Vanguard Life Strategy

mark55man

pauljoecoe wrote: »

thats was my thought - just wanted reassurance thanks.

Good choice to check on low charges


I suggest bad choice to ignore the rest of the thread which has some real gems in it. Vanguard is a kind of fire and forget strategy (that's a compliment) but there's plenty to learn

pauljoecoe

mark88man wrote: »

I suggest bad choice to ignore the rest of the thread which has some real gems in it. Vanguard is a kind of fire and forget strategy (that's a compliment) but there's plenty to learn

I am sure there is but its 66 pages long!! and it does seem to drift in to al sorts of complicated areas not neccesarily realting to my situation. I have already made enquires elsewhere and have been researching this for a while so this is not a random question. I had jusy become aware of this thread today so thought it was worth and ask.

I will dip in and have a look but cannot promise to read it all

mark55man

pauljoecoe wrote: »

I am sure there is but its 66 pages long!! and it does seem to drift in to al sorts of complicated areas not neccesarily realting to my situation. I have already made enquires elsewhere and have been researching this for a while so this is not a random question. I had jusy become aware of this thread today so thought it was worth and ask.

I will dip in and have a look but cannot promise to read it all

That is very true - its a long old thread that's for sure

bowlhead99

pauljoecoe wrote: »

I am sure there is but its 66 pages long!!

Simply change your settings to show 40 posts per page instead of 20. Then you only have to wade through 33 pages

You're right though it's a hefty thread that covers quite a few topics. I've done over 40 posts on it myself (although I couldn't bring myself to vote on the somewhat inane 'poll').

hennerz

pauljoecoe wrote: »

Not wanting to trawl all the way through this long thread. I am just about to invest in a Lifestyle 60 via a S & S ISA. Charges wise where is the best place to go for this currently?

You could use iWeb if you don't plan on trading much?

noclaf

Hi All

I currently hold a Vanguard LS 80% Acc fund in my SIPP, happy with it so far and would like to now start drip-feeding a second Vanguard LS fund via CSD. hoping you guys can help me on below questions:

- my plan is to contribute £100 per month, this is for a longterm investment,am 33 . given my age and timeframe, which LS fund should I go for, same as the SIPP 80% which is middleground risk or down to 60% or even higher risk at 100%?
- If I drip-feed monthly using CSD as the platform,do they allow it to be done via a S&S ISA?

bowlhead99

noclaf wrote: »

- my plan is to contribute £100 per month, this is for a longterm investment,am 33 . given my age and timeframe, which LS fund should I go for, same as the SIPP 80% which is middleground risk or down to 60% or even higher risk at 100%?

80% is not really middle ground risk if the choices are 100, 80, 60, 40, 20, 0%. It is towards the higher end. It may of course be suitable for your needs, as may 100% or 40%. It depends what your needs actually are, which is something you know and we don't. Most people when asked about their needs, tend to say they want to make as much money possible over the long long term, preferably with the least amount of risk or volatility in case they want to access earlier than the long long term.That doesn't help at all. Ultimately it's up to you to decide.

I am in my thirties and have the 100% version. But as I also have a bunch of non-equity investments in my wider portfolio, and you don't know if i am early thirties or late thirties and whether I intend to spend the proceeds in my mid forties or mid eighties, and whether my attitude towards - and capacity for - risk and volatility is similar to yours... I don't suppose that helps much

- If I drip-feed monthly using CSD as the platform,do they allow it to be done via a S&S ISA?

Yes you can get an ISA from CSD and all the Lifestrategy funds are ISA allowable.

noclaf

thanks for feddback bowlhead99 - Im leaning towards the 100% equity for now and will review as and when I feel necessary, same with the 80% in the SIPP
these are my sole 'investments'..or at least they will be soon. rest of my savings/cash will be in the bank

s20544

On the topic of Vanguard Lifestrategy funds....


My father is considering investing £100 to £150k in a traditional domestic buy-to-let property in the midlands with a rental return of 5.5% assuming he self manages (gross of vacant periods, maintenance and income tax). He has 15+ successful years of student buy-to-lets so has some valid experience and appreciation of the risks and work involved in buy-to-let. However, the %yields on student lets have been higher than the rental returns he will get on a regular domestic buy-to-let. He is convinced that a non student buy-to-let will be less hassle as he gets older.


He has no experience of investing in shares or funds but I am trying to encourage him to consider a Lifestrategy fund or similar. I think he should consider this as, in his retirement, it would be less hassle than the domestic buy-to-let investment he is considering and could/would deliver similar %yield via dividends and carry similar opportunity/risk to the value of the underlying investment.


His main requirement is a regular annual income of 5 to 6% with low risk, low volatility, low complexity and low hassle factor. He would be happy to hold the investment for 10 years.


I have had a look at monvevator website and have directed my father to do the same. I would welcome your views in general but three specific questions I have are:


Which Lifestrategy (or other) fund would give similar risk, reward and volatility to a residential buy-to-let with 5% yield? (The buy-to-let he is considering is a 1 or 2 bed 10 year old modern terrace in good condition, near a station, suitable for a professional commuter).


I recognise that past fund performance is no guarantee of the future, but, does anyone have any stats on annual percentage dividend payouts and, separately, the stats on development of underlying capital investment? I thought that this would be useful information to share with my father?


If he were to invest in a fund I assume that it might be sensible to drip feed his lump sum into the fund over a 6 month period?


Thanks

Linton

No Vanguard LS fund would give a low risk 5-6%/year. The dividend % of the FTSE100 is around 3.2%. You really need to be looking at higher risk corporate bond funds or a specialist income fund for that sort of yield.

If you go to trustnet.com, get a list of all funds (just click "Go" on the search panel) and sort by yield (click on the yield column header) you can find the higher Yield funds. But dont simply go for the highest yield fund - it is likely to be highly risky, rather consider ones that meet your requirement of say 5.5% or perhaps a bit less as the 5.5% is gross of charges that wont affect a fund investment. Also you need to get a diversified range of funds that pay income from different sources.

Note that some high yield funds pay interest which is taxed and others dividends which is tax free for a standard rate tax payer. It will take some time for the £100K+ to be safely placed in an S&S ISA.