Wealthify


(Jack) #21

What risk do you have it set to?


(3 Round Investor) #22

Adventurous which is the highest risk I recall


(Matt ) #23

Anyone know if you can change the risk level after starting a plan


(3 Round Investor) #24

From the FAQ

CAN I CREATE MORE THAN ONE INVESTMENT PLAN?
Yes, you can build as many Plans as you like. Some people prefer to keep their money all in one pot, others will prefer to split it into separate savings pots - Wealthify lets you do either. You can even choose different investment styles for each Plan. Whatever you decide, you can rest assured that there’s no additional charge for creating more than one Plan, you’ll only pay our simple management fee of 0.7%-0.4% per annum, depending on the total value of your investments, plus an average underlying fund charge of 0.19% per year.

Try the live chat via the website during normal working hours


#25

This is from their CS team - Whilst they explain it clearly, it’s very misleading on the dashboard…

_The percentage we use to calculate your performance is called the Time-Weighted Rate of Return.

The reason why your monetary growth doesn’t match your percentage return is because you have made more than one deposit.

In the simplest terms, the percentage growth figure you see is how well your Plan would have performed if you remove the effects of all additional deposits so it is essentially showing you how your investment team/Wealthify is performing since you opened your Plan.

It’s easier to see with an extreme example.

If someone invests £1,000 for a year and gets a 10% return; £100 profit. Next year they invest another £100,000 and loses 5%; loss of £5,000. The total percentage return over that two-year period would be, a 5% profit but because the loss in the second year is bigger in monetary terms than the profit due to the additional deposit, they have actually lost money; minus £4900._


(Louis Otto) #26

When I invest in funds I tend to just do it through HL. They have no fees for opening and closing fund positions, and a lot of their funds have very low TERs.

I opened a position in the Lindsell Train Global Equity a few months ago and I’m up 13.93%, total fees are only 0.54% so less than Wealthify and many others.


#27

HL charge a 0.45% platform fee on top of that fund charge (assuming value of all funds is < £250k).


(Louis Otto) #28

Assuming that, yeah :slight_smile:


(Matt ) #29

Yh that wasn’t actually what I asked


(Jack) #30

I asked support about this,

See convo below:


(Nick Taylor) #31

I wish HL would provide that measure, much more useful for comparing investing to what you’d make in regular savings or by paying of debts


(Matt ) #32

Great thanks :grin:


#33

There’s still a platform fee though even if you have over £250k with them.
Point is the total fee with HL isn’t solely the fund fee (0.54% in the case of the mentioned Lindsell Train fund)


(Louis Otto) #34

Yeah, true I was off the mark with that one sorry


(brandon skerritt) #35

Hey! If you’re investing, a few months or a few years is an extremely short timespan. It’s perfectly okay and normal for you to lose money. What you need to do is to keep on investing. Vanguard has research that suggests that if you put a lump sum in, instead of pound cost averaging (puting a set amount in every month), you’ll make more money with the lump sum 66% of time.

Research here for that statistic:

If your portfolio is entirely bonds, the volatility won’t be as extreme as something of equity. If you look at the S&P 500, below (which is the top 500 companies in the world if I remember)

you’ll see that very often, your money will go down. In fact, in 2008 - 2010 the money went so far down, it looks ridiculous in a chart. When your money goes down, think of the market as “going on sale”. This article explains that idea some more:

“buy low, sell high” or “be greedy when others are fearful, fearful when others are greedy”. Often times, people will buy their portfolio at a high, and then see it become low - to only sell it again. If your portfolio is currently losing money, don’t worry. The market trends upwards, even if you lose money from a few years.

The key is to stop monitoring your investments every single day. It’s hard, I know. I have a hard time doing it too. From the image earlier, the investment changes rapidly every day but overtime it tends to go upwards.

Just to put my $0.02 in, I used to use a roboadviser (wealthsimple) but switched to vanguard. Lower fees, more control. And the life strategy range basically has the same features as most roboadvisers, but with much lower fees.


(John Biondini) #36

Did anyone try MoneyBox? I started 1 year ago with £25 a week and it’s up 4.6% with their hi-risk plan.


(Robert Nicholson) #37

I’ve used Wealthify, Moneyfarm & WealthSimple, they are very very similar! All of these robo advisers (and Moneybox) invest in very similar baskets of underlying funds depending on the risk level you choose and charge you up to 1%. The best one IMO is the one with the lowest fees!

Or better yet you can view which funds they invest in and invest in them directly, avoiding this fee, which really matters in the long term. (See impact of a 1% fee on a portfolio). (Loads more articles on this).

I’ll be moving my funds over to Freetrade once it launches as you can do this without paying fees :balloon: