Frequently Asked Questions About Donegans Three-Decision Investing Framework
21 answers covering everything from basics to advanced usage.
// Basics
What does 'Platform, Account, Fund' mean in simple terms?
Think of three nested boxes. The Platform is the outer box — the company that holds everything (Vanguard, Fidelity, Trading 212). Inside it is the Account — the legal and tax container with access rules and free money (ISA, 401k, SIPP). Inside that is the Fund — the growth engine that actually owns companies and grows your money. Never confuse the layers; your fund always lives inside your account.
What is the Freedom Fund?
The Freedom Fund is the total pot of invested money that will eventually replace your need to work. It's the purpose behind everything you invest. Every decision in the framework — choosing the fund, account, and platform — serves the goal of growing this fund as efficiently as possible so you can reach financial freedom.
What are the three investing phases?
Build It is the accumulation stage when you're still earning and contributing — hold 100% growth engine. Bridge It is the 3–5 years either side of stopping work, when you add a spending buffer (bonds, money market fund, cash) alongside the growth engine. Live From It is the drawdown stage, where the growth engine keeps running while you withdraw from the buffer and rebalance. The growth engine is present in all three phases.
What's the difference between accumulation units and income units?
Accumulation units automatically reinvest dividends to buy more shares, making them ideal for the Build It phase and all growth phases. Income units pay dividends out as cash, which is useful in the Live From It phase and mandatory inside a General Investment Account (GIA) to simplify dividend tax calculation. In tax-wrapped accounts during accumulation, always prefer accumulation units.
// How To
How do I audit pensions I've forgotten about?
Trace them first — in the UK use the government pension tracing service. Classify each as an Income Promise (Defined Benefit) or Investment Pot (Defined Contribution). For DC pots, map them onto the Platform → Account → Fund diagram, filling in provider, account type, and fund name with its fee. Any unknown column becomes your research action. Then apply the Growth Engine Checklist to decide whether to keep, switch, or transfer.
How do I capture free money before anything else?
Increase your workplace pension contribution to at least the level your employer fully matches before doing anything else — employer matching is free money. Also claim government tax relief or top-ups available in your country (like UK pension relief or LISA bonuses). The rule is simple: always take the match, and never turn down free money, because no other investment guarantees an instant 100% return.
How do I set up automated monthly contributions correctly?
Once your platform, account, and fund are chosen, set up a recurring direct debit or contribution into your accumulation-class global index fund so no manual action is needed each month. In the Build It phase, direct 100% into the growth engine. In Bridge It or Live From It, follow the spending buffer allocation you decided when identifying your phase. Automating removes emotion and enforces consistency.
How do I decide whether to switch funds, platforms, or both?
There are three change scenarios. If only the fund is bad, switch funds within the same platform and account. If only the platform is bad, transfer the account and fund to a new platform — the account type stays the same. If both are problems, transfer to a new platform and switch to a new fund. Always initiate at the new platform, request an in-specie transfer, and check for free money or guarantees first.
// Troubleshooting
My old pension fund is down — should I wait for it to recover before transferring?
No. This is anchoring — refusing to move until a fund returns to what you paid — and it causes real damage by keeping your money in a bad fund longer and delaying compounding in a better one. Time out of the market is the true cost. Request an in-specie transfer where possible so you stay invested throughout, and switch as quickly as possible.
I own five different global index funds — is that better diversification?
No, that's a common mistake. Buying multiple global index funds usually just buys the same top companies repeatedly, creates unnecessary complexity, and doesn't auto-rebalance the way one broad fund does. One broad, global, passive, low-cost fund like a Global All-Cap already holds thousands of companies. Consolidate into a single growth engine and apply the Good Enough Stamp.
I want to retire before pension access age — what should I do?
Don't lock all your money in a pension. This is the access-age trap. Pension-type accounts often can't be touched until a set age, so if you want financial freedom earlier, hold a separately accessible account (like an ISA in the UK) to bridge the gap years between your freedom date and pension access age. You may need more than one account type to cover the gap.
Is having more platforms safer for my money?
No — the key protection is asset segregation, not the number of platforms. Regulated platforms hold client assets separately (segregated or custodied) from their own money, so your investments are protected even if the platform fails. Spreading across many platforms adds admin and fees without meaningfully increasing safety. Choose a trustworthy, regulated, established platform and confirm client assets are segregated.
// Comparisons
How does percentage-based fees compare to fixed platform fees?
Percentage fees are cheap when your pot is small but become expensive as it grows, compounding against you. Fixed fees stay the same regardless of pot size, making them cheaper for larger balances. Compare both structures for your expected pot size, watch for dealing, entry, and exit fees, and avoid percentage-based advice fees embedded in a platform entirely, as these silently erode your Freedom Fund.
How does this framework compare to hiring a financial adviser?
A financial adviser often charges percentage-based fees that compound against your growing pot, whereas this framework teaches you to make three simple decisions yourself on a low-cost platform. Advisers add value for complex situations like Defined Benefit transfers or tax planning, but for a standard global index fund setup, the framework delivers the same outcome without ongoing percentage fees eating your returns.
How does an in-specie transfer compare to a cash transfer?
An in-specie transfer moves your investments intact so they stay invested throughout — preferred because you never leave the market. A cash transfer sells your fund to cash inside the account, moves the cash, and you reinvest — used only when the new platform can't hold your existing fund. Cash transfers involve temporary time out of the market, so prefer in-specie whenever both platforms hold the same fund.
How does a Global All-Cap compare to an S&P 500 fund?
An S&P 500 fund holds 500 large US companies only, while a Global All-Cap holds roughly 7,500–10,000 companies across developed and emerging markets, including small companies. The Global All-Cap avoids concentration in a single country and captures more of the world's growth. If an S&P 500 fund is your only option, apply the Good Enough Stamp — but prefer the most global option your platform offers.
// Advanced
Should I use income units or accumulation units in a General Investment Account?
Use income units in a General Investment Account (GIA). A GIA is a taxable account with no special wrapper, and income units pay dividends as cash, which makes dividend tax calculation much easier. In all tax-advantaged accounts during accumulation, use accumulation units instead so dividends are automatically reinvested. Only reach for a GIA after maximising your tax-advantaged accounts.
How do I evaluate an ESG fund if my values are non-negotiable?
Check five things: what's excluded and whether you agree, what's still included (some harmful companies pass screens), how many companies remain (is it still broad or now concentrated), the fee versus a standard global fund, and whether the manager votes at shareholder meetings in line with your values. Remember your spending and shareholder voice change companies more, but investing in an ESG fund still beats not investing.
How often should I check my investments once set up?
No more than monthly. Index funds are priced once daily and ETFs continuously, so checking more often serves no purpose and encourages harmful fiddling and trading behaviour. After initiating a transfer, chase the new provider to confirm completion — but once your money is invested, the job is done. Set up automation, check monthly at most, and go live your life.
What should I check before transferring a Defined Benefit pension?
Investigate the promised income, the start age, whether it's inflation-linked, survivor benefits, and the transfer implications before doing anything. A Defined Benefit pension is an Income Promise — a valuable guarantee you could lose by transferring. Unlike Defined Contribution pots, DB pensions don't run through the fund-selection steps. Their guarantees are often worth keeping, so treat any transfer with extreme caution and consider regulated advice.
What's the biggest mistake people make when starting to invest?
Confusing the three layers — asking 'should I get a pension OR an index fund?' when the answer is always both, because the fund lives inside the account. Close behind is turning down employer matching (free money), fiddling by chasing last year's best performer, and home country bias — investing only in your own country because it feels familiar. Familiar does not equal global.