Vanguard Life strategy post brexit

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  • MadMat
    MadMat Posts: 266 Forumite
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    You've probably missed the boat - yesterdays interest rate cut and subsequent drop in Stirling has given my VLS a nice boost!!

    Mat
  • ajdj
    ajdj Posts: 567 Forumite
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    hutman wrote: »
    I suppose an alternative is switch to other similar performing but cheaper passive funds to get more bang for your buck.

    Such as? I've not come across anything with the fixed style allocations of VGLS that is cheaper.
  • samiam85
    samiam85 Posts: 42 Forumite
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    Clearly my hesitation hasn't helped since I started this thread with VGLS rocketing due to the falling pound.
    I feel I do need to jump in ASAP but see future currency corrections as a worry.
    Is there a way I can hedge the currency risk of the pound recovering in the future (such as shorting the pound) which I can buy for the long term with minimal cost? What options are open to me?

    Thanks!
  • Snakey
    Snakey Posts: 1,174 Forumite
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    Out of interest, where has your £100k been sitting in the meantime? Did you hedge against the pound dropping?

    No investment advice here obviously, but really, just settle on a long-term strategy and put the wheels in motion and stop being a wimp. This is coming from somebody who dithered and dithered... once I made the decision and stuffed it all in there, I was a lot happier in myself as I could forget about it and stop worrying.
  • Ray_Singh-Blue
    Ray_Singh-Blue Posts: 507 Forumite
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    Snakey wrote: »
    just settle on a long-term strategy and put the wheels in motion and stop being a wimp.

    Yes - but this strategy could include a nod to unusual market conditions. Such as, invest no new money when whatever market is within 10% of all time high.

    If you invest a lump sum now, you are facing two potential corrections: world stock markets are near an all time high, and the pound is at a long time low. No harm in waiting, if your long-term strategy allows it.
  • Linton
    Linton Posts: 17,173 Forumite
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    Ray_Singh-Blue wrote: »
    Yes - but this strategy could include a nod to unusual market conditions. Such as, invest no new money when whatever market is within 10% of all time high.

    Why? What if the price continues to increase? And then you eventually buy in a dip, having missed out on dividends, at a higher price than you could have paid if you had bought immediately.
  • Ray_Singh-Blue
    Ray_Singh-Blue Posts: 507 Forumite
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    Linton wrote: »
    Why?.

    Taking a view, balance of probabilities. Reasons given above. May be wrong, absolutely.
  • enthusiasticsaver
    enthusiasticsaver Posts: 15,595 Ambassador
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    We will have a similar situation in a months time when we receive OHs TFLS on retirement. We have a lot in VGLS60 and will be doubling our holdings. I am not going to worry about the short term highs and lows of it as we are sticking it away for 10 years so it will move a lot in that time.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free Wannabe, Budgeting and Banking and Savings and Investment boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.
  • darkidoe
    darkidoe Posts: 1,125 Forumite
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    edited 15 October 2016 at 8:21PM
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    dunstonh wrote: »
    If that was the case, people would be jumping from commodities to bio to tech to financials or whatever.

    Suitability is about having what is right. That means being able to stomach the downside when it comes as well as being happy with the upside.



    I focus a lot on the downside in my discussion. After all, the FOS always say that complaints increase when the markets go down. So, I would be silly not to consider it. So, you are right, that it is in my head when I have the discussions. However, the discussions are to provide knowledge and understanding. It is that which prevents complaints as someone who knows and understand that a drop of x% will occur at some point is not going to complain when that comes alone. Investing below their risk profile doesn't serve a purpose. Although from what I see on the board and what I see via advice for myself and the advisers that work for me is that the advised cases tend to be lower risk than the typical DIY investor.

    DIY investors can do whatever they like. That is what DIY is about. But we know from this section that we do see fashion investors, those that invest above their risk profile and capacity for loss and those that really dont have a clue what they are investing in.

    Just curious, but how does an IFA assess a client's risk profile other than just asking them some questions from a questionaire on how they tolerate loss of capital etc?? Is that any valid tool to assess that or is it more of an art??

    @OP
    There is a school of thought in the FI community that the focus can be less on returns and more on generating an income from that portfolio. By focusing on the income, you will probably be less bothered by the fluctuations of prices.

    Save 12K in 2020 # 38 £0/£20,000
  • Chickereeeee
    Chickereeeee Posts: 1,186 Forumite
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    Malthusian wrote: »
    That said, if my portfolio consisted entirely of a chunk of money in LifeStrategy, I would be aiming to diversify away from that in order to not have almost half my money in the US.

    Actually, VGLS (well the 80 one anyway) is only 35% USA.

    It has a heavy UK bias (19%) compared to a true representation of the global market.

    C
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