Vanguard Life Strategy

ozzage

esmecullen wrote: »

I've opened a VLS 60% via HL at the end of last week with £500, will drip feed £50 p.m into this and perhaps another limp of £500 later, seems like a good fund to get into, but wondering if I should add something else, ie stocks or another low cost fund?

Any suggestions or leave as is?

Unless you have something specific you're trying to achieve, I would leave it as-is.

I realise that there are people in this thread trying to "spice things up" by adding various trackers or funds to a core LifeStrategy holding, and this certainly isn't WRONG, but it also isn't strictly necessary and doesn't really fit with the idea of the LifeStrategy funds.

The idea of something like your LifeStrategy 60% is to be a single fund for long-term investing and nobody should feel that adding extra funds is necessary. That single VLS fund already has a good balanced asset allocation, spread geographically and over bonds/equities. Don't be misled or confused by the excitement other people have in wanting to over-complicate things

Reue

Quick question guys. Is anyone able to briefly explain the difference between the Income and Accumulation Unit options?

adewalton

Income = You get paid an Income either divi or interest.
Acc = The dividend is reinvested to buy more units in same fund
Hope that helps?

Reue

adewalton wrote: »

Income = You get paid an Income either divi or interest.
Acc = The dividend is reinvested to buy more units in same fund
Hope that helps?

Ok great thanks. So both actually pay out the same amount but the Acc one will automatically be reinvested?

Im therefore guessing most people would pick the acc fund option as its a long term saving choice?

black_taxi_2

yes acc for long term dividend compounds/put in isa

income is for retirement in the main

esmecullen

ozzage wrote: »

Unless you have something specific you're trying to achieve, I would leave it as-is.

I realise that there are people in this thread trying to "spice things up" by adding various trackers or funds to a core LifeStrategy holding, and this certainly isn't WRONG, but it also isn't strictly necessary and doesn't really fit with the idea of the LifeStrategy funds.

The idea of something like your LifeStrategy 60% is to be a single fund for long-term investing and nobody should feel that adding extra funds is necessary. That single VLS fund already has a good balanced asset allocation, spread geographically and over bonds/equities. Don't be misled or confused by the excitement other people have in wanting to over-complicate things

Many thanks for that:)

Linton

adewalton wrote: »

Income = You get paid an Income either divi or interest.
Acc = The dividend is reinvested to buy more units in same fund
Hope that helps?

To avoid confusion when you get your statements:

With Acc funds the money is retained in the fund so the fund price increases faster than for the Inc fund. You dont get extra units.

Totton

There may well be a minute difference between the Acc & Inc funds, too small to mention so don't worry about it. I always take the Inc option so that in bad times I still have the comfort of seeing the dividends :-)

adewalton

Me too ........ show me the money!!!

takesyourchances

esmecullen wrote: »

I've opened a VLS 60% via HL at the end of last week with £500, will drip feed £50 p.m into this and perhaps another limp of £500 later, seems like a good fund to get into, but wondering if I should add something else, ie stocks or another low cost fund?

Any suggestions or leave as is?

Good to hear that you have started the VLS 60% with a £500 lump sum and £50 per month, it is a well balanced all in one set up that gives a good range of exposure and your £50's will not be long in adding up.

As other posters have said it is perfectly alright on it's own, I am happy with the VLS 60%.

I have a selection of additional funds as well, reason being as I wanted to have an investment towards Asia as well and some selected areas in Asia. Purely this is a personal choice for the long term and it is not needed as such as other have pointed out.

If you have a selected region or sector that is not covered in the VLS then a side fund is a good idea to cover this and you can decide how much within your portfolio to hold.

My choice is selective as I wanted more Asian exposure added and also small companies for growth potential, if you did want to add anything else I would grow your VLS investment up more and then look personally, but it is not required with a VLS.

With what has been happening in Europe over the weekend with Cyprus it has been a reminder how rocky the whole European situation is and personally I am happy at the moment to have a bit of Asian exposure.

To me Europe is very rocky, there are to many countries all at various levels up and down the scale to be linked off the one currency and a lot of boats being rocked from the ripple effect. What is contained in the VLS in Europe is enough for me to be honest.

Good luck with your VLS, if you have a selective choice it can be explored, but don't rush into it, I know I have posted a lot about side funds etc but I have my reasons on personal thoughts on these areas and why I took them out, take your time and decide what is best for you

Thanks.