Hi
I am seeking some thoughts on how to proceed in migrating our UK ISAs and SIPPs portfolios from a large number of investment trusts and funds to follow an approach more in line with Jack Bogle’s philosophy. I am not seeking recommendations on funds, more advice on the migration process.
Our situation – after 20+ years with a financial adviser, she eventually retired 2 years ago. During our time with her, she charged reasonable hourly rates and kept our portfolio limited to a few investment trusts with a good geographical and sector spread and reasonable costs. The overall growth was reasonable, if not spectacular, but we were generally content with our IFA service. Since then we were with a financial adviser who greatly expanded our portfolio to over 40+ funds, bonds and investment trusts and charged us on an ad valorum % basis for the pleasure (?). This adviser has now retired as well and rather than repeat this experience we have decided, as reasonably experienced investors, to manage our own ISAs and SIPPS along Jack Bogle’s philosophy of a fewer number of index funds.
A quick summary of our financial position. We are 68 years old, retired and living comfortably on state and company pensions. We are not currently relying on the ISA and SIPP portfolios for pension income, but to cover future emergencies, health/medical and long term care costs.
The portfolios are invested largely for capital growth with most recently some strategic fixed income funds recommended by our last IFA. He also recommended some investment trusts in renewable energy & battery energy storage. These have turned out a poor choice with losses in the 30 – 50%! The total of the two portfolios is around £750k so spread over the large number of investments works out at less than £20k per investment. The portfolio growth with our last IFA has been static after fees/charges. Hence the motivation to look for an alternative way forward.
The general query I have is whether there is an optimum way of liquidating the multiple existing funds and subsequently buying the index funds. For example, should I consider the performance of each of the existing funds and sell the low performing funds first, then later the funds that have performed better in the past? Should I spread the selling of existing funds and buying of index funds over a period of time or have the courage of my conviction and do it in one time? Is there a better time of year to sell and then buy?
Any advice or comments would be welcome.
I am seeking some thoughts on how to proceed in migrating our UK ISAs and SIPPs portfolios from a large number of investment trusts and funds to follow an approach more in line with Jack Bogle’s philosophy. I am not seeking recommendations on funds, more advice on the migration process.
Our situation – after 20+ years with a financial adviser, she eventually retired 2 years ago. During our time with her, she charged reasonable hourly rates and kept our portfolio limited to a few investment trusts with a good geographical and sector spread and reasonable costs. The overall growth was reasonable, if not spectacular, but we were generally content with our IFA service. Since then we were with a financial adviser who greatly expanded our portfolio to over 40+ funds, bonds and investment trusts and charged us on an ad valorum % basis for the pleasure (?). This adviser has now retired as well and rather than repeat this experience we have decided, as reasonably experienced investors, to manage our own ISAs and SIPPS along Jack Bogle’s philosophy of a fewer number of index funds.
A quick summary of our financial position. We are 68 years old, retired and living comfortably on state and company pensions. We are not currently relying on the ISA and SIPP portfolios for pension income, but to cover future emergencies, health/medical and long term care costs.
The portfolios are invested largely for capital growth with most recently some strategic fixed income funds recommended by our last IFA. He also recommended some investment trusts in renewable energy & battery energy storage. These have turned out a poor choice with losses in the 30 – 50%! The total of the two portfolios is around £750k so spread over the large number of investments works out at less than £20k per investment. The portfolio growth with our last IFA has been static after fees/charges. Hence the motivation to look for an alternative way forward.
The general query I have is whether there is an optimum way of liquidating the multiple existing funds and subsequently buying the index funds. For example, should I consider the performance of each of the existing funds and sell the low performing funds first, then later the funds that have performed better in the past? Should I spread the selling of existing funds and buying of index funds over a period of time or have the courage of my conviction and do it in one time? Is there a better time of year to sell and then buy?
Any advice or comments would be welcome.
Statistics: Posted by John@cornerstone — Wed Sep 11, 2024 1:49 pm — Replies 0 — Views 54