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Reallocation - Expensive Funds to Low-Cost ETFs - Gold insurance - Hargreaves Lansdown - REITs - ?

Stocks and Shares ISA , Choosing funds for ISA's, risk factors for funds etc
Investment strategy discussions not dealt with elsewhere.
TINMAN29
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Reallocation - Expensive Funds to Low-Cost ETFs - Gold insurance - Hargreaves Lansdown - REITs - ?

#165748

Postby TINMAN29 » September 11th, 2018, 9:14 pm

Hello everyone,

I need opinions and advice please.

I have a portfolio on Hargreaves Lansdown that used to be made up of a variety of expensive funds; some performed really well and offset the expensive fees fortunately, however I want to now get into low-cost, diversified index tracking ETFs and stay the course for the long term.

A couple years ago I started to change my portolio, well I partially sold the above funds and added a mixed bag of low cost tracker funds. I say partially as the expensive funds were still performing well and I couldn't ditch them entirely, whereas now I want to get rid of them.

Currently I am in a situation of paying Hargreave Lansdown a 0.45% platform fee + expensive fund fees + some low-cost tracker fees. Once purely in ETFs, it will just be the ETF management fees around 0.25% max hopefully, plus a £11.95 per buy/sell fee. I will be rebalancing quarterly, so 8 buy/sells a year, a manageable price.

I am thinking of starting with 65% equity in VWRL, 25% bonds in VGOV (or is shorter term better, or any other options?) and 10% in Gold (as insurance, I know it doesn't generate cash / returns etc.)

I do like the idea of having equity split into 2 or 3 ETFs to help rebalance a bit more accurately. I understand this will increase the transaction costs.

And finally, I live abroad. Would it be better to keep my money out of the UK? I am not sure what tax implications there might be. Stamp duty, capital gains, etc. I think I get a tax free allowance of £11,700pa though?

Or would it better to do all of this offshore with Interactive Brokers or another one of the platforms?

And finally, any recommendations or thoughts on REITs?

Apologies for jumping from topic to topic, I was just typing as thinking out a loud.

Any questions, please let me know.

Many thanks!
TM29

Alaric
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Re: Reallocation - Expensive Funds to Low-Cost ETFs - Gold insurance - Hargreaves Lansdown - REITs - ?

#165754

Postby Alaric » September 11th, 2018, 10:10 pm

TINMAN29 wrote:And finally, any recommendations or thoughts on REITs?


REITs are just companies that develop or own property, so you need to look at their trading and accounts as with any other business. Their special feature is that they are allowed to pass through property rental income so that it's taxed (or not) in the hands of the recipient.

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Re: Reallocation - Expensive Funds to Low-Cost ETFs - Gold insurance - Hargreaves Lansdown - REITs - ?

#165782

Postby TUK020 » September 12th, 2018, 7:21 am

TINMAN29 wrote:
And finally, I live abroad. Would it be better to keep my money out of the UK? I am not sure what tax implications there might be. Stamp duty, capital gains, etc. I think I get a tax free allowance of £11,700pa though?

TM29


I would start with this one. Where will you want to retire? what is the best way to get your savings into a tax free wrapper for this? Where are you taxed currently?
Once you have moved your funds to the right location/wrapper, then you can proceed with he appropriate investments.
There is an expat investment board that might be a good starting point.

Passive investing: good starting point to read up is the Monevator site, which covers most if not all of your other questions
http://monevator.com/category/investing ... investing/

Gengulphus
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Re: Reallocation - Expensive Funds to Low-Cost ETFs - Gold insurance - Hargreaves Lansdown - REITs - ?

#165815

Postby Gengulphus » September 12th, 2018, 10:09 am

TINMAN29 wrote:And finally, I live abroad. Would it be better to keep my money out of the UK? I am not sure what tax implications there might be. ...

No-one can tell you what the tax implications are going to be unless you say which country (or countries) you are taxed in! Also, you might get more knowledgeable answers on the Taxes board - though even there, I suspect it will be pot luck whether anyone on TLF has the specialised knowledge required, so you might do still better to find a local tax site or adviser where you do live.

And sorry that all I can do to help is try to steer you in the right direction, but I don't know any foreign country's tax system well enough to be able to help on that, nor do I have any real knowledge of funds, etc. Also, by the way, I'm only saying that the taxes aspects of your question would probably be better posted to the Taxes board, not that the whole thing would be!

Gengulphus

TINMAN29
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Re: Reallocation - Expensive Funds to Low-Cost ETFs - Gold insurance - Hargreaves Lansdown - REITs - ?

#165962

Postby TINMAN29 » September 12th, 2018, 6:23 pm

Thanks for replying everyone.

I will head over to the 'International & Expat Investors' and 'Taxes' board for further advice.

Alaric - Thanks for sharing your thoughts on REITs, it is all completely new to me so hearing your thoughts helps. I think I might leave them out for now. Once I've sorted out my taxes, chosen a platform and equity and bonds allocations/funds sorted, etc., I might come back to it (and Gold!).

TUKO20 - I most likely will retire in the UK. I currently live in Dubai where fortunately there are no taxes (other than newly introduced 5% VAT). Good idea re sorting this out as the 1st and the expat investment board, thanks. And I will definitely give the monevator link, and it's other pages, a read.

Gengulphus - Fair point, I forgot to add, I'm in tax-free Dubai. Thanks for letting me know of the taxes board. Utimately I think I will need to speak to a tax adviser, if I do I will share what I learn on TLF. And thank you, being steered in the right direction is exactly what I need.

Thanks again everyone, I appreciate it.

TM29


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