swanlowpark stats for saverspage index

Tracker Funds

Returns from £5,000 invested at start-year in various index-tracker funds.

Return % is average rate of return in real terms after taking UK CPI inflation and platform charges into account.
Other funds tracking the same index should have similar returns.

Index-Tracker funds based on ISAs

Index-tracker funds should have no initial charge and annual charges which are lower than those for actively-managed funds.
With an index-tracker you minimize your time researching individual funds.
Research from the US says trackers on average, overall, out-perform actively-managed funds. But by their nature they do not achieve better returns than their benchmark index.
Invest in funds tracking the broadest indexes.
Invest for the long-term. Remain a passive investor, do not keep chopping and changing funds incurring fees as you go.

expand/collapse  Warren Buffett on advantages of Index-Trackers

expand/collapse  Growth of Index-Tracker Funds

expand/collapse  Fund Platform Charges

expand/collapse  Searching for Suitable Index-Tracker Funds

Defined Contribution Pensions vs ISAs

We now own our own pensions. George Osborne's 2014 budget removed many restrictions on pension-pot withdrawls for people retiring after April 2015.

Pension contributions are free of tax but not national-insurance.
A 25% tax-free lump-sum can be taken when the pension is cashed-in: whether drawdown or annuity.
Tax advantages make pensions the most attractive savings option, better than ISAs.
Employer contributions increase the attraction.
All this assumes you are not a nurse or teacher with a defined benefit pension.

Lifetime ISA

If you already receive maximum employer pension contribution and you are under 40, George Osborne's 2016 budget announcing Lifetime ISA's is of interest.
From April 2017, people 18-to-40 can start an ISA account, investing up to £4,000/year and receiving 25% from government, max £1,000/year, at the end-of-each tax-year. 25% rebate continues up to age 50.

Last updated 09 January 2022.