forget its not just the dividend allowance, as this does taper depending on earnings, our tax system is fraught with loopholes to catch people out!<br />I worked out for a couple you get the approx 11k each tax free income, 10k cap gain each, 5k divi each which gives an almost tax free income of 50k - not at all bad! And this is before any income from ISAs are considered<br />I do pay for myLondon Robnoreply@blogger.comtag:blogger.com,1999:blog-2875915890415125655.post-89555183236683648262016-09-08T09:08:38.227+01:002016-09-08T09:08:38.227+01:00My parents went for 'advice' with the loca...My parents went for 'advice' with the local high street Nationwide branch. Thankfully they stopped at a free up front consultation. The product advised was the L&G equivalent of a vanguard lifestrategy 60/40. The fees were:<br /><br />Up front advice fee - 3.5% (of either your lump sum or forecast regular contributions over 4 years.<br />Charge for ongoing advice - 0.75%<br />Fund Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2875915890415125655.post-38038298564302282392016-09-06T23:56:07.103+01:002016-09-06T23:56:07.103+01:002.56% annually seems like way too much...
expensi...2.56% annually seems like way too much...<br /><br />expensive funds + fees would bring it to 1.5% <br /><br />But another important aspect is tax optimization.<br /><br />As of this year, married couple can earn 32K tax free ( 2 cap gain allowance + 2 dividend allowance) from their portfolio given smart allocation to max the allowances. If we take 4% withdrawal rate, then we need only 800k sum K.noreply@blogger.comtag:blogger.com,1999:blog-2875915890415125655.post-91658516031049015782016-09-05T21:29:35.803+01:002016-09-05T21:29:35.803+01:00I DIY by choosing my own funds. I prefer to use la...I DIY by choosing my own funds. I prefer to use larger equity income investment trusts, fixed fee platforms and low activity to keep my costs below 1%. That represents about 10% of my pre-cost returns over the longer term, which is not too onerous. I look to the performance attribution analysis in the annual reports to see how stock selection results compare to expenses. In terms of drawdown net Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2875915890415125655.post-67519167754726710522016-09-05T09:48:39.308+01:002016-09-05T09:48:39.308+01:00And the figures are wrong :
11 Feb 2014 6663.6...And the figures are wrong : <br /><br />11 Feb 2014 6663.62<br />11 Feb 2015 6873.52<br />11 Feb 2016 5536.97<br /><br /><br />15 Aug 2014 6689<br />15 Aug 2015 6550<br />15 Aug 2016 6890stringvestnoreply@blogger.comtag:blogger.com,1999:blog-2875915890415125655.post-53585842802238801012016-09-05T09:43:07.195+01:002016-09-05T09:43:07.195+01:00Sorry - the appearance of the " table "...Sorry - the appearance of the " table " of FTSE levels has not appeared as I wanted.stringvestnoreply@blogger.comtag:blogger.com,1999:blog-2875915890415125655.post-45030008396480332182016-09-05T09:38:23.458+01:002016-09-05T09:38:23.458+01:00Comparing portfolio performance figures is fraught...Comparing portfolio performance figures is fraught with difficulty , inconsistences and overrall - not really comparing like with like.<br /><br />Have a look at these figures for FTSE 100 index :<br /><br /> 11 Feb 2014 6663.62 15 Aug 2014 6689<br /> 11 Feb 2015 6873.52 15 Aug 2015 6873<br /> 11 Feb 2016 5536.97 15 Aug 2016 6890<br /><br /stringvestnoreply@blogger.comtag:blogger.com,1999:blog-2875915890415125655.post-59736571256326790982016-09-05T03:07:19.430+01:002016-09-05T03:07:19.430+01:00I do DIY mostly, but I have one money manager was ...I do DIY mostly, but I have one money manager was Bestinver before now they are azValor, well above market returns for more than 15 years, this year 20% up...<br /><br />There are a few money managers worth it, usually not very known... And usually the don't want to manage too much money because they loose their edge.Dalamarhttps://www.blogger.com/profile/14262037701162440486noreply@blogger.comtag:blogger.com,1999:blog-2875915890415125655.post-36454936321497778952016-09-04T12:00:08.445+01:002016-09-04T12:00:08.445+01:00Hi RIT,
I suspect his measure is probably closer t...Hi RIT,<br />I suspect his measure is probably closer to the truth, and I remember reading your post on calculating it - I am just a bit lazy and would rather give myself a lower rating (i.e. under estimate) as it makes me try and save harder and means each month (almost without fail) I over perform on what I am targeting. I am just too lazy to do anything more is probably closer to the truth :)<London Robnoreply@blogger.comtag:blogger.com,1999:blog-2875915890415125655.post-4944360309017512016-09-04T09:31:38.171+01:002016-09-04T09:31:38.171+01:00Given my lower allocation to equities and your not...Given my lower allocation to equities and your not holding large amounts of cash/ILSC's I would have expected more out performance than what you mention. Of course don't have all the detail so may have missed something... Do you know the annual expenses (money manager and product) you are actually paying?<br /><br />I laid out how I calculate returns in <a href="http://RetirementInvestingTodayhttps://www.blogger.com/profile/03088383743670046657noreply@blogger.comtag:blogger.com,1999:blog-2875915890415125655.post-51387449193356896642016-09-04T09:01:22.259+01:002016-09-04T09:01:22.259+01:00Hi RIT,
As it stands now, I am split between UK, ...Hi RIT,<br /><br />As it stands now, I am split between UK, North American, Asia & Pacific, European and "Other" which equates to about 75%. about 20% is in fixed interest and cash, and the remainder is in "Alternative".<br />Heh - yes Aim shares you need to have a strong stomach - I took it as a how I cope in a big crash. Watching an investment plummet by 50% was hard, London Robnoreply@blogger.comtag:blogger.com,1999:blog-2875915890415125655.post-79779797149216967212016-09-04T07:51:31.490+01:002016-09-04T07:51:31.490+01:00Thanks for coming back on the Q's London Rob.
...Thanks for coming back on the Q's London Rob.<br /><br />So your Financial Adviser has you across a diversified portfolio. If you were to break it down to a rough "Equity" (inc half property) and "Bond" (inc the other half property) split what are percentages? Just trying to get a feel for risk. In comparison I'm currently 56% Equity (inc gold, 1/2 property) and 44%RetirementInvestingTodayhttps://www.blogger.com/profile/03088383743670046657noreply@blogger.comtag:blogger.com,1999:blog-2875915890415125655.post-40115083701325843952016-09-04T07:40:37.458+01:002016-09-04T07:40:37.458+01:00I am very conscious that I am mortal however I'...I am very conscious that I am mortal however I'm also conscious that I could have a lot of years left in me yet. As a healthy 43 year old UK life expectancy calculators have me living to an average age of 80.6 years. I am therefore planning around a long FIRE period.RetirementInvestingTodayhttps://www.blogger.com/profile/03088383743670046657noreply@blogger.comtag:blogger.com,1999:blog-2875915890415125655.post-62554532890699658582016-09-03T15:49:29.814+01:002016-09-03T15:49:29.814+01:00Hi RIT,
yes - its about an average performance, bu...Hi RIT,<br />yes - its about an average performance, but as you say, can he keep it up - that is why I continue to monitor it and see how he does - as long as it remains then I dont mind. As you say it also depends on the risk profile - I am across EM, Developed, Bonds, Property etc.<br /><br />As you say 40 I am - although I have lost some over the last week! I've been really happy with it, Anonymoushttps://www.blogger.com/profile/14850307464658730152noreply@blogger.comtag:blogger.com,1999:blog-2875915890415125655.post-82103512256046902282016-09-03T11:25:22.786+01:002016-09-03T11:25:22.786+01:00Nice. But.....you appear to be assuming you will l...Nice. But.....you appear to be assuming you will live forever. The essence of deferred consumption is that it is deferred but still consumed. <br />To pinch an aphorism - in the long run we're all dead Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2875915890415125655.post-48589423257877817292016-09-03T09:59:01.850+01:002016-09-03T09:59:01.850+01:00In comparison to your money manager since the star...In comparison to your money manager since the start of 2012 (not sure if that is similar to your "only have about 5 years of data to go on") my investment return after expenses and withholding taxes has been 8.1% so at the bottom end of you active managers 8-10%. Of course time periods could be wrong and we don't know how the risk profiles of the portfolios vary. Given active RetirementInvestingTodayhttps://www.blogger.com/profile/03088383743670046657noreply@blogger.comtag:blogger.com,1999:blog-2875915890415125655.post-86860525644164386922016-09-03T09:06:52.142+01:002016-09-03T09:06:52.142+01:00Hi RIT,
I always find these comparisons quite inte...Hi RIT,<br />I always find these comparisons quite interesting, and I know that I also am at odds with most of the FI community on this one. You are spot on that with the average returns generated, you are better off just throwing money into something like the Vanguard 80/20 than through a money manager.<br />I do openly admit however that I do use a money manager - for multiple areas of London Robnoreply@blogger.com