Vanguard FTSE tracker or Lifestyle Fund?

MrMalkin

kharne wrote: »

What's your source advocating less frequent re-balancing?

This article has a chart of portfolios that were rebalanced monthly, quarterly, semi-annually and annually, which showed a slight advantage to the annual rebalancers:

http://www.mymoneyblog.com/how-often-should-i-rebalance-my-investment-portfolio-updated.html

Though to be fair the advantage is so slight (0.1%) I wouldn't be surprised if other studies came up with contrary results.

psychic_teabag

kharne wrote: »

Interesting point about the re-balancing. This article suggests the opposite viewpoint, that daily changes increase performance over time.

I think it's actually saying that the daily rebalancing reduces tracking error and keeps it closer to the index, not necessarily that it improves performance. (Tracking error comprises both random fluctuations about the index and consistent divergence due to costs.)

mr_fishbulb

simonfitba wrote: »

I'm about to turn 34 so by my reckoning I could take the risk on 80% until I'm 40 and then switch to 60%, before heading towards 20% by the time I'm 60.

I'm 31 and I'm on the 100, although I do have 10% bonds in my pension and about 5% (Emerging Market) bonds in my ISA.

If I was a couple of years older then I might go for the 80, but I'm happy to take a higher risk in my ISA because my pension is more conservative.

simonfitba

I plumped for the 80% after much thought. I'll try and drip-feed the ISA maximum amount in next tax year.

Sorry for the double posts BTW.

sabretoothtigger

If theres twenty years before retiring I dont think any amount of bonds is needed unless speculating on the outcome of QE and other such magic tricks.
I think they are quite dangerous personally and that in future currency flows will favour types such as:

5% (Emerging Market) bonds

I hold a similar amount as asia lends us the money to spend anyway how long till they just start keeping it for their own investment, they got plenty of demand without us

y don't want to pay the extra £24 that HL charge annually.

There are trackers they dont charge for. It doesnt have to be vanguard, only that mixer thing is special

mr_fishbulb

sabretoothtigger wrote: »

I hold a similar amount as asia lends us the money to spend anyway how long till they just start keeping it for their own investment, they got plenty of demand without us

It's a fund you had mentioned on here a while back It took a little while to get going again after it's big leap a few years ago, but it's been doing nicely the past few months.