Puzzling over where to invest your money for the best results, whether Vanguard LifeStrategy or a robo adviser like Nutmeg or Wealthify? Note the balances rising slowly, and then falling off a cliff! I had narrowed it down to the ones you have compared! Do share in the comments, I’d love to hear! Up until about a month ago, everything was ticking over nicely during the second year. Your email address will not be published. The 'cost' is the fee from the company providing the platform or account (e.g. The 'cost' is the fee from the company providing the platform or account (e.g. That’s why Nutmeg shows such large changes in pounds – they are generated from a much bigger amount of money. ; Vanguard has some of the lowest fees online, with no annual charges applying after £250,000. Evening all. CASHBACK CAVEAT: I would never suggest investing large amounts just based on cashback. I posted the results of my investments after a year, when everything in the garden was rosy. Just generally banks being crap? No panic – I haven’t lost any money, it’s all been paid back into my bank account. I checked on 21 March 2020, but as that was a Saturday when markets are closed, the balances actually reflect the closing value from Friday 20 March. Your investment is looking like it’s in safe hands with either of these legendary providers. 07503666, with a … Bonds are about as close as you can get to cash savings whilst still being a risk-bearing investment. So in the two short months since, coronavirus has scorched through more than £1,500 in investment growth, cashback, a couple of Nutmeg monthly payments and a Wealthify referral bonus. I’ve said it before and I’ll say it again:  get investment decisions wrong,  and any cashback could be eaten up in poor performance and expensive charges. Vanguard Brokerage reserves the right to change the non-Vanguard ETFs included in these offers at any time. Meanwhile Nutmeg grew less than half as much as Vanguard originally, and over two years has fallen nearly three times further: -5.41% for Vanguard and -15.12% for Nutmeg. Wealthify: £43.11 & 4.14% investment growth, £1,050 contributions & cashback. Archived. The £200 Nutmeg cashback was credited in May 2019 (thank you) and my £100-a-month direct debits continued. The focus for Vanguard's clients is the firm's mutual funds and ETFs, which offer very low fees. As the graph shows, shorter term goals are better served by fewer equities, which are more prone to swings in valuation in the short term. Both Vanguard and Hargreaves Lansdown are investment platforms offering ISAs, ETFs, stocks and shares, and SIPPs. Great article, thanks very much for taking the time to write this post. I found the communications from Nutmeg were patronising, and after losing money I withdrew my money to another provider, who is a lot better. Moola: £68.76 & 6.25% investment growth, £1,100 contributions & cashback. Absolutely start investing now, the earlier the better and your future self will forever thank you. Wealthify was a decent runner up in a falling market. How much does £100,000 life insurance cost? Which Vanguard LifeStrategy fund is right for you? We have built our own portfolios from ETFs in the past, and done a pretty good job too – but investing consistently into multiple ETFs can still be problematic on a traditional platform due to transaction fees. It’d be great to analyse it now (June) and see how their response to the COVID-19 shock was. I'm looking to invest £3000-£5000 initially for a long term investment of 5+ years. Platforms like Hargreaves Lansdown charge you a platform fee, HL charge 0.45% plus a fund fee say 1.35% http://www.hl.co.uk/funds/leave-it-to-an-expert so that's 1.8% fees. So my Vanguard LifeStrategy 80% investment grew most in the first year, and lost the least afterwards, with Wealthify not far behind when markets were falling. [Collaborative post]. These are stock market investments so we can’t say with certainty what their future returns will be. I would like to open an investment ISA for growth for at least 10 years. 0. Now – over to you. By Damien Fahy. The companies have been busy since last year’s comparison table. I'd love to have a breakdown of pros and cons of each option if someone is willing. Critical illness insurance – what is it, and is it worth having? How to Save for Long-Term Expected Expenses. Nutmeg vs Vanguard LS80/100 for a casual investor. Your email address will not be published. This is the digital equivalent of paying an expert financial advisor to interview you and construct a portfolio of shares and bonds on your behalf – except that rather than costing the earth, it’s ridiculously cheap, with fees being either initially free, or around than half of 1 percent of your pot per year. Personal Capital automatically 1) tracks your investment performance 2) breaks down your asset allocation (across all your accounts) better than any tool I’ve ever seen 3) reports on your fees… Nutmeg: £56 & 3.4% investment growth, £2,200 contributions. Back in 2018,  I was frustrated by the lack of performance figures from this new breed of investment websites. However, Nutmeg still has the highest fees in this comparison, and dropped further than my other investments. Both LifeStrategy and Nutmeg encourage regular monthly investing, to compound gains over time while avoiding the worst of the market’s dips, keeping costs low, and diversifying your money across a wide range of assets. Nutmeg will actively rebalance and I believe Vanguard do something similar but don’t offer anywhere near the level of control that Nutmeg do (which may not be a bad thing!). The good news is that the losses only exist on  screen. But I remain impressed that Vanguard, with the lowest charges using a LifeStrategy fund, fell less than my robo adviser accounts while everything was tumbling off a cliff. Here are the screen grabs from my accounts, showing how they’ve done over two years. New Nutmeg customers: £110 via Quidco or £105 via TopCashback. ; Hargreaves Lansdown offers 2,500 funds, while Vanguard offers 77 options within … I'm considering switching to Vanguard though because the fees are lower for essentially a very similar portfolio. Nutmeg: £3725 on £3,600 invested and cash back, so all time growth of 6.36% and £125. The low cost robo advisers should look good when comparing results after fees, given you’d expect the other ARC companies to be charging an arm and a leg. Apps That Pay You To Walk: Can You Really Get Paid To Walk? Help me help more people by sharing the site with your family, friends and colleagues. Best 0% balance transfer credit card deals, Section 75 of the consumer credit act explained - your rights and how to claim. Most investments require you to make all your own investment decisions and to take responsibility for your own portfolio. MORE FOR YOU. In practice, I jumped over the hoops by investing £1,000 in each and setting up a direct debit to pay £100 a month into the Nutmeg account. 3 years ago. Time is running out to choose a home for your £20,000 individual savings account (Isa) allowance for 2019/20, before the deadline on Sunday. In practice, for that range of equities, ARC’s Equity Risk portfolios were down on average between -7% and -14.1% in the two years to 21 March 2020. We'll assume you're ok with this, but you can opt-out if you wish. Vanguard Investor UK review - is it the best in the market. After a bruising end to the second year, my balances had dropped to just over £4,935. I think both of those services offer an isa wrapper. Nutmeg is the most popular robo-investing platform on the market and takes the hard decisions of investing out of your hands, while giving you the investment spread you wanted. why aren't stocks and shares ISA's mentioned [on this forum]? Moving to the country, living on less and making the most of it. I would also consider investing in a couple of other Vanguard funds as well at their LifeStrategy. Suggest any comparison should stick with the time-weighted returns (ie the percentages), which strip out the affect of any withdrawals or subsequent contributions. ( Log Out /  The Fixed Allocations with a lower fee are probably going to work out better in the longer term because fees usually do matter. It’s also possible to avoid the fee if you have at least $10,000 in Vanguard mutual funds and ETFs. Have you dared check your balance recently? You need to understand the difference/definitions of three things: Platforms/Providers (Vanguard, Hargreaves, Nutmeg, AJ Bell, Barclays etc), Investments (Equities, Bonds, ETFs, Funds). - Latest predictions. I checked my other accounts at the same time, which was pretty much the peak of the market. I’m Faith, and I’m passionate about helping people make the most of their money. However, the Nutmeg product offers much more flexibility. The 10 best ways to avoid inheritance tax, Inheritance tax (IHT) taper relief on gifts explained. You put your money in one of their portfolios and they take care of the rest, they're low cost because they tend to be trackers that follow indices like the FTSE 100, and also Exchange Traded Funds. *Minimum investments may vary for other products. These are split down the lines of proportion of equities to bonds in the fund, with equities being considered higher risk but with greater upside for returns. I don’t have a crystal ball, but I reckon my balances will look a damn sight better by then, even if right now things could well fall further, and be slooooow to recover. With one monthly investment of say £100 into LifeStrategy or Nutmeg, your money is instantly spread across many ETFs without incurring trading fees – true in the case of LifeStrategy if you purchase it directly through Vanguard’s own trading platform, that is. Nutmeg vs Vanguard LS80/100 for a casual investor. I am tempted by the Vanguard LifeStrategy 80 due to the low fees and strong reputation, but I have also been looking with interest at Nutmeg, Wealthify, IG and AJ Bell Youinvest. Comparing the highest risk options from each provider, Nutmeg 10 vs LifeStrategy 100% Equity, we see two excellent investment options. Change ), Alternative Investments – P2P & Crowdfunding, Nutmeg vs Vanguard Lifestyle Investment Products, Follow Paper Millionaire on WordPress.com. Hi – I just came across this and wanted to suggest you might want to update your screengrabs for Nutmeg. That’s why it’s vital to only invest money you can leave untouched for at least five years and ideally longer, so you can hang tight until markets pick up again. I found the communications from Nutmeg were patronising, and … However, my investments are £71 up over the last year, on top of the £100 a month I was still investing until March. Nutmeg has slashed minimum investments and now offers a Junior Isa. The key advantage is tax-free growth and withdrawals. Vanguard vs Hargreaves Lansdown: Pros and Cons, Finance Blog Income Report: How I Made £1,600 in August 2020. The Vanguard LifeStrategy Funds are amongst the most popular funds out there, being ultra-diversified, ultra-cheap, and managed by Vanguard – our favourite fund provider. Than what? Vanguard: -£54.13 & -5.41%. I got an email on 14 January, announcing Moola would close on 27 February, and asking me to cash in my investments. If seeing losses will stop you sleeping at night, steer clear. No matter which investment company you use, I still think Personal Capital is the best free app to help manage your Vanguard or Fidelity investments. Nutmeg® is a registered trade mark of Nutmeg Saving and Investment Limited, authorised and regulated by the Financial Conduct Authority, no. That’s where robo-investing comes in. But that could be with Vanguard, Nutmeg, or someone else. Is My Money Safe With Hargreaves Lansdown? This actually suggests the Nutmeg product (1.3% total fee charge) out performed the Vanguard product (about 0.3% fee charge). Though, ideally you want to hold funds for the long-term if you can anyway. The key advantage is tax-free growth and withdrawals.

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