Vanguard Life Strategy
Comments
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I was reading somewhere that its a good idea to have two Vanguard Lifestyle so as the years go by, you are taking less risk.
So for my age, i would start with the 80% Equity and the 20% Equity and rearrange it every year so eventually it becomes less risky.
Here: http://monevator.com/lifestyle-vanguard-lifestrategy-funds/
As a beginner, would you also copy what they are doing? http://monevator.com/the-slow-and-steady-passive-portfolio-update-q4-2012/
Portfolio: What do you think?
15% Vanguard FTSE U.K. Equity Index Fund
25% Vanguard U.S. Equity Index Fund
12% Vanguard FTSE Developed Europe ex-UK Equity Index fund
7% HSBC Japan Index C
7% HSBC Pacific Index C
10% Legal & General Global Emerging Markets Index Fund
24% HSBC UK Gilt Index C
Average portfolio OCF = 0.29%:j
Planning for my future early
:T Thank you to the members of the MSE Forum :T
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well,2 vanguard funds can be used to gradually reduce the % of equities. e.g. that article was about moving gradually from 60% to 40% equities. with 1 fund, you'd have to jump all the way from 60% to 40% in 1 step.
i'd still probably start with just 1 of them, though. e.g. if i wanted 80% equities, i'd start with just that fund. and add a 2nd fund if/when i wanted to start reducing the equity weighting. starting with 2 funds is only better if you want to start with a % you can't get in 1 fund e.g. 70%.
and 2 funds may be more expensive than 1, depending on the platform used.
the slow and steady portfolio is fine. it's actually very similar to lifestrategy 80%. but more fiddly to run - which some ppl enjoy!0 -
The problem with using so many funds is that most of the ones in the slow and steady portfolio are going to have platform charges on HL, which will add up with that many funds. Some other options are in the Boglhead wiki - http://www.bogleheads.org/wiki/UK_Investing.
Personally I'd not worry too much about fiddling around to change your bond allocation by like 1%, but to each his or her own.
Maybe vanguard will introduce their target retirement funds to the UK at some point. 0 -
ccbrowning wrote: »The problem with using so many funds is that most of the ones in the slow and steady portfolio are going to have platform charges on HL, which will add up with that many funds. Some other options are in the Boglhead wiki - http://www.bogleheads.org/wiki/UK_Investing.
Personally I'd not worry too much about fiddling around to change your bond allocation by like 1%, but to each his or her own. Maybe vanguard will introduce their target retirement funds to the UK at some point.
Thanks for the link, i was looking for something like that last night. :beer:
The more i keep researching, the more familiar i am becoming.
I find this interesting:
A young investor's asset allocation
Domestic Stocks 30% World Stocks 50% Intermediate Term Bonds 20%
A middle-aged investor's asset allocation
Domestic Stocks 20% World Stocks 40% Intermediate Term Bonds 20% Inflation Protected Securities 20%
An investor in early retirement's asset allocation
Domestic Stocks 10% World Stocks 30% Intermediate Term Bonds 30% Inflation Protected Securities 30%
An investor in late retirement's asset allocation
World Stocks 20% Intermediate Term Bonds 40% Inflation Protected Securities 40%:j
Planning for my future early
:T Thank you to the members of the MSE Forum :T
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I keep it simple, 65% in Vanguard LifeStrategy and 35% in other holdings but keep the lot below 10 holdings for easy management. There's no sense imho having more than one VLS holding.
If I were young and wanted just one holding it would be the Vanguard LifeStrategy 100% Acc fund so that dividends were automatically reinvested, I'd revisit it every 10 years until I was 50 when I would be inclined to consider switching to the 60% or 40% fund dependant upon my attitude to risk and state of the world.
As it is, I like to dance around the edges so keep 35% for investing in other stuff.
Best wishes for your future in the military, I had a great time with them :-)0 -
I keep it simple, 65% in Vanguard LifeStrategy and 35% in other holdings but keep the lot below 10 holdings for easy management. There's no sense imho having more than one VLS holding.
If I were young and wanted just one holding it would be the Vanguard LifeStrategy 100% Acc fund so that dividends were automatically reinvested, I'd revisit it every 10 years until I was 50 when I would be inclined to consider switching to the 60% or 40% fund dependant upon my attitude to risk and state of the world.
As it is, I like to dance around the edges so keep 35% for investing in other stuff.
Best wishes for your future in the military, I had a great time with them :-)
Thank you
The only thing holding me back is the fact that my colleagues are telling me to stay away from shares as we are in a recession. I don't know enough about S&S so i cant argue their point. If anyone could give me some confidence?
Basically a few of them are telling me to go into property development and then rent them out...
I think I have made my mind up. I am going to go for the 80% as I don't think i have seen anyone choose the 100%. Bad reasoning I know but I like to be a sheep. I will be using TD and putting £5640 as a lump sum using this years allowance.
I will then contribute monthly for next years allowance.
Anyone disagree or can add to this?
:beer::j
Planning for my future early
:T Thank you to the members of the MSE Forum :T
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..... and putting £5640 as a lump sum using this years allowance
Just in case there's a misunderstanding, and since you didn't mention an existing cash ISA: £5,640 is the max allowance this tax year for cash ISAs. For S&S ISAs, your max is £11,280.
If you put anything into a cash ISA, the £11,280 get reduced by that amount, up to £5,640.0 -
Just in case there's a misunderstanding, and since you didn't mention an existing cash ISA: £5,640 is the max allowance this tax year for cash ISAs. For S&S ISAs, your max is £11,280.
If you put anything into a cash ISA, the £11,280 get reduced by that amount, up to £5,640.
Yeah I already have and will continue to contribute to a Cash ISA but thank you anyway.
:j
Planning for my future early
:T Thank you to the members of the MSE Forum :T
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the recession has reduced the profits of many companies on the stock market. but then their share prices have already gone down to allow for that. and then gone up a bit on the hope that the recession will end soon. and then down a bit on the fear that it will last longer. and so on ...
in short, it's hard to tell whether it's a good time to buy shares, because all the good and bad news is already "in the price". future returns will depends on unexpected events; and on the manic-depressive mood swings which the market goes through - i.e. sometimes most investors concentrate on everything that could go wrong, and prices fall; at other times, the exact opposite.
if anything, it can be worth trying to go against the market mood, by buying shares when everybody else is despairing, and selling when they think the market can only go up. that is easier said than done, though. for instance, the market has had quite a good run over the last 6 months or so. are investors too optimistic, and is it more likely to fall back now? it's possible, but on the other hand, it might rise further and fall sharply later on. so is this a good time to invest? i dunno.
the easier approach is not to try and call the short-term moves of the market, but to invest as soon as you can as stay invested as long as possible. that way, you will ride out a lot of rises and falls, and the long-term advantage of shares over cash savings should win out. "time in market", not "market timing".
property development is fine if you know what you're doing. it's not an easy way to make money (now that the property market isn't rising rapidly). it's a lot more work than shares. it's harder to diversify to reduce the risk - with a smaller amount, you'd start investing in just 1 property.0 -
grey_gym_sock wrote: »property development is fine if you know what you're doing. it's not an easy way to make money (now that the property market isn't rising rapidly). it's a lot more work than shares. it's harder to diversify to reduce the risk - with a smaller amount, you'd start investing in just 1 property.
Also, as the OP is about to go Cyprus for a few years, having a new bricks & mortar investment in the UK might not be the easiest, if only from a logistics point of view.
If you want exposure to property, allocate part of your investment to a (commercial?) property fund. But then you are back to having to select the right fund, manage it yourself and pay the associated charges.0
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