🔴 If you liked this video, you might find this useful: ua-cam.com/video/Spqwqxu35mM/v-deo.html - Investing Options UK Subscribe to the channel - it means a lot and I thank you in advance!
Top content. Spent the initial lockdown period watching YT financial videos (like yours) and decided to get rid of my FI. Moved my pension to Vanguard (straight forward) from Aegon. I've reduced my costs by 1000s. Anyone can do this. I'm not sophisticated or extremely financially literate. Pensions are a waiting game. Why pay an advisor an amount year after year to "manage" your investments. The FA also reviewed my existing ISA (I'd done myself independently). Again for 1%. It was at this point that I realised he had served his purpose.
Great vid as always! A handful of caption errors: • 0:13 - "well not a hundred" → "well on a hundred" • 1:40 - "appear" → "up here" • 5:14 - "bit of a spread" → "bid-offer spread" • 5:19 - "level two - platform" → "level to platform" • 5:39 - "GEA" → "GIA"
I just found your channel today while searching for some information about pensions.. I found a real treasure in terms of knowledge! Great content, looking forward for more. Thank you 😊
Terry Smith makes a valid point when he says the best true measure of cost to invest is fee plus total dealing costs. There is no point paying a low fee if the fund then spends the difference and more on needless transaction costs. Fundsmith total cost including dealing is 1.06% after which the net return annualises at just over 18%.
Terry Smith is a clever guy, no question. But in the 25 years of doing my job I’ve seen a handful of untouchable investment ‘geniuses’ fall spectacularly from grace. I’m not against active investing in principle, but I believe it shouldn’t form the core of most people’s investments, just a small satellite holding
Transaction costs being negative is usually due to 'slippage', which is where the expected price of the trade is different than the price executed. (I know you said you don't care, but thought it may be helpful!) This usually happens when the bid offer spread changes between when a market order is requested and executed. In volatile markets it can be quite significant.
Great video Pete as always! Question, how easy is it to manage the retirement end of all this yourself? The practicalities of taking your pension benefits at retirement both from a tax efficient perspective but also in a tax compliant way (e.g. Income / LTA management assessment/reporting). If I were to open a SIPP using a low-cost fund on a low-cost platform (eg. a predefined Global Equity Tracker Fund on Vanguard - other platforms and funds are available!) what are the things to consider when you reach retirement age? And is this the point to seek professional advice? I suspect it is but wonder what you’re thoughts are on the pro’s and con’s and major gotcha’s of a fully DIY approach?
It can be oddly difficult to find out the underlying charges from the websites of providers, due to renaming of similar funds etc. I've tried and given up with some providers but will write to them directly as clearly the effect may be large
Great video and seems to answer some of the nagging questions I've had about my pension fund. One remains though, is it possible to move my pension fund, if I wanted to, after I have taken all of my 25% tax free lump sum? Um, asking for a friend... 🤣
I just realised yesterday that I pay 3.14% for iron market to look after my pension. Is it astronomical or not? They said to me that if not for them, my pot, to which I don’t contribute towards anymore as I instead contribute towards my work pension, would be lower. It’s a balanced fund but basically I feel like I am being robbed
3.14% per year? You are being robbed. Ask the. To quantify the outperformance and added value and then see if they’ll guarantee it’ll stay that way in future. Or you could shift it to a platform, invest in low-cost tracker funds and save yourself 80% of the fees you’re paying…
2% is a large amount in fees mate! unless that 2% is for an actively managed fund that's giving you access to assets you wouldn't be able to normally access due to high or very high capital barriers to entry - think exposure to commercial property, or hedge funds, or unlisted businesses/start ups etc. - then i'd be reconsidering it! if it's 2% for an advisor, then you need to sit down and ask yourself what value or benefit they're bringing remember that advisors aren't stock pickers or fund managers so they won't be adding (literal) value from that perspective!
🔴 If you liked this video, you might find this useful: ua-cam.com/video/Spqwqxu35mM/v-deo.html - Investing Options UK
Subscribe to the channel - it means a lot and I thank you in advance!
Top content. Spent the initial lockdown period watching YT financial videos (like yours) and decided to get rid of my FI. Moved my pension to Vanguard (straight forward) from Aegon. I've reduced my costs by 1000s.
Anyone can do this. I'm not sophisticated or extremely financially literate. Pensions are a waiting game. Why pay an advisor an amount year after year to "manage" your investments. The FA also reviewed my existing ISA (I'd done myself independently). Again for 1%. It was at this point that I realised he had served his purpose.
Great vid as always! A handful of caption errors:
• 0:13 - "well not a hundred" → "well on a hundred"
• 1:40 - "appear" → "up here"
• 5:14 - "bit of a spread" → "bid-offer spread"
• 5:19 - "level two - platform" → "level to platform"
• 5:39 - "GEA" → "GIA"
Thank you Jivan - appreciate you taking the time to let us know 🙏🏻
I don't feel the need for a financial adviser; but if I did, I'd be knocking on this guy's door!
And I’d open the door gladly, Tony! 🙏🏻
@@MeaningfulMoney even if you were 300 miles away Pete? Would that still be possible, if I was prepared to travel?
I just found your channel today while searching for some information about pensions.. I found a real treasure in terms of knowledge! Great content, looking forward for more. Thank you 😊
Really great to have you here, Georgie!
Terry Smith makes a valid point when he says the best true measure of cost to invest is fee plus total dealing costs. There is no point paying a low fee if the fund then spends the difference and more on needless transaction costs. Fundsmith total cost including dealing is 1.06% after which the net return annualises at just over 18%.
Terry Smith is a clever guy, no question. But in the 25 years of doing my job I’ve seen a handful of untouchable investment ‘geniuses’ fall spectacularly from grace. I’m not against active investing in principle, but I believe it shouldn’t form the core of most people’s investments, just a small satellite holding
Transaction costs being negative is usually due to 'slippage', which is where the expected price of the trade is different than the price executed. (I know you said you don't care, but thought it may be helpful!)
This usually happens when the bid offer spread changes between when a market order is requested and executed. In volatile markets it can be quite significant.
That’s a very helpful explanation, thank you! I still don’t care, but it IS good to know!
@@MeaningfulMoney 😂😂
Another great video. Thanks Pete
Great Video as always Pete! Thank you for all your work!
Thank you, John - glad it was helpful!
Great video.
Great video Pete as always! Question, how easy is it to manage the retirement end of all this yourself? The practicalities of taking your pension benefits at retirement both from a tax efficient perspective but also in a tax compliant way (e.g. Income / LTA management assessment/reporting). If I were to open a SIPP using a low-cost fund on a low-cost platform (eg. a predefined Global Equity Tracker Fund on Vanguard - other platforms and funds are available!) what are the things to consider when you reach retirement age? And is this the point to seek professional advice? I suspect it is but wonder what you’re thoughts are on the pro’s and con’s and major gotcha’s of a fully DIY approach?
ua-cam.com/video/E2RDvUiRRG8/v-deo.html
ua-cam.com/video/Ygs8wkmLeCE/v-deo.html
It can be oddly difficult to find out the underlying charges from the websites of providers, due to renaming of similar funds etc. I've tried and given up with some providers but will write to them directly as clearly the effect may be large
I feel your pain, Stuart!
Great video and seems to answer some of the nagging questions I've had about my pension fund. One remains though, is it possible to move my pension fund, if I wanted to, after I have taken all of my 25% tax free lump sum? Um, asking for a friend... 🤣
Yep, absolutely. If you take your 25% tax free cash, the balance will be in a flexi-access drawdown pot. You can shift this to any provider you like.
@@MeaningfulMoney Thanks, that's really helpful..
I just realised yesterday that I pay 3.14% for iron market to look after my pension. Is it astronomical or not? They said to me that if not for them, my pot, to which I don’t contribute towards anymore as I instead contribute towards my work pension, would be lower. It’s a balanced fund but basically I feel like I am being robbed
3.14% per year? You are being robbed. Ask the. To quantify the outperformance and added value and then see if they’ll guarantee it’ll stay that way in future.
Or you could shift it to a platform, invest in low-cost tracker funds and save yourself 80% of the fees you’re paying…
@@MeaningfulMoney I’m thinking about transferring my pot to vanguard
top advice i get charged about 16k on a portfolio of 800K . thinking i getting a bit ripped off
2% is a large amount in fees mate!
unless that 2% is for an actively managed fund that's giving you access to assets you wouldn't be able to normally access due to high or very high capital barriers to entry - think exposure to commercial property, or hedge funds, or unlisted businesses/start ups etc. - then i'd be reconsidering it!
if it's 2% for an advisor, then you need to sit down and ask yourself what value or benefit they're bringing
remember that advisors aren't stock pickers or fund managers so they won't be adding (literal) value from that perspective!
@@RS-ct2vq 503k to 750k in 3 years and 6months,was up to 820k in November, not sure if i would just be better in index fund will lower fees ?