Vanguard Life Strategy

latecomer

gadgetmind wrote: »

You can always leave the cash in the S&S ISA for a while, or invest it into a short-dated bond fund.

Dont have time to research bond funds enough to be happy to put a large sum into so will probably either go with a lump cash into a S&S ISA and drip it into the fund or put into a easy access cash ISA and then transfer across later.

smoulder

Like the original poster, I've just selected the LifeStrategy 80% fund at Hargreaves Lansdown. During the SIPP sign-up process it prompted me to file a W-8BEN form with them.

I'd heard about this form before for reducing tax paid to the IRS on US shares, but it didn't click that I needed to file it for funds such as this LifeStrategy one which contain US shares. It seems obvious now, but I just thought I'd mention it in case it didn't occur to other beginners.

gadgetmind

I think HL just like people to have a W-8BEN in case they ever want to buy US shares and it's not needed to hold funds inc trackers no matter where those funds invest.

adewalton

What advise / pointers for a fund to run along side by VLS 60% can people give me?
Its for next tax year 2013/2014?
Cheers for now,
Ade

gadgetmind

The LS funds are designed to give you an all-in-one balanced portfolio and you need to have good reasons to want to add anything alongside.

edinburgher

gadgetmind wrote: »

The LS funds are designed to give you an all-in-one balanced portfolio and you need to have good reasons to want to add anything alongside.

Agreed.

LS100 is my only ISA holding and I have no plans to change that.

takesyourchances

brasso wrote: »

@takesyourchances

Obviously you're very enthusiastic and eager to learn -- fantastic.

Can I make a suggestion? And something that will give you a break from just reading?

Take a look at -- or rather, a listen to, the UK Motley Fool podcasts. Easiest way to get them is to subscribe via iTunes -- https://itunes.apple.com/podcast/money-talk-from-fool.co.uk/id123222682?mt=2

These free podcasts cover the whole gamut of investing strategy topics, and are aimed squarely at the novice or average investor. Even the ones going back a couple of years are fascinating and educational, even if (naturally) they sometimes deal with subjects that have moved on a bit. But once you've listened to a few of these, you'll have new insights and new ideas. Quite frankly, you will also hear plenty you might disagree with, but that is actually what is useful i.e. I am not just hearing stuff that feeds all my own prejudices, but contrary views that offer new perspectives.

And also, just to bring this back on topic, there are plenty of references to passive investing -- although the general focus is on active management albeit fairly slow and steady. It certainly isn't for active day traders.

And of course other podcasts are available! The FT ones + MorningStar are good.

And back to MF, the short US daily podcast is usually interesting -- https://itunes.apple.com/us/podcast/marketfoolery/id413551999, as well as their weekly round-up -- http://wiki.fool.com/Motley_Fool_Money_Radio_Show. These deal mainly with US markets but always entertaining.

Thanks for this information, yes I am very enthusiastic and eager to learn more knowledge. Podcasts would be very good as well to get a break from reading, so I will have a look at these sites thanks, although I don't have itunes as I am android based with phone and tablet, I will see if there is a way to get them. I will read some more of the smarter investing this weekend as well.

It is really the passive long term approach I want but at the same time adding some diverse directions and covering sections of the markets that I feel I would like exposure in and understanding the reasons etc. A good global spread in one of the main objectives.

It is always good to have new ideas and insights and opinions, all helps indeed. Thank you!

Carpi, good edit to your opening post it will give a good intro to this topic.

takesyourchances

I have done more thinking on diversifying and looking at additional portfolio options to go along with the Lifestrat core and along with the 2 other funds I have and the Standard Life Global Small Cap is on my watch list as a possible option.

With the two funds I have with the Lifestrat, the Aberdeen Global Asian Small Cap and the First State Global Emerging Markets Leaders I have been looking over other options as possibilities and there has been good debates here.

Between these at the moment I feel I am getting a global spread and a bit of focus in areas I like as well and possible global small cap to come so started to think of possible asset class diversification, and thought of property. Property is something I have a relevant knowledge of rather than mining and metals, gas and oil etc.

Looking into this over the last couple of days I have added to my watch list the BlackRock Global Property Secs. Eq. Tracker Class A Accumulation. I may be right in that this is the only property asset tracker still in the UK that can be got at the moment and the management charge is very attractive from BlackRock.

Here is a link on HL: http://www.hl.co.uk/funds/fund-discounts,-prices--and--factsheets/search-results/b/blackrock-global-property-secs.-eq.-tracker-accumulation

The range of countries seem to be very good along with the main company holdings I looked at listed.

Looking into this more I read this article on Monevator which has the BlackRock property tracker in it.

http://monevator.com/blackrock-index-funds-tracked/

Any thoughts on this as a possible smaller % portfolio holding at some stage and creating a bit of a global asset class diversification as well?

The LS 60% has a 0.97% asset allocation in property, the idea still is the LS as core, with some additional side funds / trackers as exposure.

I have added this BlackRock property tracker as I said to my watch list at the moment, property I feel is always an asset in need and being used and could be a diversification a long with the rest held for the long term.

Any thoughts and debates is appresiated, I noticed Gadgetmind commented on the article on Monevator, if you are reading this any input would be good also

Best regards.

guitarman001

Up to you. I'm not into it so big as an investment - ESPECIALLY not now! Property around the world is largely over-priced and due a big fall. Plus, it's a less liquid investment, so it's tougher to get your money back / make good gains (maybe I'm talking tosh) - I know Hargreaves recently dropped a property fund from their wealth 150 portfolio for this sort of reason. Then again, could be a decent diversifier - I'd rather be in a natural resources fund if anything, but for now will stick to LifeStrat, First State Emerging and Vanguard US equity tracker.

takesyourchances

guitarman001 wrote: »

Up to you. I'm not into it so big as an investment - ESPECIALLY not now! Property around the world is largely over-priced and due a big fall. Plus, it's a less liquid investment, so it's tougher to get your money back / make good gains (maybe I'm talking tosh) - I know Hargreaves recently dropped a property fund from their wealth 150 portfolio for this sort of reason. Then again, could be a decent diversifier - I'd rather be in a natural resources fund if anything, but for now will stick to LifeStrat, First State Emerging and Vanguard US equity tracker.

Yes it is just thoughts really, the next fund would most likely be the global small cap, but thinking ahead again

I agree that property in general is over priced, especially here in the UK some other regions in the world I feel property is valued well, I have property that I could never buy in the UK etc for a fraction of the price.

I will explain more of my thoughts, although these are not necessarily correct. As the fund is mainly commercial related there is a lot of businesses that rent their commercial property and in theory I was thinking in time that these rents etc would need to rise in time. Also there is storage companies included as well and construction.

The largest holding the Simon Property Group is the largest commercial property group in the US. Sun Hung Kai Properties is a large Hong Kong developer etc.

Looking at the countries, there is some of the better growing economic regions as well as the better of the developed regions..

I realise that property has taken a battering so to speak and is over priced in a lot of countries, but feel there is still a need for property and as an asset it is still required, as in commercial businesses still need premises and there is always the need for rental creating yields. The world is full of buildings etc, built, bought, rented etc.

I wouldn't be jumping at this and if I thought property could be an option in the portfolio I would think 5% and under if running a few funds / trackers. Down the line could open with £500 and leave and just do a drip feed of £50 even every four months - 6 months as I would commit mainly to the rest I have.

I don't really know a lot on natural resources as funds etc, likes of gold I felt was a gold rush pardon the pun and mines etc I would be worried what happens when they dry up and things related like that. It is more unknown to me than property but could be good also.

At the moment I don't want to buy any more physical property and I am still interested in it and thought this looked interesting as a small diverse exposure without buying any more property for myself

So exercising thoughts really more than anything at the moment on it.

Thanks!

Bit of an edited update, found these couple of articles when looking on net.

http://www.telegraph.co.uk/finance/personalfinance/investing/9834079/Commercial-property-funds-Time-to-invest.html

http://www.ft.com/cms/s/0/39d37a48-ca91-11e1-89be-00144feabdc0.html#axzz2MKZGYOtK

Also the UK percentage is very low in the BlackRock tracker at 0.85% which I prefer in this as I would favor the Asian sector higher than the UK.