MFW Diary - Take 1!

in_need_of_direction

Cal those marks are amazing. Well done you.

SuperSecretSquirrel

Awesome results cal Had to laugh reading the small print about 94% being disappointing... You're clearly a genius, and also a little crazy. That's the best kind of genius in my opinion

Tilly_MFW_in_6_YRS

Brilliant results Cal :T:T:T

Huge congratulations.


Tilly x x

Alchemilla

Well done you. Xxx

Alchemilla

So what does the 80% mean in Vanguard life strategy?

edinburgher

Alchemilla wrote: »

So what does the 80% mean in Vanguard life strategy?

80% in equities, 20% in bonds.

Here's lots of info as to what the fund invests in.

As Cal is a young whippersnapper, she can afford to have 80% in equities as she has a long time frame before the money will be required. Because I'm looking to attain FI/ER at some point, I'm a little bit more conservative. Our ISA contains roughly equal slugs of 60 and 80, for c. 70% equities overall.

Alchemilla

So being a forty three year old codger I want more in bonds less in equities?

Can't one just invest in a plain index tracker?

Calfuray

gallygirl wrote: »

Well done Cal, for goodness sake take some pride in your grades, they're great :T. Mind you, one year I did two OU courses, so a full year's uni, while working full time. Was upset I got the equivalent of a 1st in one but only a 2.1 in the other :rotfl:. Now I'd be happy if I remembered to turn up for the exam .

Hope you got cashback on your flights .

SuperSecretSquirrel wrote: »

Awesome results cal Had to laugh reading the small print about 94% being disappointing... You're clearly a genius, and also a little crazy. That's the best kind of genius in my opinion

Thank you everyone! I'm happy, honest!

If you guys knew my mum you would understand more, I came home with 98% in a Chemistry prelim back in high school and her response was to ask me "What happened to the other two percent? I thought you were good at Chemistry?"

So excuse my neuroticism :rotfl:

_________________

Al, what Ed said. I think it was back around Feb in this thread that he, SSS and I were discussing Vanguard and S&S ISAs, I eventually plunged in and haven't looked back, everything is ticking away nicely and I don't know what I was so worried about!

And correct me if I'm wrong, but Vanguard is a plain old index tracker. There are just one or two decisions to make, what you level of 'risk' is, which is made up of your attitude to risk and the timeframe you have to invest in.
If you were to need funds in 10 years for example, because shares are more volatile (have bigger ups and downs), when you are drawing out the money, you might have the bad luck of taking it out in a 'down' where it is worth less. Investing over a longer period means you are less likely to be needing the bulk in one of these downs. The other factor is having some bonds, which protect the value of your investment against this volatility more, so that's why you have this equity/bond split.

Disclaimer: This is my understanding and I have probably explained/understood something wrong but I'm sure someone more knowledgable than me will be along soon

Alchemilla

Thanks Cal. Think I might take the plunge also.

eta can you drip feed them with so much a month and whats the minimum?

Calfuray

Alchemilla wrote: »

Thanks Cal. Think I might take the plunge also.

eta can you drip feed them with so much a month and whats the minimum?

Eh, good point. I have a DD set up for £50 a month, so yes you can definitely drip-feed, but I'm not sure what the minimum is, sorry.