Low interest rates on savings

[Elpenor]

Looks like the value of my S&S ISA (a portion of which I sold off a few weeks ago) is down 2% in the past week, no doubt due to whatever causes share prices to fall. So feel a bit smug I cashed out

Follow me for more tips (perhaps I should buy some braces and shirts with contrast colours to complete the stockbroker look)

 

[og ogilby]

Looks like the value of my S&S ISA (a portion of which I sold off a few weeks ago) is down 2% in the past week, no doubt due to whatever causes share prices to fall. So feel a bit smug I cashed out

Follow me for more tips (perhaps I should buy some braces and shirts with contrast colours to complete the stockbroker look)

The market dropped significantly, yesterday, so your s&s isa will be down even more when that feeds through.

But don't be feeling too smug unless you're going to buy back in at a cheaper price.

 

[Elpenor]

The market dropped significantly, yesterday, so your s&s isa will be down even more when that feeds through.

But don't be feeling too smug unless you're going to buy back in at a cheaper price.

I take as much responsibility for the drops as I do for the gains

Not sure I’ll be buying back in anytime soon though

 

[Hollis]

Based on nothing better than my crystal-ball, I'm kind of expecting it to fall more, perhaps alot more.. isn't the US market quite overpriced given some of the indicators.

However, I'm not planning on doing any selling.. just hold for the long-term.

 

[baldrick]

Oh I'm leaving mine where it is. It's been through the financial crisis, Covid, Brexit, Trump I etc etc. I'm not panicky just yet.

 

[teuchter]

Vanguard Asset Management | Personal Investing in the UK | Vanguard UK Investor

www.vanguardinvestor.co.uk

Vanguard Asset Management | Personal Investing in the UK | Vanguard UK Investor

www.vanguardinvestor.co.uk

Vanguard Asset Management | Personal Investing in the UK | Vanguard UK Investor

www.vanguardinvestor.co.uk

These are the three Vanguard funds that are passive and fall into the 'ESG' category.

I can see that the third one includes companies anywhere in the world while the first two are "developed world" only.

Is there any reason for me to care what the difference is, between those first two? Because whatever the difference is, I don't understand it enough to make any informed decision and therefore might as well choose at random.

Am forcing myself to revisit this a few years down the line.

When I wrote the post above, deciding to limit myself to ESG funds helpfully reduced the choice to just two or three. So I went with a mix of two of those (the "global" one and a "developed world" one).

Looking now, the choice has expanded to 12 different funds.

Should I be thinking about increasing the mix that I have, and adding in some of these other ones?

Unfortunately Vanguard's "Lifestrategy" things, where they preselect a mix for you, don't seem to have ESG versions.

 

[UnderOpenSky]

Ok, slight thread creep, but this seems the best place to ask.

Vanguard have rather increased fees in a way that hits those of us with smaller balances harder. I have a small pension with them over a few funds. I don't contribute that much as I'm also paying into the NHS pension.

I'm looking round for alternatives. Has anyone used Invest Engine? They've got a £100 sign up offer at the moment

 

[wtfftw]

Ok, slight thread creep, but this seems the best place to ask.

Vanguard have rather increased fees in a way that hits those of us with smaller balances harder. I have a small pension with them over a few funds. I don't contribute that much as I'm also paying into the NHS pension.

I'm looking round for alternatives. Has anyone used Invest Engine? They've got a £100 sign up offer at the moment

I'm in the process of shifting to them. No idea what I'm doing but my small amount of (currently) cash is just for fun. I didn't do a transfer from vanguard but sold up.

 

[UnderOpenSky]

I'm in the process of shifting to them. No idea what I'm doing but my small amount of (currently) cash is just for fun. I didn't do a transfer from vanguard but sold up.

Is that an ISA? I assume with pensions you can't just sell up because of the tax?

They do seem to be the cheapest for people like me.

 

[baldrick]

Trading 212 seems popular with Vanguard refugees on Reddit.

They seem to take ages to do transfers so unless you have more than the yearly ISA limit the common wisdom is to cash out and then just put the money straight into your new platform.

 

[wtfftw]

Is that an ISA? I assume with pensions you can't just sell up because of the tax?

They do seem to be the cheapest for people like me.

It was an ISA but I'm opening a SIPP.

 

[kabbes]

Am forcing myself to revisit this a few years down the line.

When I wrote the post above, deciding to limit myself to ESG funds helpfully reduced the choice to just two or three. So I went with a mix of two of those (the "global" one and a "developed world" one).

Looking now, the choice has expanded to 12 different funds.

Should I be thinking about increasing the mix that I have, and adding in some of these other ones?

Unfortunately Vanguard's "Lifestrategy" things, where they preselect a mix for you, don't seem to have ESG versions.

Are you just interested in their ESG equity index funds? I can't tell from your link. If so, the Worldwide index is already heavily diversified across all markets so there is no "should" in terms of increasing the mix. It's already mixed! However, the worldwide index does naturally have heavy weighting to the big US tech companies. If you think that US tech might be overvalued then you might want to consider increasing your exposure to other indices. Things like European and Asia-Pacific indices include big firms that people who want diversification might think are relatively underweight in a worldwide index. For that reason, you could reasonably move to 10% European and 10% Asia-Pacific, for example, to round it out.

You might also want to consider moving 20% of the fund to bonds, to increase that diversification further.

 

[UnderOpenSky]

Trading 212 seems popular with Vanguard refugees on Reddit.

They seem to take ages to do transfers so unless you have more than the yearly ISA limit the common wisdom is to cash out and then just put the money straight into your new platform.

I have some money in a cash ISA with them so it would be easy (just because it was the best interest rate over savings accounts)

I know this is totally irrational, but web interface doesn't seem at all professional, almost gamerfied, and I don't fully trust them. Even though I know they are regulated.

 

[kabbes]

I know this is totally irrational, but web interface doesn't seem at all professional, almost gamerfied, and I don't fully trust them. Even though I know they are regulated.

It's not irrational at all. Regulated entities can still at the very least pull dubious practices out of the bag and at worst be revealed to be outright scammers, pulling the wool over everybody's eyes. Your instincts are warning you about a pattern that your unconscious has spotted you should be cautious about. It's totally reasonable to listed to that caution, which evolution has supplied you with. I really doubt that Trading212 are going to try to run off with your money but maybe their slick interface hides costs that are not obvious on the surface. Who knows? If your gut says avoid then avoid.

 

[Hollis]

, slight thread creep, but this seems the best place to ask.

Vanguard have rather increased fees in a way that hits those of us with smaller balances harder. I have a small pension with them over a few funds. I don't contribute that much as I'm also paying into the NHS pension.

I'm looking round for alternatives. Has anyone used Invest Engine? They've got a £100 sign up offer at the moment

I use interactive investor - got all my pension there and ISA. It's fixed fee rather than %, so gets cheaper the more you have with it.

I like the look of InvestEngine.. but you are limited to ETFs. Though some might argue that's a good thing.

Does the NHS not offer additional voluntary contributions? If so, you could just bung it in those?

I also have a small amount of money in my 'pissing around' account - with eToro. Can't say I'd want to use it for pension.

 

[UnderOpenSky]

It's not irrational at all. Regulated entities can still at the very least pull dubious practices out of the bag and at worst be revealed to be outright scammers, pulling the wool over everybody's eyes. Your instincts are warning you about a pattern that your unconscious has spotted you should be cautious about. It's totally reasonable to listed to that caution, which evolution has supplied you with. I really doubt that Trading212 are going to try to run off with your money but maybe their slick interface hides costs that are not obvious on the surface. Who knows? If your gut says avoid then avoid.

It's not that I think they will run off with the money, more worried they'd be a nightmare to deal with it. I've actually been pretty happy with Vanguard with my limited dealings, but the fees are now really high if you've only got a small amount.

I use interactive investor - got all my pension there and ISA. It's fixed fee rather than %, so gets cheaper the more you have with it.

I like the look of InvestEngine.. but you are limited to ETFs. Though some might argue that's a good thing.

Does the NHS not offer additional voluntary contributions? If so, you could just bung it in those?

I also have a small amount of money in my 'pissing around' account - with eToro. Can't say I'd want to use it for pension.

I did look in to it, but it's quite expensive. I guess it's a gamble on how long you get to live after retirement. It's also at the state retirement age and I expect this will probably rise again. You can claim it earlier, but I think there's quite a cost to that.

I'm harbouring a slight hope I'll have done ok by the time I'm almost 60 we can buy a camper and travel Europe and I can finish my working life as contractor for six months a year.

 

[Boris Sprinkler]

Look at some of the Sharia Banks (BLME for example) , offering up to 5% growth on investments.
Not interest and ethically ok investments.

 

[kabbes]

Honestly, Sharia banks are still paying interest. They’ve just found a nebulous way of justifying it as not interest to people who haven’t spent a lifetime making it their business to understand exactly what money is.

 

[smmudge]

Honestly, Sharia banks are still paying interest. They’ve just found a nebulous way of justifying it as not interest to people who haven’t spent a lifetime making it their business to understand exactly what money is.

Yes I don't know the full ins and outs of Shariah financing but the more I read the more I think... I don't think this would fool god.

 

[Hollis]

It's not that I think they will run off with the money, more worried they'd be a nightmare to deal with it. I've actually been pretty happy with Vanguard with my limited dealings, but the fees are now really high if you've only got a small amount.



I did look in to it, but it's quite expensive. I guess it's a gamble on how long you get to live after retirement. It's also at the state retirement age and I expect this will probably rise again. You can claim it earlier, but I think there's quite a cost to that.

I'm harbouring a slight hope I'll have done ok by the time I'm almost 60 we can buy a camper and travel Europe and I can finish my working life as contractor for six months a year.

Usually with public sector ones - you can either pay extra into the defined benefit scheme - i.e buy extra years, or you can contribute to a separate money purchase type scheme. With the money purchase ones, the funds can be cheaper than retail.. i.e the one i'm in has a global index tracker for 0.10% - though there are several out there for this rate on the general market.

 

[alex_]

Yes I don't know the full ins and outs of Shariah financing but the more I read the more I think... I don't think this would fool god.

That’s ok. Don’t tell them, he doesn’t exist

 

[UnderOpenSky]

Usually with public sector ones - you can either pay extra into the defined benefit scheme - i.e buy extra years, or you can contribute to a separate money purchase type scheme. With the money purchase ones, the funds can be cheaper than retail.. i.e the one i'm in has a global index tracker for 0.10% - though there are several out there for this rate on the general market.

I dont think those are options. It's buying an annuity, which is guess is similar to extra years, but seemed expensive for the returns.

 

[Hollis]

No - that seems weird and abit behind the times. - Though arguably it does prevent people spending it all when they can access it..

 

[BigMoaner]

I’m enjoying the Monzo investment part of the app, have to say. Good daily return (on my piddly outleigh).

 

[UnderOpenSky]

It was an ISA but I'm opening a SIPP.

Have you done it yet? I've set it up today and see if I refer someone we both get something.

 

[UnderOpenSky]

I'm not sure if I've quite timed this right. As in my Direct Debit went to Vanguard on the 9th, but they're still pending buying funds. And then HMRC relief takes a while. So I'll probably have to do another transfer.

Almost paralysed with choice. I mean, I know there was a lot on Vanguard, but it appears there's more here. Or maybe it's just the way the options are presented. For now I went for their blend based on my age, which is 68/32 equities/bonds

 

[wtfftw]

Have you done it yet? I've set it up today and see if I refer someone we both get something.

yeah I should've referred you.

 

[teuchter]

Are you just interested in their ESG equity index funds? I can't tell from your link. If so, the Worldwide index is already heavily diversified across all markets so there is no "should" in terms of increasing the mix. It's already mixed! However, the worldwide index does naturally have heavy weighting to the big US tech companies. If you think that US tech might be overvalued then you might want to consider increasing your exposure to other indices. Things like European and Asia-Pacific indices include big firms that people who want diversification might think are relatively underweight in a worldwide index. For that reason, you could reasonably move to 10% European and 10% Asia-Pacific, for example, to round it out.

You might also want to consider moving 20% of the fund to bonds, to increase that diversification further.

Yes that's right, I'd like to choose from ESG equity index funds (wasn't able to do a link just filtered to those).
Thanks for the comments. Do I think US tech might be overvalued? I have precisely no idea, so maybe there is no reason to change from what I already have. You are probably right I should have a think about bonds though.