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Wealth Managers
Wealth Managers
I'm coming to conclusion I can't over time look after my own investments and will have to hire someone.
Wealth managers Brewin Dolphin and Brown Shipley have a portfolio minimum size that excludes me. Charles Stanley min amount is okay, they charge 1.33% for discretionary investment management. But I keep reading not to use a wealth manager as fees too high. A local IFA charges 1% and invest in some sort of generic ready-made portfolio from Brewin Dolphin not individually tailored.
Some might think why not choose trackers myself but they don't seem to do as well as active. In the past when I chose active funds they always did much better than the index. Also what's in the tracker - is it overweight tech stocks and other issues like that.
What companies are there who would look after my investments for me?
Wealth managers Brewin Dolphin and Brown Shipley have a portfolio minimum size that excludes me. Charles Stanley min amount is okay, they charge 1.33% for discretionary investment management. But I keep reading not to use a wealth manager as fees too high. A local IFA charges 1% and invest in some sort of generic ready-made portfolio from Brewin Dolphin not individually tailored.
Some might think why not choose trackers myself but they don't seem to do as well as active. In the past when I chose active funds they always did much better than the index. Also what's in the tracker - is it overweight tech stocks and other issues like that.
What companies are there who would look after my investments for me?
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- Lemon Half
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Re: Wealth Managers
Some might think why not choose trackers myself but they don't seem to do as well as active. Much evidence points to the opposite outcome
In the past when I chose active funds they always did much better than the index. Luck, or selective memory. Majority of active funds don't beat the index
Also what's in the tracker - is it overweight tech stocks and other issues like that. The market
In the past when I chose active funds they always did much better than the index. Luck, or selective memory. Majority of active funds don't beat the index
Also what's in the tracker - is it overweight tech stocks and other issues like that. The market
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- Lemon Half
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Re: Wealth Managers
The answer which suggests itself, is that if you cannot manage your own investments, then choose investments that you do not have to manage. Do not pay to have them managed.
The obvious solution is to choose a small number of investment trusts and let them get on with it. The alternative of using trackers rules out any outperformance by their very nature. Then the question becomes how many ITs, which ITs and what do you do with dividends?
3 might be enough, say FCIT, CTY and a REIT.
That's my view, anyway.
TJH
The obvious solution is to choose a small number of investment trusts and let them get on with it. The alternative of using trackers rules out any outperformance by their very nature. Then the question becomes how many ITs, which ITs and what do you do with dividends?
3 might be enough, say FCIT, CTY and a REIT.
That's my view, anyway.
TJH
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- Lemon Quarter
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Re: Wealth Managers
How many investments do you have and how many accounts and investment platforms? The simplest way is to consolidate.
My largest holding is Fidelity Index World class P. My portfolio overall gives a weighted average return which is approx same as this, and I've often thought, why bother with a portfolio and just invest in one or two world trackers. It's a hobby for me now, but may do this in future.
My largest holding is Fidelity Index World class P. My portfolio overall gives a weighted average return which is approx same as this, and I've often thought, why bother with a portfolio and just invest in one or two world trackers. It's a hobby for me now, but may do this in future.
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- Lemon Slice
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Re: Wealth Managers
tjh290633 wrote:The answer which suggests itself, is that if you cannot manage your own investments, then choose investments that you do not have to manage. Do not pay to have them managed.
The obvious solution is to choose a small number of investment trusts and let them get on with it. The alternative of using trackers rules out any outperformance by their very nature. Then the question becomes how many ITs, which ITs and what do you do with dividends?
3 might be enough, say FCIT, CTY and a REIT.
That's my view, anyway.
TJH
I agree with TJH290633. A simple investing strategy works wonders. 90% in a world equity tracker e.g. index fund or global investment trust e.g. FCIT, and the rest in cash, should beat most wealth managers hands down. The latter take a surprisingly large proportion of one's life savings over 10+ years. By the way, I practice what I preach using FCIT and it's excellent saving scheme.
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- Lemon Pip
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Re: Wealth Managers
LooseCannon101 wrote:tjh290633 wrote:The answer which suggests itself, is that if you cannot manage your own investments, then choose investments that you do not have to manage. Do not pay to have them managed.
The obvious solution is to choose a small number of investment trusts and let them get on with it. The alternative of using trackers rules out any outperformance by their very nature. Then the question becomes how many ITs, which ITs and what do you do with dividends?
3 might be enough, say FCIT, CTY and a REIT.
That's my view, anyway.
TJH
I agree with TJH290633. A simple investing strategy works wonders. 90% in a world equity tracker e.g. index fund or global investment trust e.g. FCIT, and the rest in cash, should beat most wealth managers hands down. The latter take a surprisingly large proportion of one's life savings over 10+ years. By the way, I practice what I preach using FCIT and it's excellent saving scheme.
Agree with both of these. Vanguard LifeStrategy with the risk profile to suit your tolerance. Nothing more to do.
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- Lemon Pip
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Re: Wealth Managers
AleisterCrowley wrote:Some might think why not choose trackers myself but they don't seem to do as well as active. Much evidence points to the opposite outcome
In the past when I chose active funds they always did much better than the index. Luck, or selective memory. Majority of active funds don't beat the index
Also what's in the tracker - is it overweight tech stocks and other issues like that. The market
Oops! Should have quoted this one! Agree 100%
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- Lemon Slice
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Re: Wealth Managers
I guess it lives if here we're considering handing over choosing a fund manager to someone else.
A recent report from the Swiss Finance Institute, the national centre for finance research:
"We study how plan sponsors choose investment management firms from their opportunity set when delegating $1.6 trillion in assets between 2002 and 2017. Two factors play an influential role in choice: pre-hiring returns, and pre-existing personal connections between personnel at the plan (or consultant advising the plan), and the investment management firm. Post-hiring returns for chosen firms are significantly lower than those for unchosen firms..... "
https://papers.ssrn.com/sol3/papers.cfm ... id=3651476 Full text is available.
Picking winners in the world of investing isn't easy, which makes accepting market returns attractive.
A recent report from the Swiss Finance Institute, the national centre for finance research:
"We study how plan sponsors choose investment management firms from their opportunity set when delegating $1.6 trillion in assets between 2002 and 2017. Two factors play an influential role in choice: pre-hiring returns, and pre-existing personal connections between personnel at the plan (or consultant advising the plan), and the investment management firm. Post-hiring returns for chosen firms are significantly lower than those for unchosen firms..... "
https://papers.ssrn.com/sol3/papers.cfm ... id=3651476 Full text is available.
Picking winners in the world of investing isn't easy, which makes accepting market returns attractive.
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- Lemon Quarter
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Re: Wealth Managers
The main purpose of wealth managers is increasing their own wealth. Better to accept market returns than have the certainty of your wealth being salami sliced in fees every year and run the risk of your active manager turning out to be a Neil Woodford.
Re: Wealth Managers
Thank you very much for taking the time to reply, now encouraged to carry on myself.
Due to various health problems it's difficult to keep an eye on investments even though it doesn't take long.
Will keep it simple instead of thinking too much,
many thanks for the suggestions for ITs and trackers.
Due to various health problems it's difficult to keep an eye on investments even though it doesn't take long.
Will keep it simple instead of thinking too much,
many thanks for the suggestions for ITs and trackers.
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