it's not over
Member
- Location
- thunder rd co.antrim
What's the general opinion on nfu investment isa pays approx 7% . I know this is not guaranteed . Only negative is they take 3.5% of the initial investment
Nfu investment isa
- Thread starter it's not over
- Start date
- Location
- Shropshire
I put it £250 per month. I've been pleased with the results, plus it is instantly available.
I’m really surprised that you would be happy with your NFU investment.
If you are investing £250 per month you will be building up a decent pile and you clearly have the right ethos towards saving.
But with the NFU charging a giant 1% management fee each year it’s far too expensive for me to even consider.
If you are young, say 25 and you don’t take the money out until you are 67, that’s 42 years of charges. Or 42% on year 1 investments, 41% on year 2 etc.
But this 42%, 41% etc etc has not been working for you for 42, 42 etc years.
The whole point of paying managent charges, I assume is to beat the index FTSE 100, S&P 500 etc. But a lot of funds simply don’t outperform. Even more so when there astronomical charges are taken into account I.e 1%.
The fund managers who do outperform the market are household names for a reason. But even the stars don’t outperform forever. In fact some studies show that it is near impossible for funds to beat the index over a meaningful period. I would say that there are far more Olympic gold medals out there than there are fund managers that outperform the index. Marketing is beautiful.
Ask the NFU to chart up the performance of your investment for the past 10 years (after fees). I think that this is all that matters in relation to their products.
Especially when you can buy the index from Vanguard for around 0.22%.
Say I had a friend whose grandfather died and left him his savings of around £100k. I believe the NFU could charge him around 3% initial fee. I then tell him that 3% of all his grandfathers working energy had gone in seconds...
That 3% initial fee alone could be around £48,000 AFTER inflation at retirement. Just the ‘initial fee’ alone is a sizeable pot!
I’m not sure how anyone can justify giving 3% of their worth away. Especially when considering how that 3% could otherwise work and compound for 20, 30, 40 years.
These are my opinions. It’s your right to challenge them.
If you are investing £250 per month you will be building up a decent pile and you clearly have the right ethos towards saving.
But with the NFU charging a giant 1% management fee each year it’s far too expensive for me to even consider.
If you are young, say 25 and you don’t take the money out until you are 67, that’s 42 years of charges. Or 42% on year 1 investments, 41% on year 2 etc.
But this 42%, 41% etc etc has not been working for you for 42, 42 etc years.
The whole point of paying managent charges, I assume is to beat the index FTSE 100, S&P 500 etc. But a lot of funds simply don’t outperform. Even more so when there astronomical charges are taken into account I.e 1%.
The fund managers who do outperform the market are household names for a reason. But even the stars don’t outperform forever. In fact some studies show that it is near impossible for funds to beat the index over a meaningful period. I would say that there are far more Olympic gold medals out there than there are fund managers that outperform the index. Marketing is beautiful.
Ask the NFU to chart up the performance of your investment for the past 10 years (after fees). I think that this is all that matters in relation to their products.
Especially when you can buy the index from Vanguard for around 0.22%.
Say I had a friend whose grandfather died and left him his savings of around £100k. I believe the NFU could charge him around 3% initial fee. I then tell him that 3% of all his grandfathers working energy had gone in seconds...
That 3% initial fee alone could be around £48,000 AFTER inflation at retirement. Just the ‘initial fee’ alone is a sizeable pot!
I’m not sure how anyone can justify giving 3% of their worth away. Especially when considering how that 3% could otherwise work and compound for 20, 30, 40 years.
These are my opinions. It’s your right to challenge them.
- Location
- Northumberland
There are deals to be done on the fees. If you invest 10k on an advised basis, a 90k top up on non-advised will be a lot cheaper.
Why invest with them in the first place though?
I see zero upside and lots of downside.
They are still taking around 1% of the whole in every single 12 month cycle. How can anyone think this is good?
The AUM (Assets Under Management) Model is a HUGE drag on the growth of your wealth. Investment returns are precious and under this model the absolute cream is being skimmed.
Numerous studies have shown that the fees you are being charged are the best indicator of future performance.
I see zero upside and lots of downside.
They are still taking around 1% of the whole in every single 12 month cycle. How can anyone think this is good?
The AUM (Assets Under Management) Model is a HUGE drag on the growth of your wealth. Investment returns are precious and under this model the absolute cream is being skimmed.
Numerous studies have shown that the fees you are being charged are the best indicator of future performance.
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it's not over
Member
- Location
- thunder rd co.antrim
It was a waste of time. They took 3 times in fees what it made me. Yes yes yes if you're smart enough to make it you're smart enough to manage your own money. In hind site I should of bought a house
Oh hell. In reality you made a mistake that most people could, do and will make. Lots of people will view a financial advisors website and see the photo’s of a happy couple with hills in the background 
.
Foresight can counter hindsight.
Vanguard Investments....
Mega low fees. Tracks the index.
Yes, you will hear about Lindsell Train and Fundsmith outperforming the index. The only reason they hit the headlines is because outperformance is such a rare thing! Aside from having good fund managers, im sure both funds have admitted that luck has had a big part to play in their outperformance.
These 2 funds have been going 10 years. Who knew to invest in the first 3 years? Few people.
Now these funds are so big it is increasingly difficult for them to build positions in stocks without increasing the value of the benchmark.
Simply buy the index. Study after study shows it’s the best way to preserve and grow what is yours.
Even the famous Warren Buffet has only ‘matched’ the index over the past 9 years.
.Foresight can counter hindsight.
Vanguard Investments....
Mega low fees. Tracks the index.
Yes, you will hear about Lindsell Train and Fundsmith outperforming the index. The only reason they hit the headlines is because outperformance is such a rare thing! Aside from having good fund managers, im sure both funds have admitted that luck has had a big part to play in their outperformance.
These 2 funds have been going 10 years. Who knew to invest in the first 3 years? Few people.
Now these funds are so big it is increasingly difficult for them to build positions in stocks without increasing the value of the benchmark.
Simply buy the index. Study after study shows it’s the best way to preserve and grow what is yours.
Even the famous Warren Buffet has only ‘matched’ the index over the past 9 years.
- Location
- Shropshire
My sister advised me to buy index trackers years ago. Gone very well
biggles
Member
- Location
- derbyshire
complete novice here to all investments so bear with me. I’ve got nearly 20k in a cash isa with hsbc and it’s paying sweet fa ! What would I need to do to make a few £ but with not to much risk to capital, investment timescale would be 6 month min as corona has altered my short term plans. Maybe substantially longer, cheers
Unfortunately 6 months is no time at all. You are best with a cash ISA which will technically devalue your money.
If you said 3-4 years, I would say. Vanguard US Equities fund (very silimar to S&P500). It invests in every single listed business in America. Whilst you must be warned about risk. It is simply put a money machine.
As Billy Joel would say ‘we didn’t start the fire’. Businesses have been growing and prospering forever.
Don’t be scared of the massive irelevent crashes. People are good consumers. They’ll soon be buying tickets to the moon.
Every time someone buys from Apple, you win. Every time someone goes to Mcdonslds, you win.
For me Vanguard US Equities fund is the safest place for my money.
6 months is nothing though and you should stay away from equities.
Never pay a financial advisor who charges a % based fee. Only use those that charge hourly.
If you said 3-4 years, I would say. Vanguard US Equities fund (very silimar to S&P500). It invests in every single listed business in America. Whilst you must be warned about risk. It is simply put a money machine.
As Billy Joel would say ‘we didn’t start the fire’. Businesses have been growing and prospering forever.
Don’t be scared of the massive irelevent crashes. People are good consumers. They’ll soon be buying tickets to the moon
.Every time someone buys from Apple, you win. Every time someone goes to Mcdonslds, you win.
For me Vanguard US Equities fund is the safest place for my money.
6 months is nothing though and you should stay away from equities.
Never pay a financial advisor who charges a % based fee. Only use those that charge hourly.
biggles
Member
- Location
- derbyshire
was looking at buying a bit of land and money was for deposit but corona stopped sale and now it’s all up in the air, have just paid another 6 months rent on it, can’t seem to make any meaningful progress with the purchase, get the feeling now that the chap thinks it’s going up in value so will sit on it and then ask for more than we loosely agreed! Might still be here in 5 years! What sort of % returns are on the USA package?
Long term average - Since the 1920’s - after inflation and fees - 7.85% pa would be conservative.
You can buy your own shares. Most new investors loose money doing this. Fact.
Buy a managed fund. The manager will pick a portfolio of shares. But these managers can never beat the index over a meaningful period. More chance of winning at the Olympic.
Or you can buy the index. There is no manager wanting a cut here. So it’s cheap. Very cheap to do.
The golden rule is that you can NEVER sell just because your investment is down. Cut your arm off first.
If you have any friends who know anything about investing, get them to check out Vanguard US Equities Fund Index. Mull it past them.
There are always reasons why you shouldn’t invest. 9/11, Iraq, Trump, Biden, a virus. You can always find a reason not to invest. But US Equities have always delivered. There is no get rich quick. Just a steady rise.
You can buy your own shares. Most new investors loose money doing this. Fact.
Buy a managed fund. The manager will pick a portfolio of shares. But these managers can never beat the index over a meaningful period. More chance of winning at the Olympic.
Or you can buy the index. There is no manager wanting a cut here. So it’s cheap. Very cheap to do.
The golden rule is that you can NEVER sell just because your investment is down. Cut your arm off first.
If you have any friends who know anything about investing, get them to check out Vanguard US Equities Fund Index. Mull it past them.
There are always reasons why you shouldn’t invest. 9/11, Iraq, Trump, Biden, a virus. You can always find a reason not to invest. But US Equities have always delivered. There is no get rich quick. Just a steady rise.
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biggles
Member
- Location
- derbyshire
I’ll have a dig about when things are quiet, cheers
Cash Isa is a waste of time imo, yorks was and still is correct, buy the whole index in low cost trackers if you are in it for medium to long term.
For example the s and p 500 has nearly tripled in value in the last 10 years and that is without reinvesting the gains.
For example the s and p 500 has nearly tripled in value in the last 10 years and that is without reinvesting the gains.
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Dont know about 7% but they said it should do at least as well as inflation - ha! Did anyone get 7% per year?
They dont tell you that though.
I was reading the other thread about prime land near the A428 A421 being covered in houses - tells you which is the most profitable crop.
If you direct invest there s NO CHARGE with the NFU, son did it that way but has moved from them.
Lindsell and Train made their gains in the first years, and now they even say its difficult to reproduce the past
Vanguard far better than NFU, And remember America rules the world share wise, a bear markets due, and almost every other index will follow down and only rise when America does, so best to follow the S & P and USA equities
Wife and I have NFU bonds ( not bonds as such ) for the only reason that we had used all the ISA capacity, and theres no gains tax on them
Check out Yodelar web site to compare the biggest to the best
NFU buys into other index, and charges you for the pleasure, there on a win win on the back of you (me)
While on investing and saving...
I'm not yet 40.
Is a Lifetime ISA worth it over a pension?
Gov topling up 25% up to £1000 seems a good pull.
I'm not yet 40.
Is a Lifetime ISA worth it over a pension?
Gov topling up 25% up to £1000 seems a good pull.
No fee with non advised, i found out the hard way ££££