Vanguard Life Strategy

tashalove

Thanks guys for all the advice. I think I will take the plunge and go with the VL 80% as it is more suited to my interests. However, I can change this to another Life Strategy fund if my circumstances change in the future right?

Also, I'm planning to just make the regular payments and leave this. I don't intend to keep a close eye on fund as I'm worried I might turn insane and succumb to the fear when the value drops. Is this what everyone does or do you keep an eye on the market all the time?

Oh, just to check I can still fill up the Cash part of my ISA while making regular payments to my S&S right?

brasso

blizeH wrote: »

I've already put my entire allowance into the VLS 80% - and already regret it...

The idea of a fund like Lifestrategy is buy and forget. You've bought -- now forget, for at least a year anyway. Nothing wrong with peeking in 12 months to decide whether to add to it.

If you are scared of possible volatility then next year, do what some on this thread are doing and drip-feed i.e. put in a fixed amount each month. In this way you'll be buying more shares when the market drops.

colinjd

I just wanted to say a big 'thanks' to everyone that's contributed to this thread.

Like a number of people here, I'm a newbie when it comes to this type of investment and the information that's been provided has been very useful in helping me understand some of the terminology, the strategies that people employ and some of the pitfalls that can be avoided.

Whether I avoid those schoolboy errors is another matter! I think it's unlikely I'll get away without the odd scratch or two but hopefully what's been said here will help keep the blood-letting to a minimum!

Thanks, all.

esmecullen

latecomer wrote: »

All the theory goes out the window if the latter isn't true

true..............if that did happen then its down to me............my view is nothing ventured, nothing gained................I'm in it for the long run

latecomer

tashalove wrote: »

Also, I'm planning to just make the regular payments and leave this. I don't intend to keep a close eye on fund as I'm worried I might turn insane and succumb to the fear when the value drops. Is this what everyone does or do you keep an eye on the market all the time?

Oh, just to check I can still fill up the Cash part of my ISA while making regular payments to my S&S right?

It called passive investing as you are not meant to do anything with it other than pay in

You can still pay into a cash ISA provided you dont exceed the maximum which is £5,760 for the cash ISA and a total for both of double this (£11,520) although you can have any amount up to the maximum in the S&S ISA subject to any funds you have paid into the Cash ISA.

tris39

I have been reading this thread with great interest... I am thinking of investing in the Vanguard 60 or 80 as my first step into investing using my allowance of an S&S ISA with opening an S&S ISA with HL with a lump sum, I have already used the Cash amount with Barclays. I assume this is ok?

Deciding between the Income based and Accumulation versions. I know the amounts will be small; but is it possible to trickle feed another fund from the income of the Vanguard within the same ISA Wrapper, even this needs to be periodically allocated by myself?

Thanks

Hopefully that makes sense.

PParka

tris39 wrote: »

I know the amounts will be small; but is it possible to trickle feed another fund from the income of the Vanguard within the same ISA Wrapper, even this needs to be periodically allocated by myself?

Yes, this is possible. If you're using HL then you can set the income from Vanguard to be held on account. The income is still in your ISA and is avaliable to invest in whichever funds you choose.

JohnRo

Practically though its unlikely as it would require a good few years of ISA contributions in any VLS fund to be able to provide enough of an annual dividend.

A regular contribution into a second fund would have a minimum requirement of £50 pcm (I don't use HL but that seems the norm elsewhere).

VLS80 yields around 1.6% annually (historically) so a [STRIKE]£1200[/STRIKE] £600 dividend payout needed as a minimum to use for feeding monthly into a second fund requires around [STRIKE]£75K[/STRIKE] £38K invested in the VLS

AlwaysLearnin

JohnRo wrote: »

VLS80 yields around 1.6% annually (historically) so a £1200 dividend payout needed as a minimum to use for feeding monthly into a second fund requires around £75K invested in the VLS

Would it not be £600, i.e. £50 p/m for 12 months? 1.6% also sounds pretty low yeild for the fund.

One way or another, you won't be able to monthly on a first year ISA allowance amount.

JohnRo

AlwaysLearnin wrote: »

Would it not be £600, i.e. £50 p/m for 12 months? 1.6% also sounds pretty low yeild for the fund.

One way or another, you won't be able to monthly on a first year ISA allowance amount.

I knew what I meant, shame it didn't look the same written down

** 1.6% is quoted on a few websites. Bloomberg has it at 1.64% (the last dividend paid out being 1.9%)