Vanguard Life Strategy

bertpalmer

Why don't you call them?

grey_gym_sock

it won't show up immediately, because they don't know how many units your cash will buy until vanguard tell them.

is there is pending order (or something like that) for buying VL80?

tashalove

grey_gym_sock wrote: »

it won't show up immediately, because they don't know how many units your cash will buy until vanguard tell them.

is there is pending order (or something like that) for buying VL80?

No, there is just a message saying that they can't display stocks etc at the moment. When I opened the account, do I have to deal myself? Or is it done for you? I'm sure the letter they sent me said I had applied for stocks shares USA and the vl 80 fund.

antonius.natale

Thanks to all for this thread. The Vanguard Lifestyle funds have to be one of the best investment options available today.

However, there are a few questions I was hoping the forum could answer:

1. How is the US vs UK Vanguard Lifestyle fund different. Looking at the total value of these funds, the UK version is quite a lot smaller e.g the Equity 100% version is only £56million.

2. I see the value of the automated re balancing and inclusion of bonds, but the UK version are only UK bonds.
To ensure proper global bond diversification, would it not be better to invest in the Vanguard Lifestrategy 100% equity AND Vanguard Global Bond index in the ratio that suits a person's risk?

3. From reading all the posts in this forum, it appears the two best options for investment are either Hargreaves Lansdown (HL) or TD Direct.
To clarify their expenses,
HL - opening an account is free. Minimum investment in vanguard funds is £500 or this can be set up with direct debit of £50 minimum. There is a £250 minimum for any top up.
HL charges £2/month for any vanguard fund.
In addition to the initial purchase fee of 0.25%.
So for a year, on e.g a lump sum of £10,000 invested the total cost should be (£2x12 months) + 0.25x10,000 / 100 = 24 + 25 = Total £49

Can anyone make a direct comparison with TD?

4. While I have been reading and researching a lot about Vanguard, I can't see any better alternatives.
The US has a service called Betterment which looks quite impressive but is not available in the UK yet.
I'm open to any other suggestions on investment options that would be better than Vanguard based on long term (15+ years investment accepting medium - high risk).

AlwaysLearnin

There is a 0.35% platform fee coming in on TD in August for these:

http://www.tddirectinvesting.co.uk/investment-choices/funds-unit-trusts-and-oeics/rdr-important-info/

Also, HL fee structure may be changing in the not too distant future:

https://forums.moneysavingexpert.com/discussion/4568805

MoneySaverLog

I like the look of this fund, best I've seen so far and seems be made up of a good ready made mixed and well balanced portfolio. Far too many funds to go through so picked this one in the end for the core of my holdings in my ISA and entire secondary SIPP

Totton

antonius.natale wrote: »

1. How is the US vs UK Vanguard Lifestyle fund different. Looking at the total value of these funds, the UK version is quite a lot smaller e.g the Equity 100% version is only £56million.

The US equivalent has been running longer, the last time I looked they didn't do a 100% VLS in the US, there was some writing about the UK being more risk tolerant so they started a 100% version just here.

2. I see the value of the automated re balancing and inclusion of bonds, but the UK version are only UK bonds.
To ensure proper global bond diversification, would it not be better to invest in the Vanguard Lifestrategy 100% equity AND Vanguard Global Bond index in the ratio that suits a person's risk?

Depends if you want to do the extra work, I prefer to leave it Vanguard so moved from the 40% VLS last Autumn and now hold the 80% VLS. Happy to move either way if my view on bonds changes.

3. From reading all the posts in this forum, it appears the two best options for investment are either Hargreaves Lansdown (HL) or TD Direct.
To clarify their expenses,
HL - opening an account is free. Minimum investment in vanguard funds is £500 or this can be set up with direct debit of £50 minimum. There is a £250 minimum for any top up.
HL charges £2/month for any vanguard fund.
In addition to the initial purchase fee of 0.25%.
So for a year, on e.g a lump sum of £10,000 invested the total cost should be (£2x12 months) + 0.25x10,000 / 100 = 24 + 25 = Total £49

Can anyone make a direct comparison with TD?

Not me I'm afraid, I use just one VLS fund with HL and am happy to pay £24 p.a. for it.

4. While I have been reading and researching a lot about Vanguard, I can't see any better alternatives. The US has a service called Betterment which looks quite impressive but is not available in the UK yet. I'm open to any other suggestions on investment options that would be better than Vanguard based on long term (15+ years investment accepting medium - high risk)

When stock markets are in good times then I would also go for some growth funds as these tend to do better than a tracker during those times. I aim for 50 - 65% in a VLS, at the moment it is around 70% and I intend to cut it back to 50% shortly.

Best Wishes,
Mickey

JohnRo

antonius.natale wrote: »

Can anyone make a direct comparison with TD?

Charles Stanley? I switched my ISA to them for this year and probably next, 0.25% platform charge is cheaper than TD (come August) and their website and user portal is far superior to all the others imho, and I've tried most.

The draw back at present is that they don't have a monthly savings plan via DD but it's coming soon, and also the minimum investment level for any fund is £500.

That said they're the only retail platform properly RDR ready, you can't get anything but clean funds from them. I've been impressed with them so far and the customer service has been excellent thus far.

As for alternatives to Vanguard, CS have the Blackrock class D trackers and the concensus funds

marathonic

I'll be keeping an eye on this thread with interest.

I'm currently replenishing my Cash ISA emergency fund having liquefied all savings and investments for a house deposit last December.

I also have £500 in a Fidelity UK All-Share tracker that I opened earlier this year to avail of the £100 Quidco cashback.

When my Cash ISA is fully funded, I'll be keeping an eye on these funds and the various providers platform charges - they should have changed to their new formats by that time.

If the best platform has flat charges, like HL's £2 per month, I'll consider sticking with Fidelity until the fund is above £10,000. After all, with below £10,000 it won't be too risky not being diversified to the extent that I'd like to be (given that a 10% drop only represents a months savings). Also, the 0.3% TER for the Fidelity fund is pretty good.

FatherAbraham

marathonic wrote: »

I'm currently replenishing my Cash ISA emergency fund having liquefied all savings and investments for a house deposit last December.

You liquified your investments!?

Like, your portfolio melted down? ;-)

Warmest regards,
FA