Vanguard Life Strategy

Linton

TheTracker wrote: »

I don't mean this personally, but the state of the financial advice industry in the UK means that practitioners are insecure in providing financial advice that concludes with a sensible recommendation to a bulk of people aged say 25-55 that amounts to 'using tax efficient wrappers first, drip feed savings all your life into one single low fee fund which consists of a globally diverse range of funds that allocate your money to assets in ratios that reduce volatility and recognise the date you will eventually retire'.

.......

There is no point in going completely over to bonds say by the time you are 60 if you plan to drawdown and wont use much of the money for another 15 years. On the other hand doing this may be very sensible if you wanted your pension pot to enable you to retire early without major actuarial reductions on your DB pension or if you wanted to buy an annuity. That is where an IFA comes in - to match your investments with your objectives. Advocating a general off the shelf solution is irresponsible as it will be wrong for many people.

dunstonh

Statistically, lifestyling lowers the pension fund in the majority of cases.
However, when you have a defined exit point, you accept that because the damage of a crash happening before that exit point is greater than the potential gain you may get.

With drawdown, you dont have an exit point. You are going to be in there another 20-30 years. It is better to move towards a drawdown strategy in advance rather than an annuity position if you are going to go into drawdown.

grey_gym_sock

dunstonh wrote: »

With drawdown, you dont have an exit point. You are going to be in there another 20-30 years. It is better to move towards a drawdown strategy in advance rather than an annuity position if you are going to go into drawdown.

the vanguard target retirement funds appear to move towards a 30% equities + 70% bonds portfolio, and then stay there. perhaps that is the portfolio for a drawdown strategy. it doesn't seem obviously wrong to me - a lower, but still substantial amount in equities.

i don't see why it only reaches that point 7 years after the retirement date, though.

adindas

Is there any website where I could see the daily movement of VLS80% Equity on weekly or possibibly daily basis ?

At the moment I could see from Morning star
http://www.morningstar.co.uk/uk/funds/snapshot/snapshot.aspx?id=F00000MLUR

and Trusnet
https://www.trustnet.com/Factsheets/Factsheet.aspx?fundCode=ACFDT

But both are not on weekly basis.
1. Is there any better than this

From Trysnet, I could see that the person who bought this fund in February this year will have the highest gain. My plan is to time the entry to the market this year and try to find the best time to enter the market. I could see that the fund is moving down a little bit when they start moving upward that is where I want to enter the market.

2. Please critisize this approach of entering the market. IS there any better appoach to decide the ti me to enter the market this year ?

3. If you area looking to invest around 15 years time, no need for regular income am I right to say that it is better to invest in acc fund ?

Thank you for your time ...

AlanP_2

adindas wrote: »

Is there any website where I could see the daily movement of VLS80% Equity on weekly or possibibly daily basis ?

At the moment I could see from Morning star
http://www.morningstar.co.uk/uk/funds/snapshot/snapshot.aspx?id=F00000MLUR

and Trusnet
https://www.trustnet.com/Factsheets/Factsheet.aspx?fundCode=ACFDT

But both are not on weekly basis.
1. Is there any better than this

From Trysnet, I could see that the person who bought this fund in February this year will have the highest gain. My plan is to time the entry to the market this year and try to find the best time to enter the market. I could see that the fund is moving down a little bit when they start moving upward that is where I want to enter the market.

2. Please critisize this approach of entering the market. IS there any better appoach to decide the ti me to enter the market this year ?

3. If you area looking to invest around 15 years time, no need for regular income am I right to say that it is better to invest in acc fund ?

Thank you for your time ...

Can't help on weekly movements but as for the other queries:

2) Trying to TIME the market is difficult, just plot FTSE 100 movements over a short time period and see that Day 2 UP does not follow a Day 1 UP but is instead all over the place.

Are you planning on 1 lump sum or a regular drip feed?

Will you try and time each contribution?

3) ACC likely to be best bet if inside an ISA /Pension wrapper as no tax to worry about. If outside a wrapper I have seen comments on here that it is easier to track dividends received when they are specifically identified i.e. using the INC version.



Personally I drip feed each month and make no effort to time the market preferring to have as much invested as soon as possible to let TIME IN THE MARKET work for me.

bowlhead99

adindas wrote: »

I
and Trusnet
https://www.trustnet.com/Factsheets/Factsheet.aspx?fundCode=ACFDT

But both are not on weekly basis.
1. Is there any better than this

From Trysnet, I could see that the person who bought this fund in February this year will have the highest gain. My plan is to time the entry to the market this year and try to find the best time to enter the market. I could see that the fund is moving down a little bit when they start moving upward that is where I want to enter the market.

Below the graph on the trustnet link you have there, there is a link "create a custom chart of this fund's performance". If you click that, you can set the date range to a custom time period (e.g. not just 'last year' or 'last three years' but for example '28 August 2015 to 10 September 2015'.

In that way, you can zoom in as much as you like and see which particular dates or weeks, in the past, were the highest peaks or lowest bottoms.

However, just because the cheapest time to buy was February this year or the most expensive time was April/May last year, things don't follow the same pattern from month to month, or year to year. Otherwise we would all know the best time to get in and best time to get out, and be billionaires. And we are not.

2. Please critisize this approach of entering the market. IS there any better appoach to decide the ti me to enter the market this year ?

Waiting until you *think* it's the cheapest time to invest is flawed, because you can't possibly know whether this week is a lower price than next week because next week hasn't happened yet.

You could invest at what you think is quite a low point and then it drops down another 20% over the next few months.

When you put your order in and commit to subscribe for shares or units in the fund, you don't know what price you will pay because the price hasn't been worked out yet. And even if you did know what price you would pay, that might be 10% higher than the price at the end of the month when there had been some more economic news or world events since the time you invested. And economic news and world events happen every day of the year.

bottleandahalf

bowlhead99 wrote: »

Waiting until you *think* it's the cheapest time to invest is flawed, because you can't possibly know whether this week is a lower price than next week because next week hasn't happened yet.

You could invest at what you think is quite a low point and then it drops down another 20% over the next few months.

Hi. Is it wise though, to hold some cash back in anticipation of a correction/ crash in the hope of buying units at a lower price when the fund drops 10/15%?

The market seems pretty high now just.

dunstonh

Hi. Is it wise though, to hold some cash back in anticipation of a correction/ crash in the hope of buying units at a lower price when the fund drops 10/15%?

When will that crash/correction be? Will it go up another 10-20-30% or even double before that happens?
When you will know the low point of the crash/correction to go back in?

Attempting to time the market usually ends up lowering returns rather than increase them.

The market seems pretty high now just.

Assuming you mean UK, why do you think that?

bottleandahalf

dunstonh wrote: »

When will that crash/correction be? Will it go up another 10-20-30% or even double before that happens?
When you will know the low point of the crash/correction to go back in?

Attempting to time the market usually ends up lowering returns rather than increase them.



Assuming you mean UK, why do you think that?

The US is pretty high too, and some would say 'overvalued'?

The FTSE is about 15% off it's highest peak ever, so who knows if it will go up 20/30%?

I know what you're saying about time out of the market lowering returns but I'm just thinking if you were to put all the cash in now at the point the markets are presently at, it may also lower returns as they haven't ever soared 15/ 20, 30% higher than their present levels.

JohnRo

bottleandahalf wrote: »

...The FTSE is about 15% off it's highest peak ever, so who knows if it will go up 20/30%...

Inflation adjusted it's closer to 40% off