Issue #048: Time to talk Investing platform FEES

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INVESTING IS HARD ENOUGH WITHOUT THE BLOODY FEES

So you’ve just started investing.

Or maybe you’ve been at it a while.

You’re pretty good at it in fact.

And you stick away £200 every month for a long time.

And by long I mean 40 years!

10% average annual returns, pretty good!

How much is in your pot:

£1,118,000

I’d be pretty pleased with myself too.

BUT THEN SOMETHING HAPPENS

You realise that you’ve been using a platform charging 0.5% management fees.

But it’s only 0.5%, surely it can’t be that bad.

Well that £1,118,000 now becomes:\

£975,000

YUP - almost £150,000 in FEES

So why do I bring this up:

Vanguard have just increased their fees.

This week the entire personal finance world has been talking about one thing.

Vanguard.

More specifically, how they have raised their fees from 0.15% to £4 per month if you’re ISA holds less than £32,000

Which doesn’t seem that bad, until you realise

If you held £1000 with them, and were paying £48/year to do that, it would be costing you almost 5% of your portfolio!!!

Why should you care?

To be honest, at the beginnign of your investing journey, you might not need to.

Why?

BECAUSE, people spend so bloody long trying to figure out the best platform to invest on, they actually prevent themselves from ever starting.

Starting investing on the wrong platform for you is better than not starting at all.

BUT

Once you do understand investing a little better.

And you understand that fees can have a massive impact.

I mean in the case above that 0.5% fee swallowed over 13% of the total portfolio.

Then it is probably time to start thinking about the right platform.

Seeing as there are now platforms with ZERO management fees.

THATS RIGHT ZERO!!!

Maybe, just maybe, Vanguard have shot themselves in the foot…

What do you think?

On that merry note:

“What is the best Stocks and Shares ISA for beginners?”

Over the past few years, I have tried EVERY major player in the game, and I can safely tell you that I have hands down found the best one that ticks every single bucket when it comes to investing for beginners (plus it’s where I invest right now).

In fact, I rate them so highly, that I reached out to them asking if I could gift my newsletter audience something special when they sign up!

AND THEY SAID YES (any guesses who they are?)

So…

If you sign up to invest with Trading 212 through:

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or use code ‘GN’, you get a free fractional share worth up to £100.

Remember that when investing, your capital is at risk and your investments may rise and fall. T&C’s apply.

Whenever you're ready, there are ways I can help you.

1. ​Hit reply to this email: I try to respond to every single question I get from these newsletters, so please don’t be shy!

2. ​The Budgeting Template PRO: Most of you have probably tried the lite version, but the PRO is what I use in my day to day life. (use the code ‘letstalkmoney’ for 30% off)

3. Remember to get your FREE fraction share worth up to £100 worth up to £100 when you sign up to Trading 212 with THIS LINK

^{DISCLAIMER: None of the above is financial advice. This newsletter is strictly education and should not be taken as investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and always do your own research.}