Investment question
 

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Investment question

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Offline  blackhat
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The whole point of Vanguard funds are they are driven by index weights not what is “worthwhile” or “right”; if you want to pass judgement you are entering the world of active management to a degree.  How might you overweight something you “approve of”….? Invest, say, 96% of what you intended into the Vanguard fund and invest the balance into your favoured European or Japanese tracker.  But the fact is……take a view off the index and you are making an active decision and your results may be better or they may be worse than simply staying put.

 
Posted : 26/01/2025 7:52 pm
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Offline  thisisnotaspoon
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With T212 like the way you can build your own pie, say for example I could have an s&p500 etf, an emerging market etf, and maybe 2 more, say Asia pacific and Europe just for example..each split 25% of the money.

Question is can you do this within an ISA wrapper?

Click the little down arrow at the top of the app screen where it says "212 Invest" or "212 ..........." whichever type of account you're currently looking at.

It'll bring up the menu with links to

212 Invest

212 Stocks ISA

212 CFD

212 Cash Isa

Click "212 Stocks ISA"

Deposit some funds (they sit there as cash earning interest just like a cash isa until you actually invest them, ditto if you sell shares they just go back to the cash pot of your portfolio).

Buy stocks and ETF's

Get Rich*

*just like iPhone adverts, sequences may be shortened

US tech could go pop this year. However it could also continue to generate amazing returns. You are more likely to miss out on the amazing returns by being underweighted than you are to make a killing if it goes pop.

What *should* the weighting be for US tech stocks? Why do you know better than the combined knowledge of every other investor?

+1

Will the tech sector go pop, who knows.  Is it a overheated, yes.  But unlike the dot.com bubble these companies* are actually making obscene profits.

It might crash tomorrow, it might go up another 20% next year. Same in 2026.  My strategy as I've got at least 20 years to retirement even if I'm lucky is IMO I'm better off having that ETF now and it going up then down than I am waiting a year watching it go up.  The bad news might** never happen.

*except microstratergy, they're just a small software company that keeps diluting their shares and buying bitcoins.

** it will go down, it will also go up.  Weigh up the advice of anyone who claims to know when and how much against whether they have a time machine and more money than god.

 
Posted : 26/01/2025 7:53 pm
Offline  mattyfez
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Deposit some funds (they sit there as cash earning interest just like a cash isa until you actually invest them, ditto if you sell shares they just go back to the cash pot of your portfolio).

Thanks, I think that's the confusing bit with T212 - you have to actually deposit real cash before you can see  and choose what you want within the “212 Stocks ISA” ?

I have my cash ISA with them already, so thought it might be easier to keep it all on the same platform from an admin/keeping track of things perspective.

if you want to pass judgement you are entering the world of active management to a degree.

That's why I like the idea of 'building your own pie' on T212 ... I could emulate the vanguard life strategy fund (or whatever) to a large extent, but put a bit more weight into some ETF funds... and a bit less in some others... but the 'build your own pie' option only seems to be available (in test mode at least) under 'investment account' rather than under the S&S ISA account, if that makes sense.

 
Posted : 26/01/2025 7:56 pm
Offline  thisisnotaspoon
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Thanks, I think that’s the confusing bit with T212 – you have to actually deposit real cash before you can see  and choose what you want within the “212 Stocks ISA” ?

I don't know as I've obviously got one open with money in it.  But once you have the isa you can search for stocks, ETF's etc and see other peoples shared pies etc.

It does create a little bit of admin headache in that you need to set up your monthly transfer in your bank account to deposit into T212.  Then set-up auto-invest on the pie a day or two later.  If it clashes with a weekend and the transfer doesn't happen then it doesn't work.  And it ends up accumulating those few days interest as cash so you have to log in once in a while to deposit them into something.

That’s why I like the idea of ‘building your own pie’ on T212 … I could emulate the vanguard life strategy fund (or whatever) to a large extent, but put a bit more weight into some ETF funds… and a bit less in some others… but the ‘build your own pie’ option only seems to be available (in test mode at least) under ‘investment account’ rather than under the S&S ISA account, if that makes sense.

Yes, click "+ new pie" then "custom" (the other options are model which has a few sparse wisdom tree and BlackRock pies, and community pie which are the ones other people have shared).

AFAIK the "trading" and the "Stocks ISA" windows are identical apart from one is an ISA and there's a few things you can't buy in an ISA. Occasionally gives me a heart attack as I've got a fee hundred in cashback in the trading account invested in similar shares to the isa but started at different times so opening the app and seeing -50% where is should be +25% but ones £10 and the others a lot more!

 
Posted : 26/01/2025 9:10 pm
nickjb reacted
Offline  Del
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maybe take a look at monevator - the slow and steady portfolio. the exact spread may not suit but the methods are likely sound?

or be mindful of costs and go for an all in one lifestrategy style. IIRC once you're over 38k vanguard adds up.

 
Posted : 26/01/2025 9:28 pm
Offline  mattyfez
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or be mindful of costs and go for an all in one lifestrategy style. IIRC once you’re over 38k vanguard adds up.

Yeah thats what kind put me off vanguard (as a platform) With something like T212 I can have a vangard S&P and 'some other ETF's' from other providers, just as a random example, a wisdomtree cybersecurity ETF, etc, etc. all within an ISA wrapper?

 
Posted : 26/01/2025 9:40 pm
Offline  Del
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you can do that with vanguard. if you're planning on piling more in over the next year or two then vanguard still makes sense. also, at your age, i'd be asking whether or not just going the SIPP route wouldn't be worthwhile? difficult to turn down an immediate 20% uplift? you appear to already have more than substantial cash on hand for a rainy day.

 
Posted : 26/01/2025 9:59 pm
Offline  mattyfez
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you can do that with vanguard. if you’re planning on piling more in over the next year or two then vanguard still makes sense. also, at your age, i’d be asking whether or not just going the SIPP route wouldn’t be worthwhile? difficult to turn down an immediate 20% uplift? you appear to already have more than substantial cash on hand for a rainy day.

Yes I'm thinking of putting into a SIPP also, but that would be a seperate lump sum from cash savings, as my cash savings are my largest pot, and they are only making 4.1%AER at the moment, and the gains are taxable.

I appreciate the tax bonuses with a SIPP, but I don't realy like the idea of having it totally locked away until I'm 57 or whatever the age is - my understanding is you cant pull that money out, once it's 'in' without getting shafted on the tax benefits.

 
Posted : 26/01/2025 10:11 pm

Offline  singletrackmind
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55 actually and you can't pull it out at all,except in exceptional circumstances , ie stage 4 cancer.

 
Posted : 26/01/2025 10:22 pm
Offline  singletrackmind
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You are very lucky to be able to pile the maximum amount in to a pension . Claim back the tax at 40% so it's grossed up .
Then build a nice sum in the most tax efficient way, enjoying compound growth as well. Then draw it down at the 25% tax band rate at 55.
The tax rebate is always going to get a better rate of return than emerging markets etc and worrying about .2% or .3% fund costs become less of a thing.
Then stick half of it in vwrl , 10% in a FTSE tracker , 10% in far east excl Japan , 10% in Europe and 20% in life strategy 100.

 
Posted : 27/01/2025 7:41 am
Offline  donald
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55 actually and you can’t pull it out at all,except in exceptional circumstances , ie stage 4 cancer.

rising to 57 from 6 April 2028

 
Posted : 27/01/2025 9:19 am
juanking and blackhat reacted
Offline  thisisnotaspoon
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Well watching the S+P 500 this morning, this thread has aged like milk in a Columbia student's dorm room.

And the US market isn't even open yet.

Although this does somewhat illustrate my point, you'd (currently, although it's still falling) still have been better off investing a month ago because todays crash is less than the gains this year so far.  Check back at lunch.

You are very lucky to be able to pile the maximum amount in to a pension . Claim back the tax at 40% so it’s grossed up .
Then build a nice sum in the most tax efficient way, enjoying compound growth as well. Then draw it down at the 25% tax band rate at 55.
The tax rebate is always going to get a better rate of return than emerging markets etc and worrying about .2% or .3% fund costs become less of a thing.

Yea, I see your point and I max out my pension to put everything above the 40% threshold into it.  But in the 20% rate it's less beneficial because I'd just be paying 20% on the pension anyway so I'm still trying to put as much spare cash into the ISA as possible.  Depends entirely on your disposable income Vs lifestyle. I live relatively frugally except for the mortgage / house (big-ish house, no car, no kids, no trips to the Maldives).  I'd like to get to my mid 50's and have options.  Maybe I'll be fit and healthy and want to work a bit longer. Maybe I'll want to retire formally and take that 25%.  Maybe I'll want to take a few months / years off and then come back to work to pay for retirement.

Maybe I'll be lucky with investments and want to sail around the world on a yacht?  Maybe we'll want to do a Grand Designs?  Pensions don't let you do that as you'd have to draw it down in year 1 at 40% to fund it.

Not prioritizing pension contributions would almost always be poor financial advice.  But beyond that it depends what you want. I personally don't really want the "retirement drinks in the pub, some JL vouchers, a handshake and an annuity" binary type of retirement. My preference is more for financial independence and flexibility sooner rather than later.

 
Posted : 27/01/2025 10:33 am
Offline  Jamz
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SQQQ might be the diversity you need *insert sweating emoji*

 
Posted : 27/01/2025 1:53 pm
Offline  mrmonkfinger
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So with next years ISA allowance I’m planing on pulling 20k out of my instant savings account to put into an S&S ISA to ‘speculate’ a bit.

You definitely don't want that £200k decreasing in real value by 2% or 3% each year. At least shovel it across to your cash ISA as fast as you can, even if you don't go S&S ISA.

 
Posted : 27/01/2025 2:50 pm
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