The Coming Gilded Age and Vanguard’s mustelid indigestion

Diversification is  a decent principle with bank accounts and the like, particularly given the tendency of financial organisations to freeze people’s accounts without due process due to the money laundering regulations. Then there’s the Madoff risk of the unknown unknowns cratering a business. So much to worry about.

1+1 redundancy is a good principle in many things-when I did a parachute jump there was a main and standby. Whether I’d have had the presence of mind to pull the standby1 before becoming a grease spot is another thing, but main and standby is A Good Thing.

To that end I have a second ISA with Charles Stanley as well as the main one with iWeb. The aim here is damage limitation, and you get most of the win with the first standby system you introduce. In theory I could get better security against providers going titsup by balkanising my ISA to try and stay under the FSCS compensation limit. Life is too short for that. Main and standby – and stop there.

My main ISA with iWeb is pretty spit-and-sawdust. Their win is not charging me annual fees, provided I hold no funds (shares and ETFs are fine) and don’t trade. I am OK to pay them transaction fees, the aim here is not to churn. They have no monthly investing facility, and you can’t borrow from the ISA – it isn’t a Flexible ISA.

Flexibility is valuable to people with no income

The financially independent are despised by the banking system, who won’t lend them money because without a salary income they can’t qualify the risk. So it’s handy to be able to borrow from your ISA, though you should never aim to use it. I hung onto my Charles Stanley account for its flexibility, but what with one thing and another it tended to grow, and CS jacked up their fees a while back. This begins to irk me. According to the Great God Monevator, CS rocks in at 0.35% where Vanguard are 0.15%. The difference in that makes it slightly worth while to shift as the account gets larger. As an old git I don’t need to flay costs as if they were the tattooed agents of darkness is the same way as TA, because I am a decumulator, and there aren’t as many decades to accumulate as for a 20-something. On the other hand I carry a lot of gold in the iWeb ISA and have shifted my risk balance lower, so maybe I do need to up the ante on the equity part. I was pointed toward the behemoth Vanguard as a lower-cost supplier with a flexible facility via a comment on Monevator. Although flexible access tends not to be a bargain basement offering, Vanguard do indeed offer it. To wit

The Vanguard ISA is a “flexible” ISA, meaning that money you withdraw may generally be paid back in during the same tax year without counting towards your annual allowance

Don’t transfer your old ISA as your first act. Because: AML theatre/freezes

Continue reading “The Coming Gilded Age and Vanguard’s mustelid indigestion”

Crab House Cafe, Dorset

Somerset Levels

LivingCheapinLondon gave us a great tip from recent post about a fine source of modest decadence, and Mrs Ermine was on it immediately. We were going to dine at the Crab House cafe, where Chesil beach starts to leave the mainland at the southern end. This took place is the sort of intermediate phase of the coronavirus pandemic loosening up, where you could eat out, as long as outside meant outside, which is a little bit on the brass monkeys side in late April, even on the south coast.

The Hellstone via Dorchester

To work up an appetite we took a look at the Hellstone dolmen, I have been coming to Dorset regulars with some old college pals ever since one of them had a camper van in the late 1980s. I last saw this some time in the late 1980s or early 1990s, when one of our party who shall remain nameless managed to get an impressive thump followed by outpouring of blood as he made the mistake of standing up in the Hellstone. You don’t want to do that because the headspace is about 5ft 4in, enough to get a good heft because the irresistible force loses out to the immovable object. There’s a reason the AONB booklet calls this land of bone and stone

We hustled him back town the track to the Hardy monument, and figured we really ought to take him to A&E at Dorchester General after deploying the first aid kit in the camper van. Fortunately it wasn’t concussion and he only needed a tetanus jab, but that site had been crossed off the list for ever afterwards and this is the first time I’d been in the area without him in the party.

I regaled Mrs Ermine with this story, and fortunately the imp of the perverse did not prevail. Peace has been made with this fine site.

Somerset Levels

which is a short hike from the Hardy monument. For some reason Mrs Ermine took objection to this object, because I had said it was to commemorate Thomas Hardy, for the last two decades I assumed this was Thomas Hardy the author, he of Tess of the d’Urbervilles etc. The trail to the dolmen starts from the Hardy monument, and the National Trust educated me that this was Thomas Hardy, the naval fellow to whom the dying Lord Nelson was reputed to have said “Kiss me, Hardy” Continue reading “Crab House Cafe, Dorset”