Vanguard Life Strategy

Dird

Zola. wrote: »

How on earth did you turn a 30 year mortgage into a 5 year one? Congrats on that

Probably just doesn't really need the length.

I applied for a 9 year mortgage then 2 months in increased the term to 25 (was offered 30) as I hadn't paid much attention to bank acc interests when I initially applied for the 9 year mortgage. Despite the 9 years I still had the plan to clear it in 5 years...now I'm thinking of just letting it run for as long as possible while the rates are like this but still aim to have the cash available in the 5 years.

Find it quite funny paying less than £300/month maybe I'll try and remortgage it to 40 years and see if I can get it below £200/month

Hal17

Having taken early retirement - now 62, I have always been cautious in money matters. However was thinking in taking some funds from a cash ISA and transferring it to a Vanguard Life Strategy 40% Equity fund. I see there is an Accumulation and an Income version? Could someone please explain the difference?

Also I assume I can hold this in a S&S ISA - was going to look at Charles Stanley Direct. Appreciate any feedback.

gadgetmind

Zola. wrote: »

How on earth did you turn a 30 year mortgage into a 5 year one?

We took out what felt like a huge mortgage to buy our 1st home in 1987 and then paid it off in 1994 before I hit 30. In the mean time, I built up a company that a large technology company decided they wanted to acquire, which meant I could write the Leeds Perm a large cheque.

bigadaj

Hal17 wrote: »

Having taken early retirement - now 62, I have always been cautious in money matters. However was thinking in taking some funds from a cash ISA and transferring it to a Vanguard Life Strategy 40% Equity fund. I see there is an Accumulation and an Income version? Could someone please explain the difference?

Also I assume I can hold this in a S&S ISA - was going to look at Charles Stanley Direct. Appreciate any feedback.

Yes, that would be fine, csd are competitive up to around £40k so if it's much more then fixed fee providers can work out cheaper.

Accumulation units take the income internally, so dividends and all income increases the unit price, income units would paythis out as cash. Accumulation units are easier but income are useful if you want to withdraw some of the dividends, though accumulation units can also be sold.

chockydavid1983

Hal17 wrote: »

I see there is an Accumulation and an Income version? Could someone please explain the difference?.

With acc funds, any dividends are automatically reinvested whereas with inc funds, dividends get paid out to you and you can then do with them what you wish

Hal17

Thank you both for your prompt reply and explanation. That confirmed what I was thinking. I might have a go and invest in the income fund. Thanks again.

frankie

Hal17 wrote: »

Having taken early retirement - now 62, I have always been cautious in money matters. However was thinking in taking some funds from a cash ISA and transferring it to a Vanguard Life Strategy 40% Equity fund.

Are you happy with how the bond markets are going to pan out with holding 60% bonds and 40% equity? Don't get to hear a lot about bonds.

Its an option I have been thinking about being now in my late 60's and becoming more cautious.

Hal17

Hello Frankie, I cannot help on this sorry. I am both a cautious and a inexperienced investor.

I am happy with my range of investments that provide a comfortable income and of course this will improve when we both get our SP in 4 years.

The reason for my OP was that I am aware of having too much in cash and do not have a S&S Isa. But then there is that cautious fellow inside me who says - if your comfortable and happy - then why change anything. Difficult when you work hard all your life and save for retirement to start taking some risks at this late stage.

bigadaj

Hal17 wrote: »

Hello Frankie, I cannot help on this sorry. I am both a cautious and a inexperienced investor.

I am happy with my range of investments that provide a comfortable income and of course this will improve when we both get our SP in 4 years.

The reason for my OP was that I am aware of having too much in cash and do not have a S&S Isa. But then there is that cautious fellow inside me who says - if your comfortable and happy - then why change anything. Difficult when you work hard all your life and save for retirement to start taking some risks at this late stage.

I think Frankie is pointing out that bonds, and particularly government bonds are being pushed ever higher, with yields decreasing. Nothing ever climbs for ever and there will be a reduction in prices once interest rates go higher.

I've minimised bond holdings over the last few years but they seem to keep going up, a bit like property, but they will fall at some point.

ratechaser

Hmm, 8.24% up on VLS80 in the 5 weeks that I've held it. Sorely tempted to sell and put it all into bank stocks

(OK, I'm probably not going to do that, but in theory I've made more in 5 weeks in this fund than I have over the past 3 years in a cash ISA!)

Decisions...