Planning retirement in the UK
Oct 15th 2020, 10:06 am
#16
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Re: Planning retirement in the UK
Neither of our children are in the least bit interested in moving funds about and balancing to an AA so both of them when they started work on their 20s directed all their income into a target retirement fund which is a fund of funds that automatically rebalances and also changes the AA as they get older and closer to retirement.
My wife is of the same mindset so we put all her Roth into a fund of funds with a fixed AA that automatically rebalances and her advice from me that when I die and she inherits my Roth accounts that she simply moves the money into the same fund. The fees are really small because you are not paying for a manager to chase returns, simply moving money between funds to maintain the target AA.
My wife is of the same mindset so we put all her Roth into a fund of funds with a fixed AA that automatically rebalances and her advice from me that when I die and she inherits my Roth accounts that she simply moves the money into the same fund. The fees are really small because you are not paying for a manager to chase returns, simply moving money between funds to maintain the target AA.
Oct 15th 2020, 10:54 am
#17
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Joined: Mar 2016
Posts: 65
Re: Planning retirement in the UK
Neither of our children are in the least bit interested in moving funds about and balancing to an AA so both of them when they started work on their 20s directed all their income into a target retirement fund which is a fund of funds that automatically rebalances and also changes the AA as they get older and closer to retirement.
My wife is of the same mindset so we put all her Roth into a fund of funds with a fixed AA that automatically rebalances and her advice from me that when I die and she inherits my Roth accounts that she simply moves the money into the same fund. The fees are really small because you are not paying for a manager to chase returns, simply moving money between funds to maintain the target AA.
My wife is of the same mindset so we put all her Roth into a fund of funds with a fixed AA that automatically rebalances and her advice from me that when I die and she inherits my Roth accounts that she simply moves the money into the same fund. The fees are really small because you are not paying for a manager to chase returns, simply moving money between funds to maintain the target AA.
Oct 15th 2020, 11:47 am
#18
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Re: Planning retirement in the UK
Agreed, still it pains me to pay a premium for someone else to balance my portfolio when it takes me about 10 minutes a year and will cost me over $1,000 a year in additional fees to do so (though that number will become lower each year as we spend our portfolio down). $1,000 is still a lot of money to me!
so yes, I agree with you. If you had individual funds that you balanced yourself the fees on £100,000 investments would cost about £100/year but a balanced fund would cost £130/year.
A £1m portfolio is going to cost you about £1,000/year to manage yourself and £1,300/year if you put it in a Target Retirement fund and let the Vanguard computers do the re-balancing for you.
https://investor.vanguard.com/mutual...th-end-returns
Last edited by durham_lad; Oct 15th 2020 at 12:09 pm.
Oct 15th 2020, 9:57 pm
#19
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Joined: Mar 2016
Posts: 65
Re: Planning retirement in the UK
A Vanguard target retirement fund of funds is going to cost around 0.13% per year as opposed to index funds of less than 0.1% (VTI is 0.06%)
so yes, I agree with you. If you had individual funds that you balanced yourself the fees on £100,000 investments would cost about £100/year but a balanced fund would cost £130/year.
A £1m portfolio is going to cost you about £1,000/year to manage yourself and £1,300/year if you put it in a Target Retirement fund and let the Vanguard computers do the re-balancing for you.
https://investor.vanguard.com/mutual...th-end-returns
so yes, I agree with you. If you had individual funds that you balanced yourself the fees on £100,000 investments would cost about £100/year but a balanced fund would cost £130/year.
A £1m portfolio is going to cost you about £1,000/year to manage yourself and £1,300/year if you put it in a Target Retirement fund and let the Vanguard computers do the re-balancing for you.
https://investor.vanguard.com/mutual...th-end-returns
First World problem I suppose and 99.99% of the worlds population would trade with me I'm sure!
Oct 16th 2020, 7:45 am
#20
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