Investors Lose Millions by Ignoring These...(Guide to Investing Fees)

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  • Опубликовано: 2 фев 2025

Комментарии • 163

  • @Seanlambert-d5h
    @Seanlambert-d5h День назад

    I Hit $32,590 today. Thank you for all the knowledge and nuggets you had thrown my way over the last week. i started with 5k in last week 2025.... now i just hit $32,590

  • @uncountableuk
    @uncountableuk 7 дней назад

    Fees are the final frontier on investment scandals.
    You could also add in IFA fees of 1% to that smorgasbord.

  • @steve6375
    @steve6375 10 дней назад +17

    Biggest con is pensions. They tell you what their charges are, but you also need to look at what funds are inside your pension. Often they use their own funds, uk, all world, emerging, etc. but the TER for each one is often around 1pc or more. That also goes into their pocket and it is not declared openly to the investor. They could have used low TER ETFs...

    • @TobyNewbatt
      @TobyNewbatt  10 дней назад +1

      Yes indeed…

    • @adrianl5899
      @adrianl5899 10 дней назад +1

      If we take a workplace pension such as Nest (as many will be in it), after the initial charge Nest will charge their stated 0.3% for their product (bundled funds product).
      But if you look under the hood at underlying funds, it can be easy to assume you are also secretly having to pay all the listed charges of each of those too. But that's not how these products work.
      Equally, when using a fund of funds such as Vanguard Lifestrategy, you pay what they say the fund itself is charging. If you go under the hood to the info. on the underlying funds, they too state their individual charges. Again, you might think you pay those on top of the Lifestrategy fee. You do not.

    • @lawLess-fs1qx
      @lawLess-fs1qx 10 дней назад

      yep. pensions recreate standard index funds and charge 5x fees. No way to buy individual stocks in most of them. No crypto. No GOLD. No nothing thay can't bundle into a fund and charge fees on. Outright theft. UK citizens are blessed with ISA'S. most Europeans don't have that option to protect the pension Cartel.

    • @steve6375
      @steve6375 9 дней назад

      @@adrianl5899 Ok, maybe is assume wrongly, sorry. I'm not sure about Nest or Vanguard, but in the past the performance of an individual fund seemed to include the individual fund TER. I may be wrong and I am not an expert. So you are saying if a fund of funds invests in another companies fund which normally has a TER of say 1.2pc for active management say, they do not charge the pension fund 1.2pc? So they do a special deal with the pension funds? So that means the pension fund will want to only include those funds that will do a deal with them to waive their charges? So that determines their choice of funds? It's clear I don't really understand how pension funds work. I mean if they charge us a percentage, why do they invest us in so many poor performance funds like UK and emerging markets, etc.

    • @adrianl5899
      @adrianl5899 9 дней назад

      ​@@steve6375A KIID (fund factsheet) shows the fund's maximum charge. It doesn't reflect specific contracts it is being used in or specific negotiated discounts that may be in effect with that fund.
      One underlying fund's KIID in my Stakeholder pension states 0.78% charge. Its performance is displayed net of those charges but states its fund charges that I actually pay may be different depending on my policy. My 'all-in' (all adminstration and funds) policy is much cheaper than that individual fund's stated charge. If I want to extend beyond what is included in my 'all-in' charge I am clearly alerted to any extra fees, as well as what would no longer be subject to the limitless FSCS cover of the insured funds. Ultimately they are highly regulated.
      Similarly with a SIPP, I received a 17% discount on a tracker fund because of where I held it. The discount is nowhere to be seen in the KIID. This general idea can extend beyond funds too: I got a 30% pension platform fee discount for years by using an intermediary to set up the pension. This discount was not reflected in the generic platform charge material.
      KIIDs can state other things not that relevant to the investor; say one using a platform. For example, take a common iShares tracker. According to its KIID accessible on investment platforms, the minimum deposit is... £100k! Let me check down the back of the sofa, guys. Will £1.15 do? Turns out the £100k is only when directly investing with the fund house. Phew.
      Personally I've never had an issue even with the more limited types of pensions (such as my Stakeholder) or what funds they have/discounts agreed. As long as I can invest in line with what I want, I am fine with it and the main index fund option from the insurer has posted 84% these past 5 years. Ultimately the debacle of Woodford and a whole of market provider (HL) is fresh in the mind so singling out pensions when no-one has to use particular things (or can move away) seems moot to me.
      On UK/Emerging offerings: Having access to a wide range of markets is a good thing. Though if someone started investing during the recent cycle - whether in a pension or not - these investments wil have likely felt disappointing compared to the US performance. But the cycle prior...

  • @RRedmondiy43
    @RRedmondiy43 9 дней назад

    Ireland domiciled funds pay 15% on dividends reinvested rather than elsewhere which is 30% or higher, so accumulation funds in Ireland are preferred

  • @kevinmerriman7164
    @kevinmerriman7164 10 дней назад +13

    Invest Engine all the way 👍

    • @bob1234881
      @bob1234881 10 дней назад +1

      But they don't do efps I love my x3 and x5 leveraged s&p. Trading 212!

    • @ellerellerek52
      @ellerellerek52 10 дней назад

      @@bob1234881there are no fees in t212 as well

    • @nintendokings
      @nintendokings 9 дней назад

      @@bob12348815x? You’re mad. Crap ETNs

  • @adib3897
    @adib3897 10 дней назад +15

    Stamp duty is a total joke. One of the many reasons why British companies lack the funding they require

    • @nax1807
      @nax1807 10 дней назад

      stamp duty is paid to the government not the company or the platform. but yes it's a farce

    • @peterwstacey
      @peterwstacey 10 дней назад +3

      Certainly Stamp Duty on primary homes is a drag on the economy - it stops people easily moving when changing jobs...

  • @valerienewbatt9678
    @valerienewbatt9678 9 дней назад

    So informative, excellent video Toby

  • @APO458a
    @APO458a 10 дней назад +1

    Do you think Invest engine will allow Sipp transfers fm HL anytime soon?

    • @barryfrombarnsley2790
      @barryfrombarnsley2790 10 дней назад

      There don’t appear to be plans to support anything other than transfers from Vanguard at the minute, and that’s a bit of a faff as well. I wouldn’t hold your breath.

  • @GMS-q8w
    @GMS-q8w 9 дней назад

    Hi, love the channel. Could you, or have you, do a video on UK SIPP platform fees please? Also, could you discuss the issues around changing providers; are some providers safer than others? Thanks...

  • @sriharshak8573
    @sriharshak8573 10 дней назад +4

    Apt title for this video "“A penny saved is a penny earned”"

  • @SJS1990
    @SJS1990 10 дней назад

    Is the TER shown in this video what Vanguard charges or the total cost including whatever the platform charges?

    • @TobyNewbatt
      @TobyNewbatt  10 дней назад +1

      No TER is only what the fund charges - it’s why it’s so important to get a low cost platform

  • @k0y0t3t7
    @k0y0t3t7 9 дней назад +1

    Another excellent video. Would you be able to do something similar explaining avc and sipp? And other pension providers like standard life..

  • @shimsteriom4191
    @shimsteriom4191 10 дней назад

    Great video 👍

  • @David-lj6dq
    @David-lj6dq 10 дней назад

    Does anyone know if Natwest invest is good for a Junior Isa/Investments. Looking to open one for my 3 week old baby.

    • @TobyNewbatt
      @TobyNewbatt  10 дней назад +1

      @@David-lj6dq I did a video on best junior isa accounts that might be useful 👍

    • @David-lj6dq
      @David-lj6dq 10 дней назад

      @TobyNewbatt Thanks very much. 👍

    • @TobyNewbatt
      @TobyNewbatt  10 дней назад +1

      @@David-lj6dq Also congratulations!! :)

    • @David-lj6dq
      @David-lj6dq 10 дней назад

      @TobyNewbatt Thank you. 😊

  • @kingluis2942
    @kingluis2942 9 дней назад

    Does the TER really matters if the tracking difference is low? Do you actually pay the TER if the tracking difference is lower?

    • @TobyNewbatt
      @TobyNewbatt  9 дней назад

      Tracking could work in your favour or against you - it's not in your control.
      Fees are in your control :) - So i'd be more focussed on that IMO

  • @PaulB-q3d
    @PaulB-q3d 10 дней назад +6

    HL's FX fees are an absolute abomination!

    • @malcolmbirkett1347
      @malcolmbirkett1347 9 дней назад

      Don't use HL for usa stocks. Use trading 212

    • @Marlaw101
      @Marlaw101 4 дня назад

      I have a similar problem with Interactive Investor - 1.5% - literally killing my accounts - they are far from cheap!

  • @maccadees22
    @maccadees22 10 дней назад +1

    Any idea how to invest in global ETFs or S&P 500 that don't include Tesla?

    • @_J4CK4L_
      @_J4CK4L_ 10 дней назад

      No.

    • @TobyNewbatt
      @TobyNewbatt  10 дней назад

      Doesn’t exist sorry

    • @Reevesy791
      @Reevesy791 10 дней назад +1

      Why would you want to exclude them specifically?

    • @MrWatchAndwatch
      @MrWatchAndwatch 10 дней назад

      I respect your Elon hatred campaign

    • @maccadees22
      @maccadees22 10 дней назад

      @Reevesy791 It's Musk's support of the right wing, his Naxi salute. Check out the Led By Donkeys protest. Musk's no longer the sort I want to give my money to or use my money to further his cause.
      My investment in Tesla is small fry in the grand scheme of things and I'm no political expert, but a line has to be drawn somewhere and I feel like I'm at that point.

  • @PaulB-q3d
    @PaulB-q3d 10 дней назад

    Prosper are offering free funds on 30 of their main ones, and no platform fees!

  • @VoiceOfThe
    @VoiceOfThe 10 дней назад +7

    Not sure why I watch you as I’m no longer a U.K. resident for tax purposes, but, I like your presentations.
    IBKR is my choice and looking to switch to them soon.

    • @TobyNewbatt
      @TobyNewbatt  10 дней назад +1

      @@VoiceOfThe I’ll take it! 😎

    • @FreaksSpeaks
      @FreaksSpeaks 10 дней назад

      Old habits and all that

  • @quiggles
    @quiggles 8 дней назад

    Crikey the spam in the replies...

    • @TobyNewbatt
      @TobyNewbatt  8 дней назад +1

      I know :( - literally nothing I do stops them, I even do it manually it takes ages and enable the spam filter!

  • @RayRay79
    @RayRay79 9 дней назад

    I agree about keeping fees low, unsure if I will actively chase the cheapest fund and provider on a yearly basis.

    • @TobyNewbatt
      @TobyNewbatt  9 дней назад

      Just got to find a balance, agree I'm not looking to switch every year like some kind of energy supplier :)

  • @AdorbxSummer
    @AdorbxSummer 9 дней назад

    Started listening to you about 6months ago and I must say my mindset has changed. I just wanted to ask your view about buying these two ETFs - SMGB with a TER of 0.35% and ARCI with TER of 0.75%.

    • @TobyNewbatt
      @TobyNewbatt  9 дней назад

      hopefully mindset changed for the better! on those ETFs I have no idea how they will perform in the future. They are both going to be highly concentrated in their sectors and totally made up weightings. IMO I'd just choose stocks myself with a small part of my portfolio and keep the rest in low cost index funds. As usual though it's all up to you...remember most funds that have done well in the past aren't going to do keep outperforming :)

  • @drrkgupta2842
    @drrkgupta2842 9 дней назад

    I wish to park some money in Cash ISA through your link given in description.
    What is the interest rate in both Trading 212 and Invest Engine. Thank you.

    • @TobyNewbatt
      @TobyNewbatt  9 дней назад

      Trading 212 gives an interest on cash - InvestEngine does not do this (but they do have the ability to buy money market funds)

  • @darreneagers4900
    @darreneagers4900 10 дней назад

    Hi Toby, could you do a video on crypto for beginners and how you do your crypto pls

    • @mikerodent3164
      @mikerodent3164 10 дней назад +5

      No. He's proven over the years that he tends not to be a moron. So No. Just No. Go away.

    • @TobyNewbatt
      @TobyNewbatt  10 дней назад

      Not something I’d do on my channel most likely sorry

    • @kw8757
      @kw8757 10 дней назад +1

      Buy some his n' hers Trump coin....I'm sure that'll end well 🤣🤣

    • @darreneagers4900
      @darreneagers4900 9 дней назад

      @mikerodent3164 Obviously a big fan. He has said he does crypto a few times. I was just asking how he goes about it. So just go away 🤣

    • @darreneagers4900
      @darreneagers4900 9 дней назад

      @TobyNewbatt is there any way I can PM you or point me in the direction of anyone you follow. There are a lot of videos on it but I tend to only follow you as I think you are honest and sensible

  • @marcwareham9351
    @marcwareham9351 10 дней назад +2

    A 1% fee over 40 years will reduce your final amount by 28% as the fee compounds too.

  • @Maiiftl
    @Maiiftl 9 дней назад

    Where’s that quarter zip from boss?

    • @TobyNewbatt
      @TobyNewbatt  9 дней назад +1

      mans finest tailor - M&S :P

    • @Maiiftl
      @Maiiftl 9 дней назад

      @@TobyNewbatt thanks! will take a look this weekend.

  • @timlodge8267
    @timlodge8267 10 дней назад +6

    S&P 500 every time in a low cost ETF.

  • @DominicAllaway-hi3fn
    @DominicAllaway-hi3fn 9 дней назад

    Your advice about the 'replication' of funds very useful - never even heard of that before as criteria when choosing a fund.
    Is TER also sometimes called OCF?

    • @TobyNewbatt
      @TobyNewbatt  9 дней назад +1

      Yes TER and OCF are used in a similar way OCF is used when talking about mutual funds whereas TER is used for ETFs 👍

  • @uglyducklingako4989
    @uglyducklingako4989 10 дней назад

    What will be the effect on the current portfolio if the child Junior ISA in HL moved to IE when they turned 18? Since in your previous video, you recommended HL for Junior ISA since it's free but we all know they are one of the highest fees of 0.45%
    Planning to move their ISA in IE. Thank you in advance.

  • @MN-xl4gb
    @MN-xl4gb 9 дней назад

    Why do RUclipsrs gravitate to Vanguard’s eft’s when talking about the S&P 500 instead of the SPDR S&P 500 etf as their fees are only 0.03 of instead 0.07. If the discussion is keeping fees low it what make sense to use the cheaper etf in the example.
    Vanguard don’t deserve free advertisement after raising the fees for millions of smaller accounts.
    Am I missing something? Aside from vanguard’s popularity.

    • @TobyNewbatt
      @TobyNewbatt  9 дней назад

      I made a whole video about best ETFs and shouted out the SPXL etf 😎.
      But in short yes Vangaurds massively popular name and track record does hold a lot of weight. People want a name they can trust and they get a lot of traction there.

  • @MakeItCount-55
    @MakeItCount-55 9 дней назад +1

    Spot on. A good friend of mine has retired and lives off his assets. He does know that the fees he pays to his Broker are higher than he can get elsewhere.. but he is pretty stuck in his ways. Reminds me of those who stick with banks paying no interest because they think it is a hassle to change. Apathy is often a brokers best friend, which is one of the reasons that I do not actually think Vanguard will lose that many people on the back of their fee increase. Although I do think they will find it harder to get new customers. Have a good one Toby.

  • @akshaypotdar1840
    @akshaypotdar1840 10 дней назад

    Could you do a video on platforms for UK Gilts? TIA

  • @SlowDutch
    @SlowDutch 9 дней назад

    Always like your videos, Toby.
    What is the screen behind you scrolling through? I'm looking at building some sort of ticker screen giving live info on my stocks and ETF's. Have you got any tips?

    • @TobyNewbatt
      @TobyNewbatt  9 дней назад +1

      It;s a Divoom Pixoo 64 - I leave a link in the description as so many people ask me about it

    • @SlowDutch
      @SlowDutch 7 дней назад

      @@TobyNewbatt Thank you!

  • @Chocoecstasy
    @Chocoecstasy 9 дней назад

    Hi Toby
    I am new to your channel and investing as well. Could you tell me if I have earned an interest on my stocks and shares ISA, do I have to move my interest elsewhere or could I just leave it there?

    • @TobyNewbatt
      @TobyNewbatt  9 дней назад +1

      You don't have to do anything with it - there is no tax to pay and there is no limit to what an ISA can grow to :)

    • @Chocoecstasy
      @Chocoecstasy 9 дней назад

      @TobyNewbatt really informative channel. Please keep up the good work!

  • @metro1361
    @metro1361 10 дней назад

    If £10k is invested at 0.07% fee. Is the fee charged on the gains or the £10k capital and gains? Thanks

  • @1292liam
    @1292liam 10 дней назад +2

    Big up Invest Engine Tobes

  • @AnnoyedDragon
    @AnnoyedDragon 9 дней назад

    Admittedly, I opened a stocks and shares ISA with the bank I'm already with out of convenience, Lloyd. They charged £3 a month plus 0.36% annual fees, which may not be great compared to some of the super cheap examples but doesn't sound the worst either.

    • @TobyNewbatt
      @TobyNewbatt  9 дней назад

      So many better options out there…don’t settle for crap. Banks are useless for stocks and shares ISAs…

    • @AnnoyedDragon
      @AnnoyedDragon 9 дней назад

      @TobyNewbatt I suppose it depends on your risk tolorance? Lloyds is far less likely to go bust than these small and new platforms.
      I'm still in the early stages of learning about all this, but I have read that trading 212 subsidises its low fees using income from high risk specualtive trading like CFDs.

    • @TobyNewbatt
      @TobyNewbatt  9 дней назад

      @ yes it’s highly profitable with a huge customer base 👍. The traders pay for the long term investors. Anyway take your time and good luck 🤞

    • @uncountableuk
      @uncountableuk 7 дней назад

      ​@@AnnoyedDragon you don't really have to worry too much about platforms going bust because your money is actually parked inside a fund and segregated from company money.
      That 0.36% plus £3 will be on top of the fund fee as well.

    • @AnnoyedDragon
      @AnnoyedDragon 6 дней назад

      @uncountableuk in the case of Lloyd, that 0.36 is an annual fee charged on the whole account. Besides the £3 a month I don't think there are any other fees.
      I've seen a number of financial companies that were supposedly rock solid and segregated accounts; going under over the years. Corruption seems to be rife in financial markets and while the "too big to fails" are obviously not immune to that (e.g. subprime) I see them as less likely to go under.
      Trading 212 being reliant on high risk trading to subsidise their long term investments; is a red flag to me. Particularly if we're talking investing over decades.

  • @couchpotato2655
    @couchpotato2655 10 дней назад +1

    Hi Toby, I love your videos. PLEASE, can you do a video on what options people have when they have maxed out their ISA. 🎉 You are a legend 🙌

    • @TobyNewbatt
      @TobyNewbatt  10 дней назад +2

      @@couchpotato2655 thanks good ideas - maybe a video on the best order to invest 👍

    • @couchpotato2655
      @couchpotato2655 10 дней назад

      @TobyNewbatt than you, I know it's not a priority topic, but it would be so helpful for those of us who are in that situation.

    • @LiviuTaban
      @LiviuTaban 10 дней назад +1

      I've been increasing my pension via salary sacrifice and ofc making sure the funds perform better than the default funds

    • @jammerr23
      @jammerr23 9 дней назад

      @@TobyNewbattyes please!

  • @maltesetony9030
    @maltesetony9030 10 дней назад +1

    My total fees for investing (funds fees + platform fees) = 0.24% of AUM. I can live with that. Perhaps everyone should work out a %age figure (?) A good rule-of-thumb is that, for passive investing (and I stress that), it should be below 1%.
    (The only other thing to add would be the cost of calculating the tax on assets, but that would have to be done in any case, whoever I was invested with - so it (sort of) cancels out).

  • @RealmsOfThePossible
    @RealmsOfThePossible 10 дней назад

    Spambots are flooding your comments mate.

  • @imc20007
    @imc20007 10 дней назад

    I use plum, i think they are ok

    • @TobyNewbatt
      @TobyNewbatt  10 дней назад +1

      What are the fees like?

    • @barryfrombarnsley2790
      @barryfrombarnsley2790 10 дней назад

      I had loads of issues with Plum, customer service is pretty much nonexistent, had loads of issues trying to transfer other accounts into Plum leaving me in limbo, you also have to grant them unlimited access to all the data from the current linked to your Plum account, including every transaction you’ve ever made using said account. It was a massive palaver trying to close the account as well, took weeks and they were dishonest when contacting them using their chat function regarding what was happening with the account closure, etc.

    • @barryfrombarnsley2790
      @barryfrombarnsley2790 10 дней назад +1

      @@TobyNewbatthi mate, my comment regarding Plum looks to have been automatically sent to your spam filter. It was important information that people should be aware of imo.

    • @imc20007
      @imc20007 5 дней назад

      @@TobyNewbatt I have my Cash ISA 5.18% AER which is no fees, i have stocks and shares that I've just started and I pay 0.10% on the annual management account, I've got a free premium subscription at the moment so i pay nothing but it says (depending on you subscription level) you pay between 0.15 - 0.62% based on daily balance held in the fund.
      I'm totally new to all this so i've not really put much into the stocks just yet because i don't fully understand it all so i'm holding everything in my Cash ISA

    • @imc20007
      @imc20007 5 дней назад

      @@TobyNewbatt They have whole our fee breakdown, tbh some of it goes over my head as I'm not familiar with the terminology

  • @Worldwithoutboarders
    @Worldwithoutboarders 10 дней назад +2

    Big fan of investengine

  • @mikerodent3164
    @mikerodent3164 10 дней назад +5

    The problem I have is that I'm EXTREMELY wealthy. I put £20k into ISAs each year on 6th April, and always max out my pension contribs (£60k) each year. So I'm obliged to maintain (multiple) GIA accounts. Life is very stressful, because I have to concern myself with dividend tax and capital gains tax. So tiresome. I hope you all sympathise appropriately.

    • @steve6375
      @steve6375 10 дней назад

      How do you work out CGT on your ii account if you have one? I found a free online calculator but you have to edit the CSV first.

    • @jakkuwolfinsomnia8058
      @jakkuwolfinsomnia8058 10 дней назад +1

      Well, despite being all like “you’re rich shut up” you’ve had to deposit that money for years and hope you get a sufficient return for your money. Tax is a nightmare so I can sympathise because if I had like £1 million in my portfolio and then told they’re going to tax me 33% that’s £330,000 I’m going to lose which is the biggest single expense I’ve ever paid over the many years of depositing my money.
      So that really sucks I hope you figure out a way around it

    • @nax1807
      @nax1807 10 дней назад

      have you considered NS&I?

    • @Boghopper9999
      @Boghopper9999 10 дней назад

      If you think millionaires should pay less tax, are you implying people who have less than a million should pay more taxes to make up the differences? Or that more taxes should come from multi millionaires and billionaires?

    • @peterwstacey
      @peterwstacey 10 дней назад +1

      I'm sure there are many charities that would happily take the income that you are currently investing in GIAs. Find one you're passionate about and give to them - it will be tax free, so a huge benefit for your favourite cause 😊

  • @xborninthefightx
    @xborninthefightx 10 дней назад

    Thanks for another great vid Toby.
    I am currently looking into switching my pension from Nest and my older previous ones into a SIPP. I am also a small business owner so will be managing everything myself. Have you done a video on this particular type of topic?

    • @TobyNewbatt
      @TobyNewbatt  10 дней назад +1

      I’ve moved all my old pensions to Vanguard a while ago and I now contribute to that through my limited company - I’ve done this topic spread amongst quite a lot of videos if you go back 😇

    • @xborninthefightx
      @xborninthefightx 10 дней назад

      @TobyNewbatt thanks dude. My first go to company which I thought of was Vanguard as I already hold a stocks and share ISA but wasn't too sure if it would be the right one for a SIPP cause of fees as keep hearing that others are cheaper.

  • @JoshuaSmithFamilyRobinson
    @JoshuaSmithFamilyRobinson 10 дней назад

    🤨

  • @87vortex87
    @87vortex87 9 дней назад

    I started when i was 12yo. I then had to pay 6 euro per transaction and i could only invest 50 euro per month. So i saved up the money to do one transaction every quarter. Which still was crazy expensive. And of course i needed my dad because i wasn't allowed to buy stocks at that age. Luckily my dad didn't charge me fees 😉

    • @TobyNewbatt
      @TobyNewbatt  9 дней назад

      Crazy! And it was not even that long ago! :)

  • @1292liam
    @1292liam 10 дней назад

    JAM ETF is managed and low fee, and has beat S&P last 5 years