Vanguard Life Strategy

mark55man

blizeH wrote: »

Many thanks bowl Great advice, I'll look into the global strategic bond funds.

Many would advise that going into bond funds is not a great idea at the moment given that interest rates may rise and capital value will fall if they do

I do have a little (a good portfolio can cope with all eventualities), but only that which comes with Vanguard 80 - not sure I'd be out looking for more exposure.

Gadfium

mark88man wrote: »

Many would advise that going into bond funds is not a great idea at the moment given that interest rates may rise and capital value will fall if they do

I wouldn't hold my breath on that. i think that they are more likely to fall in the short term. In the medium term (6-12 months) I don't think that they will rise much, it at all. maybe .25%

mark55man

That's true - and with a global fund you may even find some areas where rates are decreasing and potential for capital gain exists.

I just think this is an area (like technology) were the odds are against you unless you are very savvy

mark55man

Very timely - this supports that maybe bond is not an immediate to be avoided

http://www.thereformedbroker.com/2013/04/08/merrill-how-to-play-the-bond-market/

However it does suggest caution with High Yield and Emerging Markets

takesyourchances

Well my drip feeds went today for the first of the new tax year, £250 to my VLS 60% and £250 spread across my side funds, £100 of which is starting the First State Asia Pacific Leaders and 3 other side funds £50 each.

So good to get starting again in the next tax year. Next month, I think I will most likely drip £250 to my VLS 60% and drip another £100 between 2 side funds, I will rotate my drips between the side funds each month and bring the side funds to the same level invested and keep the main core drip into the VLS 60%.

In previous posts, I will steer away from a Tech fund I think. I looked at Healthcare, there looked to be a couple of interesting funds regarding that sector, any thoughts? also considering a UK small Cap, to balance out my other small cap exposure.

But all in all, I need to balance what I have out and rise my VLS core up so glad to be started again with these drip feeds taken today.

Thanks.

edinburgher

Just put our monthly payment into LS100 up to £172, topped up a few hundred quid before the end of the last tax year as well :beer:

Currently reading Smarter Investing: Simpler Decisions for Better Results - really shoring up my confidence in simplicity and common sense...

bigfreddiel

i have a ls 60%

I also have my own version - based on etfs - 30% equities

Its only using four funds

its performing better than the ls 60%

i'm going to rebalance the equity portion up to 60%, change the bonds to short term 1-5yr vesions and see what happens

but actually you could be invested in anything for the last year and be showing a profit - how will things look during the coming downturn?

fj

takesyourchances

edinburgher wrote: »

Just put our monthly payment into LS100 up to £172, topped up a few hundred quid before the end of the last tax year as well :beer:

Currently reading Smarter Investing: Simpler Decisions for Better Results - really shoring up my confidence in simplicity and common sense...

Well done with your recent drip feed as well

I have read most of the Smarter Investing book as well, I still have a bit more to read to finish it but an excellent read and yes it really does help the confidence a lot with simplicity and common sense with the passive approach.

I think I am pretty much were I want to be with my set up, I have my few enhancer funds so to speak in small caps, some focus area in Asia, the Emerging Markets which is missing a lot in the VLS 60% but covered in the 100%, so raising my levels to were I want is really my game plan and drip away.

I think the main thing is to stay invested at all times, I will keep to my drip feeding and won't let the market movements change how I would drip feed, I will drip in each month and try and keep my allocations around the levels I would like them and I can just leave them to work away.

I am still adding into my cash ISA so have enough of a cash buffer to leave my S&S ISA alone.

Enjoy the reading I think it really is very good.

bowlhead99

mark88man wrote: »

Many would advise that going into bond funds is not a great idea at the moment given that interest rates may rise and capital value will fall if they do

Mine was not a suggestion to buy bonds or not buy bonds per se, simply that if you want 10% of them in your portfolio, then using a strategic bond fund that attempts to consider whether to be in gilts or investment grade bonds or junk bonds at a point in time, rather than just an index of the largest /lowest risk bonds, might be a way to go.

I agree with the comment about current bond prices - a 10 year gilt only yields the same as a cash isa, and the gilt value is only likely to fall from here while the cash isa will not. There is more than one way to achieve a risk balance.

Despite the fact that the only way for bond prices to go is downwards in the medium term, the downwards would be less severe than potential downside of equities which in UK and US approach all time highs even with recession and all the global uncertainty. So it would be quite cavalier to be 95-100% in equities right now to the exclusion of bonds.

Nothing is reckless in moderation.

takesyourchances

bigfreddiel wrote: »

i have a ls 60%

I also have my own version - based on etfs - 30% equities

Its only using four funds

its performing better than the ls 60%

i'm going to rebalance the equity portion up to 60%, change the bonds to short term 1-5yr vesions and see what happens

but actually you could be invested in anything for the last year and be showing a profit - how will things look during the coming downturn?

fj

All sounds good with your set up. If there is a downturn, long term passive investors I think should just switch off and keep to their game plans and stay invested. See it as a chance to buy in more at lower priced times. As in the smarter investing book, a man who eats hamburgers his whole life does not want to be buying them at the top price :rotfl: ......simple, but great line

I think this is were the regular drip feeding and long term approach comes in and you do not need to access the funds by having enough of a cash back up.

Thanks