VLS 60 buying more now ok?

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  • masonic
    masonic Posts: 23,003
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    jdw2000 wrote: »
    Fair enough about not buying annuities anymore. But principle still stands that you want less risky investments when you approach/reach retirement?
    You need to ensure that you would be able to cover your spending needs without having to sell shares in the event of a stockmarket crash. There are various ways you could achieve that.
  • Eco_Miser
    Eco_Miser Posts: 4,708
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    jdw2000 wrote: »
    Fair enough about not buying annuities anymore. But principle still stands that you want less risky investments when you approach/reach retirement?
    Depends how risky your investments were in the first place. You could still be looking at 30+ years invested. I was six years retired before I made significant changes to my investments.
    Eco Miser
    Saving money for well over half a century
  • badger09
    badger09 Posts: 11,105
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    davieg11 wrote: »

    My Aviva pension has over 2000 different funds. How do you know which ones are unlikely to have 50% downturns?
    Sean473 wrote: »
    WOW! 2000 funds? That's nuts!

    Did Aviva set them up that way or you did?

    davieg11 doesn't mean his pension is actually invested in 2000 different funds:eek:, just that he can choose between 2000.
  • TheShape
    TheShape Posts: 1,777
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    jamei305 wrote: »
    How do you know what a huge drop is?

    Check out the dot com crash. The red cross is a 33% drop then it starts going up again - time to buy surely, because it has crashed back down to normal levels.

    Capture.JPG

    What's that a chart of?

    I guess looking at that chart at the date of point x you might take the view that it's just come off a short term peak and not be tempted.

    But if the answer is just to invest when you have the cash, if that is at point x you've made a big mistake. I imagine someone trying to time the market might have waited until early 2001 which looks more like normal levels. Admittedly still not a great decision but far better than at point x.
  • masonic
    masonic Posts: 23,003
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    TheShape wrote: »
    I guess looking at that chart at the date of point x you might take the view that it's just come off a short term peak and not be tempted.
    It's easy to see that when you have the benefit of the rest of the chart. You aren't afforded that luxury when you need to make an investment decision. There are plenty of instances where a fall that looked like that was the low point. It's impossible to predict with any accuracy what will happen next, whatever the chart of past performance looks like.
    But if the answer is just to invest when you have the cash, if that is at point x you've made a big mistake. I imagine someone trying to time the market might have waited until early 2001 which looks more like normal levels. Admittedly still not a great decision but far better than at point x.
    I wouldn't consider point x to be such a bad point to make an investment. It's better than any time up to ~9 months prior or ~3 months after. If I had been put off adding to my investments during late 1999 and early 2000 and had managed to buy in at point x I'd be feeling rather pleased. Of course, I'd be adding money over the next 5 years as well.
  • flopsy1973
    flopsy1973 Posts: 617
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    Have read this with interest so given that we will get at least a 30% fall in value what other alternatives are there to Vanguard for a more stable fund in the event of a downturn
  • masonic
    masonic Posts: 23,003
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    flopsy1973 wrote: »
    Have read this with interest so given that we will get at least a 30% fall in value what other alternatives are there to Vanguard for a more stable fund in the event of a downturn
    Just pick a version of the Vanguard fund with less in equities... 40 or 20. But, you'll have to accept lower returns over the long term.
  • dunstonh
    dunstonh Posts: 115,904
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    flopsy1973 wrote: »
    Have read this with interest so given that we will get at least a 30% fall in value what other alternatives are there to Vanguard for a more stable fund in the event of a downturn

    How much downside are you willing to accept?
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • dunstonh wrote: »
    Strange that you get criticised for pointing out loss potential for events that will happen to people that don't realise it.

    We have seen people on this board many many times over the years invest in funds like the VLS. Often taking a long time to decide to invest (often missing periods of gains) who then come back and post that is down and they are worrying. Some have even pulled out crystallising their losses. So, I make no apology for pointing out the downside that WILL happen.

    To even suggest that it is wrong to let people know their investments will go down as well as up says more about you than your snide comments about me and the other advisers that post here.

    Quite right we all know In our heads that stock go up and down but it's very different seeing it. The difference is your clients get to try and blame you for 'losing their money'. Like an overweight person having one pt session a week and eating chips every day blaming the pt for 'not losing weight'. I think this very often comes from a fundamental misunderstanding of what good financial advisers do but there you go.
  • Audaxer
    Audaxer Posts: 3,505
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    flopsy1973 wrote: »
    Have read this with interest so given that we will get at least a 30% fall in value what other alternatives are there to Vanguard for a more stable fund in the event of a downturn
    If there was a 50% fall in equities, that would be a 30% fall in a VLS60, but would only be a 20% fall in a VLS40.
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